US firms see rosy future in Myanmar

US companies are keeping a keen eye out for opportunities to be created by the Asean Economic Community in 2015, though many believe that the regional economic integration’s goals will not be reached until 2020 or later.

According to the “Asean Business Outlook Survey” released yesterday at the Asean Economic Ministers Meeting in Nay Pyi Taw, in the years to come, US firms expect investment expansion, workforce growth and higher profits.

AEC goals were among the key topics discussed by the Asean ministers as they convened in Myanmar this week. As the deadline draws near, only 82.1 per cent of the AEC Blueprint has so far been completed.

Two-thirds of the respondents to the survey in Myanmar indicate that their companies’ levels of trade and investment in Asean had increased in the past two years and they expected this trend to continue in the next five years. Overall, 86 per cent of business executives based in Myanmar regard Asean integration as important to helping their companies do business in the region.i

The business-expansion outlook is high, with 91 per cent of respondents saying they expected their companies in Myanmar to expand, and as many expecting increased profits in 2015.

“The Asean Business Outlook Survey shows that Myanmar is one of the most popular countries for business expansion in Asean, offering a ready supply of affordable labour and personal security,” said Mariano Vela, president of the Myanmar chapter of the American Chamber of Commerce in Thailand. 

“The economic growth is also visible in the number of US companies coming to invest in Myanmar and becoming members of Amcham’s Myanmar chapter. The chapter was established less than a year ago and we already have 100 member companies.” 

Myanmar’s expatriate workforce are generally satisfied with living and working conditions, as 91 per cent report satisfaction with their assignments and 77 per cent are attempting to extend their time in the country. 

In addition, US companies are viewed more favourably in Myanmar than in any other country in Asean. 

The major impediments to living and doing business in Myanmar according to respondents are housing and office-lease costs, infrastructure, and the limited availability of trained personnel.

The survey was designed and implemented by the US Chamber of Commerce and the member countries of the American Chambers of Commerce in Asean, including 588 business executives representing small, medium and large US companies in all 10 Asean countries.