Country Profile


1. THE LAND AND ITS PEOPLE

The Land

Myanmar, with a total land area of 676,577 sq.km ( 261,228 sq.miles ), is the largest country on the mainland of South-East Asia. It shares a total of 5,858 km (3,640 miles) of international borders with Bangladesh and India on the north-west, China on the north-east, Laos on the east and Thailand on the south-east. It has a total length of 2,832 km (1,760 miles) of coastlines. The country stretches 2,090 km (1,299 miles) from north to south and 925 km (575 miles) from east to west at its widest points.

Myanmar is a forest-clad mountainous country. Three parallel chains of mountain ranges run from north to south: the Western Yoma or Rakhine Yoma, the Bago Yoma and the Shan Plateau. They begin from the eastern extremity of the Himalaya mountain range. The peak of the Hkakabo-Razi at 5881 m is the highest in South-East Asia.

These mountain chains divide the country into three river systems: the Ayeyarwady, the Sittoung and the Thanlwin. The Ayeyarwady, the most important river, about 2,170 km (1,350 miles) long, and its major tributary, the Chindwinn, 960 km (600 miles) long, constitute the greatest riverine system in the country. As it enters the sea, the Ayeyarwady forms a vast delta of 240 km (150 miles) by 210 km (130 miles).

According to these mountain chains and river systems, the country can be divided into seven major topographic regions: the Northern Hills, the Western Hills, the Shan Plateau, the Central Belt, the Lower Myanmar Delta, the Rakhine Coastal Region and the Tanintharyi Coastal Strip.

As it is mainly in the Tropical Region, Myanmar has a tropical monsoon climate with three seasons: the hot season from mid-February to mid-May, the rainy season from mid-May to mid-October and the cool season from mid-October to mid-February.

Annual rainfall varies from 500 cm in the coastal regions to 75 cm and less in the central dry zone. Mean temperature ranges from 32 C in the coastal and delta areas and 21 C in the Northern lowlands. During the hot season, temperatures could run considerably high in the central dry zone.


The People

The population of Myanmar, spread over seven States and seven Divisions was estimated at 43.13 million in 1993/94. Myanmar is inhabited by many ethnic nationalities. There are as many as 135 national groups with the Bamars, comprising about 68.96 per cent of the population, forming the largest group.

Most of the people live in the Central Belt, (i.e. Sagaing, Magway and Mandalay Divisions) the Lower Myanmar Delta and the Shan Plateau. Seven other nationalities have States of their own. The Kachins live in the Kachin State and the Northern Shan State. The Kayahs live mainly in the Kayah State. The Kayins have mostly become intermingled with the Bamars and the Mons, while the rest now live in the delta region and the lowland Sittoung Valley. The Chins live in the Chin Hills, and also in the dry zone west of the Ayeyarwady. The Mons live mainly in the South-East of Myanmar while the Rakhines, who speak and write Myanmar but with a different tone and accent, have their own State which lies in the coastal region of Rakhine Yoma, the western range. The Shans live mainly in the Shan Plateau area.


Religion

About 89.4 per cent of the population - mainly Bamars, Shans, Mons, Rakhines, and some Kayins - are Buddhists, while the rest are Christians, Muslims, Hindus and Animists. The Christian population is composed mainly of Kayins, Kachins and Chins, Islam and Hinduism are practised mainly by people of Indian origin.


2. RESOURCES

Agriculture

The agricultural sector being the mainstay of the Myanmar economy and accounting for about 39 per cent of the total GDP is accorded priority. Prevalence of different agro-ecological tracts has made it possible to grow a multitude of over 60 crops ranging from typical tropical ones to moderate temperate varieties including cereals such as rice, wheat, maize, millet, beans, pulses and oilseeds; industrial crops such as cotton, jute, rubber, sugar cane, toddy palm, tobacco and spices, and many others both edible and non-edible.


Land Resources

Myanmar possesses a large land area in the South East Asian region and unlike most neighboring countries, still has a vast potential of land resources for cultivation and for further expansion of the cultivable land. Of the total area of 67.6 million hectare (167.2 million acres) only about 13 per cent is under cultivation. There is also great potential for further expansion of mixed and multiple cropping areas, especially in lower Myanmar where moisture content of the soil and water availability are much better than in Upper Myanmar. In Upper Myanmar, especially in the dry belt zone, cultivation is done with water drawn from irrigation networks. There still exists much room for further extension of irrigation facilities as the potential has so far been exploited only to a small extent. The total cultivated area under irrigation accounts for about 17 per cent of net area sown.


Land Utilisation

With a view to developing agriculture, livestock breeding and related activities, the State Economic Enterprises, joint ventures, co-operative societies and other organisations and private individuals will be granted the right to cultivate/utilise cultivable, fallow and waste land upon application. Hence a Central Committee for the management of cultivable land, fallow land and waste land has been formed. The Committee had prescribed procedures for the right to cultivate/utilise land. Foreigners or organisations consisting of foreigners may also apply for the right to utilise land.

Persons who desire to invest in commercial enterprises concerning such activities will be granted the right to cultivate/utilise cultivable land, fallow land and waste land up to the maximum areas mentioned below:


Duration has been fixed for a maximum period of thirty years for cultivation and utilisation of land for plantation crops and orchard, livestock and poultry farming and aquaculture purposes. The period may be extended upon negotiation. In case of cultivation of seasonal crops the duration shall continue as long as there is no breach of conditions.

Exemption from payment of land revenue shall be granted for a period of 2 to 8 years from the granting of the lease, depending upon the type of agricultural crops, livestock breeding and aquaculture; and at least 3 years of income-tax exemption may be granted from the year of commencement of commercial running of the business carried out on land developed and invested.

An order permitting the right to cultivate/utilise land shall be granted after a deposit of 10% of the investment has been paid as guarantee fees.

Livestock and Fishery


The Livestock and Fishery Sector is one of the most productive sectors and it holds vast potential for further expansion and export of the products therefrom.


Livestock

Livestock breeding of pedigree stock, cattle, buffalo, sheep, goat, pig, and poultry etc., forms an integral part of the rural economy. Ownership of livestock is characterised by small individual herds and flocks. Cattle and buffalo are being bred primarily for use in cultivation, while pig and poultry for consumption. For the development of the cattle industry, vast pasture lands with suitable climatic conditions are available in different regions.

Fishery

Fisheries in Myanmar can be classified into fresh water fisheries and marine fisheries. Fresh water fisheries are mainly of the nature of flood fisheries, made possible through vast river systems and heavy rainfall. There are also leasable fisheries which cover vast areas. Fish culture operations are presently being undertaken extensively in ponds, lakes and reservoirs.

Myanmar has a long coastline, 2,832 kilometers (1,760 miles) in all. The continental shelf covers 228,781 sq. km (66,700 nautical sq. miles) and Myanma's exclusive economic zone is 486,000 sq. km wide. According to surveys and researches undertaken in marine fisheries, the Maximum Sustainable Yield (MSY) of the Union of Myanmar is estimated at about 1.05 million metric tons per year, of which only 0.59 million metric tons was exploited last year, leaving a large potential for development. In conformity with the provisions contained in the United Nations Convention on the Law of the Sea regarding the sharing of surplus fishery resources with neighbouring States, the Department of Fisheries has started granting fishing rights, initiated some joint fishery development programmes and formation of joint venture companies with effect from 1989/90.

In order to cope with the increasing fishing activities in Myanmar, in addition to the existing Fisheries Manual of 1905, various laws such as Law Relating to the Fishing Rights of Foreign Fishing Vessels, Myamna Aquaculture Law, Myanma Marine Fisheries Law and Freshwater Fisheries Law have been enacted and procedures have been prescribed. A person desiring to carry out any fishery activity in the form of joint venture under the Foreign Investment Law must apply to the Department of Fisheries for licence. Fishing grounds will be determined as required in Myamnar Marine Fisheries Waters beyond the baseline by the said department.

Forestry

Myanmar is indeed very rich in forest resources as the forest covers about 50.87 per cent of the total land area. There are over 8570 different plant species, including 2300 tree species, 850 kinds of orchid, 97 varieties of bamboo and 32 different types of cane. In 1993/94 reserved forest area totalled 102600 sq. km (39614 sq. miles).


Teak

The forest area with significant teak resources covers about 6.1 million hectare (15 million acres), accounting for about 10 per cent of the growing stock in some places. Teak is very well known in the world market and is extensively used for ship building, bridges, wharves, railway carriages, wagons, houses and furniture. It is also much valued in the carving industry. At present, Myanmar enjoys the largest share of the world teak trade. The annual potential yield of teak is around 0.3 million hoppus tons (0.6 million cubic meters). Teak exports are in various conversion forms, veneer, plywood, furniture, carving, joinery, flooring products, moulding etc.

Hardwood and other woods

There are different species of hardwood such as Padauk (Pterocarpus macrocarpus), Pyinkado (Xylia dolabriformis), Kanyin (Dipterocarpus species), Taungthayet (Swintonia floribunda), Tamalan (Delbergia aliveri) etc. The annual potential yield of hardwood is around 1.4 million hoppus tons (2.5 million cubic meters). During the last 10 years, an average of 1.22 million hoppus tons were extracted annually, of which 0.45 million hoppus tons was extracted by the State. Other woods such as Pine ( Pinus insularis) and rubber wood are being extracted and conversions and wood-based products are being exported.

Bamboo

Bamboo grows mostly mixed with other tree species, however, in the Rakhine State there is a single patch of Kayin-Wa (Mellocanna bambusoides) growing in pure stands stretching over about 7770 sq. km ( 3000 sq. miles ). On a cutting cycle of 10 years, the annual yield is 2.0 million tons. In the Tanintharyi Division, there are single pure bamboo patch and also some patches mixed with other tree species. The growing stock covers an area of 1860 sq. km ( 718 sq. miles ). On a cutting cycle of 10 years, the annual yield is about 0.6 million tons.

Cane

Cane grows in abundance in Myanmar, and about 32 species have been identified and recorded. The annual potential yield of various species is estimated at about 67 million pieces. At present, only a few species are exported. However, with the present extent of cane resources, there is ample scope for expansion of 'Its extraction and for export.

Other Minor Forest Products

Cutch and tam bark used for tanning and dyeing and lac, used for varnishes, polishes and sealing wax are extracted and used for industrial purposes as well as exported.


Mining

Minerals

Myanmar is well endowed with mineral resources and has many famous mines. The Ministry of Mines welcomes foreign investors to explore, develop and exploit the mineral resources of the country, for mutual benefits. Two State Enterprises under the Ministry are responsible for the production of metallic minerals and one Enterprise deals with industrial minerals as well as iron and steel products. The production of precious stones, such as gems, jade and diamond is handled by another State Enterprise. The main minerals produced are refined lead, refined silver, zinc concentrate, copper concentrate, refined tin, tin concentrate, tin- wolfram-scheelite concentrate and gold. The precious stones produced are ruby, sapphire, diamond and jade. Industrial minerals produced include coal, gypsum, baryte, limestone, dolomite, bentonite, chromite, fireclay, fluoride, granite and various other items. The Myanmar Mines Law was enacted in September 1994 in order to enforce and implement mineral resources policy, and for development of mineral prospecting and exploration works to enhance production of minerals as well as exports. Persons or organisation desirous of carrying out mineral prospecting, exploration and production shall apply for a "Permit" to the Planning and Work Inspection Department of the Ministry of Mines. The holder of the permit shall pay rent for the land related to the permit, security deposit and advance payment or both security deposit and advance payment and also pay the prescribed royalty on the value of the mineral sold. Gem stones 5% to 7.5 %, metallic minerals 3% to 5 % and industrial minerals 1 % to 3 %. The Ministry of Mines shall by notification prescribe royalty to be paid for the minerals obtained from mineral prospecting or mineral exploration. Exemption and relief of royalty can be applied for :

No. (1) Mining Enterprise

The Bawdwin Mine which was the richest silver mine during the 1930s produces a major portion of lead together with two other mines, Bawsaing and Yadanatheingi. All the three mines are situated in the Shan State.

Copper Mine situated in Salingyi Township operates an open pit mine producing 8000 tonnes of ore per day. Total ore reserves are about 130 million metric tons of mainly chalcocite ore containing an average copper content of 0.77%. The ore is known to contain some amount of gold and silver. Another large deposit called Letpadaung, was found to contain about 180 million tons of copper ore. The feasibility of developing mining and processing of copper is being carried out by a foreign company in Monywa Copper Complex. Mining concessions for copper and gold are being offered in specified areas.

No.(2) Mining Enterprise.

Tin concentrates, tin and tungsten concentrates, tin tungsten and scheelite concentrates, refined tin are the main products of this enterprise. Gold is produced from four gold deposits, of which the first major gold production at Kyaukpahtoe was put on stream during early 1993. Diamonds of 'gem quality were also found while sluicing tin concentrates in Tanintharyi Division and systematic exploratory work is being carried out to find the main source of occurrence. High grade tin concentrate is produced from Heinda open-pit mine in the Tanintharyi Division. Heinze placer deposit is suitable for dredging tin concentrate by small dredgers with low operation costs. Most of the Tin and Tungsten mines are situated in Dawei area Tanintharyi Division.

No.(3) Mining Enterprise

This Enterprise deals with industrial minerals as well as iron and steel products. About 21 items of industrial minerals are produced. Pig iron, steel billets, steel grinding balls and mild steel rods are produced at No.1 Iron and Steel Plant situated in Pyin-Oo-Lwin and steel billets, wire rods, mild steel rods, formed products and M.S. sheet at the Ywama Steel Mill situated in Yangon-North district. It can also produce G.I. sheets, wire nails, barbed wire and G.I. wire mesh.

Myanma Gems Enterprise

The world's finest and most valuable rubies are found in the Mogok area in Mandalay Division. Rubies from Myanmar are acknowledged to be the finest in quality. It is considered by connoisseurs to be the world's most valuable gem. Sapphire has all the properties of ruby except for its colour. Sapphire is also found in the picturesque mountains of Mogok. Mogok produces a dazzling variety of assorted coloured gems including Spinal, Garnet, Peridot, Tourmaline, Aquamarine, Amethyst, Citrine, Zircon, Moonstone, Lolite, Danburite. Recently two new gems tracts were discovered by geologists in the Northern Shan State. The area is found to be promising for the production of high quality gems in the future.

Phakant Area in Kachin State is renowned for its production of Jade in Myanmar. Imperial jade, whose colour is emerald green of unequal purity, is the best. Jade with superb lustre, texture and an attractive variety of colours including mottled green is known as Commercial Jade. Utility jade is remarkable for its purity of grain and colour and is good for carving figurines and ornaments.


Energy

Crude Oil and Natural Gas

The exploration, development, production and transportation of crude oil and natural gas in the Union of Myanmar, are the responsibility of Myanma Oil and Gas Enterprise (MOGE). MOGE operates 14 oil and gas fields in onshore areas for the production of oil and gas.

Oil producing fields are mostly in the Central Belt and Pyay Embayment. Recent test wells in Myanaung oil field yielded crude oil and natural gas. In Pyay oil field, some new discoveries were made from the subthrust zone. MOGE discovered more gas pools near Aphyauk in Shell's relinquished Block-G.

At present, Natural Gas from Aphyauk gas field in Taikkyi Township is being distributed to Yangon and Pyay Area for power generation and industrial use.

To promote development in the oil and gas sector, the Myanma Oil and Gas Enterprise has signed 20 Production Sharing Contracts with 14 Multinational Oil Companies to explore and produce petroleum in several onshore and offshore areas of Myanmar since 1989.

After an exploration period of three years, some of the companies terminated their contracts. At present, I 0 contractors onshore and 2 contractors offshore are continuing the exploration work.

Offshore in Myanmar, Total / Unocal has completed the drilling of 4 numbers of appraisal wells, resulting in the discovery of additional gas reserves the surplus from which will be exported to neighbouring countries. In offshore Block M-13 and M-14, Texaco / Premier / Nippon Oil has also successfully drilled 7 wells and discovered substantial amount of condensate and natural gas.

Potential for further onshore exploration and development exists in Hukaung Basin, Chindwin Basin, Shwebo - Monywa Plain, Salin Basin, Central Myanmar Basin, Bago Yoma Region, Pyay Embayment, Ayeyarwady Delta Basin, Rakhine Coastal Plain and the Sittoung Basin.

With the encouraging discoveries from Myanmar offshore area, the remaining offshore blocks are expected to become prospective areas for hydrocarbon play.

Manufacturing

A variety of consumer goods such as textiles and garments, foodstuff and beverages, pharmaceuticals, soap and toilet goods, enamelwares, aluminium wares, and steel products, cement, marble and porcelain wares, rubber goods, leather, packing materials, pulp, paper and paints, jute carpet, etc. are being produced by the State-owned factories.

Most of these factories have ample capacity left for foreign investors to take advantage of in the manufacturing sector. Some of these factories need renovation and modernisation to enhance their production capacity to the maximum level.

Foreign investors are welcome to submit proposals for activities under the Foreign Investment Law, either as joint ventures or wholly owned foreign enterprises. They can also make manufacturing contracts with these factories by providing raw materials and spare parts and taking back the finished products after payment of processing charges in foreign currency. Foreign investors can also cooperate on a buy-back system, where they need to supply the machinery and equipment for the new factories or the existing factories on a deferred payment basis and the cost of the machinery and equipment would be paid back in such quantity of finished goods annually at mutually agreed upon prices.

The Private Industrial Enterprise Law and Procedures have been endorsed in November 1990 to enable the establishment of small, medium and large scale enterprises and to promote private industrial enterprises which may be formed either individually or in partnership or in the form of a company but excludes industrial enterprises conducted in joint venture with the State.

In order to promote small scale industries utilising local natural resources as main raw materials, by-products, waste products and raw materials from SEEs and Government Departments, the promotion of Cottage Industries Law has also been enacted in October 1991.

Tourism

For the development of Tourism and to expedite foreign exchange earnings as well as enable the carrying out business under the 'Tourism Industry, the Myanmar Tourism Law was enacted in June 1990 and Myanmar Hotels and Tourism Law in October 1993 with a view to provide security and satisfaction of tourists and for promotion and development of the Hotel and Tourism Industry. Procedures to the said law have been prescribed for the application of a licence to operate a Hotel and Lodging House business, Tourist Transport business and Tour Guide business in Myanmar at the Directorate of Hotels and Tourism of the Ministry of Hotels and Tourism. The Myanma Tourism Commission and Hotel and Tourism Board of Authority have been formed to lay down policy guidelines and for the systematic operation of Tourism Industry, preservation of cultural heritage and scenic beauty and for better international relationships through the development of the Hotel and Tourism Industry.

Financial

The new banking laws, the Central Bank of Myanmar Law, the Financial Institution of Myanmar Law was enacted in 1990 to streamline the monetary policy and extend banking services and the Myanmar Agriculture and Rural Development Bank Law in 1990 to extend banking services to rural level leading to rural development. As of October 1994, 13 Nos. of licence have been issued to open domestic private banks and are operating to provide credit facilities to the expanding economic activities. It has also granted permission to open representative offices of the 15 foreign banks. Of the licensed domestic banks, Myanmar Citizen Bank Ltd., Co-operative Bank Ltd., Myawaddy Bank Ltd. and Yangon City Bank Ltd. have been allowed to deal in foreign exchange business since April 1994. From 1994, the Central Bank of Myanmar has allowed the Myanmar Oriental Bank Ltd., Yoma Bank Ltd. and Kambawza Bank Ltd. (Taunggyi) to use credit cards in local currency. The Central Bank of Myanmar, since December 1, 1993 issued government treasury bonds (3 years at 10 percent and 5 years at 10.5 percent interest rates) in denominations of K 10,000 and K 100,000 to promote savings by public and private enterprises.