PHƯƠNG ÁN XUẤT KHẨU XI MĂNG SANG THỊ TRƯỜNG MYANMAR Republic of the Union of Myanmar also known as Burma is a country in Southeast Asia, northwest of the Sino-Indian peninsula Myanmar is a country which is rich in mineral resources and reserves of natural gas in the world's 13-14 position, fertile land with a total cultivated area of 23 million hectares, accounting for 40% of the total value of agricultural production export Potential, investment opportunities in Myanmar are great, not only attractive in investment, Myanmar also has quite important geo-political location, so some big countries such as China, India, U.S., and Japan are very interested I feel Myanmar is a country which has the long-term and wise investment potential for the expansion of our business producing construction materials, with the following reasons: Natural conditions of Myanmar: Republic of the Union of Myanmar is a country in Southeast Asia, northwest of the Sino-Indian peninsula There are 5,876 km border with China (2,185 km), Thailand (1,800 km), India (1,463 km), Laos (235 km) and Bangladesh (193 km) Its coastline is 1,930 km Its area is 676,577 km ², it is the largest country in mainland Southeast Asia, and is the 40th largest country in the world (after Zambia) In 2011, arable land accounts for 15.3% (2% in water), 0.5% of pasture, forest and shrubs of 49.3%, other land of 34.9% Main minerals: petroleum, tin, zinc, antimony, copper, tungsten, lead, coal, precious stones Administration: Myanmar is divided into seven states and seven administrative regions The largest area is Bamar; other states are essentially the habitable zone of some particular ethnic groups The administrative area is further divided into cities, regions and villages The largest city is divided into districts The areas and states of Myanmar are divided into districts (kayaing) Shan state is the state with the most districts (11 districts) The Chin State, Mon State and Kayah State has only two districts in each state Capital: Naypyidaw (new capital), Rangoon (old capital) Relationships between Vietnam and Myanmar: Myanmar set ambassadoriallevel diplomatic relations with Vietnam from May 25, 1975 Myanmar is one of the few countries that Vietnam set relations very soon Only two years after Vietnam gained its independence, in 1947, the Democratic Republic of Vietnam has opened its representative office in the Rangoon capital (now called Nay Pyi) At that time, representative Office was assigned to more important tasks, including special task of buying weapons and transport weapons and ammunition in the country to serve the war against the French colonialists November 1954, Prime Minister U Nu official visited to the Democratic Republic of Vietnam and December 1958, President Ho Chi Minh paid an official visit to Burma December 1957, the two countries established the Consulate General and in May 1975 establishing diplomatic relations of Ambassador Level, Consulate General Agency became the country's first embassy in Vietnam Democratic Republic in Burma Since then, relations of friendship and cooperation between the two countries are constantly evolving for the benefit of the people of Vietnam and Myanmar, for peace, stability and cooperation in Southeast Asia Politics: On October 22, 2010, Myanmar claimed to change its official name to Republic of the Union of Myanmar, changing its national flag and national anthem The event took place just before the 17 days of the election after 20 years since the latest election happened before in 1990 Residential racial diversity in Myanmar plays an important role in determining the political and demographic history of the modern nation The country's political system remains under the tight control of the State Peace and Development Council, military government led by Senior General Than Shwe since 1992 As a former colony within the British Empire until 1948, Myanmar continued to struggle to improve the ethnic tensions, and overcame the coups Its culture is heavily influenced from the surrounding countries, based on a unique Buddhism form that merges local factors Economy - GDP: $ 82,68 billion (2011)* - GDP per capita: $ 1,300 (2011)* - Growth: 5,5% (2011)* Source: CIA Facbook Myanma 2012 In the British colonial period, Burma was one of the richest countries in Southeast Asia This was the largest rice exporter in the world and was the oil supplier through the Burma Oil and Gas Company Burma also had rich natural resources and abundant human resources They produced 75% of the world's teak, and the population had a high literacy rate This country ever trusted to have rapid development future Myanmar is a country which is rich in natural resources, fertile land with a total cultivated area of 23 million hectares Agriculture accounts for 40% of total export value Since 1988, Myanmar has reformed the economy from administrative subsidies to a market economy, issuing foreign investment legislation, allowing the establishment of private enterprises GDP growth between 1989 and 1996 respectively improved In five years (1996-2001), Myanmar GDP growth average was 5.5% /year Government introduced the 10-year economic development plan from 2001 to 2011 with an average GDP growth of 7.2% / year Economic growth was 4% in 2004-2005, about 5.5% in the period 2009 - 2011 Foreign investment had 374 projects from 25 countries and territories, including investment from ASEAN countries were $3.844 billion accounting for 51.64% Total trade turnover between Myanmar and other countries in 2005-2006 was $ 5.5 billion; however, it has jumped in the period of 2011, reaching $15.041 billion Economic Environment: In economy, Myanmar is a country with rich natural resources, can be seen as the last golden land that has not been exploited in Asia After successful transfer to the civil authorities, foreign direct investment promises to increase strongly, rapid economic growth potential, as witnessed in Vietnam in the 1990s Legal: The legal system of Myanmar under the British - American legal system (Common law), the legal system is to be completed, in 2012 it has promulgated the Law on Foreign Investment Basically, this law has many changes to be more favorable for foreign investors (investors) For example, the lease period up to 70 years instead of 45 years in the old law Corporate income tax incentives are also longer If before, investors were exempt years from the first year of production, now the exemption is years Then, if deemed beneficial to Myanmar, the government may decide to extend the time limit for tax exemption In addition, Myanmar is also encouraging investment in areas to create more jobs, environmentally friendly, promoting technology transfer and production replacing import goods Another change is that if the previous investors must contribute at least 35% in the joint venture, now this ratio of capital contribution will be agreed by the partners Licensed investment review period is shortened Under the new law, the Myanmar Investment Commission (MIC) will look to answer the investors that the project has been approved or not within 15 days after receiving a complete dossier, and if approved, within 90 days license will be issued This term may be extended up to months or year before Myanmar is the only country to grant visa at the right border for citizens from countries to Myanmar Specifically, tourists are allowed to stay 28 days (no extension), business stays of 70 days (extended), public affairs are 28 days (extended) Especially, in addition to domestic airports, two international flights from Vietnam, Bangkok, Myanmar will have more direct flights from Malaysia to Yangon in August 98% * (Source: Vietstock) * Some documents signed with Vietnam - Agreement on establishment of the Joint Commission on bilateral cooperation between the two countries (5/1994); - Trade Agreement (5/1994); - Agreement on Tourism Cooperation (5/1994); - MOU on 6-year-Cooperation Programme (1994-2000) between the two Ministries of Agriculture (8/1994); - MOU on Drugs Cooperation (3/1995); - MOU on Cooperation in the field of Forestry (3/1995); - Agreements to avoid double taxation (5/2000); - Agreement on Promotion and Protection of Investment (5/2000); - Cultural Cooperation Agreement (5/2000); - MOU on Cooperation between CEMA and mountainous of Vietnam and the Borders, Ethnicity and Development of Myanmar (7/2000); - Memorandum of Understanding to establish a Committee on Trade (5/2002); - MOU on Cooperation between the Chamber of Commerce and Industry (5/2002); - MOU on investment promotion by the Ministry of Planning and Investment of Vietnam and the Ministry of Myanmar Economic Planning and Development signed (4/2010) * Source: The Foreign Investment Department - The Ministry of Planning and Investment of Vietnam Social conditions: - Population: 54.584.650 people (July 2012) * - The population compared to other countries in the world ranked 24 - Rate of population increase is 1.07%, ranking 108 compared with countries in the world - Age 15 to 64 accounted for 69.3% * - Ethnicity: Buddhist 89%, Christian 4% (Baptist 3%, Roman Catholic 1%), Muslim 4%, animist 1%, other 2%* * Source CIA Facbook Myanma 2012 - Burmese, the mother tongue of the Bamar and official language of Burma, related to Tibetan and Chinese linguistically Traditional Myanmar society is emphasizing the importance of education Inside the village, education taught by the missionaries usually takes place in the temple Secondary education and college / university education are in the government schools Buddhism is considered as the state religion accounted for 89.3% of the population, Christians of 4.9%, Muslims of 3.8% English is used extensively in agencies, offices * Business sector we choose to invest in Myanmar is the production of construction materials: cement namely According to the Foreign Investment Law of Myanmar and some bilateral documents signed between Vietnam and Myanmar, it is highly recommended investment from a number of areas such as: - Equipment and telecommunications services; agricultural production; processing of agricultural products, cultivation; exploration and exploitation of minerals - Production of construction materials such as cement, bathroom equipment and brick "In the future, the demand for construction materials in Myanmar for infrastructure, construction of facilities is huge According to survey of Myanmar Company, demand for cement in Myanmar is about 5.35 million tonnes per years Homeland only meets 65%, the rest are imported from Thailand and China Regarding steel, each year this country needs about 500,000 tonnes, but domestic production meets only 1% Similarly, brick manufacturing capabilities in this country can only meet 70% of demand, the rest are imported (Source: http://vnexpress.net/gl/kinh- doanh/2012/09/ton-kho-vat-lieu-xay-dung-hang-nghin-ty-dong/) - Cement production is an area of heavy industry required a lot of labor and mostly unskilled workers, while the labor of Myanmar is abundant with population of over 50 million people, cheap worker and income per capita of $1,300 / year, while in Vietnam it is $3,400 / year, the Myanmar people are gentle, hard, Buddhism is considered the state religion accounted for 69.3% of the population - Myanmar is a country with a lot of area of hills, it's easy to exploit and produce Portland cement because of available limestones * Before entering the international business projects it is often very convenient, but sometimes these risks are also needed researching specifically: - First is the knowledge and understanding of foreign investment: the ability to communicate in English, culture and ways of working of Myanmar, in-depth understanding of the ways, the general sequence of foreign investment (must apply for permission to invest in Vietnam, way to establish project feasibility reports, etc.) Then market research carefully in the field of investments, based on that, giving appropriate investment strategy: to send qualified personnel to research the market, the legal framework and law related to the field of market conditions, trend assessment, potential, gathering data, making feasibility study report in detail If necessary, hire an attorney or local consulting firm to learn relevant laws - The company must prepare adequate human resources (staffs have determination, professional qualifications, management experience, willing to stick to the area), sufficient financial capacity (equity and fixed loans if needed), and have enough experience, the level of technology in the field of expected investment It is necessary to find and choose the right partner (in terms of reliability, financial capability, experience, etc.) * Reference sources: - Foreign Investment Agency - Ministry of Planning and Investment of Vietnam - CIA Facbook Myanma 2012 - VietStock - http://lobby.vn/forums/showthread.php?t=410&page=2 - http://lobby.vn/forums/showthread.php?t=381 - http://lobby.vn/forums/showthread.php?t=409 - http://lobby.vn/forums/showthread.php?t=411 - http://vnexpress.net/gl/kinh-doanh/2012/09/ton-kho-vat-lieu-xay-dung-hangnghin-ty-dong