Transcript Latest Update & Developments in Myanmar

Latest Updates & Developments
in
Myanmar
By Dr. Htin Kyaw
YEE YEE TUN INT’L CO., LTD
7/17/2015
GENERAL MACRO ECONOMY
• As of August 2014, Foreign Direct Investment was up to
$49 billion in 12 sectors
• Energy Sector has received the most foreign investment
up to 41 percent of total
• CHINA is the largest investor of Myanmar with more than
US$ 14 billion and Thailand is the second largest investor
• As of June 2014, 720 foreign businesses had received
permission to invest in Myanmar
• General Election will be in 2015
INTERNATIONAL BANKS
• 9 International Banks have been granted preliminary approval
to operate in Myanmar from October 2014 (with some
restrictions)
• Australia and New Zealand Banking Group Limited (ANZ)
• Bangkok Bank
• Bank of Tokyo-Mitsubishi UFJ (BTMU)
• Industrial and Commercial Bank of China (ICBC)
• Malayan Banking Berhad (Maybank)
• Mizuho Bank
• Oversea-Chinese Banking Corporation (OCBC)
• Sumitomo Mitsui Banking Corporation (SMBC)
• United Oversea Bank (UOB)
ELECTRICITY SUPPLY
• One of the major issues - Electricity supply shortage, has
been better than previous years
• But still having shortage and irregular supply at most of
the industrial zones
• Household Electricity supply has been improved a lot
and have almost 24 hour supply
• Discussing with Private Companies for the possibilities of
supplying electricity by Private-run Power Plants in 2015 -- for better and regular electricity supply to All industrial
zones
ELECTRICITY RATES
• Electricity Rates have been increased from March
2014 up to 2 times
•
•
•
•
•
•
1 to 500 units
501 to 10,000 units
10,001 to 50,000 units
50,001 to 200,000 units
200,001 to 300,000 units
300,001 and above
-
$ 0.075/unit
$ 0.100/unit
$ 0.126/unit
$ 0.152/unit
$ 0.126/unit
$ 0.100/unit
THILAWA SPECIAL ECONOMIC ZONE
• Total 30 Industrial Zones in Myanmar
• 19 Industrial Zones in Yangon
• Highlighted & Featured Industrial Zone -- Thilawa
Special Economic Zone
• located at 14 miles (23 km) South-East of
Yangon
• the first Special Economic Zone (SEZ) to be
built in Myanmar
• Some area will be (commercially)
operational from mid-2015
THILAWA SEZ (CONTINUED)
• developed by a Myanmar-Japan joint venture company with
the name of Myanmar Japan Thilawa Development Limited
• Mitsuibishi Corporation, Marubeni Corporation and Sumitomo
Corporation have been roped in to help create Thilawa , and
are set to claim 49% stake in the operations to run the 2,400-
hectare Thilawa SEZ
THILAWA SEZ (CONTINUED)
• Thilwa SEZ has done “Reservation Agreement” with
21 international companies for 51 Hectares of land
• received strong Letter of Intents to establish 251
manufacturing industries which include
•
•
•
•
•
automotive, auto-parts,
electrical products,
food, household goods,
garment, footware, gloves,
construction materials, etc.
BRIEF INFO OF
MYANMAR PLASTIC INDUSTRY
100% Import of all Plastic Raw material
Estimated Total Plastic Import – 200-250 kMT/Year
Estimated growth rate of 5-6% per annum
Until now, electricity supply shortage has been one
of the major issues for investments of high energy
consuming industries like Plastic Manufacturing
• But with the upcoming Hydropower projects, Gasbased Projects and Private-run Power Plants, we
believe electricity shortage problem will be
overcome soon in the coming years.
•
•
•
•
Estimated Plastic Consumption of Myanmar by 2013-14
PVC. 14%
PET. 5%
Others. 1.62%
LLDPE. 5%
PE 28%
HDPE.
20%
PP. 51%
LDPE 3%
PP
PVC
PET
Others
HDPE
LLDPE
LDPE
LATEST UPDATES IN
MYANMAR PLASTICS INDUSTRY
• Big Name Investments
•
•
•
•
Coca-cola
Pepsi
Nestle
Colgate
• Because of cheap labor, many Garment & Shoe
Factories have also invested to manufacture in
Myanmar.
• There is up to 339 Garment Manufacturers in
Myanmar and 266 of them are CMP Type (Cutting,
Making and Packing) – Export oriented.
• Increase in Infrastructure Building nationwide also
increase the demand of Pipes & Accessories
LATEST UPDATES IN
MYANMAR PLASTICS INDUSTRY
• hope to see the surge in demand for both rigid and
flexible packaging industry in coming years
• Trial-exports of Shopping bags to Japan since 2013
and the results are satisfactory
• Suzuki Motor will also have assembly line in Thilawa
SEZ and hope to see more automotive parts as the
second step of investment
PLASTIC EXHIBITIONS & FAIRS
• Yangon has also become under the spot light of
Many Industrial Exhibitions
• 2 upcoming Plastic exhibitions in Yangon in 2014-15
• Myanmar Int’l Plastics, Rubber, Packaging, Printing &
FoodTech Industrial Exhibition on 27th – 30th November 2014
• Myanmar Plast, International Plastic Exhibition by
Enterprising Fairs (INDIA) on 3-5th April 2015.