- Foreign investments in the manufacturing sector constituted 18.7% of the total investment approved by the government.
- In March 2015, the government introduced its first National Export Strategy (NES) to boost the country’s exports.
- Key trade sectors such as garments and textiles, rubber, beans, rice, oilseeds, fisheries and forestry products needs to be aided which is the motive of the above strategy introduced by government.
Ken Research recently announced latest report on, “Construction in Myanmar-Key Trends and Opportunities to 2020” which discusses detailed analysis of infrastructure construction projects and the leading players. Report also provides insights on operating environment of construction industry in Myanmar. It also provides information about Myanmar’s infrastructure construction value chain. Report sheds light on how the existing players can use this information to gain the competitive edge in the market. The report enables the reader to interpret future outlook on how the market will shape up by the end of this decade.
It is projected that during 2016-2020, Myanmar’s construction industry will continue to expand. Growth will be triggered due to improvement in economic conditions, government investments for the evolution of public infrastructure projects and uplift in foreign investments. Government flagship programs such as the National Transport Master Plan, National Export Strategy (NES) and National Electrification Plan are the major contributors for industry growth for 2011-2015. However, the underdeveloped regulatory and financing environment and a lack of transparency in the tendering process will prevent the construction industry from expanding at a faster pace. There was revision in the country’s foreign investment law in 2012, allowing foreign investors to own up to 50% of all joint ventures by the Myanmar Investment Commission (MIC). This move is expected to fasten the pace of foreign investment. Mismanagement of national finances is the major cause of trouble in economic growth and Myanmar is also affected external debt, tax evasion and corruption. A need has emerged for the Government efforts to balance demand and supply for housing through the construction of affordable housing units. Government has gone through a great transformation shifting from military rule to more domestic type. Political reforms were introduced and opened the doors for foreign investment, due to which it issued oil and gas exploration licenses to Chevron and Shell.
With the aim of renovating the country’s transport infrastructure, the government is implementing the National Transport Master Plan 2014-2030, for a total investment of MMK26.7 trillion (USD 26.8 billion). Of the total, MML11.7 trillion (USD 11.7 billion) will be allocated for the development of road infrastructure, MMK6.5 trillion (USD 6.6 billion) for rail infrastructure, and MMK8.5 trillion (USD 8.5 billion) for inland water, seaport and airport infrastructure. In order to amplify the country’s tourism sector, the government launched the Tourism Master Plan for 2013-2020. It has set a target to attract 7.5 million tourists by 2020. According to the Ministry of Hotels and Tourism, tourist arrivals reached 3.5 million in 2014 and increased to 4.2 million during January-November 2015.
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Ankur Gupta, Head Marketing & Communications