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Austrade sets Myanmar priority sectors

31 May 2013

The Australian Trade Commission (Austrade) will open an office in Myanmar on 6 June, reflecting the high level of interest from Australian companies in exploring opportunities in this emerging South East Asian nation.

After decades of military rule, the government of resource-rich Myanmar is implementing a range of reforms to attract foreign direct investment (FDI), which it sees as fundamental to achieving sustainable economic development and improving living standards for its people.

According to Mark Wood, Austrade’s newly appointed Trade Commissioner in Yangon, the sectors that are attracting the most interest from Australian companies include resources, infrastructure, education, agribusiness and food & beverages.

Mr Wood added that Austrade’s Yangon office would initially focus on these sectors, and the strategy for expanding Australia’s business presence in Myanmar would be underpinned by a series of trade exhibitions, education events and product promotions over the next 12-18 months.

He acknowledged that issues and challenges remain in Myanmar, including sanctions imposed by the United States and the European Union.

“Companies looking to do business in Myanmar need to be fully informed about the operating environment”, he said.

Mr Wood’s appointment followed an Australian Government decision to open an office there to help Australian businesses expand into Asia's growth and emerging markets.

Export Finance and Insurance Corporation (EFIC) Chief Economist Roger Donnelly said in a recent EFIC recent newsletter that the main foreign investment interest in Myanmar has so far come from Asian investors, led by China, Hong Kong, Japan, Korea and Singapore.

“[These investors] are reportedly positioning themselves for the EU and possibly the US reinstating Myanmar’s preferential trade status,” Mr Donnelly said. 

However, he noted that Australia is also building a presence, particularly in the oil and gas sector where 12 of 59 companies recently selected for pre-qualification to bid for 18 onshore blocks were from Australia.