World Country Guide

Business Profile

Economy
The largest single sector of Myanmar’s economy is agriculture, mainly livestock and fishing, but it continues to rely on traditional non-mechanised methods. Rice, generally the principal export earner, has diminished in importance in line with the continually depressed state of the world market in the commodity. Teak wood is the country’s other main export (much of it felled and traded illegally). Other crops include oil seeds, sugar cane, cotton, jute and rubber. Myanmar has significant deposits of tin, copper, zinc, gemstones, silver and coal: commercial exploitation has recently begun. Although Myanmar’s oil production, never substantial, has been falling during the last 10 years, there are thought to be large untapped reserves of both oil and gas inland. Domestically produced gas meets about half of the country’s energy needs; hydroelectric power covers most of the rest. A wide range of manufactured goods is assembled locally but the majority are imported. Otherwise, Myanmar’s industrial sector is mostly concerned with processing domestically produced raw materials. Further significant sources of revenue include opium trafficking and gemstone mining, both of which are largely controlled by the military government and have been mainly used to finance substantial arms purchases. There are few reliable economic statistics for Myanmar; inflation in 2004 was an estimated 27 per cent.
After years of political isolation, Myanmar became a member of ASEAN in July 1997. The government has tried to attract foreign investment by relaxing its previous tight controls over commercial activity. However, many potential investors are deterred by the government’s appalling human rights record and the prospect of widespread international opprobrium. Myanmar’s economic future depends largely on political developments.

Business
Lightweight suits are recommended during the day; jackets are needed for top-level meetings. Most commercial business transactions will be conducted in English. Business cards in Burmese script can be useful. The best time to visit is October to February. Office hours: Mon-Fri 0930-1630.

Commercial Information
There are over 20 Government Corporations dealing with all aspects of business. The Inspection and Agency Corporation in Yangon promotes business with foreign companies. For further information, contact the commercial section of the Embassy (see Contact Addresses section).