Foreign Investment

In the process of drawing up the Foreign Investment Law in 1988, particular care was taken to make it as conducive to foreign investment as possible. The main function of the Foreign Investment Law is to lay down an orderly procedure to make proposals for foreign investment and to provide guarantees and incentives for the foreign investors.

The State-Owned Economic Enterprises Law, which was enacted in March 1989, has reserved 12 activities for operating only by the State. The same law contains provisions that enable the government to waive the reservation whenever necessary. Generally, it can be said that there are no activities totally prohibited to foreign investment in Myanmar.

The special tax incentive provided by the Foreign Investment Law has made it possible for the influx of foreign capital. Up to the end of April 1996, different kinds of enterprises from eighteen foreign countries have been running business in Myanmar.

The largest investments were in the natural resources sectors such as oil, gas, mining and fisheries. Joint-ventures with state organizations were the preferred organizational form for foreign investments. The major investors are from Thailand, Singapore, USA and UK.

Foreign Investment by Sector

(as of August 31, 1996)  

Foreign Investment by Country Origin

(as of August 31, 1996)  

Five Year Short-Term Plan Targets (1996-97 to 2000-2001)

 (1) To strive for the realization of the four economic objectives. (2) To strive for sustained and stable growth of the economy. (3) To strive for the provision of basic infrastructural facilities, both social and economic. (4) To ensure harmonious intersectoral consistency among the productive sectors and between production, services and trade of the economy. 

The major targets of the Five-Year Short-Term Plan

(1) GDP is projected at K 91,798 million in 2000-2001, average annual growth rate of 6.0 per cent is to be increased in the last year of the Five-Year Short-Term Plan.

• (2) Net output value of the major productive sectors is estimated to increase at an average annual rate of:-

- agriculture sector - livestock and fishery sector - forestry sector - mining sector - processing and manufacturing sector

5.4 per cent 5.8 per cent 2.8 per cent 18.5 per cent 7.4 per cent

(3) In 2000-2001, it is estimated that the component in GDP of:-

- productive sectors to be - services sector to be - trade sector to be

62.2 per cent 17.3 per cent 20.5 per cent

(4) Total investment allocated for the five years is K 419.6 billion comprising:-

- State sector - Cooperative and private sectors

K.179.0 billion (42.7 per cent of total investment). K.240.6 billion (57.3 per cent of total investment).

(5) In 2000-2001 the export target is set at K 15.8 billion with the growth rate of 165.4 per cent over provisional data of 1995-96, or average annual growth rate of 21.6 per cent.

• (6) In 2000-2001 the import target is set at K 18.8 billion with the growth rate of 90.0 per cent over provisional data of 1995-96 or average annual growth rate of 13.7 per cent.

• (7) Per capita net output for the year 2000-2001 is projected at K 1873 at 1985-86 constant prices and to increase by 4.1 per cent annually.

• (8) Per capita consumption for the year 2000-2001 is projected at K 1,408 at 1985-86 constant prices and in increase by 4.0 per cent annually.

Economic Statistics

(1) Number of States and Divisions: 14

(2) Number of Townships: 317

(3) Number of Village-Tracts: 16,065

(4) Currency

• The unit of Myanmar currency is Kyat. (1 Kyat = 100 Pyas)
• COINS - 1, 5, 10, 25, 50 pyas, 1 Kyat.
• NOTES - 50 pyas, 1, 5, 10, 15, 20, 45, 50, 90, 100, 200, 500 Kyat.

• (5) Gross Domestic Product (GDP) in 1995-96 (Provisional): K 66.7 billion (at 1985-86 constant prices)

• (6) GDP Growth rate: 8.2 % in 1995-96

• (7) Per capita GDP: K 1,454 (in 1995-96) (at 1985-86 constant prices) (6.6 % growth rate)

• (8) GDP Composition (for 1995-96)

Sector	Share (%)
1. Agriculture 2. Livestock and Fishery 3. Forestry 4. Mining 5. Processing and Manufacturing 6. Power 7. Construction 8. Transportation 9. Communication 10. Financial Institutions 11. Social and Administrative Services 12. Rentals and Other Services 13. Trade	83.3 6.9 1.1 1.3 9.4 1.0 3.8 4.0 1.1 1.2 6.4 4.0 21.5

(9) Foreign Trade - (K in million)

	1992-93	1995-96 (Provisional)
Exports Imports	K 3,590 K 5,365	K 5,405.2 K 8, 332.3

(10) Major Exports (1994-95 provisional actual) (K in million)

1. Agricultural Products 2. Rice and Broken Rice 3. Forest Products 4. Animal and Marine Products 5. Minerals and Gems 6. Gems Jewellery 7. Others (includes Border Trade)

2,478.3 1,165.8 1,204.7 622.1 221.9 106.9 878.2

(11) Major Imports (1994-95 provisional actual) (K in million)

1. Consumer Goods 2. Raw Materials and Spares for Inter-industry use 3. Capital Goods 4. Commodity unspecified (includes border trade)

1,941.5 1,854.3 2,913.9 1,622.6

(12) Major Trading Partners (1994-95) (K in million)

	Import	Export
1. Southeast Asian Countries 2. Japan 3. P.R. of China 4. Korea 5. EEC 6. North America 7. Eastern Europe 8. Africa 9. Others	3,177.0 1,962.7 1,019.4 395.1 334.7 122.4 73.4 125.5 170.1	2,373.4 262.0 277.5 39.7 96.0 284.3 39.7 290.8 538.1

(13) Land Utilization (1994-95) provisional actual:-

 a) Total net area sown 21.533 million acres. b) Reserved forests 25.474 million acres. c) Paddy sown acrage 14.643 million acres. 

(14) Selected Production Figures (1994-95) provisional actual:-

 a) Paddy 18.195 million metric tons (Average yield 57.10 baskets 46 lbs.) b) Teak logs 364,926 cu. tons. c) Crude Oil 4.2 million US Barrels. d) Natural Gas 45,599 million cu.ft. e) Jade 580.7 thousand kilos. f) Gem 4,554.5 thousand carats. 

(15) Power (1994-95) provisional actual:-

 a) Installed capacity 845 megawatt (Hydel 299.1, gas turbine 406, Thermal 62 and Diesel 78). b) Generation 3,594 million KWHs. 

(16) Consumer Price Index: 715.44 (1995) (Yangon Middle Income Class) (Base Year 1986 = 100)

• (17) Financial Year: 1st April to 31st March

Social Indicators

(1994-95) provisional actual 

(1) Education Statistics:-

a) Primary Schools Middle Schools High Schools b) Basic education students c) Basic education teachers d) Technical and Vocational Schools Students Teachers e) Universities and Colleges Students Teachers f) Academy for Development of National Groups Students Teachers g) State Expenditure

37,008 2,058 858 7.54 million 241,652 154 36,032 2,749 45 247,348 6,246 1 977 85 K 5,838.6 million

 Source: Salient Economic and Social Indicators 1995. 

(2) Health Statistics:-

a) Number of Hospitals b) Number of Beds c) Number of Doctors d) Number of Nurses e) Number of Beds per 10,000 people f) Number of Doctors per 10,000 people g) Number of Nurses per 10,000 people h) State Expenditure

703 27,828 12,464 8,986 6.51 2.86 2.10 K 2,133.2 million