03.dr. lee the ideal economic cooperation

309 views
179 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
309
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

03.dr. lee the ideal economic cooperation

  1. 1. The Ideal Economic Cooperation Between Korea and Myanmar April 28. 2014 Dr. Lee, Nam Kee Chairman Global Business Cooperation Association
  2. 2. Dr. Lee, Nam Kee •  Chairman, Global Business Cooperation Association (GBCA) , Korea •  Former Economic Minister & Chairman of Fair Trade Commission, Th e Korean Government
  3. 3. I.  What is and what does the Korean global Busi ness Cooperation Association. 1. Brief History 2. Main Function 3. Members. 4. Introduction of Korean Business Delegation II. Present status of Economic Cooperation betw een Korea and Myanmar 1. General Structure of Myanmar Industry 2. Export and Import Statistics between Korea and Myanmar 3. Export and Import by items between two countries. 4. Investment including JVC Contents
  4. 4. III. Ideal Economic Cooperation between Korean and Myanmar 1. SWOT Analysis of Myanmar Economy 2. Basic principle of Economic Cooperation 3. Useful Business Model 4. The Changing trend of important systems 5. Recommended Business Area with Myanmar IV. Conclusion Contents
  5. 5. I.  What is and what does the Korean global Business Cooperation Association 1. Brief History •  June, 2013~Nov. 2013 Preparation to establish of GBCA •  Nov.10, 2013 Preparation committee to establish GBCA •  Feb.14, 2014 General Meeting for Establishment of GBCA Dr. Lee, Nam Kee was invited as chairman of GBCA •  Fer.22, 2014 Agreement of Business Cooperation between GBCA and Mid-west university, U SA
  6. 6. I.  What is and what does the Korean global Business Cooperation Association 2. Main Function •  Business Matching with foreign business partner and support them •  Development of new Marketing and Job increasing through innovation and crea tion •  Supply of ICT technology for SME Venture •  Training of global manpowers to develop global Industrial Market •  Survey and Advertising of domestic and foreign market •  Others related with above
  7. 7. 3. Members •  General Members(personal): 475 •  Business Member(Corporation): 147 •  Special Members(Corporation and Person): 6 •  Advisory group(Person): 3 I.  What is and what does the Korean global Business Cooperation Association
  8. 8. 4. Introduction of Korean Business Delegation •  Total: 13 person •  Business man by item •  Cosmetic: 3 •  IT: 4 •  Manufacture: 3 •  Artist: 1 •  Others: 2 I.  What is and what does the Korean global Business Cooperation Association
  9. 9. II.  Present status of Economic Cooperation between Korean Myanmar 1. General Structure of Myanmar Industry •  Industrial Struture - Service: 41.8% - Agriculture: 28.8% - Manufacture:19.3% - Others: 0.1% •  Main Export Items - Natural gas , Crude Oil, Wood, Bean, Clothes(raw) •  Main Import Items - Clothes, Petroleum, Fertilizer, Machinery •  Main Natural Resources: - Oil, Led, Zinc, Natural Gas
  10. 10. II.  Present status of Economic Cooperation between Korean Myanmar 2. Export and Import statistics between Korea and Myan mar (unit: million US$) Year Export Import 2010 160 479 2011 299 667 2012 351 1,331 2013(P) 502 2,079
  11. 11. II.  Present status of Economic Cooperation between Korean Myanmar 3. Export and Import by items between two Countries Item Export & Import 2011 2012 Clothes Export 232.497 278.617 Agriculture Products Export 21.395 29.126 Forestry Products Export 13.145 14.351 Clothes Export 232.497 278.617 Rail and Iron Structure Import 19.866 757.565 Construction and Mining Machinery Import 152.067 67.692 Artificial silk Products. Import 44.793 46.313 (unit: million US$)
  12. 12. II.  Present status of Economic Cooperation between Korean Myanmar 4. Investment including JVC •  Total direct investment from Korea to Myanmar by the end of 2012 - New establish of company:82 companies - Invested Amount: 1387 million US$ - Main Invested Area: Mining, Hotel, Restaurant etc. •  Main Investment countries to Myanmar - China: 34.3% - Thailand: 23.5% - Hong Kong: 15.5% - Korea: 7.2% •  Total Investment from foreign countries to Myanmar - 2010: US$1 billion - 2011: US$1 billion - 2012: US$1.9 billion
  13. 13. III.  Ideal Economic Cooperation between Korea and Myanmar 1. SWOT Analysis of Myanmar Economy Strength •  Plenty of Natural Resources(Forest, Natural Gas) •  Low Labor cost and Good quality Weak •  High Rely on Agriculture and Low Pro ductivity •  Shortage of Infrastructure Opportunity •  Big Neighbor Market - China, India •  Logistics Base to connect East and W est South Asia Threat •  Low level of Index of Economic Freed om(172/179): 2013 Heritage Foundati on •  Shortage of transparency in Administr ation.
  14. 14. 2. Basic Principle of Economic Cooperation •  Win-Win and Balance Strategy •  Maximum Synerge Effects •  Increasing Economic + Living Standard of both countries •  Mutual Benefits through supplementary activity •  Korea → High Technology Capability of planning Myanmar → Execution on the site reasonable labor cost + plenty raw materials. III.  Ideal Economic Cooperation between Korea and Myanmar
  15. 15. 3. Useful Business Model III.  Ideal Economic Cooperation between Korea and Myanmar Planning Technology Implementing Execution KOREA MYANMAR INVESTOR
  16. 16. 4. The changing trend of important systems < Investment policy > •  Life or soften economic sanction to Myanmar from EU & USA •  Legislation of special Economic Zone Law Tax Exemption, Favor of using land, one- step service related with export & Import •  Amendment of Investment law from foreigner (Nov. 2012) - Exemption of Income Tax for 5 years - Guarantee to send profit to invested country III.  Ideal Economic Cooperation between Korea and Myanmar
  17. 17. 4. The changing trend of important systems < Foreign currency > •  Farewell to “Foreign Exchange Certificate” (FEC) → US Currency (Jan. 2014) •  Fixed Rate System(1$ = 6kyat) → Management changing Rate system ※ Marketing Rate : 1$ = 8000 kyat III.  Ideal Economic Cooperation between Korea and Myanmar
  18. 18. 4. The changing trend of important systems < Tax System > •  Business Tax to Foreign Invested Co. by Foreign Investment Law → 30% •  Foreign Currency Income Tax - Foreigner → 15% - Domestic → 10% III.  Ideal Economic Cooperation between Korea and Myanmar
  19. 19. 4. The changing trend of important systems < Financing system > •  USA → General licensed to 4 big Myanmar Bank (MEB, MICB, AGD, Aveyarwa dy Bank) - Can do business with US Company •  Maintenance of Basic Rate - 12% → 10%(2012) and Maintain •  Plan to have open stock Market in 2015. III.  Ideal Economic Cooperation between Korea and Myanmar
  20. 20. 4. The changing trend of important systems < Labor system > •  Maintenance of low labor cost - Cheaper than Vietnam and Indonesia - US$70~80/ Month: Unskilled labor •  Unskilled labor: only Myanmar labor Skilled labor: should increase domestic labor using - 0~2 year : 25% - 2~4 year : 50% - 4~6 year : above 75% III.  Ideal Economic Cooperation between Korea and Myanmar
  21. 21. 4. The changing trend of important systems < Trade system > •  Comparatively low custom tax - More or less 5% except Jewelry & Luxury item •  Expecting to abolish licensing for Export and Import - Import: 166 Export: 152 abolished (March, 2013) •  Agreement of Avoidance of double Taxation. - Korea, UK, Malaysia, Singapore, Vietnam, India. III.  Ideal Economic Cooperation between Korea and Myanmar
  22. 22. 5. Recommendable Business Area with Myanmar < Agriculture Area > •  Decreased weight, but still the largest Industry - weight in GDP: 38.8% (2012) - Cambodia: 34.7% , Vietnam: 21.5% - Thailand: 8.6% - Deregulation of Product Quantity and price control → continuously increasing of production III.  Ideal Economic Cooperation between Korea and Myanmar
  23. 23. 5. Recommendable Business Area with Myanmar •  High Growth potentiality - reasonable labor cost and plenty labor and land •  Ownership of land → Government (1960) - ploughing right(Cultivated) → Tradable •  Still low foreign investment(1988~2012) - Electricity: 47% - Crude oil$ Gas: 34% - Mining: 7% - Manufacture: 4% - Hotel& Tour: 3% - Agriculture:1% III.  Ideal Economic Cooperation between Korea and Myanmar
  24. 24. 5. Recommendable Business Area with Myanmar < Infrastructure Area > •  Poor Infra - High Logistics cost: shortage of pavement road and rail road - Difficulty to get raw materials & Export: Problem of sea port and Airport - Logistic performance Index: 129/155 - Infrastructure Index: 133/ 155 (Same level with Laos, Cambodia) •  Expansion plan of Infrastructure for Tourism Master plan - Expansion of Mandaley and Nai pyi Taco Airport - Expansion of Industrial Meeting, Incentive tour, Convention, Exhibition, Faciliti es (Yangon, Mandaley, Bargan, Inlei Lake) •  Concentration of Licensing power related with Infra in government - Necessary to get final permission from Myanmar Investment Commission. III.  Ideal Economic Cooperation between Korea and Myanmar
  25. 25. 5. Recommendable Business Area with Myanmar < Electricity-Power plant > •  Low Electricity supply (26%) - production of Electricity: 7.346 million KWH - Hydroelectric Power: 68% - Steam Power : 32% - Demand(2012) → 1890MW - Capacity: 1500MW - Loss Rate → 27% (shortage of skilled labor and Investment from Government) III.  Ideal Economic Cooperation between Korea and Myanmar
  26. 26. 5. Recommendable Business Area with Myanmar < Electricity-Power plant > •  Increasing Steam Power Plant •  Big chance to invest in sending and distribution line of Electricity - Decreasing loss rate - 2001~2031: 6 stages five years plan ○  2011.4~2016.3 1,576Mile → 1,623 Million Dollar ○  2016.4~ 2021.3 1,928Mile → 1,810 Million Dollar ○  2021.4~2026.3 675Mile → 1,552 Million Dollar ○  2026.4~2031.3 140 Mile → 2,258 Million Dollar III.  Ideal Economic Cooperation between Korea and Myanmar
  27. 27. 5. Recommendable Business Area with Myanmar < Solar Energy > •  The Merit of solar Energy - Unlimited & 10,000times more than global energy consumption - Sage & the life cycle of facility is about 20 years long - No Pollution green Energy •  Stand-Alone off-Grid System(With Battery) - Easy to operate & Maintenance system(the cost is comparatively low) - cheap installation cost: under 1 dollar/Watt ※ Installation Budget for 200 houses: 3.8 Million Dollars III.  Ideal Economic Cooperation between Korea and Myanmar
  28. 28. 5. Recommendable Business Area with Myanmar < General items > •  Instant Healthy Food •  Cosmetics •  Skin-care & Beauty •  Machinery(Agricultural) •  Forestry Product(Wood pellet) •  Educational Equipment. III.  Ideal Economic Cooperation between Korea and Myanmar
  29. 29. < Very Attractive country to have business > 1. Possibility of high Economic growth in Asia 2. Considering the relatively low labor cost and Geographical circumstance, Fit for Manufacture Bases for south East Asia 3. Development of Plenty Natural Resources 4. Effective Marketing to consumer Goods Using First-Mover Advantage IV.  Conclusion
  30. 30. THANK YOU

×