Geographically triangulated in between some of the largest Asian economies such as China India and ASEAN countries, Myanmar is well placed to take advantage of the trade, logistics and manufacturing. The economy of Myanmar is also strategically located as a participant of China’s Belt and Road Initiative (BRI) which seeks to enhance infrastructure and connectivity through projects such as railways, highways, deep-sea ports like Kyaukphyu Port. This factors in Myanmar’s capacities to serve as a hub for cross border trade in agriculture products, energy and mining among others.

Comparing the country’s wages with those of foreign countries such as China, Japan or Singapore, the costs of labor in Myanmar are considerably lower. Because of this, Myanmar is considered an advantageous site for businesses that focus on labor-intensive industries including textile manufacturing, clothing or electronics assembly. With the affordable cost of production, businesses are able to run affordable operations and take advantage of the regional markets, specifically towards investors from China, India and Thailand.

The Thilawa Special Economic Zone (SEZs) of Myanmar provides top-notch incentives to foreign investors such as tax holidays, options to lease land, and simplified regulatory mechanisms. Such zones are extremely helpful to companies involved in manufacturing, exports and technology to set up their plants in such zones. Furthermore, firms of ASEAN countries can also take advantage of such regional trade arrangements as the ASEAN free trade area which gives them preferential access and lowered trade barriers.

Agriculture remains an important sector of the economy in Myanmar, where rice, beans and pulses rank as most important amongst products that are produced in large quantities. Countries such as India, Thailand and Vietnam are able to use Myanmar’s agricultural production surplus for establishing agro-based industries or as sources of raw material. With technology in place, Myanmar has huge opportunities to produce value added products for international markets, especially food and beverage.

Myanmar is increasing its energy generation capacity and investment in energy resources with the establishment of renewable energy resources such as hydropower, solar and wind power. Asian investors particularly from China, Japan and South Korea are able to make use of these energy generation opportunities and grid construction. In the process, as Myanmar progresses towards infrastructural development, there will be an increase in the need to provide sustainable and eco-friendly energy options which will be a lucrative area of investment in the forthcoming years.

In Myanmar, the urbanization is taking pace thanks to a blooming middle class that is in need of residential and commercial properties as well as retail centers. This opens up the possibility for investors from Singapore, Thailand and South Korea to expand with the local economy that includes a growing real estate market comprising of residential, commercial and even mixed-use projects. With many infrastructure developments going on, there is also space for construction and engineering know-how.

International tourism can also be attractive due to Myanmar’s cultural heritage and natural beauty. Thailand, Singapore, Chinese & other countries investors may consider investing in the tourism and hotel industry, including hotels, eco-tourism and cultural tourism infrastructure. Myanmar becoming more open, it can be big market that brings affect on Southeast Asia tourism market.

Myanmar has strong cultural and political relations with the countries of ASEAN, including preferential trade relations and access to the regional market. Investors from ASEAN countries will benefit from such favorable trade relations. In addition, Myanmar has historical relations with China and India, and this makes it easier to understand and access these prominent emerging economies.

Being part of the ASEAN Economic Community (AEC), Myanmar offers preferential access and lower tariffs within ASEAN, which makes it an attractive destination for regional investors. In addition, China-Myanmar Free Trade Agreement enhances the bilateral economy, which creates opportunities for Chinese investors to flourish in Myanmar evolving markets.

Myanmar provides a good potential in attracting local firms to partner and have joint ventures here. Working with established Myanmar firms allows Asian investors to avoid regulatory pitfalls, access local market knowledge, and build sustainable operations which can deliver for the long-haul. Sound local knowledge is critical for successful market entry, and joint ventures offer the surest path to success.