1. Policy support.
Many small countries in Southeast Asia have welcomed foreigners to set up factories in the past due to their development needs, including Myanmar. At the same time as China’s industrial upgrading, many small manufacturers such as clothing factories and toy factories have moved to Thailand, Myanmar, Vietnam, Laos and other countries to invest and set up factories. Myanmar welcomes everyone to walk in. China supports everyone to go out, so the policy environment is still very good. China has now become Myanmar’s largest trading partner and the largest source of foreign investment.
2. Low cost.
This is one of the most important advantages of opening a factory in Myanmar. Due to the low level of local economic development, the cost of living is also low, and the wages of workers are not high. Compared with domestic labor costs are low.
3. Close.
China’s Yunnan borders northern Myanmar. It takes only two hours by plane from Kunming to Yangon to go to Myanmar to open a factory. It is more convenient for the two countries to travel back and forth.
4. Abundant resources.
Myanmar is rich in resources in minerals, forests, water power and oceans. Myanmar has mineral resources such as oil, natural gas, tungsten, tin, gold, iron, and jade. At the same time, it is one of the countries with the most extensive forests in the world. Myanmar also has a long coastline, dense rivers and numerous lakes, and is rich in fisheries resources.
But there are many disadvantages to opening a factory in Myanmar:
1. Low quality workers.
Although labor costs are low in Myanmar, the low quality of workers is a flaw. On the one hand, factory management may be difficult, and factory strikes are common. On the other hand, workers’ work efficiency is also relatively low.
2. Lack of language and cultural differences.
Although there are many Chinese in Myanmar, since they are in Myanmar, it is necessary to deal with Burmese. Linguistic and cultural differences may cause inefficient communication. If you want to set up a factory in the past, you still need to learn a few languages ??first, or ask a translator. You must also learn the local customs, and respect each other.
3. Backward infrastructure.
The infrastructure includes many places, such as transportation, Myanmar’s current logistics industry and port transportation are relatively backward, modern highways are few, and many goods need to be transferred to Singapore before being sent to the world, thereby extending the delivery cycle.
Another example is power supply. The power shortage in Myanmar may be notable. Opening factories in Myanmar will often encounter power outages that affect normal production. In this case, either the work will be stopped, but this may affect later delivery; or the generator will be purchased to ensure the power supply, but this will increase costs.