Interview: U Win Myint

Which sectors hold the most potential for developing Myanmars trade relations?
U WIN MYINT: Myanmar still possesses many untapped resources due to its long experience of isolation
from international markets, as well as economic sanctions. The resumption of the Generalised System of
Preferences (GSP) from the EU and Japan, as well as the ASEAN-plus-five free trade agreement, have
increased trade volumes from $15bn to nearly $25bn within the three-year tenure of the new government.
Recent inflows of foreign direct investment (FDI) to export-oriented manufacturing sectors will strengthen
future trade volumes. Initiatives for trade diversification comprise another element of sustainable economic
growth, while the shift to more modern farming techniques will also be vital in job creation and poverty
reduction.
Which industry segments in Myanmars special economic zones (SEZs) will present the sector with the
greatest opportunities for growth going forward?
WIN MYINT: In terms of SEZs, processing and manufacturing including agro-based industries and
export-oriented labour-intensive production will present the greatest opportunities for growth going
forward. Myanmar is currently establishing three SEZs: Thilawa, Dawei and Kyauk Phyu. If we take a closer
look at Thilawa SEZ, the most developed of the three, it is clear that labour-intensive industries such as
garments are leading the demand for factory space. The establishment of these SEZs will assist the regions
drive to develop stronger economic and trade links between ASEAN members. Regional connectivity
infrastructure projects are also being constructed at the same time.
How would you assess bilateral trade and economic cooperation between Myanmar and China?
WIN MYINT: China has long been Myanmars largest trading partner and its greatest source of FDI. For
example, China has made major investments in the energy, mining and manufacturing sectors, among
others. Cross-border trade has grown substantially due primarily to good connectivity, open border trading
zones and a continuous trade fair, which alternates between Myanmar and Yunnan, China.
More recently, however, FDI inflows from China have declined due to opposition to some projects.
Although Chinese involvement has declined of late, the opening of Myanmars borders to the outside world,
coupled with the alleviation of sanctions, has seen investment rise dramatically across a variety of sectors.
What role do you believe manufacturing can play in boosting trade over the next few years?
WIN MYINT: The labour-intensive manufacturing of garments and textiles, as well as export-oriented agrobased processing, will strongly promote international trade in the next few years. In particular, abundant
cheap labour and the resumption of the GSP from the EU since June 2013 are contributing to Myanmars
attractiveness as a major focus for export-oriented labour-intensive producers in Asia. Inflows of FDI to the
manufacturing sector have increased considerably in recent years. Moreover, political conflict in Thailand
and the rising wages of Chinese workers have led companies to transfer their factories to a variety of lowerwage countries, including Myanmar.
What are the greatest obstacles to FDI in Myanmar, and how can these challenges best be addressed?
WIN MYINT: The shortage in the regular power supply; the rising cost of land and building materials;
ongoing instability and violence in some areas; inadequate infrastructure; as well as an underdeveloped
banking sector should be regarded as among the greatest obstacles for those investors who are looking to
tap into the economy. Despite these factors, however, Myanmar still holds many opportunities for investors,
both in the region and globally. Risks to new investors can be reduced if they do their research and can
understand Myanmars unique business environment and culture.