Training Program on Strategic and Participatory Planning and Management Organized by TICA

1. Training Program on Strategic and Participatory Planning and Management Organized by TICA in collaboration with Mekong Institute ( MI) Duration Location 15-26 August MI Residential Training Centre, 2011 Khon Kaen, Thailand

2. Case Study of SMEs in MYANMAR Presented by SME (MYANMAR) GROUP

3. Who are members of SME (MYANMAR )GROUP ? Four Participants from Myanmar Mr.Saw Mr. Kyaw Mr.Aung Ms. Nandar One Participant from China Mr. Chen One Participant from Laos Mr. Boualong

4. Good Afternoon Min Ga Lar Bar ( In Myanmar Language ) Xia Wu Hao ( In Chinese ) Sa Bai Dy ( In Laos Language ) We warmly welcome all of you to the presentation of our group.

5. Kachin Chin Some Information about Myanmar Shan Bamar Kayar Kayin Rakhine Where Who Mon What

6. Economic Development Mass Consumption Takeoff Society s Technological Maturity Road ofRegionalEconomicCooperation Society Transitional How Traditional Society

7. Organization Profile Name Office of SME s Promotion Type of Organization Public Agency Organization Vision To increase competitiveness of SMEs in the Economy Organization Mission Promoting and Developing SMEs Main Function Policy Making Maintaining rules and regulations Issuing New rules and regulations Providing Technical and Financial Support in collaboration with domestic and International organizations Internal Weakness High Degree of Bureaucratic Mechanism and many officials who do not know the real condition of SMEs in External Threat Complaints from SMEs

8. The Year of 2011 brought new conditions to SMEs in Myanmar. In the April of 2011, the elected new government took the responsibility for the country . The new conditions the new government brings for Development of SMEs Newly Forming Ministry of Myanmar Industrial Development Reforming Industrial Development Committee (IDC) Reorganizing Office of the SMEs Promotion (OSMEP) Assigning OSMEP to draw Strategic Plan for SMEs Promotion and Development

9. The AFTA not only opportunities but also challenges in 2015. KEY ISSUES More Market Share AFTA of the Year 2015 High Technology More Capital

10. Stakeholde Influence Interest Strategies to obtain support Financial Institution Amount of More money through Under public private partnership loan (Capital) interest rate and other government will have grantees on charges SME loans to the financial Institution Logistic provider Transport Get provide Better Facilitate transport infrastructure service transport facilities Raw material Providing To supply more Facilitate supplying chains better Supplier inputs & materials to get more transportations intermediate profits products Department of Facilitating More foreign trade Deregulation offering “Business Foreign trade trade related exploring opportunities Matching” and more international activities for other sector marketing Stakeholder Analysis of SME(Myanmar) Cont.

11. Stakeholde Influence Interest Strategic to obtain support SME Producer Providing employment more profit reduce taxation production ,income Encourage more loan from level & other related banks sectors Exporter Amount of export & more foreign supporting export subsides Degree of Int’l earning and market share connecting with Int’l markets Foreign High. Tech; Skill Large market share Tax exemption and creating Investor Int’l financial system more profit and Favorable condition Foreign Capital investment opportunities for other feasible sectors

12. Stakeholder Analysis High 1. Financial institutions 3 7 6 2 2. Logistic providers 3. Raw materials supplier 5 1 4. Dept, of foreign trade 5. SME Producers Interest 6. Exporter 4 7. Foreign Investors LOW Influence High

13. Internal and External Analysis by SWOT GRID • STRENGTHS • Abundant natural resources • ( input and raw material ) • - Deregulation of new government • - English spoken young labor force • - Skillful and cheap labor force • Practice of international • accounting system • WEAKNESS • Poor Infrastructure • Insufficient electric power • Lack of advanced technology and • management • Lack of knowledge on international • trading practice • - Lack of capital • OPPORTUNITIES • More inflow of foreign capital and • technology • Increase in more share in int’l • market • Development in infrastructure • and improvement in logistics • THREATS • - Strong competition • - “Brain drain ” from local SMEs • - Shrinking of existing market share • Uncertainty of international • economic environment

14. T O + + + - DEFEND INVEST Skillful & cheap labor force Abundant natural resources More inflow of foreign capital & technology Brain drain from local SMEs S Abundant natural resources Abundant natural resources Uncertainty of int’l economic environment Increase in more chare in int’l market - + DECIDE - - DAMAGE CONTROL Poor infrastructure Lack of capital Development in infrastructure & import in logistic Shrinking of existing market share W Lack of capital Lack of knowledge on int’l trading practice More inflow of foreign capital & technology Brain drain from local SMEs Increase in more chare in int’l market Lack of knowledge on int’l trading practice

15. Our Vision To become the SME Regional Gate Way- the desired destination for production and marketing base of Small and Medium Sized Enterprises in Southeast Asia Our Mission To promote SME development and integration into GMS and ASEAN value chains for inclusive growth of urban and rural communities- by providing business development services by supporting new SME initiatives and by facilitating business - to -business network with other SMEs in ASEAN. Our Belief Domestic SMEs can develop through regional economic cooperation and integration.

16. Strategic Goals To provide capacity building for SMEs To help SMEs increase the market share To coordinate organizations in providing support for SMEs To support necessities for use of online services To help SMEs increase their competitiveness

17. To persuade foreign and Local experts to work for SMEs with high salaries To provide capacity building for SMEs To help in giving training to unskilled labors to improve their competence

18. To occupy 75% of ASEAN market share by arranging business market at least 20 times year To help SMEs increase the market share To arrange trade fairs in collaboration with ASEAN countries 4 times a year

19. To promote cooperation between SMEs and financial institutions through government guarantees To coordinate institutions in providing support for Development of SMEs To form “CLUSTERS” for each particulars products and to provide financial support for research and development activities

20. To set up business information centre in every country which has diplomatic relationship with Myanmar To support necessities for use of online services To practice on line system within first 2 year and fully implement at the end of 2015

21. To help SMEs improve their product quality by monitoring To help SMEs increase their competiveness To help SMEs to diversify their products with high-tech

22. MYANMAR CHINA LAOS MYANMAR CHINA LAOS MYANMAR CHINA LAOS Tank you for your attention ! LAOS MYANMAR LAOS CHINA MYANMAR LAOS CHINA MYANMAR CHINA

23. ေက်းဇူးတင္ပါသည္ KYAY ZOO TIN BAR THE ( in Myanmar) KHOB CHAI ( in Laos) XIE XIE ( in Chinese) THANK YOU