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Preliminary Study on SME. Aye Myat Thanda 29.10.2012. Importance of SMEs and situation of SMEs in GMS. 99 % of all enterprises 50 % of manufacturing output 44 to 70 % of employment CLMV - Various Challenges Opportunity and Challenge of AEC
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Preliminary Study on SME Aye MyatThanda 29.10.2012
Importance of SMEs and situation of SMEs in GMS • 99 % of all enterprises • 50 % of manufacturing output • 44 to 70 % of employment • CLMV - Various Challenges • Opportunity and Challenge of AEC • SMEs cluster and export consortium
SME situation in Myanmar (Cont;) 18 Industrial Zone 7 New Industrial Zone 19. Pa -an ( Kayin State) 20. Yadanar Pone (Mandalay Division) 21. Takkone (Nay Pyi Taw ) 22. Pone Nar Kyun (Ra khaing Division) 23. MyaWa Di( Kayin State) 24. Nan - on ( Shan Division) 25. Pha Yar Thone Su (Kayin State) • East Yangon Industrial Zone • West Yangon Industrial Zone • South Yangon Industrial Zone • North Yangon Industrial Zone • Taunggyi (Shan State)Aye ther Yar Industrial Zone • Mandalay (Mandalay Division) • KaLay Industrial Zone (Chin State) • Monywa Industrial Zone (Sagaing Division) • Pakhuku Industrial Zone (Magway Division) • Maitthila Industrial Zone(Mandalay Division) • Myin Chan Industrial Zone (Mandalay Division) • Ye Nan Chaung Industrial Zone • Pyay Industrial Zone (Bago Division) • MawlaMyaing (Mon State) • MyaungMya Industrial Zone • Hinthada (Ayeyarwady) • Pathein (Ayeyarwady ) • Meike (Taninthayi Coastal)
SME situation in Myanmar (Cont;) • Access to Finance, Market and Skill • Transaction cost • Imported goods from illegal channel • Power Shortage • Away from International Aid • Abundant natural Resources • Inexpensive Labor Force • Economic Reforms
SME situation in Myanmar (Cont;) • Myanmar Industrial Development Committee (MIDC) • Technical trainings • Financial assistance • Specific policy and legal framework
SME situation in Myanmar (Cont;) • Small scale Industries Development Sub Committee (Myanmar Industrial Development Committee) • Ministry of Commerce • Ministry of Science and Technology • Cottage Industries Department (Ministry of Cooperatives) • UMFCCI • MIA • SME Development Service Center
SME cluster • Allow to combine advantages of small scale firms with various of the benefits of large scale. • Lead to efficiency-enhancing collaboration amongst firms, such as joint marketing initiatives, the creation of mutual credit associations, joint design and sponsorship of training etc.
Export Consortium • A voluntary group formed by small and medium sized businesses which pool in their own expertise, experience, resources and business network. • To boost the export of goods and services of its members through joint actions. • Non-profit alliances, and the members do not have to transfer control of their business to others
SME Cluster in Myanmar • SME cluster • Trade associations – Respond to Difficulties • No link in commercial activities
Prospective SME Clusters in Myanmar • Resource-based industries • Labor-intensive industries • Hotel and Tourism
Prospective SME Clusters in Myanmar • Ministry of Industry • Myanmar industrial development committee • Ministry of commerce • Ministry of cooperative • Ministry of science and technology • Ministries concerned for respective products • NGOs in business sector
Prospective SME Clusters in Myanmar • SME Development Bank • SME Development Service Center • SME Policy • Strengthening Institutional Capacities • Infrastructure Development • Assist by Regional and International Society