Foreign Direct Investment, or FDI, plays a major role in economic growth across South-East Asia. In the ASEAN region, foreign investment has helped countries build industries, create jobs, and improve technology. Myanmar, as a member of ASEAN, has strong potential to benefit from strategic investment if it focuses on its competitive strengths and long-term development goals.
Although Myanmar faces economic and political challenges, it also has clear advantages that can attract investors who are looking for growth opportunities in emerging markets. Understanding and promoting these advantages is essential for Myanmar’s future position within ASEAN.

The Importance of Strategic Investment
Strategic investment means attracting investment that supports national development goals. This includes investment in manufacturing, infrastructure, energy, agriculture, and services that create long-term value. In ASEAN, countries that have successfully attracted strategic FDI have seen improvements in productivity, exports, and living standards.
According to ASEAN investment reports, total FDI inflows into ASEAN exceeded US$220 billion in recent years, making the region one of the top investment destinations in the world. While countries like Singapore, Vietnam, and Indonesia receive large shares, frontier economies such as Myanmar remain important for future expansion.
For Myanmar, FDI is especially important because domestic capital is limited. Foreign investors can bring not only money, but also management skills, technology, and access to global markets.

Myanmar’s Competitive Edge in ASEAN
1. Large and Young Workforce
Myanmar has a population of approximately 54 million people. More than 65 per cent of the population is of working age, between 15 and 64 years old. The median age of Myanmar’s population is about 29 years, which is younger than that of many ASEAN countries, such as Thailand and Singapore.
The total labour force is estimated at over 30 million people. Wages in Myanmar remain lower than in several neighbouring ASEAN economies, especially for basic manufacturing and labour-intensive industries. This gives Myanmar a cost advantage for investors in sectors such as garments, food processing, and light manufacturing.
A young workforce also means long-term labour availability, which is important for investors planning multi-year or multi-decade projects.

2. Strategic Geographic Location
Myanmar is located between South Asia, South-East Asia, and China. It shares borders with five countries: China, India, Thailand, Laos, and Bangladesh. This location gives Myanmar strong potential as a regional trade and logistics link.
With improved transport corridors, ports, and border trade facilities, Myanmar can serve as a bridge between major markets. Projects such as special economic zones and cross-border highways increase the country’s attractiveness to investors involved in regional supply chains.

3. Natural Resources and Energy Potential
Myanmar is rich in natural resources. It has significant reserves of natural gas, hydropower, minerals, and agricultural land. Natural gas exports have historically been one of the country’s largest sources of foreign income.
Myanmar’s hydropower potential is estimated at more than 100,000 megawatts, one of the highest levels in Southeast Asia. Responsible and well-managed investment in energy can support industrial development and improve electricity access for businesses and households.
Agriculture also remains a key strength. About 50 per cent of Myanmar’s workforce is employed in agriculture, and the country has strong potential in rice, beans, pulses, fisheries, and agro-processing industries.

4. Access to the ASEAN Market
ASEAN has a combined population of more than 660 million people and a total GDP exceeding US$3 trillion. As an ASEAN member, Myanmar benefits from regional trade agreements, reduced tariffs, and investment cooperation frameworks.
For foreign investors, producing in Myanmar can provide access not only to the domestic market but also to the wider ASEAN market. This is especially attractive for companies looking to diversify production locations and reduce over-dependence on a single country.

Comparison with Other
ASEAN Economies
ASEAN countries differ in terms of development levels. Singapore is a global financial hub. Vietnam has become a manufacturing centre. Thailand and Malaysia have strong industrial bases. Myanmar is still at an early stage of industrialization, but this also means there is room for rapid growth.
Investors who enter early can benefit from first-mover advantages, lower costs, and long- term market expansion. This is why frontier ASEAN economies continue to attract interest despite higher risks.

Challenges That Must Be
Addressed
1. Infrastructure Gaps
Infrastructure remains one of Myanmar’s biggest challenges. Electricity supply is limited and unreliable in many areas. Road, port, and railway networks need upgrading to support large-scale industrial activity.
Without strong infrastructure, production costs increase, and investor confidence decreases.
Infrastructure investment is therefore essential for improving competitiveness.

2. Regulatory and Institutional Issues
Clear laws, transparent procedures, and consistent policy implementation are critical for attracting FDI. Investors need confidence that rules will not change suddenly and that contracts will be respected.
Research on ASEAN shows that regulatory quality and political stability are among the most important factors influencing investment decisions. Strengthening institutions and improving governance will directly support Myanmar’s investment environment.

3. Skills and Human Capital
While Myanmar has a large labour force, skill levels remain uneven. To attract higher-value investment in technology, engineering, and services, the country needs better education and vocational training systems.
Investment in human capital will allow Myanmar to move beyond low-cost labour and toward productivity-based competitiveness.

Policy Directions for Strategic Investment
To strengthen its competitive edge, Myanmar should focus on the following areas:
1. Improve vocational training and technical education to match industry needs
2. Simplify investment procedures and strengthen investor protection
3. Prioritize infrastructure development, especially power and transport
4. Promote responsible investment that supports sustainable development
5. Deepen cooperation with ASEAN partners and regional investors

Conclusion
Myanmar stands at an important crossroads. As an ASEAN member with a young population, rich resources, and a strategic location, it has clear competitive advantages for strategic investment. At the same time, challenges related to infrastructure, institutions, and skills must be addressed carefully and consistently.
If Myanmar can focus on long-term reforms and smart investment strategies, it can strengthen its position within ASEAN and become a competitive destination for foreign investors. Strategic investment is not only about attracting capital. It is about building a stronger and more inclusive economy for the future.

Sources
1. ASEAN Secretariat. ASEAN Investment Report 2024. Jakarta: ASEAN Secretariat.
2. Asada, H (2021). Determinants of Foreign Direct Investment Inflows to Myanmar.
Bulletin of Applied Economics, 8 (1).
3. Institute of Developing Economies (IDE-JETRO). Policy Review on Myanmar Economy: What Myanmar Can Learn from FDI from East Asian Countries.
4. Ramirez, M D, and Tretter, B. (2013). The Effect of Myanmar’s Foreign Investment Policies on FDI Inflows. International Journal of Accounting and Economics Studies.
5. World Bank. World Development Indicators.
6. United Nations Conference on Trade and Development (UNCTAD). World Investment Report.

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गङ्गे तव सुधा भवति जनपदेऽपि साधनम्
शुभोऽयं प्रवाहो दीप्यते समृद्धौ जनानाम्

O Ganga,
Your waters are like nectar, becoming a means of prosperity for the land.
Your auspicious flow shines as a source of well-being and abundance for the people.

The Ganga is the sacred river of India, whose banks, central to many Hindu epics, have nurtured and nourished ancient Indian culture and tradition over millennia. The Mekong is similarly revered in folk traditions of the Mekong Region and its people as “the River of the Lord Buddha”. These rivers flow as living symbols of faith, purity, and sustenance for millions, venerated as sacred, shaping the imagination and livelihoods of the thriving communities along their banks. Just as these two sacred rivers have sustained civilizations for centuries through agriculture, fisheries, and trade, the Mekong Ganga Cooperation (MGC) initiative between India and five ASEAN countries (Cambodia, Lao PDR, Myanmar, Thailand and Vietnam) draws its sustenance from the same spirit. In particular, the Quick Impact Projects or QIPs under the MGC initiative channel the same nurturing essence into contemporary development efforts, transforming local aspirations into economic progress and shared prosperity.
The QIP scheme was launched by the Government of India in 2015 to deliver short-gestation, high-impact development outcomes across partner countries, including Myanmar. QIPs act like a modern, practical version of our belief that small, timely interventions can water and irrigate local hopes and produce visible benefits fast, helping unlock the underlying potential for wider socio-economic development of the areas around it. Over 175 QIPs have been undertaken under the MGC initiative so far.
Each QIP is kept deliberately compact, capped at US$50,000 and typically implemented within a year, so results are immediate and easily seen by communities. The funding envelope behind these interventions has grown over time, reflecting increased commitment and broader ambition: the India-CLMV Revolving Fund began at US$1 million per year, was raised to US$1.25 million and later to US$2 million to support more projects and a deeper reach. In Myanmar, the Framework Agreement of 2021, renewed in 2025, supports grassroots initiatives across renewable energy, civic infrastructure, agriculture, education, health, handloom and disaster risk reduction with a committed annual contribution that enables rapid, tangible work on the ground. It is heartening to note that 13 such projects have been inaugurated over the last twelve months.
The value of QIPs lies in their clarity of purpose and speed of delivery. A modest solar-water supply system sustains a round-the-year water supply for village households and for agricultural plantations and livestock, especially through dry months in water-scarce areas, turning subsistence plots into surplus income sources. Expressing the community’s gratitude for one such QIP in Magyisaunt village in Mandalay region, a local villager shared, “I am very thankful to the Government of India and the Dry Zone Greening Department for their collaboration in donating water, as this is incredibly helpful not only for the residents of Magyisaunt Village, Mandalay Region but also for the students, teachers, and school staff.” Similarly, the new village community centre in Lahe Township of Naga Self-Administered Zone provides space for youth, women and the community in general to come together to discuss and deliver modest day-to-day socio-economic activities. The residents also expressed their hope that similar regional development initiatives would continue in the long run.
These voices underscore an essential design choice of QIPs that developmental projects should be implemented in consultation and coordination with local bodies and community members so that priorities and outcomes truly match needs and local ownership. A refurbished training centre in Yangon or a renovated girls’ school in Mandalay with modern computers, teaching aids, and e-books makes an immediate difference to study hours and attendance. Many beneficiary institutions of QIPs in Myanmar have expressed appreciation for India’s support, noting that their new or upgraded facilities have strengthened capabilities and enhanced efficiency. These are not abstract wins – they are the kinds of changes people notice within weeks, and strengthen trust between citizens and domestic institutions, as well as with development cooperation partners.
Beyond their immediate results, QIPs create a cascading local value. Short-term physical and social infrastructure reduces household costs, improves resilience to shocks and catalyzes microenterprise growth. Culturally focused projects are deepening people-to-people ties and strengthening long-term goodwill across the Mekong-Ganga region. Procurement from Indian vendors, where feasible, also links local demand to broader supply chains, expanding the economic footprint of each project beyond its initial investment. By choosing projects with clear, visible returns, QIPs build public confidence and create the political and social space for larger development programs.
The recent renewal of the umbrella agreement between the Governments of India and Myanmar for another five years until 2030 enables continuity and scale, helping partners plan for sustained engagement and replicate successful models across numerous districts and states/regions of Myanmar. This continuity is essential for turning one-off gains into lasting improvements in livelihoods, health and education outcomes.
A diverse range of 10 new initiatives across key socio-economic sectors in Myanmar, expected to commence later this year, will prioritize vulnerable but high-need areas such as earthquake relief and reconstruction, cultural preservation, agriculture, education, renewable energy, and disaster resilience – reflecting the comprehensive and people-centric nature of India’s development partnership. Together, these projects embody the spirit of the MGC — fostering sustainable development, cultural connectivity, and grassroots cooperation between India and Myanmar.
Quick Impact Projects demonstrate that well-targeted, small-scale investments can produce big returns in human welfare. They embody the holy Ganga’s ancient promise in a practical form, modest, life-affirming flows that generate renewal and prosperity, much like the folk narratives of the Mekong, which is believed to bestow fertility and protection upon riverside communities. When communities see results quickly and are involved in design and operation, projects stop being external aid and become local achievements. Those achievements, narrated by teachers, farmers, health workers and youth leaders, are the true measure of success.
The lasting legacy of these projects will be measured in daily routines restored, small businesses sustained and new civic confidence built, which are modern proofs of the promise that when people are allowed to take the lead in small ways, it unlocks new energies and prosperity follows on a large scale. It is this spirit of partnership and local ownership that lies at the heart of India’s endeavours to share the fruits of its own development with its neighbours.

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During the upcoming long Thadingyut holiday in October, 80 per cent of hotel rooms at seaside resorts including Chaungtha, Ngwehsaung, and Shwethaungyan beaches, and Goyangyi Island have already been booked in advance by domestic and foreign tourists, according to the Directorate of Hotels and Tourism.
In the Ayeyawady Region, these seaside resorts possess favourable geographical conditions along the coastline and coastal areas. The regional government is striving to develop them into a vibrant and sustainable tourism industry while also establishing them as long-term competitive tourist destinations. During public holidays, the influx of visitors to these beach resorts contributes not only to the growth of the tourism sector but also to the expansion of related services and the creation of job opportunities for local communities.
In the four seaside resorts of the Ayeyawady Region, more than 500,000 visitors arrived annually in 2023 and 2024. By August 2025, a total of 159,213 tourists had visited. Local hotel and guesthouse operators estimated that, starting from this Thadingyut holiday and throughout the open tourism season, the number of visitors will surpass last year’s figures.
In the Ayeyawady Region, the Ngwehsaung and Chaungtha beaches, which have good transportation access and sufficient infrastructure, are popular destinations regularly visited by both domestic and international travellers each year. Although reaching Goyangyi Island and Shwethaungyan Beach takes more time, their natural beauty continues to attract visitors. Hotel and guesthouse operators have observed that if transportation access is further improved, the number of tourists visiting these destinations could increase even more.
“In the Thadingyut holiday, tourists are expected to flock to the beaches of the Ayeyawady Region. About 80 per cent of the rooms at the four main beaches have been booked in advance. In Ngwehsaung, there are 38 hotels, guesthouses, and lodges; in Chaungtha and Shwethaungyan, another 38; and including Goyangyi Island, a total of 49,197 rooms are open for visitors. Tourism is an industry that succeeds only through collective effort. It is also a smokeless income-generating sector and can uplift the socio-economic status of a region. With hotel bookings already reaching 80 per cent for the Thadingyut holiday, new job opportunities are opening up, and the industry is bringing benefits to the country. Hotels are urged to provide the best possible service, while tourists are kindly requested to work together in ensuring that the natural beauty of the beaches is preserved and not harmed,” said U Aung Thu Oo, director of the directorate.
The government also extends visa relaxation on the visa on arrival year by year to promote the tourism industry, and the dtirector of flights from Yangon to Pathein can earn a higher income like Thailand. The Ayeyawady Region government make efforts to attract international travellers by cooperating with different departments, hotelier committees and associations.

Myanmar began exporting garments in 1994, but the industry’s growth accelerated only after international sanctions were lifted in the 2010s. The European Union (EU) suspended its sanctions against Myanmar in 2012 and opened an office in Myanmar in 2013. This paved the way for Myanmar to gain duty-free access to the EU market under the Generalized Scheme of Preferences (GSP) and the Everything But Arms (EBA) initiative in 2013.1 Myanmar’s main exports to the EU are textiles, footwear, rice, and gems.2

EU as the Top Destination for Myanmar’s Garment Exports
According to the World Bank, the value of Myanmar’s garment exports surged from US$0.9 billion in 2010 to US$5.5 billion in 2022, a six-fold increase. A major turning point for the industry came in 2013 when the EU granted Myanmar under the GSP initiative. This preferential access proved highly beneficial, with EU countries receiving over half of Myanmar’s total garment exports. By 2022, garment exports accounted for one-third of Myanmar’s total export value. The sector’s primary income, generated through CMP services, represented approximately one-third of the total garment export value, or about three per cent of Myanmar’s GDP.3
Since the mid-2010s, the EU has been the leading market for Myanmar’s garment exports. Currently, a significant 38 per cent of Myanmar’s garment factories rely on the EU as their primary market. In 2022, the EU received 52 per cent of Myanmar’s total garment exports. Other key markets included Japan at 18%, the United Kingdom at 10 per cent, the United States at six per cent, and Korea at four per cent. This data highlights the EU’s crucial role in supporting and sustaining Myanmar’s garment industry.
Supporting the State’s Core Policy of Job Creation and Income Generation4
Amidst different core policy areas of Myanmar, a core national policy has been to create employment opportunities alongside income generation for its people. In this regard, Myanmar’s garment industry has proven to be the largest source of jobs, especially for young, migrant women from rural areas. Despite a decline in exports in 2020 and 2021 due to political changes and the COVID-19 pandemic, the sector rebounded strongly. By 2022, export levels had exceeded those of 2019, with an average of 95 per cent of garment factories resuming operations at their previous capacity to produce exports.
According to World Bank data, as of January 2022, Myanmar’s garment sector employed around 500,000 workers as a major source of employment. This represented 2.3 per cent of the country’s total employment and 23 per cent of all jobs within the manufacturing sector. By the end of 2022, the number of workers was estimated to have grown to 700,000, with current estimates now at around 800,000. Notably, 85 per cent of the workers are women in Myanmar’s garment sector.
In 2022, 34 per cent of garment factories in Myanmar raised their wages, leading to a five per cent average wage increase across the manufacturing sector compared to the previous year. This positive trend was reinforced by a national policy change, which increased the minimum wage from 4,800 to 5,800 Kyats in 2023. According to the World Bank, this enabled some factories, especially those that export to the EU, to boost their workers’ wages by an additional 10 per cent to 20 per cent in 2023.
Although the share of Myanmar’s garment sector in the global garment trade is small, local garment entrepreneurs believe they can be competitive in the international market. They state that the main reasons for this are the abundant workforce and low wages.
Myanmar’s Policy for Connecting with Migrant Workers Abroad
To ensure that workers going abroad for employment do so in a systematic and legal manner, the Overseas Employment Law was enacted, and efforts are underway to approve and enact an amended law to align with the current situation. The Five-Year National-level Action Plan for the management of labour migration to other countries has been drafted and implemented for the first and second times. To assist Myanmar workers abroad, labour attachés have been appointed in Korea, Thailand, Malaysia, and Japan. In countries where there are no labour attachés, the Myanmar embassies are collaborating to provide any assistance to Myanmar workers.5
Trade Situation
According to the official EU website6 for Myanmar, over 90 per cent of Myanmar’s exports were shipped to the EU, with preferential tariff rates under the EBA scheme in 2023. This shows that Myanmar is significantly benefiting from the EU’s EBA scheme. In 2023, Myanmar’s total exports to the EU under the EBA preferential system were valued at approximately €3.4 billion (US$3.7 billion) while imports reached €3.0 billion (US$3.2 billion).7 8
In 2024, the EU stood as Myanmar’s 4th largest trading partner, accounting for 10.3 per cent of the total trade in goods. Conversely, Myanmar ranked as the EU’s 75th largest trading partner, making up 0.1 per cent of the EU’s total trade in goods. Similarly, total trade volume between the EU and Myanmar amounted to €3.6 billion (US$3.9 billion) in 2024, while the EU’s imports from Myanmar were primarily textiles, valued at €3.1 billion (US$3.4 billion). Meanwhile, the EU’s exports to Myanmar mainly consisted of transport equipment, accounting for €458 million (US$495.60 million). Additionally, volume of trade services in 2023 reached €346 million (US$374.41 million) between them.
Investment Situation
According to the official EU website for Myanmar, the volume of EU investment in Myanmar reached €251 million (US$271.61 million) in 2023. In the same year, Myanmar’s FDI in the EU amounted to €7 million (US$7.57 million).
Code of Conduct for European Union Delegation Staff Serving Abroad
As members of the EU Delegation serving abroad, staff must primarily adhere to the following principles:
(‌a) Adherence to the EU’s Laws9. All actions of the delegation must strictly comply with the Treaty on European Union (TEU), the Treaty on the Functioning of the European Union (TFEU), and their subsequent laws, regulations, directives, and decisions. Furthermore, they must act in accordance with the EU’s external action policies, including the Common Foreign and Security Policy (CFSP), trade policy, and development cooperation. For instance, when managing aid projects, the delegation must strictly follow the EU’s procurement and financial regulations.
(b) International Law. Staff of the EU delegations must respect international diplomatic law, particularly the provisions of the Vienna Convention on Diplomatic Relations (1961)10. Specifically, under Article 41, while delegates have privileges and immunities, they are obligated to respect the laws of the host country. Failure to comply with these laws can lead to the host country declaring the diplomat or delegate “persona non grata”, which is the most severe penalty for a diplomatic representative. This results in sending them back to the home country or terminating their functions. Additionally, under Article 31, their immunity does not exempt them from the jurisdiction of their home state. In cases of serious crimes, if the host country formally requests that the EU waive its diplomatic immunity to allow for prosecution, the EU may choose to waive immunity to demonstrate its commitment to justice and maintain good relations with the host country.
(c) Adherence to Financial Regulations11. A core responsibility of the EU Delegation is to manage projects funded by the EU. This includes ensuring that contracts are awarded through fair and transparent processes (tendering and procurement) and that funds are used for their intended official purpose. The delegation that acts fraudulently or mismanagement is subject to financial audits and must take the necessary actions. All financial operations must be fully compliant with the EU’s Financial Regulation to ensure accountability.
In short, the EU Delegation’s legal and professional responsibilities are a blend of diplomatic duties. They must respect and adhere to the legal systems of the European Union, international law, and relevant laws of the host country. This mission involves a combination of upholding EU values like democracy, the rule of law, and human rights, providing development aid and fostering cooperation, engaging in public diplomacy and communication, and managing trade and economic relations.
As a result, the assistance provided by the EU delegation to Myanmar – in order to maintain the Myanmar-EU economic relationship – is an expression of “understanding Myanmar”. Specifically, providing duty-free access for Myanmar’s garment exports under the EBA (Everything But Arms) scheme helps support the livelihoods and regular incomes of approximately 800,000 workers, 85 per cent of whom are women.

1. Resilience Amid Constraints: Myanmar’s Garment Industry in 2023. World Bank. 2023. https://documents1.worldbank.org/curated/en/099113023044018823/pdf/P50066309dcb060600981407177 a6346276.pdf
2. https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and- regions/myanmar_en
3. Resilience Amid Constraints: Myanmar’s Garment Industry in 2023. World Bank. 2023. https://documents1.worldbank.org/curated/en/099113023044018823/pdf/P50066309dcb060600981407177 a6346276.pdf
4. Resilience Amid Constraints: Myanmar’s Garment Industry in 2023. World Bank. 2023. https://documents1.worldbank.org/curated/en/099113023044018823/pdf/P50066309dcb060600981407177 a6346276.pdf
5. https://www.moi.gov.mm/news/63151
6. https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and- regions/myanmar_en
7. https://gsphub.eu/country-info/Myanmar
8. https://www.exchange-rates.org/exchange-rate-history/eur-usd-2023
9. https://eur-lex.europa.eu/eli/treaty/teu_2008/art_21/oj/eng
10. https://legal.un.org/ilc/texts/instruments/english/conventions/9_1_1961.pdf
11. https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52016PC0605

GNLM

As a PhD student at China Agricultural University (CAU), I had the privilege of visiting the Shiyanghe Experimental Station in Gansu Province, where groundbreaking agricultural innovations are turning barren deserts into thriving green fields. This experience offered profound insights into water-saving technologies, drought-resistant farming, and sustainable land rehabilitation practices that could revolutionize agriculture in Myanmar’s Central Dry Zone, where water scarcity and desertification pose similar challenges.

Innovation, Transformation, and Resilience for Sustainable Agriculture
The Shiyanghe Experimental Station was conducted by China Agricultural University (CAU), located in Wuwei City, Gansu Province, in northwest China (37°51′ N, 102°52′ E; 1,581 metres above sea level). The area is characterized by low precipitation (around 164 millimetres annually) and high evaporation rates up to 2,000 millimetres, and is also known for high temperatures in summer, windy and dry weather. This station serves as a landmark of forward-thinking design and steadfast resilience.
I was particularly impressed by the innovative research being conducted to address drought and salinity stress. This research mainly contributes to a better understanding of drought resistance and supports sustainable water management systems in arid regions. This study focuses on the challenge of maintaining maize productivity in arid regions facing water shortages and soil salinization. Among all research, the one that uses maize genotypes (Xianyu 335 and Zhengdan 958) under different irrigation, drought, and salinity treatments this kind of research is a pivotal role in identifying drought-resistant crop varieties and optimizing agricultural practices in extreme climates. Myanmar can adopt similar research methodologies; it will be immensely improved by the Myanmar Climate Smart Agricultural Strategy (MCSAS).
Shiyanghe, mainly focuses on advanced water-saving technology such as drip irrigation, rainwater harvesting, mulching, and soil moisture monitoring. The precision irrigation (like smart drip irrigation) delivers water directly to the roots, improving moisture consistency and nutrient absorption. These techniques have significantly enhanced crop performance, demonstrating that effective management strategies can overcome climate limitations. Promoting research on drought-resistant crops and advanced monitoring technologies would enhance agricultural resilience.
My field observations extended to the long-term agricultural experiments, where innovative water conservation strategies are making a significant impact. Applying advanced technologies like shallow drip tape irrigation technology and smart pipeline robotic frames to monitor crop health and photosynthesis rates under drought conditions. By applying these water-saving techniques and research methodologies will leverage initiatives, such as Climate Smart Agriculture Myanmar and the Pyawt Ywar Pump Irrigation ongoing project. I learned how community efforts can transform from dune into green land. Policies supporting such research and advanced technology support to local farmers would empower them to better withstand drought conditions, ultimately improving productivity.

This long-term field experiment was established (since 2003), one of the experiments, which was a randomized complete block design with three replicates. Mainly focuses on the wheat, maize and faba bean. The experiment treatments include: (1) monoculture, (2) rotational intercropping, and (3) continuous intercropping. In the early four years (2003-2006) of field experiments, maize overyielded by 43 per cent and faba beans overyielded by 26 per cent when intercropped on a low-phosphorus but high-nitrogen soil.
Compared with conventional farming methods, the intercropping system can save approximately 200 cubic metres of water per mu. This success long term experiments offer valuable lessons for Myanmar.
Huarui Farm (华瑞农场) in Minle County, Gansu Province, China, is known for its modern agricultural practices, particularly in maize, soybean production and other high-value crops. It is also promoting water-saving irrigation technologies, including drip irrigation and a fertigation system in sandy soil. Fertigation integrates fertilizers into irrigation water, delivering nutrients directly to the plant root zone. Up to 30-50 per cent less fertilizer waste compared to broadcasting. Drip fertigation reduces evaporation and runoff. These modern techniques place as a role model to save water and fertilizer runoff in the dry zone.
My journey to Gansu Province was more than just an educational experience; it was eye-opening. I learned how innovative practices and community-driven efforts can transform even arid environments into lush farmland. The central dry zone of Myanmar shares many similarities with Gansu’s topography, making the lessons from the experimental station invaluable for enhancing Myanmar’s agriculture. By embracing these strategies, Myanmar can overcome its challenges and achieve long-term economic growth while improving livelihoods for its communities.

GNLM

The procedure for Authorized Economic Operators was announced by the Ministry of Planning and Finance through Notification 21/2018 on 30 March 2018.
As stated in the Procedure for Authorized Economic Operators, an Authorized Economic Operator is a company or organization officially recognized by the Customs Department that meets the criteria outlined in this Procedure and operates within the international trade chain. The international trade chain refers to the system that includes the organizations, processes, technologies, and resources involved in transferring goods or services from the seller to the consumer.
The criteria for recognition as an Authorized Economic Operator require that a person wishing to operate as an Authorized Economic Operator must comply with the company registration requirements and the business licence regulations specified by the Ministry of Planning and Finance, Directorate of Investment and Company Administration. The period between the date of registration under the Myanmar Companies Act and the date of application for registration as an Authorized Economic Operator must be at least 3 years. The applicant must also continuously comply with the Sea Customs Act, rules, regulations, orders, instructions, and procedures. The company must publish official financial statements and reports annually from the date of its establishment. The accounting records and business-related financial information must be maintained for seven years. There must be a good record-keeping system and an effective internal control system which is acceptable to the Customs Department in maintaining financial matters, business records, systems, processes, and any issues related to the Customs service agent.
All taxes and duties imposed by the Customs Department, as well as any other taxes payable to the State, must be paid on time. The applicant must be financially sound. Before applying as an Authorized Economic Operator and before the issuance of the recognition certificate, the applicant must have no record of Customs-related offences or penalties within the past three years, must not be blacklisted, must accurately declare import and export transactions, and must have no record of economic misconduct or fraud. If prior notice is given for inspection when required, it must be possible to undergo inspection at any location.
The benefits available to an Authorized Economic Operator include the right to process Customs declarations with priority status, the right to pre-file import and export declarations before the arrival of goods, the right to obtain customs clearance without inspecting the documents or goods (except in cases involving potential risks for preventing illegal imports or exports), the right to receive priority inspection when required, the right to obtain customs services related to goods at the importer or exporter’s premises or other locations permitted by the Customs Department, the right to operate under the Deferred Duty Payment System within one month, as outlined in Section 41 of the Sea Customs Act, the right to receive the Customs Department’s recognition certificate and display the recognized logo as per requirements, and the right to enquire about Customs procedures with the Customs Department and the Authorized Economic Operators Division.
Therefore, I urge all economic operators throughout Myanmar to cease engaging in illegal trade and apply for a certificate of recognition as an Authorized Economic Operator, which offers the benefits of legal trade. This will allow them to follow the right path of legal trade and operate as “Authorized Economic Operators”.

Source: The Global New Light of Myanmar

What is scamming? How does it work? How are young people connected to it? How can we avoid scamming businesses? I am going to answer these questions, so I would like to encourage you to read it up to the end.
The word “scamming” comes from the Chinese language and is pronounced as “Zhàpiàn,” (in Myanmar “ကျားဖြန့်”). In Chinese, it means “cheating” or “fraud.” Today, scamming businesses are well known in Southeast Asia as fraud operations, mostly working online to trick people.
One important question is: Who started these scamming businesses? Since the word comes from Chinese, many people believe that scamming businesses started in China. When IT technology developed rapidly in China, these businesses also grew internationally.
Scamming businesses have different types. Some mainly target Western countries, especially rich people, retirees, and those over 40 years old. They often focus on wealthy people in America and Europe.
Scamming businesses are not simple fraud operations. They are large-scale businesses that include human trafficking, forced labour, illegal weapons trade, drug smuggling, gambling, and many other illegal activities.

Where are scamming businesses based?
Where do they operate the most? The answer is simple. These businesses are mostly found in poor Southeast Asian countries such as Cambodia, Laos, Thailand, the Philippines, and Myanmar. They set up large offices and hire workers in these developing countries.

How do they find workers?
There are two main ways. First, they attract people by offering high salaries but later force them to work. Second, they use human trafficking to kidnap people and make them work against their will. In Myanmar, most of these businesses are located in border areas. They do not operate secretly but in large, well-protected buildings.

How Scamming Businesses Operate
Understanding how scamming businesses operate is very important. It is also their biggest secret. The process includes setting up a base, collecting information, recruiting workers, starting operations, and finally running scams.

Setting Up the Base
As mentioned earlier, scammers choose poor and underdeveloped countries. They negotiate with local border authorities to establish their business. They rent land for 30 to 50 years and build strong buildings with high walls. For security, they also hire armed groups to protect their operations.
Another important need for scammers is the internet. They either use local internet services or connect to better internet from neighbouring countries. For example, reports say that scam businesses in Myanmar use internet services from Thailand.

Collecting Information
Many people think that scammers only recruit uneducated or low-skilled workers. However, this is not true. Scamming businesses use digital platforms, IT equipment, and online transactions, so they need skilled workers. Most employees have at least a high school education and are skilled in using the Internet and computers. Some scammers even hire IT experts.

Language Skills in Scam Operations
Workers in scam businesses need to speak at least two or three languages. For example, in Myanmar’s border areas, scammers can speak Myanmar and Chinese or Myanmar and Thai. News reports also confirm this.
Scamming is not just a simple fraud activity. It is a highly organized business that includes illegal activities such as human trafficking, forced labour, illegal trade, and cyber fraud. Understanding their operations helps people become more aware and avoid these dangerous businesses.

How Mid-Level Scammers Operate
Scamming businesses are not run randomly; they follow a well-organized system. Mid-level scammers play an important role in collecting information, avoiding detection, and managing fraud operations efficiently.

Collecting Information Before Scamming
Before they begin their fraud operations, scammers prepare fake bank accounts, cryptocurrency wallets, stock market accounts, and fake websites. These are used to make their scams look real and professional.
When searching for victims, scammers mainly target wealthy people from developed countries. However, there are also scam operations targeting the middle class in Myanmar and other countries. They carefully collect personal details, such as home address, name, family information, job details, and financial status, before approaching their victims.

Scammers gather this information in different ways:

• Buying personal data from businesses or authorities.

• Using online conversations (called “chatting dialogue”) to trick victims into revealing information.

• Following a scripted communication strategy, where senior scammers train employees on what to say based on the victim’s responses.

• Hiring psychology experts to analyze victim behaviour and improve scamming techniques.

• Avoiding Law Enforcement Detection

Scammers operate systematically and take precautions to avoid being caught. Their businesses generate billions of dollars, allowing them to invest in better technology, security, and well-trained employees.
For example, scammers often target retired bankers, stock investors, or foundation managers handling large donations. They study these people’s online activities and gather detailed information before making contact. Their ability to carefully research, plan, and execute fraud makes them highly organized criminal networks rather than simple scammers.

Recruitment Process in Scam Operations
Recruiting workers is a crucial part of scam operations. As mentioned earlier, scammers mainly target developing countries, poorer regions, and low-wage workers when hiring employees. They lure educated individuals with high-salary job offers and then force them to participate in scam activities.

Target Countries for Recruitment
Scammers recruit workers from China, Hong Kong, India, Malaysia, Nepal, the Philippines, Chinese Taipei, Thailand, Vietnam, Myanmar, and African nations. They reach out to potential employees through social media platforms like Facebook, Instagram, and Telegram.

Common fake job postings include:

• Translator jobs near border areas.

• Factory jobs with attractive salaries.

• Online marketing or customer service positions.
  A 2024 report revealed that there were over 500 Telegram groups dedicated to recruiting Myanmar workers into scam operations.

High Recruitment Fees
To hire workers, scammers are willing to pay huge amounts to recruiters. For example, in 2024, a single Myanmar worker could be sold to scam groups for 40,000 Thai Baht (about 600,000 MMK).
For workers from poor countries, where salaries range between K300,000 to K500,000 per month, these job offers seem extremely attractive. This is why many educated people from low-income countries fall victim to scam networks.

Scam Business Structure
Scam operations generally have three key departments:

• Technical Team – Consists of IT specialists (mainly foreigners) who manage online scams.

• Target Searching Team – Responsible for finding victims.

• Communication Team – Handles conversations with victims.

Each department has around 15 to 20 employees working systematically.

Role of the Technical Team
The technical team is mainly composed of IT professionals who operate scam activities. They create fake social media accounts on platforms like Facebook, LinkedIn, WhatsApp, and Skype using attractive photos of young women to gain victims’ trust.
They maintain these fake accounts for three to four months to make them look real. They also post random social media updates to appear legitimate. This is an ongoing task within the technical team.

Final Stages of the Scam Operation
Once the search team has found potential victims, they begin engaging them in conversation.

Using fake social media accounts created by the technical team, they initiate chats in different ways:

• Casual conversations to build trust.

• Flirtatious messages for male targets.

• Job opportunities, such as investing in new businesses or earning money by watching videos.

As the conversation progresses and the victim becomes emotionally or professionally invested, they are handed over to the communication team for deeper engagement.

Manipulation by the Communication Team

This team, consisting of around 15 people, is responsible for fully convincing the victim. They engage in carefully planned dialogues:

• Sharing fake personal stories to gain trust.

• Showing edited photos as proof of their “authenticity”.

• Talking about their “successful business ventures”.

Through constant interaction, the victim is slowly pulled into the scammers’ trap.

Executing the Final Scam
At this stage, the scammers persuade the victim to invest in fake stock markets, trading platforms, or cryptocurrency exchanges created by the technical team.
Initially, small profits are given to victims, making them believe they are earning real money.

• This psychological trick encourages them to invest larger amounts.

• Eventually, once a significant amount is invested, the scammers:

• Shut down the platform and disappear.

• Use fake links and QR codes to hack victims’ bank accounts.

• Steal money through mobile payment apps.

• Many victims only realize they have been scammed when it’s too late.

In conclusion, this article has provided a step-by-step breakdown of how scam operations function. In the end, these scams exploit human greed – the desire for easy money. While everyone has some level of greed, scammers manipulate it to trap victims into financial ruin. By understanding these tactics, people can protect themselves and others from falling prey to these deceptive schemes.

Source: The Global New Light of Myanmar

SMEs in Myanmar

1. In Myanmar, the role of Small and Medium Enterprises is crucial as SMEs comprise approximately 94 percent of all registered enterprises and 52-97% of labor forces. SMEs in Myanmar can be generally classified into five categories-

2. Import substitution in industrialization 

3. Export-oriented SMEs

4. Rural-located SMEs

5. Local and traditional SMEs

6. International subcontracting SMEs 

7. Myanmar is heavily dependent upon imported products even on daily necessities. This heavy dependence on imports can be fixed only with promoting import-substituting SME businesses. Some SMEs in Myanmar are engaged in export, but it is needed to promote more varieties of exported goods. Hence, it is essential to encourage SMEs that produce processed export products, using local raw resources. Some business sectors which have high propensity to export include agricultural processing, food processing, woodworking, metalworking, and the processing of marine products, among others. The registered number of SMEs in line with the list issued by SME development center in 2023 is approximately 46,014. SME registration rates are the highest in Yangon region and Shan State. 

SME Development Law and Policies in Myanmar 

3.       During the time when the State Law and Order Restoration Council was in power, the official law for small and medium-sized enterprises (SMEs) was enacted in the year 1990. Then, the 2011 Private Industrial Law was enacted and gave definitions of SMEs based upon four criteria (i) horsepower used (ii) number of employees (iii) capital investment (iv) annual production. The most recent SME-related law is the SME Development Law (2015), which gives the definitions of SMEs based upon business sectors namely manufacturing, wholesale, retail, service and others. Then, SME development rules was enacted in 2017 and in 2018, the term Small and Medium Enterprises was renamed MSMEs which stands for Micro, Small and Medium Enterprises by the Central Committee for Development of Micro, Small and Medium Enterprises. 

SMEs’ export 

4.       A great deal of previous literature provide factors enhancing SMEs’ export. Concerning factors enhancing export, there are two widely-used approach listed as resource-based approach and the contingency paradigm. The resource-based approach focuses on the firm’s internal variables whereas the second method focuses on the external aspects. Internal determinants include management qualities such as age, education, innovativeness, foreign exposure and export dedication as well as export marketing techniques such as product, pricing, promotion, distribution, service and networking tactics. The external factors are the characteristics of the foreign market such as legal, political, and economic system, cultural similarities, market dynamics, consumer and competitor behavior and the characteristics of the domestic government, which include government tax rates, government export support, government policies and the domestic business environment. 

5.       Compared to other ASEAN countries, SMEs in Myanmar are less likely to export, reporting that only 4.2 % of medium-sized firms and 0.8 % of small enterprises export directly or indirectly at least 1% of their sales (World Bank’s 
Enterprise Survey, 2014). Export destinations of Myanmar SMEs differ across firm size. Large firms have much more export propensity than SMEs and large firms have the capacity to export to high-income markets such as the EU and US. But, SMEs opt for regional markets such as China, Malaysia and Thailand whose target customers are less-demanding. According to World Bank Enterprise Survey, on the bright side, only 27% of medium-sized firms and 13% of small enterprises in Myanmar use material inputs of foreign origin. In Myanmar, SMEs from 4 states, 7 divisions and Union Territory, Nay Pyi Taw are engaged in export. ASEAN is an important market for Myanmar’ exports and Myanmar SMEs mainly export to China and Japan. Most of the exported products are agricultural products, marine products and wood and wood-related products. Agricultural products mainly include rice, different types of beans, white yam powder, coffee seed and coffee powder, Myanmar Tea, tamarind, jaguar, coconut, groundnut oil, sesame oil, ginger oil, oil palm, rubber, sugar, bees, lemon and honey. Marine products consist of fish, frozen fist stake, shrimps, soft shell crab, squid and lobster. Wood and wood-related products are wood, teak, value-added wood products, rattan products and bamboo place mate. 

Government Export Assistance Programs

6.       In accordance with notification (64/2023), which was issued by Ministry of Planning and Finance, the government provides exemption of commercial tax on 27 kinds of goods listed as different kinds of corn, fresh fish and shrimps, soil bean, milk and dairy products, yogurt, animals and animal products, fertilizer, various kinds of pesticide and weed killer that are used in agriculture, animal, fish and prawn medicines, veterinary preventative medicines, raw and finished materials for animal, fish and prawn feed (not included animal food that used for pets), pure seeds and seedlings of crops, raw materials for cotton, agricultural products, coconut oil, state flag, stationeries, X-ray, absorbent cotton wool, gauze, bandages, hospital sundries to take medicines, surgical mask (once used), cap, surgical glove, masks that used to prevent flu infection, household pharmaceutical and other medicines and traditional medicines, fire engine and hearse, raw materials used in making soap, battery electric vehicles and goods purchased by donated fund. The government offers tax incentives such as offering SMEs exemption from income tax for 3 consecutive years in accordance with Union Taxation Law. The government strives to adjust their tax rates with the enactment of Union Taxation Law each year as a way of rehabilitating economy when the economy slows down. Furthermore, SME loans are offered through different loan programmes. Now, it has been recently announced that Small and Medium businessmen can get loans from 15 private banks as well as state-owned Myanmar Economic Bank (MEB) and Myanmar Agricultural Development Bank (MADB). 

7.       In conclusion, the Central Committee for Development of Micro, Small and Medium Enterprises has been planning MSMEs products’ exhibition to encourage SMEs. I happened to visit one of those exhibitions and witnessed a lot of local SMEs’ products, which are displayed well. I gladly realized most SMEs just made use of local raw material. Some SMEs’ products are not well-recognized in the local market, but these products are value for money. These potential SMEs need some assistance in making their quality products well-recognized in the market. Some SMEs do not have enough capital to make mass production and these quality products disappear in the market sadly. Some of these local products equal other imported products. I believe that if these local products are well-promoted with special support from all responsible government organizations, it would be a great thing.  If SMEs’ requirements and government’s export assistance programs coincide, these products can survive in the domestic market as well as foreign market. 

References

The Global New Light of Myanmar

Myanmar Micro, Small and Medium Enterprise Survey (2019)

Myanmar Business Insight Report (2020). Inya Economics.

Factors Affecting Propensity to Export: The Case of Indonesian SMEs. 

ILLEGAL trade can hamper the economic development of the State by reducing manufacturing activity among business owners and diminishing their competitive capability in the market. Preventing illegal trade can boost export volume and enhance the commercial sector by promoting product manufacturing and market competition. Additionally, these initiatives can increase local money circulation, raise export product volume, and generate more foreign exchange. As a result, the country can experience growth in its manufacturing, trade, and service sectors.

Myanmar is rich in natural resources, with a strong focus on the agricultural sector. To boost the state economy, the government has encouraged the manufacturing of natural resource-based products and agricultural goods while also working to promote micro, small, and medium-sized enterprises (MSMEs). However, illegal trade activities have had negative impacts on the nation’s socioeconomic sector.

Illegal trade eradication task forces formed in regions and states managed relevant squads, impounding smuggled goods and addressing illegal trade activities worth K300.28 billion across 14,659 cases during the two years and eight months from January 2022 to August 2024. However, this amount was relatively small compared to the State’s overall trade sector. Therefore, authorities and task forces must intensify efforts to take action against those involved in illegal trade activities.

With regard to seizures in July and August 2024, the Customs Department nabbed the most considerable amount and volume of illegal trade process, followed by the task force from Mandalay Region, Sagaing Region and Kahin State in series. The authorities seized unregistered vehicles and illicit commodities in the largest volume, industrial raw materials in the second largest volume and capital goods in the third largest one.

The economic development of a country depends on manufacturing and trade sectors. As such, authorities need to encourage agriculture- and livestock-based businesses. Meanwhile, relevant ministries have to fulfil the basic needs of farmers from the agriculture and livestock breeding sectors as part of implementing the assigned duties.

It is necessary to supply fertilizers, pesticides, quality strains of seeds, agricultural inputs, animal feeds, vaccines, and other needs to farmers on time. On the other hand, relevant authorized bodies need to systematically supervise the trafficking of prohibited goods, taking advantage of priority on legal trade measures. If so, legal trade contributes to local businesspersons and traders on their official process at home and crack down on illegal trade processes.