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The Republic of the Union of Myanmar 1. Overview Myanmar Is a Unitary

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The Republic of the Union of Myanmar 1. Overview For the role in the region and global Myanmar is a unitary parliamentary community, Myanmar is a large market with a republic. The parliament consists of House of dense population of around 56 million people. Representatives, House of Nationalities, and The country borders China, India, Bangladesh, Municipal Council. Members of Parliament Lao People's Democratic Republic, and come from elections, having the President as Thailand . Since Myanmar is located among the head of state and government. ASEAN and South Asian countries, it has the From the latest election, National advantage of trading, exporting, importing and League for Democracy (NLD) Party became the transiting goods across its border to various leader to form the government, and Mr. Htin countries. Moreover, it has plentiful natural Kyaw was nominated by the NLD Party as the resources, making Myanmar a good industrial new president, General Myint Swe as first vice production base. Myanmar’s economy was president and Mr. Henry Van Thio as second expected to expand by 7.8 % in 2016-2017. In vice president. 2016 (January to October), Myanmar was the th th Myanmar is Thailand’s neighboring 16 largest export market of Thailand (the 7 country with the longest borderline (2,202 in ASEAN countries). Thailand’s exportation to kilometers) and it has cooperated with Myanmar was worth around 3.439 billion USD, Thailand in many cooperation dialogues such with a decrease of 0.10 % year-on-year. as Greater Mekong Sub-Region Economic Cooperation (GMS-EC), Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS), and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). 2. Economic Indicators 2016 No. Economic Indicators 2014 2015 (Estimated) 1 Population (million)1 51.419 51.846 52.254 2 Economic growth rate (percent)1 8.0 7.3 7.8 3 Economic growth (million USD)4 63,135 65,775 71,275 4 GNI per capita (USD)1 1,278.71 1,291.96 1,416.39 5 Inflation rate (percent)1 5.9 11.3 8.5 6 Unemployment rate (percent)1 4 4 4 7 Government debt per GDP ratio3 29.73 32.04 N/A 8 Foreign Direct Investment (FDI) (billion USD)1 3.70 4.07 N/A 9 Current account (billion USD)4 -3.851 -5.867 -5.895 10 ODA to GNI ratio(percent)1 2.2 N/A N/A 11 Net capital reserves (million USD)2 4,751 5,075 N/A Source: 1) World Bank 2) Asian Development Bank 3) Central Statistical Organization, Myanmar 4) The International Monetary Fund 3. Country’s Competitiveness Policy After Myanmar’s continuous economic During 2015-2016, Myanmar was ranked and political reform, foreign countries started 131st out of 140 countries and 10th among to cancel their boycott on Myanmar. Myanmar ASEAN countries in the Global Competitive began to implement the free trade policy with Index by the World Economic Forum, with the groups of countries and multinational score of 3 .3 out of 7. Its GCI tended to be companies, especially with the countries not higher when compared with that of 2014 – likely to interfere with its domestic matters, th 2015 (ranked 134 out of 144 countries) and such as China, Russia and ASEAN. This has th 2013-2014 (ranked 139 out of 148 countries). attracted more investments from multinational th However, it ranked 134 for infrastructure, with companies. Moreover, Myanmar enacted the the score of 2.1 out of 7. This reflected that new Foreign Investment Law four years ago, Myanmar’s infrastructure still needed further which allowed foreigners to make 100 % development. investments in any projects, and receive tax incentives. From the enactment of this law, it 4. Government Policies was estimated that foreign investors in The new government under the Myanmar would increase significantly. In 2014, leadership of President Htin Kyaw with the the Burmese government started issuing support from Aung San Suu Kyi, the State licenses for foreigners to expand the large Counselor, Minister of Foreign Affairs, and the infrastructure businesses in many different leader of NLD party, aims to maintain the projects, such as telecommunications business economic growth rate, upgrade the industrial project (Telenor and Ooredoo), Thilawa sector and demolish corruption. In addition, it Special Economic Zone Development Project, plans to review 68 large projects of the Hanthawady International Airport construction previous government which were suspended project, electricity development project by the because of the opposition of local people, in World Bank, water supply system order to keep its transparent image and development project in Yangon, cement protect the environment and community rights plants by The Siam Cement Public Company supported by Western countries. Limited, energy project by PTT Exploration and Production Public Company Limited, railway system development project in Myanmar, etc. After Myanmar’s continuous economic Myanmar’s new government announced and political reform, foreign countries started 12 major economic policies which are 1) to cancel their boycott on Myanmar. Myanmar promoting transparency in public finance 2) began to implement the free trade policy with privatization of government businesses 3) groups of countries and multinational upgrading the quality of education and companies, especially with the countries not vocational education 4) developing likely to interfere with its domestic matters, infrastructure 5) creating job opportunities for such as China, Russia and ASEAN. This has people and attracting skilled workers to come attracted more investments from multinational back to develop the country 6) developing companies. Moreover, Myanmar enacted the agriculture and processing industries for new Foreign Investment Law four years ago, exportation 7) developing the private sector which allowed foreigners to make 100 % by promoting free business operation and investments in any projects, and receive tax foreign investments 8) promoting household incentives. From the enactment of this law, it economy and agriculturists’ access to the was estimated that foreign investors in financial system 9) building eco cities, Myanmar would increase significantly. In 2014, upgrading government services, increasing the Burmese government started issuing public areas and preserving cultural heritage licenses for foreigners to expand the large 10) adjusting the tax system to increase infrastructure businesses in many different government revenue 11) promoting projects, such as telecommunications business intellectual properties, and 12) developing the project (Telenor and Ooredoo), Thilawa economy to suit the context of the ASEAN Special Economic Zone Development Project, Economic Community. Such policies will be Hanthawady International Airport construction used as a framework for Burmese economic project, electricity development project by the development. World Bank, water supply system development project in Yangon, cement plants by The Siam Cement Public Company Limited , energy project by PTT Exploration and Production Public Company Limited, railway system development project in Myanmar, etc. 5.Latest Economic Status From 2014, the World Bank has announced to upgrade Myanmar from a low income country to a lower middle income country. At present, Myanmar has GNI per capita of 1,416 USD per person per year. Myanmar has a high economic growth rate. It was estimated that during 2016-2017 its economic growth rate would be 7.8%. The service sector (retailing, wholesaling, communication and transportation), the industrial sector (manufacturing and processing industries, energy industry, and construction), and the agricultural sector are important parts for steering the economic growth. In last September, Myanmar’s export of clothing was worth 745 million USD. It was higher than the same period of last year which was worth 233 million USD. Most of Myanmar’s clothing products are exported to Japan, South Korea, and Europe. It is expected that the export will double due to the GSP privilege from the U.S. Policy and Planning Bureau December 2016 .
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