WHY INVEST IN S.E.A - MYANMAR, VIETNAM, THAILAND & CAMBODIA

THAILAND

Thailand is well-connected to the fast-growing CLMV sub-region by excellent transportation infrastructure, including rail, road, water and airways. Businesses based in Thailand have access to a domestic market of 69 million people, with 52 million middle class consumers. Additionally, the CLMV region includes 242 million consumers located within 1,000 kilometers, ASEAN provides 660 million consumers all within 3,000 kilometers, while all of Asia within 5,000 kilometers includes 4.6 billion consumers. Ongoing national investment in and rapid development of Thailand’s logistics systems are helping to integrate the country’s transportation system with those of other emerging economies. This brings vast opportunities for cross-border trade and investment, making Thailand an ideal investment destination.

VIETNAM

Vietnam is strategically located in the center of Southeast Asia. It is also worth noting that it shares borders with China. It has a long coastline and is close to many international shipping routes. These make Vietnam a prime location for trading.

Additionally, Vietnam’s major cities are also strategically located. You will find Hanoi in the north and Ho Chi Minh City in the south. Having major cities on opposite ends of the country makes it easy to do business within and outside the country.

But business opportunities aren’t limited to Hanoi and Ho Chi Minh City. There are also many business opportunities in Da Nang.

MYANMAR

Myanmar is the largest country in mainland Southeast Asia, one of the greatest assets of Myanmar is its strategic location in the center of Asia, between China and India. It has – beyond its domestic market of more than 50 million citizens and its position gives the country direct access to two of the largest markets in the world, with a total of more than 2.5 billion consumers.

Myanmar’s long coastline on the Bay of Bengal, which is home to several world’s major shipping lanes, provides excellent conditions for trading. Moreover, the shortest route from China to the Indian Ocean is through Myanmar, making the country a valuable link for China.

After decades of international isolation prevented the modernisation and expansion of infrastructural networks, the Myanmar government is prioritising the establishment of efficient national and international supply chains for future economic growth – particularly in terms of power infrastructure, road, rail, air and ports.

CAMBODIA

Cambodia is a small country lying between two big neighbors, Thailand and Vietnam. During the era of isolation, it was completely closed, and the history of conflict and war among neighbors was outdated and finished. Cambodia has to implement a development strategy with peaceful development to integrate her economy into the region and the world with connectivity for the infrastructure, institutions, people, and others. This paper explores Cambodia’s development strategy with the focus on connectivity with her neighbors. With a clear-sighted and long-term development plan for regional connectivity, Cambodia will gain social, economic, and political benefits from its own efforts and regional development, at least from the spillover effects.

ECONOMIC GROWTH

Myanmar not only offers natural resources and arable land in abundance – importantly, the country also possesses a skilled, motivated and young population. In the previous years of political and economic reform, Myanmar society has shown to be capable of driving change.

Myanmar’s citizens have demonstrated flexibility in adapting to the availability of new opportunities and in dealing with new technology (the ‘digital leapfrogging of Myanmar’), while acquiring new skills and competencies in a learning society – as employees and entrepreneurs. Particularly in Yangon, and increasingly in urban centres in all of Myanmar, traditional life and modernity mix harmoniously – society is open, warm and welcoming to foreign cultures and influence.

Currently, the country’s population is about 53 million people, and the figure is increasing at approximately 0.9% a year. In 1960, an individual in Myanmar could expect to live to the age of 43. Today, the country’s residents have a lifespan of 66 years, and the median age in Myanmar is 27.9 years.

Myanmar’s GDP has increased from US$ 8.9 billion in 2000 to US$ 69 billion in 2017. Gross national income on a per capita basis was US$ 1,190 in 2017. However, in 2000, it was a meager US$ 170.

The country’s GDP should maintain a healthy growth rate. The International Monetary Fund (IMF) projects an average GDP rise of 7.02% between 2019-2023.

The manufacturing and service sectors now account for a more significant part of Myanmar’s economy. In 2000, agriculture, forestry, and fishing contributed 57% to Myanmar’s GDP. However, today, this stand has reduced to 26%, and the industrial (35%) and service (39%) sectors are gaining increasing importance.

It is also important to note that Myanmar’s economic growth since the commencement of reforms has been outstanding and highly promising.

Myanmar’s wages are another great attraction for foreign companies that want to invest in Myanmar. Compared to other countries in the region, the minimum wage in Myanmar is significantly lower.

Myanmar is gradually becoming a more open economy. Rich in resources, the country’s chief exports include natural gas, agricultural products, precious and semi-precious stones, garments, and rice.

Another area that has achieved great success is the country’s garment and footwear industry. The EU is a significant export destination. Buyers include H&M, a Swedish multinational clothing-retail company, Primark, an Irish fashion retailer, Inditex, a Spanish clothing firm, and also Adidas, the German shoe giant

Over the recent years, FDI inflows into Myanmar have grown significantly:

China has been the largest investor in Myanmar. However, in recent years, other countries have stepped up their level of investment in the country. For example, Japanese companies have taken advantage of the investment opportunities in Myanmar for several years.