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SPECIAL FOCUS
SPECIAL FOCUS

Do Export Business in Myanmar…

What WE Need To Know

Myanmar is proven to be a potential market, especially Therefore, from that understanding, one can determine what kind of
for Thai products, but the problem yet relies on how business they can and cannot set up, and through which channel they
much does enterprise understand it and in which can achieve their goal. First of all, you need to understand that everything
dimension. It is likely that the wrong answer will come has a way in Myanmar, as you can see that various kinds of businesses
up, if we start with the wrong question. Therefore, to are happening and managed by both locals and foreigners. However, in
conduct a business in Myanmar, the first thing you do order to successfully set up a business, you need to ask yourself if it is
what you are really interested in and whether you are willing to do what
is to adapt or create an accurate understanding about it takes to do it.
the market. The next question to follow is what kind of
business we are interested in doing in Myanmar. The International Transaction
structure of the market is similar to Thailand roughly In every country, financial and banking sectors play crucial roles
40-50 years ago. And during that time, Thailand is keen encouraging the business sector. Moreover, the format or characteristic
to consume import products because the country’s of the financial transaction with trading partner countries or competitor
manufacturing standard wasn’t yet in placed. The same countries unavoidably influencing how businesses are being conducted,
trend is happening in Myanmar, too, and the demand especially in an open economy where products and services are flowing
for foreign products are defined as many believe that in and out enormously like in Thailand. Therefore, many international
finances tips and reviews emerges as a channel to inform enterprises
imported goods are in higher standard and of better with useful information and encourages them to be confident when
quality. Nonetheless, such demand from Myanmar entering the global trade.
revolves around the four requisites, which Thailand has We begin with the information about transaction in Myanmar.
quite a potential. The problem remains whether Thai Previously, trade with Myanmar are mostly conducted via traders at the
enterprises can compete with others. It is unforgettable border and trading agents. However, since the US lifted an economic
that the consumption power Myanmar now is focusing sanction against Myanmar in 2016, along with the relaxing economic
on cheap prices. Hence, items sold easily in Thailand policy of the country, Myanmar banks were forced to develop quickly. At
could be perceived as expensive goods in Myanmar. the same time, Myanmar’s trade value with other countries expanded.
International transaction became more necessary, and therefore, were
Starting a Business in Myanmar upgraded to be in accordance with the international standard. Hence, it
Most of the time, people often start with trading business and once we is wise to know about banks in Myanmar, especially the state-owned
recognise the market demand, we can bring the products that answer institutions, as they play crucial roles in today’s transaction. There are 4
to the requirement. This is possibly the best way and the least risking state-owned banks in Myanmar;
business practice for beginners. How do we start? Easily, we look for • Myanmar Economic Bank (MEB) is considered as the second
those who want to buy our products. From where? Finding buyers is biggest bank in Myanmar in terms of customers outreach (following
among many services offered by Thai Trade Center in Yangon. The privately owned KBZ Bank). MEB has about 350 branches with more
main mission of the office is to do whatever it takes to maximize sales than 9,000 employees, which allow them reach out to the population in
of Thai products in Myanmar both in terms of quality and sustainability. rural areas (which is considered of 70% of the country’s total population.
We have some Myanmar business-people in our contact system and However, the bank mostly provide loan for the public sector in the forms
Thai entrepreneurs can ask us to introduce buyers or Myanmar of bonds, finance for state enterprises, and low interest rates loan for
businesses for further negotiations. other banks, while the support for the private sector is considerably low
(less than 10% of the bank’s total asset).
Setting Up a Company • Myanmar Foreign Trade Bank (MFTB) provides strong
Before anything, we need to be clear about the objective to set up the correspondent bank network of more than 263 banks in 54 countries for
business and who will be the founder. Here, who means a Myanmar international trade finance. The bank is the most popular institution to
citizen or a foreigner, as Myanmar’s regulation generate two different trust when it comes to foreign currency deposit account.
definition about the terms, and some are authorised to do more things • Myanmar Investment and Commercial Bank (MICB) provides
than the other. For instance, to set up a foreign company in Myanmar, quite similar services to MEB and MFTB in terms of financial support for
we must see what the main purpose of this business is, as regulations domestic companies and international businesses. However, MICB is
grant foreign companies the right to conduct some acts. In general, the outstanding in supporting private enterprises, which in turn facilitates the
Myanmar government allows foreign companies to conduct businesses country’s economic expansion.
in 2 fields; (1) to set up a manufacturing facility, and (2) to run a service • Myanmar Agriculture and Development Bank (MADB) focuses
business. on funding farmers and enterprises in rural area with short- and long-term
Most time, foreigners often want to set up trading business, though loans. The bank serves approximately 2 million customers through its
no regulation approved such action. Setting up a company to 2,500 employees in more than 230 branches across the country.
manufacture is most of the time unquestionable as it is obvious. The Nonetheless, in the aspect of international trade, state-owned banks
problem comes when you are setting up a business in the service sector. like MFTB and MICB are the most prominent banks to get to know as
Foreigners think that their businesses like spa and restaurant are they have long experiences in international trade and cross-border
categorized as a service business, but Myanmar has a different transaction. That they are owned by the government also make them
definition. So far, no one can really tell what the service business in more reliable, and it is likely that your Myanmar trading partners will be
Myanmar is. However, some observations were made that Myanmar using their services such as international transfer and L/C, too.
will consider the source of business income. For example, Myanmar
reinstated that a foreigner can set up a hotel business, because it is a
service establishment and many customers are foreigners. Therefore,
the source of hotel’s income is foreigners. To summarize, the service เอกสารอ้างอิง/References
businesses foreigners can do in Myanmar are the businesses that • คำ�ถ�มเกี่ยวกับตล�ดเมียนม�. www.ditp.go.th/main.php?filename=faq
collect income from other foreigners, and not local. Nonetheless, one
service business that will go well is a consultant firm. • เกร็ดก�รเงินระหว่�งประเทศ: ควรเลือกใช้ธน�ค�รไหนในเมียนม�เมื่อจะทำ�ก�รค้�ข�ยกัน. ฝ่�ยวิจัย
38 FOOD FOCUS THAILAND MAY 2018 ธุรกิจ. มกร�คม 2561. ธน�ค�รเพื่อก�รส่งออกและนำ�เข้�แห่งประเทศไทย