Business opportunities for finnish companies & international financing in Myanmar

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Business opportunities for finnish companies & international financing in myanmar, presentation at Finpro Market Opportunity Day

Business opportunities for finnish companies & international financing in myanmar, presentation at Finpro Market Opportunity Day

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  • 1. Business Opportunities for Finnish Companies & International Financing in Myanmar KAI TUORILA 8.5.2014
  • 2. Industries with Most Opportunities  Energy  insufficient energy supply, private investments allowed  Environment  Waste management, waste to energy, industrial waste water, biomass  Forestry  from exporting logs to process for my value added products  Mining  Untapped resources - Gold, copper, lead, zinc, nickel and etc.  Telecom  mobile networks, optical lines  Real Estate & Tourism  Hotels, office space, service apartments, 2000km sandy beaches  Transportation infrastructure & Industrial Estates  Deep seaports & industrial zones, roads, railways, airports  Capacity Building / Education  training of local authorities and private sector 11/05/2014 2© Finpro
  • 3. Energy & Environment  Only 25% of the population gets electricity from the Government grit !  IPP for industrial zones and major cities  Coal, gas, hydro  6 new power plant projects nearby Yangon  Biomass & Biogas  Agri waste, waste water  Renewable energy  Solar, Wind  Waste to energy 11/05/2014 © Finpro 3
  • 4. Environment  Municipal solid waste management  Yangon, Mandalay, NayPyiTaw  Waste collection a big challenger  80% organic waste  Industrial waste water treatment  Mandalay  Water purification  Salt removal  Waste to energy 11/05/2014 © Finpro 4
  • 5. Forestry  From log smuggling to value added exports  Teak (approx. 70% of world’s teak wood reserves) and other hardwoods  Development of wood processing industries – need for new machinery and knowhow  EU’s FLAG certification issue – tracebility, documentation  Plantations  Regional and global rubber, pulp&paper industries looking for opportunities © Finpro 5
  • 6. Mining  Plenty of Untapped Resources  Gold, gemstones, copper, lead, zinc, nickel, tin, antimony, chrome, uranium etc..  New Foreign Investment Legislation  Foreign businesses would be allowed to own 100% of mining projects  Exempt from income taxes for the first five years of operation in Myanmar  Foreign investors able to lease land for up to 50 years with possibility to extend 2 times 10 years  Australian and other multinational companies waiting further clarifications 11/05/2014 © Finpro 6 • This mining site, like others along the Irrawaddy River, is a concession given by Burma’s ruling military junta to local warlords or businessmen.
  • 7. Telecom  Approx. 7% mobilephone penetration in 2012 !  Official Telecom Licenses  Telenor (budget 1 billion Euros, technology from Ericsson and Chinese, license to build and operate 15 years)  Ooredoo (budget 15 billion USD, technology from Nokia and Chinese).  Myanmar Post & Telecom (MPT)  Yatanaporn Teleport  Army  Internet Users  the country had 400,000 Internet users (0.8% of the population) 11/05/2014 © Finpro 7
  • 8. Real Estate  Real Estate Booming  Hotels (47 new hotel investment projects approved for Yangon, Condominiums and Service Apartments, Offices etc.  Ownership and Land Leases  Land leasing for foreigners up to 70 years  Law allows foreign investment for buildings taller than six stories and must be serviced by elevators 11/05/2014 © Finpro 8
  • 9. Tourism  Tourist Master Plan 2013- 2020  Reached 1 million foreign visitors in 2012  Targeting 3.01 million arrivals for 2015 and 7.5 million arrivals by 2020  Tourist Destinations  Yangon, Mandalay  Pagan, Mon state, Shan state..  2000 kilometers of seaside and thousands of Islands 11/05/2014 © Finpro 9
  • 10. Transportation Infra & Industrial Estates  New Deep Seaport Developments  Dawei, Thilawa, Sittwe, Phatein  Airports  New international airport for Yangon  Upgrade of regional airports  Railways  Roads  Rivers  Huge need for dredging!  Industrial Estates  Deep seaports  Yangon  Border areas with Thailand 11/05/2014 © Finpro 10
  • 11. Used and New Machinery  Presently huge market for 2nd hand machinery  Construction machinery  Agricultural machinery  Transportation Equipment  Forestry and wood processing  Generators  Fast developing market for new machinery  Local businessmen looking for foreign machinery dealerships 11/05/2014 © Finpro 11 Main street and construction site in Yangon, Myanmar
  • 12. International Financing  Asian Development Bank (ADB)  $1 billion for 2013-16. New plan after 2015 election (one priority area rural off-grid renewable energy)  World Bank  $2 billion package for agriculture, energy and health  European Union  200 million from 2011-2013 for rural development, health, trade certification  MoU signed to start EU investment bank activities  Finnish Financing  EEP Mekong, Finnfund  IKI financing for capacity building, Other ?11/05/2014 12© Finpro *World Bank Group President Jim Yong Kim visits the Myanmar North Dagon Township Hospital.
  • 13. Summary  Large untapped natural resources  Need for Electricity investments have 1st priority  Large infrastructure investments expected for Telecom, Logistics  Development for Health and Education  Huge need for international financing to activate infra projects (?) but ADB, World Bank and bilateral financing from many countries pouring in  Existing market for 2nd hand (and new) generators, transportation- , agricultural-, forestry- and construction machinery  “We might be 2-3 years too early for our business, but if we come back after 2-3 years, we will be already too late..!”  Finpro – Finland Trade Center in Thailand  Kai Tuorila kai.tuorila@finpro.fi +66 (0) 81 815 2029 11/05/2014 13© Finpro