Under the Myanmar Investment Law, tax exemptions / reliefs can be obtained in development zones to promote and attract investment. There are tax free zone in Shan State – Zone 1 includes 37 townships, Zone 2 includes 13 townships and 5 townships are not allowed for investment. According to the new Myanmar Investment Law, townships in Zone 1 will enjoy seven years tax exemption and five years for Zone 2.
Market size of Shan State; Abundance of natural resources and labor force
Shan State is the largest land area in Myanmar, with an area of 60,155 square miles, 23% of the total land area. Shan State is located in the northeast of Myanmar, It is bordered by Kachin State to the north , Sagaing and Mandalay Region to the west , Kayin State and Kayah to the South. It is borders with Laos to the east; Thailand to the southeast and China to the northeast. Shan State is the center of Myanmar’s trade and strategic links with China and Thailand, and there are many opportunities for trade. Shan State is one of the largest states in the area of Myanmar and is strategically located and has a large market for investment products . There are 34 ethnic groups living in Shan State, the fourth largest population in Myanmar, accounting for 11.56% of the country’s population. Therefore, Shan State has a great investment opportunities due to large labor force, good weather, abundant land and rich in minerals.
Strengthening infrastructure for investment
In Shan State, sustainable infrastructure development is an effective complement to the country’s development. Most of the highways in Shan State are connected to townships. The Department of Roads under the Ministry of Construction has set up a total of 238 highways , a total of 49,877 miles. As the Asean highways, AH2 and AH14 are strategically located on the main roads to South Asia and Southeast Asia. Shan State is very close to emerging as Asia’s largest and fastest-growing market. There are 20 railway lines and 68 stations for transport in Shan State. There are five airports for air transportation and three main airports located in eastern Shan State, one in southern Shan State and one in eastern Shan State. There are 18 hydropower factories and one coal-fired power factory in Shan State. Electricity installed in Shan State is 1901 megawatts and is capable of distributing power through the grid. In addition, potential hydro power factories in Shan State have five projects with a capacity of less than 50 MW and 13 projects with a capacity of more than 50 megawatts .A total of 12,000 megawatts are available. As a mobile telecommunications provider in Shan State, Myanmar Telecommunication Company has 768 mobile telecommunication facilities and 92.8% coverage. Such infrastructure is a huge investment advantage.
Strong support for government and private organizations for investment
The Myanmar Investment Commission is distributing powers to Nay Pyi Taw Council and state / region governments. In order to facilitate investment activities and regional development, Shan State investment committee has been assigned and serves as the Secretariat, of DICA Shan State. The Myanmar Investment Law and the Myanmar Companies Law act as a constitutional foundation for investors and businesses. It also provides simplified procedures. The Online Company Registration System (MyCO) greatly enhances business acumen and transparency. Government departments are working to reduce waiting times and restrictions. At the same time, the single-window system is being developed according to the procedures and of the respective Ministries. In addition, Southern Shan State Chamber of Commerce and Industry, The Young Entrepreneurs Association and other groups have already been formed, which could be help to new ventures.
There are many opportunities to expand domestic and foreign investment
Shan State offers many investment opportunities for investors. Agribusiness and value-added manufacturing; Hotels and Tourism Trade and manufacturing are among the most promising sectors. Shan State’s natural water and climate; Abundance of natural resources; The large domestic and international market can greatly benefit investors. The products of Shan State is being exported to China, Thailand, Europe and the US, and the prospects are now better. In addition, the support of the Shan State Government and the warm reception of local businesses have been a catalyst for investment growth. In general, the investment situation in Shan State is geared towards growth, and investors should take advantage of the opportunities that exist.
Shan State Investment Opportunities for Local and International
Since most businesses in Shan State are traditional, there is a need for advanced technology to produce international standard products. Upgrading small and medium enterprises in the state will be able to connect to the international market. Shan State’s main opportunities are agriculture and agricultural product promoted, Hotel and Tourism, the energy and mining sectors there is a need for domestic and foreign investors . Shan State is an important location for local and foreign trade, which can be very helpful for investment.
Promoting investment in Shan State
In line with the Shan State Investment Promotion Program, strategies are being made to establish local products in Shan State as an internationally recognized brand. In addition, plans to upgrade the use of digital technology and innovation to improve the quality of products and services will be upgraded to Industry 4.0. The Shan State Investment Committee is working to improve investment, which will be of great help to investors. Therefore, in the future, Shan State will be able to make investment procedures and procedures easier to make. Advanced infrastructure; Exceptional opportunities and potential; with the development of a sound service system that supports investors, it will be a great place to invest in Myanmar.