International Trade in Myanmar

News Related to International Trade in Myanmar

Business outline for Myanmar

Economic Overview

In 2010, the economic growth reached 5.3%, thanks to a growth in agricultural production, the development of exports and the good performance of the construction and tourism sectors. 

Despite having a sub-soil rich in hydrocarbons (gas and oil) and precious stones (this sector alone represents 40% of the exports), the country suffers from a certain number of weaknesses affecting its economic development; the economy remains centered on agriculture and the industrial sector is not very developed (10% of the GDP). Myanmar also has a very high inflation rate, a budget deficit and multiple official exchange rates which overvalue the national currency. The government is planning to accelerate and expand the process of privatisation which was initiated in 2005. 

The country's socio-economic conditions have deteriorated in recent years, due to the fact of the military regime's bad management of the economy. Poverty abounds, especially in rural areas and the rate of unemployment nears 10%.

FDI in Figures

Foreign investment has declined since 1999 due to the increasingly more unfriendly business environment and political pressure exerted by Western consumers and shareholders.

Other factors that reduce Myanmar's attractiveness in terms of FDI are corruption, the inadequacy of its infrastructures and its poor international image, which has been damaged by violations and disrespect for democratic principles. Moreover, the State remains heavily involved in most sectors of the economy. The country also faces the problem of drug trafficking. Despite the strengthening of the measures implemented by the government in recent years, the country remains the world's second biggest producer of opium.

Nevertheless, the country has some attractive sectors, which attract most of the foreign investments: oil production, natural gas extraction, mining and timber.

The country enjoys good trade relations with its Asian neighbors, on whom it is entirely dependent. The main investor countries are Thailand, India, China and Japan.

Foreign Trade Overview

Generally, foreign trade is under State control. Although the trade policies are aimed to liberalize the market, they remain unpredictable and dependent on the country's political climate.

Customs duties are low and with the exception of government controls, there are few non-tariff trade barriers. The government protects foreign trade by limiting imports and promoting exports. Trade sanctions imposed by the USA and the EU are major hindrances to trade.

Despite all this, Myanmar has recorded a trade surplus, thanks to exports of raw materials. The trade balance is expected to remain positive in the next years, despite a slight reduction in trade. The official statistics are largely underestimated because of the existance of a significant informal economy.  

The country's main trade partners are the ASEAN members (Association of South East Asian Nation), China and India. The country imports material (textile), petroleum products, fertilizers, plastics, machinery, transport equipment, cement, construction material, crude oil and foodstuff from China, Thailand, Singapore, South Korea, Malasia and Indonesia. The main export products are natural gas, timber, vegetables, fish, rice, clothes and precious stones to Thailand, India, China and Japan.