Overview of Myanmar Textile Industries and

Dr. Aung Kyaw Soe

Textile Industries
Investment Opportunity for Thai Investors
Date : 4
th
October, 2012 Bangkok, Thailand
Textile Industries
Ministry of Industry
The Republic of the Union of Myanmar
Outlines
I G hi l B k d I. Geographical Background
II. Foreign Policy
III. Supply Chain Mechanism of Textile Industries
IV. Business Opportunity in Myanmar
V. Foreign Direct Investment in Myanmar
VI Ways to Cooperate with SOES and Private Sector VI. Ways to Cooperate with SOES and Private Sector
VII. Some Necessary Information
VIII. Conclusion
2
I. Geographical Background
Official Name : The Republic of the Union of Myanmar
Capital : Nay Pyi Taw(14 Regions and States) Capital : Nay Pyi Taw (14 Regions and States)
Land Area : 676,577 sq km
Total Coastline : 2832 km
Climate : Summer, rainy and cold season
Border : Bangladesh , China, India, Laos,
Countries Thailand
Religion : Buddhism, Christianity, Hinduism,
Islam Islam
Ethnic groups : 135
Population : 60 Million
Working Age : 37.35 million (62.25 %)
Currency : Kyat
3
II. Foreign Policy
Myanmar has been consistently practicing the independent, active, and
non-aligned foreign policy.
The Foreign Policy is based on the five principles of peaceful co-existence.
Myanmar maintains friendly relations with countries in the world It also Myanmar maintains friendly relations with countries in the world. It also
cooperates with international organizations, the United Nations and
regional organizations such as ASEAN.
4
II. Foreign Policy (Cont;)
( ) P liti l f i
Newly Democratic Government was formed on 31
st
,
March 2011.
After taking office about 18 months of ago,
(a) Political reforms in myanmar
After taking office about 18 months of ago,
The Parliament, the J udiciary, the Armed Forces, the
national races, Political Parties, Civil societies and
the People at large have been taken tangible
irreversible steps in the democratic transition and
reform processes.
Leaving behind a system of authoritarian
government
Putting in place a democratic government and a
t i bl li t f ll i ti f
President U Thein Sein delivered an
address at 67
th
United Nations
5
strong, viable parliament following a practice of
check and balance
address at 67
th
United Nations
General Assembly on 27
th
September
2012.
(b) Current progress in politics
II. Foreign Policy (Cont;)
Granting of amnesties to prisoners
Coming back with dignity of the exiled Coming back with dignity of the exiled
political forces
The successful convening of 2012 by- e success u co e g o 0 by
elections in a free, fair and transparent
manner
The abolition of censorship of media
Freedom of Internet access
Myanmar Parliament House
The establishment of workers and employers organizations and the increased participation of the
people in the political process
6
Daw Aung San Suu Kyi is now participating in the Parliament as a Member of Parliament and the
Chairperson of the Rule of Law and Stability Committee of the Parliament.
(d) Economic reforms in myanmar
II. Foreign Policy (Cont;)
The five year short-term plan (draft) from fiscal 2011-2012 to 2015-2016;
Economic goals
Based on nations current economic situation, the Government has projected
a 7.7 % annual average GDP growth based on 2010-2011 market prices
a decrease of agricultural sector ration in GDP from 36.4 % to 29.2 %; and an
increase of industrial sector ratio in GDP from 26.0 % to 32.1 % and of services
sector ratio from 37.6 % to 38.7 % , respectively.
a 1.7 fold rise in per capita GDP when compared with the base year. a 1.7 fold rise in per capita GDP when compared with the base year.
Reduce the states role in an ambitious list of sectors : education, energy, forestry,
h lth fi d t l i ti i th ti f i t
7
health care, finance and telecommunications an increase the ratio of private
ownership in these sectors as per the international rules and practices.
III Supply Chain Mechanismof Textile Industries III. Supply Chain Mechanism of Textile Industries
8
Cotton
Plantation
Ginning Spinning
Weaving Finishing Garment Plantation
Ginning Spinning
Weaving Finishing Garment
Y
Ready
made
wears
Fabric
Yarn
Market
T t l A 203000
Cotton Plantation
Total Acres - 203000
Seed Cotton Production(MT) - 66000
Lint Cotton Production(MT) - 25000 ( )
Price (US$/1 MT) - 2300 ~ 2400
Lint Cotton Quality
Description Unit Grade-A Grade-B Grade-C
- 2.5 % Span Length (1/ 32) in 36/ 32 34/ 32 32/ 32
- Fineness ( g/ inch) 3.44-4.55 3.5-4.65 3.55-4.7
- Trash Content % 3~5 5~7 5~10
- Short Fibre % 10.6 11.6 12~15
- Maturity % 1.65 1.68 1.81
Challenges
Lack of high-yield strains
10
No subsidy
No incentives
Ginning Production
44%
46%
MinistryofIndustry
Cotton Production - 25000 (MT)
44%
10%
46%
Private
Other
Complete Ginning Plant
Challenges
Needs to set up more complete
11
Double Roller Gin
Needs to set up more complete
ginning plant
Spinning Production Capacity
Sr. Description Ministry of Other Private Total
No Industry
1. Spinning Machines 602 415 85 1102
2. Total Spindle 270720 169320 40800 480840
3. Spinning Production 18254 14029 2902 35185
(MT)
52 % 40 % 8 % 52 % 40 % 8 %
Challenges
Need to upgrade spinning machineries
12
Low production rate
Sr. Description Ministry of Other Private Total
Weaving Production Capacity
Sr. Description Ministry of Other Private Total
No Industry
1 Weaving Looms 5405 2820 10663 18888 1. Weaving Looms 5405 2820 10663 18888
2. Weaving Production 70.21 36.63 80.87 187.71
(Million Meter) (Million Meter)
37.40% 19.51% 43.09%
Shuttle loom 88 % 94% 100 %
Rapier loom 11% 2 4% - Rapier loom 11% 2.4% -
Water jet loom - 3.2% -
13
Projectile loom 1% - -
Finishing Production Capacity
Sr. Description Ministry of Other Private Total
No Industry
1. Finishing Factory 2 1 1 4
2. Finishing Production 11.466 9.9 0.92 22.286
(Million Meter)
51.45% 44.42% 4.13%
Challenges Challenges
Poor quality
Need to upgrade finishingmachineries
14
Need to upgrade finishing machineries
(a) Garment factories improvement
Garment
291
300
200
250
300
291
279
142
154
200
300
o
r
i
e
s
50
100
150
25
142
F
a
c
t
o
0
1994 1999 2000 2004 2007 2011 2012
Year
15
(b) Export CMP basic year on year
800
829
800
900
800
669
692
611
630
600
700
l
l
i
o
n
)
568
412
505
611
400
500
l
l
a
r
s

(
m
i
l
257
369
331
386
412
371
200
300
e
r
i
c
a
n

d
o
190
0
100
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
A
m
e
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year
16
(c) Total export statics of myanmar in 2011
Natural Gas Condensate
Agricultural Products
( ) p y
0.74
0.21
0.09
0.05
0.04
4.28
Precious Stones
CMP Product
7.75
4.18
Timber and Forest Products
Marine Products
Mineral Products
38.28
8.26
Mineral Products
Industrial Products of Myanmar
Animal & Animal Products
21.10
15.02
Foodstuff
Handicrafts & Handmade Products of
Myanmar
17
Myanmar
Other Commodities
( d ) Total export statistics of myanmar in 2011
18
Ministry of Industry
(a) Textile industries (TI) profile
TI is one of the State-owned Enterprises (SOEs)
Totally equipped with 270720 spindles and 5405 looms
Leading manufacturers of textile clothings and apparels
TIs operations cover quality enhancement, technology upgrade, production, p q y , gy pg , p ,
marketing and sales of textile products to the local and foreign market
TI t t i f i th i it lit t til d t TIs strategic focus is on growth in its quality textile products
monitored by Development Center for Textile Technology (DCTT)
19
(b) List of textile factories
1. No(1) Textile Mill (Shwedaung)
N (1) T til F t (M B h) - No(1) Textile Factory (Mayangone Branch)
2. No(2) Textile Mill (Paleik)
- No(2) Textile Factory (Myingyan Branch)
3. No(3) Textile Factory (Sagaing)
- No(3) Textile Factory ( Sagaing Branch)
4. No(4) Textile Factory (Pwint Phyu) 4. No(4) Textile Factory (Pwint Phyu)
5. No(5) Textile Factory (Pakokku)
6. No(6) Textile Factory (Sarlingyi)
N (6) T il F ( M B h) - No(6) Textile Factory ( Monywa Branch)
7. No(7) Textile Factory (Myitthar)
- No(7) Textile Factory (Wundwin Branch)
8. No(8) Textile Factory (Pyawbwe)
- No(8) Textile Factory ( Yamethin Branch)
9. No(9) Textile Factory (Kyaukse) 9. No(9) Textile Factory (Kyaukse)
10. No(10) Textile Factory (Taungtha)
11. No(11) Textile Factory (Pakokku)
20
(c) Location map of textile factories
21
(d) Type of products (d) Type of products
Yarns
7's 100% Cotton Yarn(Open End Rotor Spun Yarn)
10s 100% Cotton Yarn(Open End Rotor Spun Yarn)
21s 100% Cotton Yarn(Ring Yarn)
32's 100 % Cotton Carded Yarn (Ring Yarn) 32s 100 % Cotton Carded Yarn (Ring Yarn)
32's 100 % Cotton Combed Yarn
40's 100 % Cotton Carded Yarn
40's 100 % Cotton Combed Yarn
22
Fabrics
68 x 62
??
C tt G F b i
50
1/32 x 1/32
??
Cotton Grey Fabric
50
96 x 72
1/40 x 1/40 Cotton Grey Fabric
50
96 x 72
??
100 x 54
1/30 x 1/30
Cotton Grey Fabric
48
??
Printed Fabric
Dyed Fabric y
J ean Fabrics
Knitted Wears
Garments
Sewing Thread
23
Textile Supply Chain Mechanism in Myanmar
Imported Fabric
Plantation
Spinning
Production
25000 MT
Cotton
Ginning
364.339 million-meter
203000 Acre
66000 MT
35185 MT
187.71
Weaving
Production
Finishing
Production
22.286
Million-meter
million-meter
Garment
Manufacturing
24
IV Business Opportunity in Myanmar IV. Business Opportunity in Myanmar
25
(a) Myanmar US relations
IV. Business Opportunity in Myanmar
Bans on investment and financial services were
lifted earlier.
It would begin to ease a long-standing
import ban on Myanmar.
It l id l k t f M It also provides a large new market for Myanmar
-made products, which could accelerate the flow
of foreign into the country of foreign into the country.
Textile Industries could receive a boost from the
latest US measure.
The United States is taking the
ne t stepin no mali ingo
Washington hopes Myanmar citizens would have
opportunities to sell Myanmar products into US
next step in normalizing our
commercial relationship
Mrs Clinton told the Myanmar President
market. in New York on 26
th
September 2012.
26
(b) Myanmar Thailand relations
IV. Business Opportunity in Myanmar (Cont;)
Agreed to speed up the Dawei deep-sea port
project in eastern Myanmar.
(b) Myanmar Thailand relations
Planning to announce the development plan in
November through the three-level mechanism.
Th il d l d t i t M Thailand also agreed to assist Myanmar on
human resource development.
Thailand was interested in investing in several Thailand was interested in investing in several
other projects in Myanmar, including the Thilawa
port in the Yangon Region. Myanmar is proceeding towards
democracy and has Thailands
support
Ms Yingluck addressed to the Asia
Society in New York on 26
th
September
2012.
27
(d) Investment opportunities of textile sector in myanmar
IV. Business Opportunity in Myanmar Textile Industries(Cont;)
Cotton Plantation
Importing of Quality Assured Seed
Land lease for cotton plantation
( ) pp y
Land lease for cotton plantation
Cotton Ginning
Importing of updated Ginning Machineries for better cleaning system
Spinning
Upgrading of Spinning Machineries
Weaving
Upgrading of Weaving Machineries
Finishing Finishing
Set up of a large number of new finishing plants
Knitting
Set up of a large number of newKnitting Factories Set up of a large number of new Knitting Factories
Garment
High Demand
Cheap Labour
28
Generalised System of Preferences (GSP)
US sanction will be eased
V. Foreign Direct Investment In Myanmar
29
V. Foreign Direct Investment
(a) Foreign investment of permitted enterprises as of (31/8/2012) (by Sector)
(US$ in Million)
Sr
Permitted Enterprises
(a) Foreign investment of permitted enterprises as of (31/8/2012) (by Sector)
Sr
No
Particulars
No
Approved
%
Amount
1 Power 5 19067.498 46.40
2 Oil and Gas 113 14181.972 34.51
3 Mining 66 2814.36 6.85
4 Manufacturing 179 1830.131 4.45
l d 5 Hotel and Tourism 45 1064.811 2.59
6 Real Estate 19 1056.453 2.57
7 Livestock & Fisheries 25 324.358 0.79
8 T t &C i ti 16 313 906 076 8 Transport & Communication 16 313.906 0.76
9 Industrial Estate 3 193.113 0.47
10 Agriculture 9 182.751 0.44
11 Construction 2 37767 0 09 11 Construction 2 37.767 0.09
12 Other Services 6 23.686 0.06
Total 488 41090.806 100.00
30
V. Foreign Direct Investment(Cont;)
(b) Foreign investment of existing enterprises as of (31/8/2012)(by sector)
(US$ in Million)
Sr
Particulars
Existing Enterprises
A d
(b) Foreign investment of existing enterprises as of (31/8/2012)(by sector)
No
Particulars
No
Approved
%
Amount
1 Oil and Gas 62 13474.728 43.38
2 Power 4 13037498 41 97 2 Power 4 13037.498 41.97
3 Mining 8 2289.162 7.37
4 Hotel and Tourism 30 814.475 2.62
5 Manufacturing 90 627.720 2.02
6 Real Estate 7 275.000 0.89
7 Industrial Estate 2 179.113 0.58
8 Agricultural 6 154.070 0.50
T t &
9
Transport &
Communication 7 137.676 0.44
10 Livestock & Fisheries 7 64.946 0.21
11 Other Services 4 7.061 0.02 11 Other Services 4 7.061 0.02
Total 227 31061.449 100.00
31
V. Foreign Direct Investment (Cont;)
(c) Foreign investment of existing enterprises as of (31/8/2012)(by country)
(US$ in Million)
Sr
No
Particulars
Existing Enterprises
No
Approved
%
Amount
1 China 14 14064 303 45 28 1 China 14 14064.303 45.28
2 Hong Kong 23 6278.436 20.21
3 Republic of Korea 42 2891.685 9.31
4 Thailand 25 2460.333 7.92
5 U.K 22 2246.973 7.23
6 S 0 02 88 6 Singapore 40 1515.027 4.88
7 France 1 499.926 1.61
8 Malaysia 16 433.616 1.40
9 India 7 269.000 0.87
10 J apan 14 114.247 0.37 p
11 Russia Federation 2 94.000 0.30
12 Panama 2 55.101 0.18
13 Vietnam 4 49.796 0.16
14 Mauritius 2 30.575 0.10
15 Indonesia 3 22 200 0 07 15 Indonesia 3 22.200 0.07
16 Republic of Liberia 2 14.600 0.05
17 Philippine 1 6.667 0.02
18 Australia 1 5.819 0.02
19 The Netherlands 2 4.335 0.01
20 Germany 1 2.500 0.01
21 Canada 2 1.310 0.00
22 Austria 1 1.000 0.00
Total 227 31061.449 100.00
32
V. Foreign Direct Investment In Myanmar
I t t l f M
The Union of Myanmar Foreign Investment Law (FIL) was enacted on
30
th
November 1998.
Investment law of Myanmar
30 November 1998.
The Union of Myanmar Special Economic Zone Law was enacted in J a
nuary 2011.
The Dawei Special Economic Zone Law was also enacted in J anuary 2011
subsequently.
L b l f M Labour law of Myanmar
The Labour OrganizationLawwas enacted on 11
th
October, 2011.
The Settlement of Labour Dispute Law was enacted on28
th
March, 2012.
33
Foreign investment law
V. Foreign Direct Investment in Myanmar
Existing FIL
Formof Organization
New FIL
F f O i ti
g
Formof Organization
100% foreign-owned
Formof Organization
100% foreign-owned
J oint Venture
(Any Myanmar Partner or
(Permitted activities by MIC)
J oint Venture
An Individual or A Private
Company or A Cooperative
(Any Myanmar Partner or Organization
State Owned Enterprise)
Company or A Cooperative
Society or State Owned
State Owned Enterprise)
Other Formof Business Contract
Enterprise)
which is mutually agreed by both
parties
34
V. Foreign Direct Investment in Myanmar
Existing FIL
Minimum Foreign Capital
New FIL
Minimum Foreign Capital
Manufacturing
US$ 500,000
Depends on type of business nature
and sector $ ,
Services
US$ 300 000
If J V, 35 % of total capacity
If J V ( t i t d/ hibit d ti it ) US$ 300,000
Both in Kind
If J V (restricted/prohibited activity),
Foreign capital - 50 : 50
in Cash Both in Kind
in Cash
35
V. Foreign Direct Investment in Myanmar
Existing FIL
Tax Incentives
Existing FIL
Tax Incentives
3 years tax holiday
Further tax exemption/ relief
for an appropriate period in case
5 years tax holiday
Further tax exemption/ relief
for an appropriate period in case for an appropriate period in case
if it is considered beneficial for
the state
for an appropriate period in case
if it is considered beneficial for
the state
Exemption or relief fromcustoms duty or other
internal taxes or both on importation of
Exemption or relief fromcustoms
duty or other internal taxes or
machinery & equipments during construction
period
Importation of raw materials for production
both on importation of machinery
& equipments during construction
period Importation of raw materials for production
for the first 3 years
period
Importation of rawmaterials for
production for the first 3 years
36
V. Foreign Direct Investment in Myanmar
The commission may also grant;-
Exemption or relief fromincome tax on profit which is reinvested within one year
R li f f i t t 50 t th fit f t Relief fromincome tax up to 50 percent on the profit fromexports
Right to pay income tax on behalf of the foreign employees and to deduct the
same fromthe assessable income of the enterprise same fromthe assessable income of the enterprise
Right to pay income tax of the foreign employees at the rate applicable to the
citizens of Myanmar
Right to deduct the research and development expenditure
Right to accelerate depreciation
Right to carry forward and set off losses up to 3 consecutive years
37
The commission may also grant;-
V. Foreign Direct Investment in Myanmar
The commission may also grant;
Exemption or relief fromincome tax on profit which is reinvested within one year
Relief fromincome tax up to 50 percent on the profit fromexports
Right to pay income tax on behalf of the foreign employees and to deduct the same from
the assessable income of the enterprise
Right to p in ome t of the fo eign emplo ee t the te ppli ble to the iti en of Right to pay income tax of the foreign employees at the rate applicable to the citizens of
Myanmar
Right to deduct the research and development expenditure. g p p
Right to accelerate depreciation.
Right to carry forward and set off losses up to 3 consecutive years, fromthe year the los
s is sustained
Exemption or relief fromcustomduty or other internal taxes or both on machi
neries equipments etc if the investment amount is increased and the origin neries, equipments, etc if the investment amount is increased and the origin
al investment business is expanded duringthe permittedperiod.
Exemption or relief fromcommercial tax on the goods producedfor export.
38
V. Foreign Direct Investment in Myanmar
The investor has the right to transfer the following currencies abroad through the bank which
h th i ht t t f f i b ki i th l t f i t th ti l t d
(a) Right to transfer foreign currency
has the right to carry out of foreign banking in the relevant foreign currency at the stipulated
exchange rate:
(a) Foreign currency entitled to by the person who has brought in foreign capital; (a) o g u y d o by p o o a b oug o g ap a;
(b) Foreign currency permitted for withdrawal by the Commission to the person who has
brought in foreign capital
(c) Net profit after deducting all taxes and relevant funds fromthe annual profits received
by the person who has brought in foreign capital;
(d) Legitimate balance after causing payment taxes due and after deducting living (d) Legitimate balance after causing payment taxes due and after deducting living
expenses for himself and his family in the manner prescribed, out of the salary and
lawful income obtained by the foreign service personnel by performing service in the
State
39
(b) Employment of expatriates
V. Foreign Direct Investment in Myanmar
Allows investors to employed expatriate technicians, expert, staff and skill labour as
(b) Employment of expatriates
follows :-
(a) First 2 years 75%
(b) Second 2 years 50%
(c) Third years 25% (c) Third years 25%
Limitation of time can be increased for appropriate period for knowledge based
activities.
40
(c) Land lease
V. Foreign Direct Investment in Myanmar
Investors are allowed to lease the land either from the government or from the
private
(c) Land lease
private
- for 50 years as initial
- to be extended 2 times , each time allow 10 years
41
(d) Land lease agencies of the government/state organization/private
V. Foreign Direct Investment in Myanmar
Related Ministries
( ) g g g p
Ministry of Construction/Private-Industrial Zone
Related City Development Council/ Committee y p
State/Region Government
Environment Conservation and Forestry Ministry
R l d T hi G l Ad i i i D Related Township General Administration Department
42
(e) Guarantee
V. Foreign Direct Investment in Myanmar
Enterprises operating under the Foreign Investment Law shall have
the State guarantees
against nationalization g
to transfer the entitled Foreign Capital to investor on the expiry of
the term of the contract
i t t i ti f i t t d i th itt d t against termination of investment during the permitted term
43
V. Foreign Direct Investment in Myanmar
Existing Law Revised law
No specific definition on investment Specific definition on investment
No specific definition on grantee of land Specific definition on grantee of land No specific definition on grantee of land
lease or grantee of land used
Specific definition on grantee of land
lease or grantee of land used
Not mentioned on restricted activities Mentioned on restricted activities
Export Promotion Export Promotion and import substitution
No description on rights and obligation
of investor
Description on rights & obligation of investor
3 years tax holidays 5 years tax holidays
No description on land use Description on land use p p
Official exchange rate Market exchange rate
No description on administrative penalty Description on administrative penalty
No description on dispute settlement Description on dispute settlement
44
V. Foreign Direct Investment in Myanmar
Labour Intensive Industries
(f) Priority area
Resource-based Value-added Industries
Heavy and Hi-tech Industries
45
(g) Criteria
V. Foreign Direct Investment in Myanmar
Protection to investors,
(g) Criteria
Environmental protection,
Social impact protection,
Transparency and accountability in financial matters,
J ob Creation
Corporate social ! responsibility (CSR) and
Technology transfer gy
46
T ti i M
V. Foreign Direct Investment in Myanmar
(a) Myanmar tax structure comprises 14 kinds of taxes/duties under 4 major heads.
Taxation in Myanmar
Taxes lived on domestic production and public consumption
Taxes levied on income and ownership Taxes levied on income and ownership
Customs duties
Taxes levied on the utility of State owner properties
47
V. Foreign Direct Investment in Myanmar
Commercial Tax is a turnover tax levied on goods domestically produced or
(b) Commercial tax rates
imported.
Common rate is 5%.
Essential items are totally exempted.
Luxury goods are taxed at higher rates 8% to 100% Luxury goods are taxed at higher rates 8% to 100%.
It is also levied on 14 kinds of services.
48
1. Railways, waterway, airway and road transport of passengers business 5 %
V. Foreign Direct Investment in Myanmar
y , y, y p p g
2. Entertainment business 5 %
3. Trading business 5 %
4. Operation of hotels, lodging services 5 %
5. Restaurant services 5 %
6. Tourism business including tourist guide 5 %
7. Cleaning and oiling repair and decoration of motor vehicles 5 %
8 Insurance business except life Insurance business 5 % 8. Insurance business except life Insurance business 5 %
9. Beautifying and Body fitness 5 %
10. Printing Business Services 5 % g
11. Brokerage Services 5 %
12. Drawing designs, decoration and repairing of Land, building and Construction 5 %
13. Advertising business, taking and developing photos, editing and video tapes 5 %
14. Agents, Lawyers, Certified Public Accountants and Auditors 5 %
49
(c) Treaty network of myanmar
V. Foreign Direct Investment in Myanmar
Myanmar has signed avoidance of double taxation agreements with the following
countries:
(c) Treaty network of myanmar
No DTA Countries with Myanmar Signed Date Enter into Forced Date
1 United Kingdom 13-3-1950
2 Malaysia 9-3-1998 1-4-2009 2 Malaysia 9-3-1998 1-4-2009
3 Singapore 23-2-1999 1-4-2010
4 Vietnam 12-5-2000 1-4-2004
5 Thailand 7-2-2002 1-4-2012*
6 Korea (Republic of) 22-2-2002 1-4-2004
7 Indonesia 2-4-2003 -
8 India 2-4-2008 1-4-2010
9 Bangladesh 7-10-2008 - 9 Bangladesh 7 10 2008
10 Laos 20-11-2009 1-4-2011*
50
VI . Ways to Cooperate with State Owned Enterprise (SOE) and Private Sector
J oint Venture (J V)
Public Private Partnership (PPP)
Lease Contract Lease Contract
CMP based Manufacturing
Set up new factory (100 % FDI)
51
VII. Some Necessary Information
Electricity charges - 0 087 US$/kwh Electricity charges 0.087 US$/kwh
Land lease rate - 5~6 US$/Sqm
Fuel price
P t l 377 US$/G l Petrol - 3.77 US$/Gal
Diesel - 4.06 US$/Gal
Furnace Oil - 2.09 US$/Gal
Natural Gas - 9~10 US$/MMBTU
Basic salary - 75~80 US$/Month
52
Basic salary 75 80 US$/Month
VIII. Conclusion
Getting the chance of GSP for EU and Norway, Investment in Garment Sector g y,
has a great potential.
US sanction will be eased and so Garment sector will boom in near future .
Investing in Yangon, Pathein and Pha An Area is more favourable for Garment
investors.
In spite of establishing newfinishing plants it is better to cooperate with SOE In spite of establishing new finishing plants, it is better to cooperate with SOE
and upgrade the existing plants.
There is a great chance to establish a large number of Knitting factories.
Investors are invited to invest in cotton plantation by importing quality assured
53
p y p g q y
seeds, ginning, spinning and weaving for upgrading respective machineries.
Dr AungKyawSoe
Contact us
Dr. AungKyawSoe
Managing Director
T til I d t i Textile Industries
Ministry of Industry
Building No. (37), Nay Pyi Taw, Myanmar
Tel : 95-67- 408078
Fax : 95-67-408353
Email : kitaungkyawsoe@gmail.com g y @g
Website: www. myanmarindustry2 .com
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