atc006.pptx

download atc006.pptx

of 35

description

Myanmar Pharma Data

Transcript of atc006.pptx

PowerPoint Presentation

1

New Business OpportunitiesOpening ofMyanmarMarket25th October 2013Tatmataw Hall, Yangon

It is indeed an honor and pleasure to have an opportunity, being invited to speak on Opening of Myanmar Market; New Business Opportunities at this important event. Thanks to the organizers, Confederation of India Industry, Ministry of Commerce & Industry, Government of India for your invitation and warm hospitality extended to us.12Opening Myanmar Market : New Business OpportunitiesPresentation OutlineMyanmar in BriefCurrent Myanmar Economy Outlook (Trade & Investment)Foreign Investment Law InformationInvestment Opportunities in Myanmar (By Sector)Manufacturing Sector in MyanmarSpecial Economic Zones in MyanmarConclusionThis presentation is divided into 7 sections. The outline of the presentations are

Myanmar in BriefCurrent Myanmar Economy Outlook (Trade & Investment)Foreign Investment Law InformationInvestment Opportunities in Myanmar (By Sector)Manufacturing Sector in MyanmarSpecial Economic Zones in Myanmar andConclusion

In the next section, I will be briefing you about Myanmar.2Nay Pyi Taw A N D A M A N S E A B A Y O F B A N GLKACHIN STATE CHIN STATE SHAN STATE KAYA STATE K A Y I N S T A T E MON S T A T SAGAING DIVISION MAGWAY DIVISION BAGO DIVISION YANGON DIVISION M A N D A L A Y D I V I S I O N A Y E Y A R W A D Y D I V I S I O N T A N I N T H A R Y I D I V I S I O N CHINA LAOSTHAILANDINDIA BANGLADAHS YangonThe Land: The largest country on the mainland of South east Asia.Total land area: 676,577 sq. km50% mountains and forests (northern and eastern)Total coastline: 2,832 kmTotal international borders of 5,858 km

Population: 60.97 millions (Male 49.43% & Female 50.57%)Growth Rate: 1.84%Literacy Rate: 89.9 % GDP: USD 89.23 BillionGDP per capita: USD 855GDP Growth Rate : 7.6% (2012 2013)Inflation : Remained Single digit Since 2009 (3% to 5%)

3The Republic of the Union of Myanmar3Myanmar is a rising star of Asia and the world is looking as a new Myanmar. Let me brief you about Golden Myanmar. It is the largest country on the mainland of S.E Asia in terms of area, 676, 577 sq Km 50% cover with mountain and forest. Population is estimated 60 million with growth rate of 1.84% in year 2012. GDP was USD 89.23 million and GDP per capita was USD 855 expected to grow minimum USD 1000 in year 2015. Inflation remain single digit since 2009 at around 3 to 5% .Policy and Economic Landscape in MyanmarChanges in Local : Policy ReformsChanges in Region :

Strategic Potential, GMS Economic Corridors, Deep Sea PortsSpecial Economic Zones, Special Industrial Zones (Pa-an in Karen State) and Local Industrial Zones

4After 50 years of isolation, Myanmar door has been unlocked

Elected civilian Government is moving towards to democratization process since 2011 march and taking necessary reform measure of political, administrative social as well as economic policies reform.

Actively participate in promoting and strengthening regional cooperation, connectivity and stability

Myanmar will be taking the ASEAN chairmanship in 2014 and can lead to successfully establish the ASEAN economic community (AEC) in 2015 which is one of the vision of ASEAN.

Strategic potential, GMS Economic Corridor and construction of Deep sea port.

Construction of Special Economic Zone, special industrial Zone (Pa an and Karen State) and Industrial Zones are already taken place for the promotion of regional and international trade and investment.

These are the development process and attractive factors for the foreign investors eyes.4 Reviewing Myanmar Strategic PotentialIndia1.2 bilChina1.3 bilBangladesh158 milLaos 7 milThailand 67 milTotal People2.8 bilIndia$4,060 blnChina$10,090 bilBangladesh$258 bilLaos $15 bilThailand $622 bilTotal GDP(ppp)US$15,088 billionWorld Factbook

$76.5 bil

60 million28th Most Populated, 40th Largest in the world and 2nd Largest in ASEAN41%Worlds Population17%Worlds GDPSource : The World Factbook 201155Myanmar is attractive investment destinations for overseas investors due to its strategic location in the region and huge market potential. It rank 28th most populated country with over 60 million, 40th largest in the world and 2nd largest in ASEAN in term of areas. Myanmar is surrounded by populated countries such as India, China, Bangladesh and Thailand and population of these countries combined up to 41% of worlds population. In term of GDP is 17% of worlds GDP.

Considering the cross border transport infrastructure in East Asia, Myanmar is crucial in connecting China, India and ASEAN Countries.

Double Taxation Avoidance Agreement With : ThailandSingaporeMalaysiaIndonesiaVietnamPREFERENCES

ASEAN FREE TRADE AREA AFTAASEAN ECONOMIC COMMUNITY - AECASEAN COUNTRY OF ORIGIN (CO)ASEAN INTEGRATION SYSTEM OF PREFERENCES (AISP)ASEANS & WTOS SPECIAL AND PREFERENTIAL TREATMENTS TO MYANMARRegional Markets OpportunitiesOver 600 millions Population6As a member of ASEAN and WTO, Myanmar enjoy many special preferential treatment:

Double taxation avoidance

AFTA, AEC, ASEAN Country of Origin (CO), AISP, ASEANs & WTOs special and preferential treatments to Myanmar6MYANMARThaiCambodiaLaoVietnamChinaJapanKoreaMalaysiaSingaporeBruneiPhilippinesNepalIndiaBangladeshBhutanSri LankaRegional Connectivity & Emerging TrendsASEAN, ASEAN+3, GMS, BIMSTECHarmonized Rules and Regulations and Free Trade & Services DevelopmentACMECAyeyarwady, Chaopya,Mekong EconomicCooperation StrategyASEAN (AEC -2015)ASEAN+3

GMSGreater Mekong Sub-regionBIMSTECThe Bay of Bengal Initiative for Multi-Sector Technical and Economic CooperationMyanmar is involved in four important agreements with regional and neighboring countries; namely GMS, ACMEC, ASEAN and ASEAN+3 and BIMSTEC.

These agreements will enable Myanmar to expand its connectivity with regional countries, allowing for more bilateral trade and investment. 7GMS Highway

North-South CorridorEast-West CorridorSouthern CorridorNorthern CorridorWestern CorridorCentral CorridorEastern CorridorSouthern Coastal CorridorNorthEastern CorridorKunming-BangkokMawlamying-DanagDawei-Quy NhonFangcheng-TamuTamu-MawlamyingKunming-SallahipKunming-Ho Chi MinhBangkok-Nam CanNanning-Bangkok- The slide shows you the evolution of GMS connectivity in terms of sub-regional roads, telecoms links and power transmission interconnection.

- GMS (9) corridors interconnect 6 countries in the Greater Mekong Region89Current Myanmar Economy Outlook (TRADE)Top Ten Export & Import Items of Myanmar(2012-2013)No Items Value ( USD Million)Percentage (%)Items Value ( USD Million)Percentage (%)1Natural Gas 3060.9340Petroleum Products 1597.73202Pulses & Beans 825.7811Vehicles & Spare Parts 1243.56153Garment 592.01 8Construction materials 704.0594Marine Products 559.247Iron and Steel Materials495.5965Forest Products 527.147Machinery and Spare Parts352.0146Rice 451.86 6Palm Oil281.6337Jade 319.23 4Plastic Raw Materials268.3638Sesame 218.56 3Ships, Boats and Spare Parts249.3839Rubber 217.123Pharmaceuticals239.84310Maize154.632Fertilizers 150.522Total Exports7612.68Total Imports8192.04Source : Ministry of CommerceThis is the table showing top ten export and import items. Natural Gas, being the 40% of total exports, goes mostly to Thailand. If you compare the exports and imports items, we mostly exports basic materials for different industries and buy back the raw materials & finished goods to use in local industries.

Looking at the table, we can see that we need more value-added industries & services in Myanmar.910Top Ten Trading Partners of Myanmar(2012-2013)Figures in USD MillionSource : Ministry of CommerceThis slide show top ten trading partners of Myanmar. Thailand and China are top rank for trading. India ranks 5th on this list. 1011Current Myanmar Economy Outlook (INVESTMENT)Foreign Investment of Existing Enterprises by CountryAs of (31/08/2013)No.CountriesPermitted Enterprises %No.Approved Amount1.China3014,110.98441.972.Hong Kong406,353.46418.903.Republic of Korea702,966.2598.824.Thailand302,871.6838.545.U.K282,493.2227.426.Singapore572,099.1696.247.Malaysia191,028.1923.068.Vietnam6511.1861.559.France1465.0001.3810.India8278.6000.8311.Japan26171.3390.51Source : Directorate of Investment and Company AdministrationFor Complete list, please visit : www.dica.gov.mm/dicagraph1.htmFigures in USD MillionThere are altogether 32 countries which are investing in Myanmar. Among them, India ranks 10th, staying above Japan. As a technologically advanced and neighboring country, we would like to invite India to Myanmar to explore the more business opportunities.11Foreign Investment of Existing Enterprises by Sector (31/08/2013)No.ParticularsExisting Enterprises %No. ApprovedAmount1Oil & Gas6413.630.10240.542Power513,207.92139.293Mining92,304.4966.854Manufacturing1852,201.1466.555Hotel & Tourism331,339.6753.986Real Estate9347.8701.037Industrial Estate2179.1130.538Agriculture7156.6700.479Transport & Communication7137.6760.4110Livestock & Fisheries888.0620.2611Other Services1025.2670.08Total33933,617.997100Source : Directorate of Investment and Company AdministrationFigures in USD Million12This slide indicate sector-wise foreign investment. Recently, Investment in oil and gas sector has climbed to the top place with 40.54% of total foreign investment. 1213Criterion for Foreign InvestmentSafeguard of environment conservationTransparency and accountability in financial mattersCreate job opportunities Abide existing labor lawSupport corporate social responsibilities consistent with regional and international standard and agreementsTransfer of TechnologyEncourage and create level playing field among investorsLets first present you with criterion for foreign investment.1314Highlights of New Foreign Investment LawThis slide show you some incentives under FIL.1415MIC will consider investments based on the priority industriesLabor intensive IndustriesValue-added industriesIndustries that contribute to living standard of Myanmar in all aspectsCapital intensive industriesAdvanced Technology industriesGoods & Services which focus on welfare of citizensMyanmar Investment Commission will consider investment based on the mentioned priority industries. 1516Let me present you information on leasing, mortgaging, share transfer & transfer of business under Foreign Investment Law.16Land LeaseInvestment Law

50 Years(For Initial Period)10 Years(First Extension)10 Years(Second Extension)Depending on the business, type of business and investment amountLand Lease1718Few Tips for Myanmar Business EnvironmentLocal currency is Myanmar Kyat and it is around K 960 per USD.Corporate Tax is 25% of total profit annually. 5% Commercial Tax for imported items and products outside industrial zones. 3% for products produced in industrial zones. Items such as alcohol, cigarette etc. subject to much higher tax rate. Average workers monthly wages is around K80,000 per month without OT.Current commercial and industrial land depends on the location and prices are rather high at this moment.Bank deposit rate is 8% and lending rate is 13%. (Lending rate for SME 8.5%)Electricity rate is K50 for resident & K75 for businesses.

Let me share some few tips for Myanmar Business Environment.1819Investment Opportunities in Myanmar(By Sector)MatureGrowingStarsAgricultureEducationGarments & CMPAutomobilesFisheryHotel & TourismOil & GasElectronics and AssemblyForestryHospitalityEnergy & ElectricityBiotechGemsHealthcare & BeautyIT & TelecommunicationInsuranceJob AgenciesFood and Consumer goodsBanking & FinanceInvestment FirmsCommoditiesMining & MineralsLogisticsReal Estate & PropertyPharmaceuticals AgencyConstructionIndustrial SuppliesInfrastructureLet me share the present situation of sectors which have business opportunities in Myanmar.1920AGRICULTURE SECTOR Countrys Total Area : 676,590 km2 Land Area : 653,520 km2Water Surface : 23,070 km2

Agriculture is a vital source of income for Myanmar, making up 36% of GDP and 28% of exports value for 2012-2013.Agricultural Land : 119,840 km2Agriculture sector being the mainstay of Myanmar Economy is accorded first priority sector contributing about 36% of total GDP in real term and about 22% of foreign exchange earning. At present, total cultivated land is about 19.39 million hectares and only 13.15 million hectares are currently in use.

Myanmar is thriving to become Food Basket of Asia in the future, producing surplus food for the region.2021Livestock and Fisheries Sector

Continental Shelf area:228,781 km2

Length of coastline:2,832 km

Swamp Land:0.5 Million Hector

Production (2012)Over 4.1 Million tons

Exports (2012-2013) 559 USD Millions5th largest contributor to GDP

Foreign Investment:USD 88.062 Million as of 31/8/2013Livestock and Fishery Sector is ranked fifth among all sectors in its contribution to the Myanmar Economy. Myanmar has productive deep water and inland resource with production of 1.05 million metric tons per year of fish and fish products. Fisheries resources are currently being used at less than 60% of their sustainable yield levels, providing great opportunities for growth. 2122FORESTRY SECTORAccording to FAO, 48.3% or about 31,773,000 ha of Myanmar is forested.

Major exporter of teak in the world, takes up 75 percent of the world market.

About 7% of Total Export.

Potentials for Value added production of other Forest Products:Bamboo, Cane, Rattan

Forestry sector : About 85 species are recognized as being able to produce timber of good quality. Development of wood-based industry is a crucial aspect of the forestry sector. The timber and wood products will be no longer permitted to export in log form but only in some sort of value-added products. 22

23MINERAL SECTOREasternHighlandsCentral BeltWesternRangesLead,ZincCopperSilverTungstenAntimonyIronPorphyryCopperGoldCoalOil & GasNickelChromitePGMJade is seventh largest export item with the amount of over USD 319 Millions. 2.8 Billion USD investment by 67 Enterprises.Myanmar is rich in minerals, both of metallic and non-metallic minerals. Much can further be developed in these field and many are yet to be explored. 23

24OIL & GAS SECTOR244 offshore projects are currently operated by Foreign Firms.USD 4.1 billions are expected from Gas Exports in 2013.53 onshore & 51 offshore blocks available for JV With foreign companies.Myanmar offshore reserves are estimated to be 71 Trillion cubic feet (tcf).Estimated crude oil reserves is 540 MMBL.Ministry of Energy has invited foreign oil companies for exploration and development. At present, a number of international oil companies have been permitted under production, sharing, exploration contracts for petroleum. There is great potential for further onshore and offshore exploration and development.2425TOURISM SECTOR

Annual Tourist Arrival2010:791,5052011:816,3692012:1,058,995Booming sector after reformCountryHotel/Apartment Investment in USD MillionSingapore12597,756Thailand11263,250Japan6183,013Hong Kong477,000Malaysia220,000British13,400Total361,144,419Myanmars Tourism sector is poised to flourish as travel restrictions are abandoned and infrastructure improved. Myanmar is blessed with a breath-taking natural environment ranging from snow-capped mountains to pristine beaches and tropical forests to archipelagos. From the time Myanmar steps into new era, tourism sector is boomed and improve earnings in past two years.2526Manufacturing Sector in MyanmarThis slide will show you different industries in Manufacturing Sector.2627 A N D A M A N S E A B A Y O F B A N GLKACHIN STATE CHIN STATE SHAN STATE KAYA STATE K A Y I N S T A T E MON S T A T SAGAING DIVISION MAGWAY DIVISION BAGO DIVISION YANGON DIVISION M A N D A L A Y D I V I S I O N A Y E Y A R W A D Y D I V I S I O N T A N I N T H A R Y I D I V I S I O N CHINA LAOSTHAILANDINDIA BANGLADAHS 34 Industrial Zones in Myanmar20 Industrial Zones in Yangon State3 Industrial Zones in Ayeyarwaddy State1 Industrial Zone in Chin Division3 Industrial Zones in Mandalay State1 Industrial Zone in Shan Division2 Industrial Zone in Magway State1 Industrial Zones in Bago State1 Industrial Zone in Mon Division1 Industrial Zone in Tanintharyi State1 Industrial Zone in Sagaing StateAccording to Ministry of Industry, there are total of 34 industrial zones operating in Myanmar. Most of the industrial zones are located in Yangon since Yangon is the business center of Myanmar. 7 more industrial zones are developing in process.2728Manufacturing SectorMonthly wage for Mfg WorkerUSD 68Office Rent per Sq. MeterUSD 23Mobile Phone charges per minuteUSD 0.30Corporate tax25%With a sizeable working population, low minimum wage, the presence of raw materials, and a strategic geographic location, Myanmar is well suited for industrial development. If local companies cannot develop value-added manufacturing process to maximize the profitability of key raw materials, international firms will have to fill in the role.

28Sectors Distribution of Registered Industries in MyanmarAs of 30/01/201329By sectors distribution of Registered industries in Myanmar.2930Special Economic Zones in Myanmar

Kyauk Phyu

ThilawaDaweiIncentives under SEZ LawImported raw material Machineries Equipment Machineries Vehicles

Tax holiday- 5 yearsSecond 5 years - 50% relief on income tax overseas sale products Third 5 years - 50% relief on income tax reinvestmentobtained from export sale

Export Processing Zone5 yearsCurrently there are three special economic zones to be developed. Thilawa SEZ : the most important, located 20 km away from our commercial capital of YangonDawei SEZ : It aim to connect South West China and the rest of South East Asia with Sub-continent, middle east and Europe. Without having to go through Malacca straits, save time and money. Dawei SEZ have the potential to become another Singapore.Kyauk Phyu : Along with Gas and Oil pipeline to Kumming and deep sea port to be developed in the near future. With the Special Economic Zones Law enacted on 27th January 2011, it is aimed to promote a competitive business environment inducing long-term foreign investment and incentives including;Competitive Tax BenefitsRelaxation of Foreign Exchange Control OSS with full autonomy for issuing all business permit and licensing30

DAWEI Special Economic ZoneConceptual Plan

DAWEIA New Global Gateway to Enhance ASEAN Economic Landscape31Developing by Myanma Port Authority and Italian-Thai Development Public Co., Ltd, Dawei SEZ will serve as Regional Operation and Logistic Hub. Expected to be ready by 2016, Dawei SEZ will have basic infrastructure such as :World class multi purpose deep sea portsHighway & Rail Links to ThailandElectricity from own sourcesAbundant water supply & treatment system

With its strategic location as new gateway of the Indo-China Region, it connects to vast transportation networks from China and Sub-Mekong Region to India, Africa, Middle East & Europe.

Dawei SEZ Land Area is NOW available for immediate reservation for potential investors. 31

In the SEZ plan, SEZ and industrial zones will be as follows;Special Industrial Zone (for FDI)- 2400 hectaresLocal Industrial Zone- 430 hectaresSingapore Myanmar Development (SINMARDEV) Industrial Zone -247 hectaresSea ports and container yardThilawa Special Industrial Zone 3,170 hectares

32Joint Venture Corporation between Japan and Myanmar to develop 24,000 hectares, first phase to be 450 hectares and targeted to operate by end of 2015.

The Thilawa SEZ project, which comprises high-tech industry, textile, labor-intensive industry and manufacturing industry will be jointly developed by Myanmar and Japan with Myanmar holding 51% stake and Japan with 49%.

32

Thilawa SEZ34Conclusion - Why Myanmar?

After 50 years of isolation, Myanmar door have been unlockedOn the new path of becoming democratic nationSanctions are moving awayActing integration into international and regional communicationStriving to meet Millennium Development Goal.More International Investments are approaching.Overwhelmed by the political and economic reformGearing up for SEA Games 2013, ASEAN Chairmanship 2014 and AEC, AFTA 2015Myanmar will be the biggest treasury land for the investors

This slide show you some strong reasons for investment in Myanmar.3435Thank you for your kind attentionU Aye Tun (Joint Secretary)[email protected]