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Training Course on

THE UNION OF MYANMAR. Training Course on. Enhancing Entreprenourship in SME Development and Export Consortia. Mekong Institute, Thailand. Present by:. Ms. SANDA THEIN. Ms. MU MU MYINT. Ms. HNIN HNIN AUNG. Contents (1) Introduction

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  1. THE UNION OF MYANMAR Training Course on Enhancing Entreprenourship in SME Development and Export Consortia Mekong Institute, Thailand Present by: Ms. SANDA THEIN Ms. MU MU MYINT Ms. HNIN HNIN AUNG

  2. Contents (1) Introduction (2) General Information of Myanmar (3) Aims of Industrial Development and Policy (4) SME Development in Myanmar (5) Industrial Zone and Business Clusters (6) Conclusion

  3. I. Introduction • It has been widely recognized that Small and Medium Enterprises • (SMEs) play ; • - an overwhelmingly important and significant roles in the • country’s economic, social and political development. • - contributing toward employment creation, resource utilization, • income generation, equal distribution of income and • promotion of investment in both the industrialized and • developing countries. • - contributing to greater economic growth of the ASEAN • Countries. • - comparative advantage in their flexibility and dynamism • in response to the changing economic and social environment.

  4. II. General Information on Myanmar • Largest Country in South East Asia Region • Total land area: 261228 sq miles, (677,000 sq km) • - 582 miles (936 Km ) from east to west. • - 1275 miles (2051 Km) from north to south. • - Length of coastline from the mouth of • Naaf River to Kawthaug - 1385 miles (2234 Km) • Population: 56.515 million (2007) • Climate: Tropical monsoon climate • Religion : Freedom of Religion • Buddhism, Islam, Christian ,Hindus • Official Language: Myanmar

  5. In Myanmar, population and Land ratio is favorable and • it is rich in natural resources as well as human recourses. • Myanmar economy is based on agriculture and is striving • for all round development of the nation. • For economic development Myanmar invited both foreign • and Local Entrepreneurs for investment. • Current economic conditions favor the foreign investments • and accelerate the development of private sector as well. • Manufacturing, forestry, mining, energy, livestock breeding and • fisheries and tourism industry have also identities as vital • role to the progress of the country’s economy.

  6. The agricultural development undertakings alone are not enough • to fulfill all the public needs. • The industrial development is important in building a new modern • and developed nation. • - The small and Medium Enterprises had been predominant • in Myanmar for centuries. • After the adoption of market economy in 1988, • The private sector revitalized and appreciable progress had been • achieved in all economic activities, mining, construction, transportation • and services, such as wholesale and retail trade, import and export • trade, banking, hotels and tourism, etc. Approximately 99% of all • business enterprise are SMEs . • - Criteria for definition of SMEs vary according to the country. • - No distinction in size is made for enterprises under the trade and • service sector or Cottage and handicrafts industries.

  7. III . Aims and Policy of Industrial Development Aims • As Myanmar is a developing nation , agriculture play a vital role in fulfilling the food , clothing and shelter needs of the people .The state set up new industries at the possible places with the following aim  of ; • manufacturing agro-based products •   producing import-substitute goods, • utilizing domestic raw-material • disseminating techniques • - generating job opportunities for local people and • - narrowing the gap in the standard of living.

  8. Policy • Development of Industries with agriculture as the base. • Enhancement of quantity and quality of industrial products. • Increased production of new type of machinery and equipment. • Production of machinery and equipment for industrial use. • Creation of suitable conditions for changing over to a industrial state. • In late 1988, • - The new economic policy based on market oriented system.-- • The country’s economy welcomes the private sectors as well as • foreign direct investment with less state intervention.

  9. Sectors of Infrastructure • Procession and manufacturing 63.4 % • sector • Service sector 22.4 % • Trade sector 14.2 % • Total 100.0 %

  10. Processing & Manufacturing Sector • Agriculture 37.95 % • Livestock and Fisheries 7.40 % • Forestry 0.60 % • Mining 0.60 % • Industries 13.00 % • Energy / Electronic 0.40 % • Construction 3.5 %

  11. The Industry Sector of Myanmar Upgrading industrial power • Industrial zones 18 • Industrial Works 8463 • Private industries 42707 • Cottage industries 8500 • State- owned industries 833

  12. IV.SME Development in Myanmar Criteria for definition of SMEs vary according to the country. Classification of Small, Medium and Large Industries in Myanmar are as following; Category SmallMediumLarge (a) Power used(H.P) up to 25 up to 50 over 50 (b) No of workers up to 50 up to 100 over 10 (c) Capital Outlay(ky mi) up to 1 up to 5 over 5 (d) Production value up to 2.5 up to 10 over 10 (ky mi)/yr

  13. Growth of Registered Private Industries Scale 2003-04 2004-052005-06 2006-072007 -08 Large abs: 3135 3213 3438 3463 3570 share % 7.3 7.4 7.9 8.0 8.16 Medium abs: 6215 6359 6430 6483 6693 Share % 14.5 14.6 14.8 14.9 15.30 Small abs: 33454 33863 33456 33455 33500 Share % 78.2 78.00 77.3 77.1 76.54 Total abs: 42804 43435 43324 43401 43763 Share % 100 100 100 100 100

  14. Type of SMEs at (31-5-09) • Sr. Commodity Group No: of Industrial Enterprises • No. Small Medium largeTotalShare • 1. Food & Beverages 22984 3920 1846 28750 65.66 • 2. Clothing apparel & Wearing 1178 354 273 1805 4.12 • 3. Construction materials 2151 503 452 3106 7.09 • 4. Personal goods 450 296 264 1010 2.30 • 5. Household goods 126 68 114 308 0.70 • 6. Printing and publishing 189 73 20 282 0.64 • 7. Industrial raw materials 519 273 98 890 2.03 • 8. Minerals & Petroleum Products 1182 311 170 1663 3.80 • 9. Agricultural equipment 45 27 13 85 0.20 • 10.Machinery equipment 171 83 13 267 0.61 • 11.Transport Vehicles 80 11 142 233 0.53 • 12.Electrical goods 22 10 30 62 0.14 • Miscellaneous 4346 811 168 5325 12.16 • Total 33443 6741 3604 43788 • Percentage % 76.38 15.39 8.23 100

  15. The Private Industrial Sector Large 3604 ( 9 %) Medium 6741 (15 %) Small 33443 (76 %)

  16. Foodstuff Industries • Government 154 • City Development Council 6 • Private 5667 • Total 35827

  17. Processed Food Industries Concerning Ministry • Ministry of Industry (I) • Ministry of Agriculture and Irrigation • Ministry of Livestock Breeding and Fisheries • Ministry of Co-operative • Ministry of Commerce Concerning Organization • Union of Myanmar Federation of Chamber • of Commerce and Industry • Myanma Food Processors’ Association

  18. Industrial Cooperation • Association of South East Asia Nations • (ASEAN) • AFTA • WGIC • AICO • Bay of Bengal Initiative for Multi Sectoral • Technical and Economic Co-operation • (BIMSTEC)

  19. The Ministry of Industry (I) • playing a key role in fulfilling the food, • cloth and shelter needs of the people • is responsible for - • directing • promoting industrial investment • production of consumer goods and other • light industrial products • acts as a focal point for the industrial • activities of the public sector

  20. The Ministry of Industry (I) Two Directorates: • The Directorate of Industry (DI) • The Directorate of Industrial Supervision • and Inspection (DISI)

  21. The Ministry of Industry (I) Six Industries: • Myanma Textile Industries (MTI) • Myanma Foodstuff Industries (MFI) • Myanma Pharmaceutical Industries (MPI) • Myanma Ceramic Industries (MCI) • Myanma General and Maintenance Industries • (MGMI) • Myanma Paper and ChemicalIndustries • (MPCI)

  22. Factories under the Ministry of Industry (I) • Myanma Textile Industries (MTI) 26 • Myanma Foodstuff Industries (MFI) 22 • Myanma Pharmaceutical Industries 15 • (MPI) • Myanma Ceramic Industries (MCI) 15 • Myanma General and Maintenance 11 • Industries (MGMI) • Myanma Paper and Chemical 18 • Industries (MPCI) • TOTAL 107

  23. Myanma Foodstuff Industries • Distilleries 5 • Wheat Product Factories 2 • Starch Factory 1 • Virginia Tobacco Factories 3 • Soft Drinks and Ice Factories 6 • Candy Factories 2 • Sugar Mills 2 • Soy Sauce and Vinegar Factory 1 • 22

  24. The Main Products of MFI • Rectified Spirit • Alcoholic Drinks • Beer • Soft Drinks • Ice • Purified Drinking Water • Wheat Flour • Biscuits • Noodles • Vinegar • Glucose • Maltose • Candy • Chocolate • Starch • Corn Oil • Soy Milk • Soy Sauce

  25. Contact US • Ministry of Industry (1) • Building No (37) . Nay Pyi Taw, • Myanmar • Phone No- 095-067-408140 , 408195 • Fax No- 095 -408140 • Ministry of Live and Fisheries • Fish Inspection and Quality Control Division • Dept. of Fisheries, Sin Min Road, • Ahlone, Township, Yangon, Myanmar • Phone No- 095-1- 222182

  26. Thank You Very Much

  27. National Policy on Fishery Sector • To Promote all- round development in the • fisheries Sector. • To increases fish production for domestic consumption • and share the surplus with neighboring country. • To encourage the expansion of marine and fresh • water . • To upgrade the socio-economic status of fishery • communities.

  28. To Policies and Objectives of the Ministry of Live stock and Fisheries • To Promote quietly breads of livestock and fish. • To promote all round development in the livestock • and fishery sector. • To increases meet and fish production for domestic • consumption and share the surplus with neighboring countries. • To promote investment in livestock and fishery sector. • To encourage the expansion of me line and freshwater. • aquaculture.

  29. To Policies and Objectives of the Ministry of Live Stock and Fisheries • To Promote quality breads of livestock and fish. • To promote all round development in the livestock • and fishery sector. • To increases meet and fish production for domestic • consumption and share the surplus with neighboring countries. • To promote investment in livestock and fishery sector. • To encourage the expansion of me line and freshwater. • aquaculture. • To maintain and conserve freshwater and marine resources. • To extend freshwater fisheries for to let consumption and promote • marine fisheries for export. • To upgrade the second –economic status of livestock and fisheries • communities.

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