Doing Business in Myanmar
Myanmar is an emerging market with significant potential. Australian businesses are increasing their presence in the energy and resources, infrastructure, finance and banking sectors.
Myanmar (formerly known as Burma) is an emerging market with significant potential. As a result of governmental reforms which have begun to improve the business climate and provide more favourable conditions for foreign businesses entering the market, Australian businesses are increasing their presence in the energy and resources, infrastructure, finance and banking sectors. ANZ, Woodside and Bluescope Steel established a commercial presence in Rangoon in 2013, and in the same year our government opened an Austrade office in the city.
Yet doing business in Myanmar is still very difficult, and further progress is required before Myanmar can be considered a stable business environment. A lack of transparency, weak infrastructure and an inadequate judicial system have been cited as barriers to trade and investment. However, a number of laws and regulations are under internal revision, and the government has been hosting information sessions to engage foreign firms with an interest in doing business there.
Myanmar is a party to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which delivers benefits for Australian businesses in the areas of tariff reduction and elimination, economic engagement and cooperation, greater certainty for service suppliers and investors and supply chain opportunities.
Doing Business in Myanmar
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Why do business in Myanmar?
Governmental reforms have begun to improve the business climate.
Myanmar (formerly known as Burma) is an emerging market with significant potential. As a result of governmental reforms which have begun to improve the business climate and provide more favourable conditions for foreign businesses entering the market, Australian businesses are increasing their presence in the energy and resources, infrastructure, finance and banking sectors. ANZ, Woodside and Bluescope Steel established a commercial presence in Rangoon in 2013, and in the same year our government opened an Austrade office in the city.
Yet doing business in Myanmar is still very difficult, and further progress is required before Myanmar can be considered a stable business environment. A lack of transparency, weak infrastructure and an inadequate judicial system have been cited as barriers to trade and investment. However, a number of laws and regulations are under internal revision, and the government has been hosting information sessions to engage foreign firms with an interest in doing business there.
Myanmar is a party to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which delivers benefits for Australian businesses in the areas of tariff reduction and elimination, economic engagement and cooperation, greater certainty for service suppliers and investors and supply chain opportunities.
Want to keep up to date with business developments and opportunities in the Asian region? Check out the Asialink Business news and media updates, as well as the Asian market research & resources available.
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Business etiquette in Myanmar
Business matters may often seem ambiguous.
- Business cards are valued highly and always presented when meeting someone for the first time. Cards should be given using the right hand or both hands, and received in similar fashion. You should present your card to the most senior person first. When receiving a business card, it is important to take a few moments to read it.
- Make sure that when sitting, the soles of your feet are never pointed at anyone, or toward an image of the Buddha – this is viewed as disrespectful.
- Myanmar has a culture of hospitality. The exchange of gifts is ingrained in society, and if a gift is received, it should always be repaid at a later date.
- For businessmen, handshakes are typical greetings. If a woman offers her hand, it is acceptable to shake it, but men should not offer their hands to women.
- Women should wear conservative dresses or skirts that are not too short, or business suits, and blouses (not sleeveless tops). Backpacks are considered inappropriate for business.
- Yes may not mean yes – often it simply means "yes, I understand you", not "yes, I will do as you ask". Business matters may often seem ambiguous initially, and you may need to make contact several times before a matter is finalised.
- As with many other Asian cultures, never publicly criticise or contradict anyone, refer to a mistake, show anger or disagree with a business contact – this is known as losing face. Causing your business contact to lose face – even accidentally – may result in a negative business outcome.