Page 34 - ELITE PLUS MAGAZINE VOL4

RISK MANAGEMENT‘In Myanmar’s case, the government is now giving lots of privileges to foreign investors – new investment laws, eight years tax exemption for import businesses, exemption of import and export licenses for some goods, and 70-year land leases’Myanmar and English to prepare. I even sent my two sons to study Thai in Bangkok.”Consumer products as well as snacks, instant foods and drinks are seeing ample growth opportunities in Myanmar, especially in expanding cities such as Yangon, Mandalay and Myawaddy that enjoy economic growth rates of 5 to 6 per cent a year. As a rapidly growing country with massive infrastructure development plans for Nay Pyi Taw and industrial parks all over the country, Myanmar is in need of construction machinery and materials that are not yet sufficiently produced within the country. Agricultural machinery is another key opportunity for Thai exporters, as Myanmar plans to expand agricultural production to become one of the key players in the global rice market.While Myanmar is opening up to many types of products and services, some businesses are subject to extra assessments; businesses relating to environment and society are subject to environment impact assessments (EIA) and/or social impact assess- ments (SIA). These include forestry and lumber, retail, aircraft rental, manufacturing and distribution of paint and chemical products, water transport, manufacturing and drilling for natural gas and oil, certain types of mining and the hotel industry.Rules and regulations aside, Thai business owners should take into consideration fierce competition from China, which also exports to Myanmar at very competitive prices. Thai products remain largely preferred by Myanmar consumers, as they trust in the quality. In fact, Thai products have been so popular and successful that some Chinese manufacturers have started to copy and market counterfeit Thai products. To prevent this, manufacturers can register theirnew 22.4km-long road connecting Mae Sot and Myawaddy. Initial emphasis will be on the five zones with the most potential, i.e. in Mae Sot district in Tak which is adjacent to Myanmar, Mukdahan district in Mukdahan which is adjacent to Laos, Aranyaprathet district in Sa Kaeo which is adjacent to Cambodia, Khlong Yai district in Trat which is adjacent to Cambodia and Sadao district in Songkhla which is adjacent to Malaysia. The rest will follow in fiscal 2016.”Myanmar is also gearing up for more business with Thailand, according to Tin Tin Mya, chairman of the Myawaddy Chamber of Commerce and holder of a concession to import electricity from Thailand to Myawaddy.“The AEC is a good opportunity for everyone to reach out to one another and develop their infrastruc-ture at the same time. In Myanmar’s case, the government is now giving lots of privileges to foreign investors – new investment laws, eight years tax exemption for import businesses, exemption of import and export licenses for some goods, and 70-year land leases, for example. Before you had to partner up with Myanmar firms to do business, but now you can do it on your own.“Myawaddy is being developed into an industrial park specializing in sweetened drinks, with investment from Thai and Japanese businesses. The new road from Myawaddy to Kokarek will open in March next year and will shorten transportation time to 50 minutes. Besides good infrastructure, government support and determination, you need efficient communication to be successful. Merchants along both sides of the border are now studying Thai,