SHRIMP CULTURE AND INVESTMENT ENVIRONMENT IN MYANMAR
| SHRIMP CULTURE AND INVESTMENT ENVIRONMENT IN MYANMAR |
MYANMAR
TCP/MYA/4554 (T)
REPORT
INFOFISH
JUNE 1997
REPORT OF THE CONSULTANT IN THE ECONOMIC SHRIMP FARMING
Abdul Basir Kunhimohamed
INFOFISH
June 1997
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Chapter
2.0 Fisheries Status of Myanmar
2.1. Measures taken to promote development in fisheries sector.
2.2. Market brief on aquacultured shrimp.
2.2.1. International shrimp market.
2.2.2. Prices in the international market
2.2.4. Export of prawn and shrimp from Myanmar
2.3. Inspection and quality control.
3.0. Economics and profitability of shrimp farming.
3.1. The joint ventures companies
3.2. Companies interested to invest in Myanmar
4.1. Foreign investment policy
4.2. Eligible economic activities
4.3. Types of business organisations
5.0. Foreign investment application procedure.
5.2. Appraisal of the proposal
5.3. Application for a permit to trade from the Ministry of National Planning and Economic Development at the time of incorporation of the enterprise with the Registrar of Companies
5.4.1. Registration of Business Organisation
5.4.2. In applying for registration of a company or branch office of a foreign company
5.4.3. Initial capital to be brought in by foreign company incorporated in Myanmar or a branch company.
6.0. Tax structure and incentives.
6.5. Deductions at source (withholding tax)
6.6. Tax exemptions and reliefs
6.7. Income and allowable expenses exempt from tax.
8.0. Recommendations and guidelines
1. Proposal of the promoter to make foreign investment in the Union of Myanmar
2. Guidelines on the Conversion of Mangroves to Ponds.
Shrimp culture is a recent development in Myanmar compared with some other Southeast Asian countries. It has, however, tremendous potential if modern and prudent management techniques are applied.
Myanmar presents many attractive advantages for foreign investors, including land availability and relatively low labour cost. However, many problems remain unsolved, scarcity of technical information, lack of trained personnel, and the fact that much of the farming has to be done at an extensive level.
New economic regulators and reforms are underway, however, that should boost individual and private initiatives. Introduction of imported feeds and increased activity by foreign investors are also stimulating factors.
If Myanmar is to increase its competitiveness in the world shrimp market it is also critical that the industry's productivity per hectare be increased. To accomplish this, investments in semi-intensive culturing of shrimps must be encourged. The development of a sustainable and profitable hatchery industry is a viable short and long term alternative to the unreliable supply of post-larval shrimp collected in the wild.
No matter what advances Myanmar achieves in the production of shrimp, they can be easily overshadowed by international shrimp market prices. Producers should therefore trim production costs and increase efficiency in order to be on par with ther competitors in the world market.
This report identifies and determines some of the constraints which hinder the rate of investment in shrimp farming in Myanmar. As the international market forces for shrimp are expected to play a large part in the confidence of investors, this report also briefly reviewes the global market for cultured shrimp.
Guidelines for foreign participation in shrimp culture are also provided in the report.