Myanmar Industry

The mining industry in Myanmar could see a rise in investment from 2016 if the government can overcome roadblocks to pass new legislation, delays to which have slowed the pace of development in the sector. 

Wide-ranging reforms, backed up by planned legislative changes and a drive to improve practices, look set to steer Myanmar’s mining sector into the 21st century.

The government of Myanmar has taken steps to encourage the development of a manufacturing base, including the establishment of industrial zones (IZs) and, more recently, special economic zones (SEZs). Advantages such as an inexpensive labour force and proximity to major markets like India and China have international firms jostling for more information about the implementation of the zones.

The mining sector is one of Myanmar’s biggest earners, and the government is keen to entice more foreign investors to support its development. Reforms to the 1994 mining law should help ease restrictions on ownership, which will benefit international and domestic firms alike. However, a number of proposed changes to the law, as well as highly publicised protests at local mines, may lessen the sector’s appeal to some investors.

Asian countries are spearheading a wave of mounting international investor interest in Myanmar’s long-underdeveloped manufacturing industry, as global players move to tap the potential of the region’s rising economic star.