Myanmar has opportunities across labor-intensive manufacturing like garments and footwear given its low wages. If stability returns, light manufacturing targeting exports could drive growth. Other sectors like- tourism, agriculture and resources hold potential.
Myanmar has been one of the world’s fastest-growing economies and foreign investors were initially enthusiastic about exploring opportunities for investing in one of Asia’s last frontiers. A large market, rich in natural resources, with a young population, Myanmar has much to offer investors in these emerging sectors. Myanmar’s economic growth is expected to pick up in 2019 and 2020, thanks to higher foreign direct investment (FDI) and positive responses to the government’s economic according to a new report by the Asian Development Bank (ADB).
Myanmar’s development story is complex, with significant reversals in emerging sectors in recent years due to multiple and overlapping crises. In 2011, a political and economic transition process began under a transitional military government, with the first democratic elections held in 2015. From 2011 to 2019, Myanmar experienced high economic growth – averaging 6 percent per year – coupled with significant reduction in poverty. This was bolstered by economic reforms, lifting of sanctions and optimism for greater stability.
Myanmar offers opportunities for investing in emerging sectors due to its large market, rich natural resources, and young population. The government’s efforts to standardize FDI application and implementation procedures are expected to lead to higher foreign investment in the country.
Additionally— serving the large domestic consumer market will be a priority. Areas like finance, telecoms, retail, healthcare, education and other services remain underdeveloped and can expand significantly to meet local needs. But realizing any emerging opportunities in these emerging sectors depends on Myanmar resolving its political crisis and restarting structural reform efforts to improve competitiveness.
Despite the challenges, Myanmar’s economic growth is expected to pick up in the coming years, thanks to higher FDI and positive responses to the government’s economic policies.
