How does Myanmar develop?

(1) Overview of the development of agricultural mechanization in Myanmar

Myanmar currently has 8 state-owned agricultural machinery factories, and has established 5 production lines of casting production, gear processing, forging processing, spindle processing and metal heat treatment , processing and assembly lines. The main products include walking tractors, power tillage machines, windrowers, rotary tillers and threshers. The main components such as diesel engines, spindles and gears are imported from Zhejiang Sifang Group in China, with imported assembly being the main focus. . Now it can produce 3,000 walking tractors, 6,000 power tillage machines and other equipment every year, which are sold by the Agricultural Machinery Bureau to 99 distribution centers across the country. Farmers can purchase them in installments. However, it is still far from meeting the needs of agricultural mechanization development. There is a huge demand for small agricultural machinery, which needs to be imported in large quantities. The Myanmar government has exempted import tariffs on agricultural machinery and other agricultural materials. There are also many private agricultural machinery sales companies in Myanmar. Among them, overseas Chinese companies such as 007, Gooebrother and Yeeshin are relatively large-scale and mainly sell small agricultural machinery from China, India and Japan. Chinese products have the advantage in price and account for about 80% of the market share.

(2) Overview of the development of Myanmar’s petrochemical industry

The Ministry of Energy of Myanmar is the competent department of Myanmar’s oil and gas industry. The Ministry of Energy consists of the Planning Department, Myanmar Oil and Gas Company, and Myanmar Petrochemical Industry. Company and Myanmar Petroleum Products Trading Company. Myanmar has a history of oil exploration for more than a hundred years. In 1853, oil from the Yan'anqiang Oilfield began to be exported to Europe, mainly in central and coastal areas of Myanmar. Currently, 18 oil fields have been developed onshore, and 3 natural gas fields have been developed offshore and onshore. The main natural gas fields are Yadana and Yetagun, with proven reserves of 6.5 trillion and 3.2 trillion cubic feet respectively. Large natural gas fields were discovered in the A-1 and A-3 blocks offshore Rakhine State by South Korea's Daewoo, India's ONGC Videsh Co., Ltd. and India's GAIL Co., Ltd., with estimated reserves of 5.7 trillion to 10 trillion cubic feet. Since 1989, as of April 30, 2006, Myanmar has signed 39 product sharing contracts for 43 blocks with 24 international oil companies, with an agreed foreign investment of US$2.634 billion. It is the industry that has attracted the most foreign investment in Myanmar. The main investors are South Korea, India, Japan, Malaysia, Thailand, Indonesia, France and China. According to Myanmar's geological structure, Myanmar's oil and natural gas exploration prospects are promising. There are 14 geological sedimentary basins in Myanmar. Among them, Myanmar Oil and Gas Company only conducts research on basins located in central Myanmar, Pyay region and the Ai River Delta region. Through extensive exploration, there are still many places in Myanmar with the possibility of new discoveries of oil and natural gas. Myanmar Oil and Gas Company cooperates with foreign companies and is further expanding the scope of cooperation between the two parties. At the same time, relying on its own financial resources, it began to implement onshore oil exploration plans in Indo, Mole Township, and Hongmalin Township, Myanmar's more remote provinces.

(3) Overview of Myanmar’s mining resources

Myanmar has a large number of mineral resources. The main mineral deposits have been proven to include copper, lead, zinc, silver, gold, iron, nickel, Gems, jade, etc., some of which have been mined on a large scale. Among them, the copper mines are mainly located in Wangze, 105 kilometers west of Mandalay, and Libodong, 11 kilometers east of Wangze. The products are of high quality and have entered the international market. In 1994, Myanmar enacted the Mining Law, allowing foreign countries to conduct exploration, surveying and production of gems, metals, industrial mineral raw materials and stones. In October of the same year, the Myanmar government announced that the gold and copper mines that had been monopolized by the Myanmar state sector would be opened to foreign investment, and 40 mining areas were invited to bid for foreign investment three times in September 1995, September 1996, and September 1997. As of April 30, 2006, there were 58 foreign mining investment projects in Myanmar, with an investment agreement amount of US$534.89 million. Canada's Ivanhoe Company began investing in the development of copper mines in 1994 and began producing copper metal in 1997. It is one of the more successful investments.

(4) Overview of Myanmar’s automobile industry

There are three state-owned and public-private joint automobile assembly plants in Myanmar, namely: Myanmar Automobile and Engine Production under the Ministry of Second Industry of Myanmar The company assembles and produces large trucks, light vehicles, Mastar jeeps and produces ZA-2000CC.

The joint venture automobile assembly plant of Myanmar's Ministry of Second Industry, First Myanmar Private Investment Co., Ltd. (FMI) and Japan's Suzuki (SUZUKI) mainly assembles and produces Suzuki minivans; the automobile assembly plant of Myanmar Economic Holding Company and Japan's ISUZU, mainly Assemble and produce Pick-up cars with a load capacity of 1 ton. The parts and components of the above-mentioned automobile manufacturers must be imported, so the scale and quantity of assembly production are very small. Judging from the situation of Myanmar's domestic automobile industry, most of them are assembly plants. The main components, such as engines and bearings, are imported from Japan and other countries. Most of the imported parts are second-hand goods, and some less important components are produced domestically in Myanmar. , such as: body and chassis, etc. There are currently two automobile assembly plants in Myanmar that are joint ventures with foreign countries. One of them is Mitsubishi Automobile Assembly Plant. This plant was established as a joint venture with Myanmar's Ministry of Second Industry in 1998. It started with a registered capital of US$6.7 million. Japan's Mitsubishi Corporation accounts for 65 % of the shares, Myanmar’s Ministry of Second Industry holds 35% of the shares, and the production scale is to assemble and produce 2,000 Mitsubishi cars annually. Since 1998, the plant has produced a total of 1,423 Wagon vehicles and 2,824 Mini Carry Trucks. The average annual output is only 471 vehicles, which is far from reaching the scale of production. One of the reasons is that it is difficult to apply for approval for imported parts. . Myanmar has a population of 54 million, and the average number of cars owned by Yangon City is only 3 cars per 100 people, which is a huge difference. Industry insiders analyze that if Myanmar's policies are liberalized, the future prospects of the automobile assembly industry are promising, but only if the policies are further liberalized.

(5) Overview of Myanmar’s household appliance market

Myanmar’s domestic household appliance production capacity is weak. It only assembles a small number of VCDs and TV sets. Most of its products rely on imports, mainly from other ASEAN countries and China. , Japan and South Korea. Air conditioners: Japan and South Korea occupy most of the air conditioner market, but cheap Chinese air conditioners have begun to enter the Myanmar market. National, Sanyo, General, Mitsubishi, Sharp, Samsung, and LG air conditioners have good quality and high market share. Chinese products are gradually improving in quality and have an advantage in price. Consumers are increasingly choosing new technologies and quality. National and Panasonic surpassed 20 other brands and accounted for 30% of the local market share. Last year, General's market share dropped from 15% to 10%, and the price of one or two horsepowers increased from 270,000 kyats to more than 1 million kyats. Sakura assembles and produces air conditioners in China using Japanese technology, which is particularly suitable for the Myanmar market. Four months after its introduction, the share has reached 10%, and the average price is 260,000 kyat.

(6) Overview of the development of Myanmar's textile industry

For a long time, Myanmar's economic development has been slow due to various reasons, especially on July 28, 2003, U.S. President Bush signed the "2003 The Myanmar Freedom and Democracy Act and an executive order imposed severe economic sanctions on the Myanmar government and blocked the entry and exit channels for U.S. dollars. After the signing of this executive order, it severely hit Myanmar's export industry and enterprises, and the hardest hit was Myanmar's garment industry. The original nearly 400 foreign-invested garment enterprises quickly dropped to just over 100. In the past, most of these investors came from Taiwan, Hong Kong and other places, and adopted the processing method of supplied materials. The products were mainly underwear and shirts, which were mainly sold to European and American markets. According to Myanmar official statistics, Myanmar's total trade volume in 2004-2005 was US$4.9 billion, and its garment exports were only US$216 million, a significant decrease from US$327 million in 2003-2004. China's export of textiles to Myanmar is also an important part of bilateral trade. According to China Customs statistics, from January to June 2004, China's exports of textile raw materials and textile products to Myanmar amounted to US$76.092 million, accounting for 17.7% of bilateral trade in the same period. On the one hand, the Myanmar government is trying to strengthen its own hematopoietic function, and on the other hand, it encourages foreign investment in the textile industry and the export of textile products. In recent years, Chinese companies have used Chinese loans to help Myanmar build Bimpu, Pakku and Sarungi textile factories. Another company has provided equipment and installation to knitting factories. Although some factories have been put into production, they have not yet achieved large-scale benefits. .

(7) Overview of the development of Myanmar’s tourism market

Myanmar has beautiful scenery and many historical sites. The main attractions include the world-famous Shwedagon Pagoda in Yangon, the ancient cultural capital Mandalay, Bagan, the city of thousands of pagodas, and Ngapali Beach in Sanduwe.

Since 1993, the government has vigorously developed tourism, actively attracted foreign investment, and built tourism facilities. Currently, there are 469 large and small hotels with 9,420 guest rooms. The more famous hotels include: Yangon's Sidduna Hotel, Inya Lake Hotel, Merchant Hotel, Seaside Hotel, Garden Hotel, Mandalay's Sidduna Hotel, Bagan's Tiribithiya Hotel, etc. According to statistics from the Ministry of Population and Immigration of Myanmar, from January to September 2008, the total number of foreign tourists to Myanmar was 188,931, a decrease of 25% from 251,796 in the same period in 2007. Most of the foreign tourists to Myanmar come from Asian countries, with Thailand, China and South Korea at the top, and other tourists from the United States, Australia, the United Kingdom, Canada, Germany and France. The major impacts on Myanmar's tourism industry in 2008 were the Myanmar cyclone that occurred in May and the global financial crisis that began in the third quarter. Traditionally, the beginning of each year is the golden season for foreign tourists to travel to Myanmar. However, due to the impact of the financial crisis, so far, the number of foreign tourists to Myanmar has dropped significantly year-on-year. According to the analysis of some market participants, the possibility of tourism recovery depends on the situation of the financial crisis. It is expected that the impact of the financial crisis on the tourism industry will continue.