The document analyzes investment opportunities in Myanmar's cement market. It begins with an introduction to Myanmar's geography, resources, demographics, and economy. A SWOT analysis identifies strengths like established technology and distribution channels, as well as opportunities like surplus demand. The analysis recommends a joint venture called Golden Cement Company to build a factory and leverage Japan's technology to capture market share through a marketing strategy involving advertising, promotions, and establishing a dealer network. The cement market is seen as a good investment opportunity due to Myanmar's growing economy and infrastructure development needs.

1. National University of Management
MBA Program
Promotion 11, Group 14
1
International
Business
Management
INVESTMENT
OPPORTUNITY
IN MYANMAR
Lecturer:
Soun Hong, DBA
Prepared by Group 8:
1. Meas Sakun 3. Tiv Polin 5. Heng Piseth
2. Sok Kompheak 4. Saray Chanrithya 6. Sum Vanchandarong
July, 2010
2
Content
Introduction 1
I. Market intelligence 2
II. Business environment analysis 5
A. Foreign investment environment 5
B. Macroeconomic business climate 7
C. Business environment analysis 7
III. Opportunities for market entry 10
IV. Market entry strategy 12
Conclusion 14
INVESTMENT OPPORTUNITY IN MYANMAR

2. 3
The analyzing of the Investment Opportunity in
Myanmar, this assignment is study on the primary
components:
- Market Intelligence
- Business Environment Analysis
- Macroeconomic Business Climate
- Opportunities for Market Entry and
- Market Entry Strategy
Introduction
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1. Location
Myanmar is situated in South-
East Asia and bordered on the
north and northeast by China;
on the east and southeast by
Laos and Thailand; on the south
by the Andaman Sea and the
Bay of Bengal; and on the west
by Bangladesh and India.
I. Market Intelligence

3. 5
2. Geography
- Official Name: Union of Burma
- The total area: 678,500 sq km
- Land: 657,740 sq km
- Water 20,760 sq km
- Cities: Administrative capital--Nay Pyi Taw
- Other cities: Rangoon
- Terrain: Central lowlands ringed by steep,
rugged highlands.
- Climate: Three main seasons, hot season, rainy
season and cold season
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3. Natural resources
Myanmar is rich in natural resources such as
petroleum, timber, tin, antimony, zinc, copper,
tungsten, lead, coal, some marble, limestone,
precious stones, natural gas, and hydropower.
4. People
Total population 59.98 million (2009)
Urban population as % of
total population
31% (2006)
Population median age 27.0 years (2006)
Population growth rate 0.90% (2006)
Religions
Buddhist 89%, Christian 4%,
Muslim4%, animist 1%, other 3%
Languages Burmese, minority ethnic languages

4. 7
5. Government
- Type: Military junta.
- Constitution: January 3, 1974; suspended since
September 18, 1988, when the current military
government (currently called the State Peace and
Development Council, or SPDC) took power.
- New draft constitution was overwhelmingly
approved in a May 2008 and scheduled to take effect
when a new parliament convenes following elections
planned in 2010.
- Governors: Executive-Chairman of the SPDC Senior
General Than Shwe is the head of state. Prime
Minister Gen. Thein Sein is the head of government.
- Suffrage: Universal suffrage at 18 years of age.
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6. Economy
- Bangladesh, India, Myanmar, Sri Lanka, Thailand
Economic Cooperation (BIMST-EC).
- Myanmar’s ASEAN membership provides
numerous trade benefits with the ASEAN Free Trade
Area (AFTA)
- Myanmar currency is kyat (K).
- Exchange Rate: 1USD = K1040
- The biggest bank note is 5000K

5. 9
6. Economy...
- GDP: $27.5 billion (2009)
- Annual growth rate: 1.8% (2009)
- GDP per capita: $431 (2009)
- Inflation rate: 6.5% (2010)
- Agriculture: Products-rice, pulses, beans, sesame,
peanuts, sugarcane, hardwood.
- Industries: Types-natural gas, agricultural
processing, knit and woven apparel, wood and wood
products, cement, paper, cotton, cotton yarn, sugar,
copper, tin, tungsten, iron, construction materials,
pharmaceuticals, and fertilizer.
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- Myanmar adopted the market oriented economic
system in the year 1988 after adopting the
centralized planning economic system for more than
two decades.
-The initial step taken towards a more liberalized
economy is to allow foreign direct investment and to
encourage the private sector development.
II. Business environment analysis

6. 11
A. FOREIGN INVESTMENT ENVIRONMENT
Foreign Direct Investment Policy
The main components of the policy are:
(a) adoption of market oriented system for the
allocation of resources.
(b) encouragement of private investment and
entrepreneurial activity.
(c) opening of the economy for foreign trade and
investment.
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Forms of Investment
- Wholly foreign-owned or
- Joint venture with any partner (an individual, a
private company, a cooperative society or a state-
owned enterprise). The minimum share of the foreign
party is 35 percent of the total equity capital.
Minimum Capital Requirement
- Industry US $500,000
- Services organization US $300,000

7. B. MACROECONOMIC BUSINESS CLIMATE
Real GDP growth rate: 2001-2009
Graphic of Real GDP growth rate: 2001-2009
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2001 2002 2003 2004 2005 2006 2007 2008 2009
11.3% 12% 13.8% 13.6% 13.6% 13.1% 11.9% 3.6% 1.8%
C. Business Environment Analysis
1. Domestic Business Environment Analysis (2002)
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8. 2. Foreign Investment Analysis (2002-2009)
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No Sector Permitted Enterprises
(US$ in million)
2002 2009
No Approved
Amount
No Approved
Amount
1 Oil and Gas 51 2355.923 89 3,398.478
2 Manufacturing 143 1575.136 155 1,634.896
3 Hotel and Tourism 43 1059.661 45 1,064.811
4 Real Estate 18 1025.140 19 1,056.453
5 Mining 51 523.358 60 1,395.886
6 Livestock and Fisheries 20 283.372 25 324.358
7 Transport and
Communication
14 283.272 16 313.272
8 Power 2 6,311.22
Foreign Investment of Permitted Enterprises (By Sector)
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Foreign Investment of Permitted Enterprises
(By Country and Region, 2002-2009)
2002 2009
No. of
Country
No. of
Projects
Approved
Amount
No. of
Country
No. of
Projects
Approved
Amount
24 355 7,394.779 32 426 15,788.290

9. 17
1. Current Cement Market in Myanmar
III. Opportunities for Market Entry
Cement Market Overview (2007)
Demand of Cement Product:
- 2006: 3.5 (million tons)
- 2007: 4.0 (million tons)
=> the demand of cement
product is increasing each
year.
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2. The Opportunity for Entry
Why Cement Market in Myanmar shortage?
• The new capital, “Naypyitaw” caused large demand of
construction materials
• The biggest “Salawin” Dam requires cement approx.
300,000 million tons during 2008 – 2012
• Great demand in infrastructure development.
• Other Social economics sectors are growing up.

10. 19
2. The Opportunity for Entry...
Cement industry is needed more to produce and to fulfill
the increasing of cement product in Myanmar.
This is a good opportunity for investing in this area.
Golden Cement Company is ready to invest and to
planned to build a factory in Limestone source area of
Myanmar, located in Mon State, south of Myanmar, next
to the Andaman Sea.
The Golden Cement Company (GCC) is a joint venture
investment company under the Foreign Investment Law
of Myanmar.
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2. The Opportunity for Entry...
Map of Mon State
Limestone Mountains in Mon State

11. 21
1. SWOT ANALYSIS
IV. Market Entry Strategies
SWOT analysis is a simple frame work for generating strategic
alternatives from a situation analysis. SWOT stand for Strengths,
Weaknesses, Opportunities and Threats.
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1. SWOT ANALYSIS...
Strengths
- Technology: Japan technology, standard (ISO)
- Leading Brand: People’s favorite (Golden Land, Golden Cement)
- Distribution channel: Whole country
- Customer Royalty/Relationship: Brand name and promotion
- Product quality: Standard quality
- Scale: 600 tons/day
-Management: Co-management
Weaknesses
- Absence of important skills: None
- Weak brand: None
- Poor access distribution: None
- Low customers retention: None
- Unreliable Products/Service
- Sub-scale: None
- Management: None

12. 23
1. SWOT ANALYSIS...
Opportunities
- Change customer taste: Surplus Demand
- Technology Advance: Japan technology, standard (ISO)
- Change in government politics: Oriented Market Economic,
Good relation with business partner and top local authorities
- Lower personal taxes: Local product, lower rate
- Change in population age: Average 27 years old
-New distribution Channel: Whole country
Threats
- Change customer taste: Local cement
- Technology Advance: China technology
- Change in government politics: Politic crisis
- Lower personal taxes: Change policy
- Change in population age: Low population growth
- New distribution Channel: Increasing products of local company
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2. 4P’s Strategy
Product
Type: Construction product (Cement)
Brand: Golden Cement
Quality: High quality from Japan
Packaging: Standard package (Auto machine)
Service: Closely relationship
Support: On time supply, technical
Warranty: Broken or bad quality product
Price
Price: Approximately (Local price)
Discounts: Based on power of purchase
Financing: Accountable (based on customers)
Leasing Option: Dealers and government
Allowance: Commission to dealers

13. 25
2. 4P’s Strategy...
Place
Locations: Factory near natural resource of product
(Mon state)
Logistics: Factory, Mawlamyine, Yangon, Mandalay
Channel members: Dealers, Construction companies
Market Coverage: ½ of shortage supply
Internet: Available
Mobile: 24hours per day
Promotion
Advertising: TV, Radio, Newspapers
Public Relationship: Banner, name card, Calendar
Message : E-mail & mobile
Direct Sales: Dealers
Sales: Reward, commission
Budget: 2 years for promotion
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CONCLUSION
Cement product is the good opportunity to invest and produce in
this country, because:
- Myanmar’s economy has adopted the market oriented
economic system in the year 1988.
- Economy policy is to allow foreign direct investment and to
encourage the private sector development
- Increasing of investment companies of any sectors and many
government project, such infrastructures (roads, bridges &
dams), business buildings, hotels, factories etc.
- Demand of cement product is growing
Thus, the Golden Cement Company (GCC) is ready to invest
and build its plant to produce and supply Golden Cement to the
big target market in this country by joint-venture with local
business partner by its successful expected plan and efficiency
marketing strategy to lead market share.

14. 27
References
1. www.myanmars.net/facts-about-myanmar
2. http://www.state.gov/r/pa/ei/bgn/35910.htm#profile
3. www.myanmars.net/facts-about-myanmar
4. Global Finance: http://www.gfmag.com/gdp-data-country-
reports/214-myanmar-gdp-country-report.html
5. www.yadanabon.com/investment.htm
6. www.yadanabon.com/domestic_investment
7. http://www.state.gov/e/eeb/rls/othr/ics/2010/138043.htm#
8. Markets Updates, Siam City Cement PLC, Chantana Sukumanont,
Mkt & Sales
9. www.tradingmarket.com
10. http://www.netmba.com/strategy/SWOT Analysis.mht
11. www.valuebasedmanagement.net/methods_marketing_mix.html
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Thank you
for your attention !