Being bullish on Myanmar is a cliché these days, however, I thought I'd share some notes from a recent trip to Yangon—it's a good conversation starter at the very least.
Beyond the obligatory visit to the Shwedagon Pagoda and happy hour at the Strand on Friday night, I managed to slip in a few conversations with people in-the-know.
The immediate takeaway is that this country of roughly 60 million people, wedged between two of the world's economic heavyweights (India and China) has the potential to reclaim its position as an economic powerhouse in South-east Asia.
In the 1960s, Myanmar was Asia's richest country with a GDP per capita estimated at US$670, three times that of Indonesia and twice that of Thailand. Today, it remains below US$900, one of the lowest in the region.
Pictured right: Hawkins PhamThis once isolated country is now one of the world's hottest investment destinations. However, the road to prosperity will not be smooth sailing, and there are a number of challenges that foreign investors are bound to face while the country's newly-elected civilian government irons out reforms.
The Genie is out of the BottleTo say that Myanmar is the flavor of the month in South-east Asia would be an understatement. I have few contacts in the investment community that have not expressed interest in visiting (if they haven't already).
This wave of interest is evident in hotel room rates in Yangon, which have skyrocketed in recent months as hotels capitalize on the inelasticity of business travelers. In August, the Ministry of Hotels & Tourism attempted to limit price gouging by setting a cap of US$150 for standard hotel rooms—although you can expect much higher rates at the more choice properties, if there is even availability.
The supply-demand gap in the hotel industry is pedestrian, however, when looking at other sectors of the economy. Nearly everywhere you turn lies fertile opportunity for investment.
With a notable exclusion of extractive industries, here are a few key sector opportunities:
Full story:
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