Asia Supply Chain Report: Mandalay Region, Myanmar

Abstract

The main purpose this report is to assess the potential of Mandalay to become an attractive investment site for export oriented foreign manufacturing firms. The study found that Mandalay has many external constraints to become industrial hubs of Myanmar infrastructure particularly in electricity, land and financial aspects that need to be tackled urgently and fundamentally. For internal constraints, finance is found as a major problem for business to expand. Technology, skill development, machines and equipment are found as also important internal barriers for the firms. Despite these, there have important opportunities for some industries including agricultural food processing, ICT and electronic component parts manufacturing and textile industries. By using locally abundant resources of agricultural produces and labor force coupled with money and technology brought by foreign investors, these industries have huge opportunities for growth. To be qualified local firms in Mandalay as suppliers to international companies and to become Mandalay as an attractive manufacturing site for foreign firms, a number of positive measures need to be implemented. This inevitably takes some time to achieve. For macro level interventions, foresighted and consistent policies, political will, money and time investment and patience are necessary along the way. Out of them, land issue need to handle first because unclear ownership of land and land use right are serious barriers for investors even more than the issue of high land price. The regular and reliable supply of electricity is also the next important factor to be tackled. Improvement in road, rail and port infrastructure and clear policy and rules of regional government to promote foreign investment is the third most important intervention to be done