1. Anonymous, 1995. Investing in Myanmar 1995
2. Anonymous, 1996. Foreign Investment Law, Procedures and Types of Economic Activities Allowed for Foreign Investment, March 1996. The Union of Myanmar.
3. Department of Fisheries, Myanmar. Newsletters.
4. Government of The Union of Myanmar, 1996: Statistical Abstract, Ministry of National Planning and Economic Development.
5. Landesman, 1994. Coastal Aquaculture Development World Aquaculture 25:2.
6. Ministry of Agriculture and Irrigation 1996. Agriculture, Food and Nutrition Situation in Myanmar. World Food Summit 1996.
7. MPEDA, 1991. Handbook on Shrimp Farming.
8. Nyan Taw 1997. Current Status and Potential of Shrimp Aquaculture in Southeast Asia and Myanmar. Proceedings of Workshop on Shrimp Aquaculture Industry. December 12–13, 1996. Yangon. DOF, MLF, FAO.
9. T. Singh and A.K. Jee 1988. Marine Prawn Farming in Malaysia. Malaysian Fisheries Society Occ. No. 1.
Guidelines
GUIDELINES FOR FOREIGN INVESTMENT
Eligible
The economic activities that could be undertaken under the Foreign Investment Law are given in Notification No. 1/89 dated 30th May 1989 issued by the Foreign Investment Commission. The notification covers almost all sectors of the economy. There are however, twelve economic activities defined under Section 3 of the State-owned Economic Enterprises in which foreign investment would be allowed only when the government considers investment is in the interests of the State.
Minimum Investment
The minimum investment to be made by a foreign investor under the Union of Myanmar Foreign Investment Law is at present fixed at US$ 100,000.
Approval of Eligible Economic Activities
In processing a proposal, the Commission would look into the justification of the enterprise proposed in the light of the requirements and priorities of the national economy, the appropriateness of the technology to be introduced and also the financial credibility of the investor. When the Commission finds the proposal to be in order, a “Permit” under the Foreign Investment Law will be issued. Such a permit is not transferable in any manner. Only the person or economic organization given the permission is to make the particular investment allowed therein.
An enterprise establishing economic activities in the Union of Myanmar either under the Foreign Investment Law or otherwise will have to apply for appropriate registration. e.g., registration under the Myanmar Companies Act, Importer and Exporter Registration, etc., in accordance with the procedures laid down for such registration.
GUIDELINES TO ATTRACT INVESTORS FOR INVESTMENT IN SHRIMP CULTURE IN MYANMAR
1.0. PERSPECTIVE
World trade in seafood has been steadily growing over the years and today stands at over US$ 45 billion from just US$ 12 billion in the late 70s. The changing dietary habits of people all over the world are creating a spurt in demand for seafood, particularly, on account of the health conscious consumers of industrialized nations. There is today a 2% increase in the growth in demand, as against only 1% growth in supply, which according to the FAO, would lead to a shortfall of around 20 million tonnes by the end of the century. It has also been projected that capture sources of the world cannot be sustained beyond 90 million tonnes and therefore, the demand will have to be made-up from aquaculture sources. Myanmar accounts for less than 0.06% of the world trade, even though the last few years have seen a substantial growth in the production and export of marine products. Shrimp and prawn product exports in 1995/1996 were of the order of US$ 72 million, a rise of 12.5% from US$ 63 million in the preceding year. Shrimp, however continues to be the single dominant item in the seafood export basket. However, the harvest from the shrimping grounds in the Myanmar Exclusive Economic Zone (EEZ) stagnated over the last few years. Further increases in the shrimp exports must therefore come mainly through culture methods.
2.0 COMPARATIVE ADVANTAGES
Myanmar is a minor player in the global seafood trade. However, it does in fact have the comparative advantages to be a leader in shrimp farming and its production. Some of these advantages are as follows:-
2.1 Myanmar is one of the few countries in the world endowed with rich natural resources ideally suited for aquaculture development, these being:
2.1.1. abundant cultivable fish resources;
2.1.2. ideal environment and climate to culture diversified species of temperate and tropical origins;
2.1.3. a vast stretch of unutilised/under utilized land and water bodies of marine, brackish and fresh water origins;
2.2. Studies have shown that the cost of production of cultured shrimp in Myanmar, in comparison to the major supplying countries, is one of the lowest;
2.3. There is virtually no domestic competition for price;
2.4. The aquaculture industry today has one of the highest rates of return compared to any other sunrise industry.
3.0. AQUACULTURE TECHNOLOGY
In the seafood export sector, aquaculture has been synonymous with brackishwater shrimp farming, although today a very large number of species are under cultivation around the world. Commercialization of aquaculture has primarily been due to the breakthrough achieved in hatchery technology (hatching of post larvae in artificial conditions). The technique of replicating the natural shrimp ecosystems was perfected in Japan and commercialised by Taiwan. Philippines and Indonesia, who were among the first nations that went in for commercial aquaculture ventures. Aquaculture technology has been classified into four broad categories, i.e., traditional, extensive, semi-intensive and intensive. Essentially, the capital investment stocking density, feed and management requirements go up as the scale moves towards higher levels of technology. Taiwan adopted intensive culture as land costs were high. Indonesia and the Philippines adopted the semi-intensive and extensive technologies due to larger availability of suitable land. In Myanmar too, the latter experience appears more logical.
4.0. ROLE OF GOVERNMENT AND HER AGENCIES
A number of institutions are involved in the management of the fisheries sector in Myanmar. Ministry of Livestock and Fisheries are mainly responsible for the administration of the entire fisheries sector in Myanmar. The government has passed a number of laws and regulations relating to aquaculture and environmental protection.
The Fisheries Department of Myanmar plays an important role such as:-
to promote all round development in the fishery sector.
to encourage the expansion of aquaculture
to upgrade the socio-economic status of fisheries communities
encourage foreign investment in the sector through joint ventures, etc.
5.0 NEED FOR POLICY FOR ORIENTED AQUACULTURE INDUSTRY
Marine products already occupy an important place in Myanmar's export. With the introduction of the New Economic Policy by the State Law and Order Restoration Council(SLORC), growth of exports is a major requirement for the success of the structural reform program. Simultaneous with the announcement of the long term and liberalized trade policy, the Ministry of Commerce also announced a package of measures for special thrust in the export of high potential items. Marine Product Exports fall in this category.
This report identified the potential for aquaculture in Myanmar and suggested a crash program to develop exports in a three to five year time frame. DOF has also been given a target to be achieved by the end of the year. It is, therefore, imperative that a strategy for development of export oriented aquaculture be put in place.
6.0. STRATEGY FOR DEVELOPMENT OF SHRIMP CULTURE
Today, aquaculture development in the country is taking place in a haphazard manner and is mainly concentrated in the coast. Investment climate in different areas is varied and both infrastructure development as well as extension services, leave much to be desired. Productivity and production patterns vary from small marginal holdings to large farms that are now coming up. A strategy for aquaculture must necessarily address these variations. A two-pronged approach, that too at two different levels of technology, is required. On the one hand, it is necessary to extend benefits of aquaculture technology to the rural poor and marginal farmers by promoting low input, cost extensive aquaculture linked with rural employment. On the other hand, in order to obtain a quantum jump in marine products export, it is necessary to establish high productive centers with semi-intensive aquaculture technology on a factory farm basis. The two-pronged strategy would be to address the traditional farming areas with low input, cost extensive technology and separately take up areas for semi-intensive farming. The Ministry of Livestock and Fisheries through its various institutions, mainly concentrates on the small aquaculturists which are presently engaged in traditional farming. Ministry of Commerce, would address directly strategies for export oriented aquaculture industry, assisting all entrepreneurs with extensive farming technologies and simultaneously promoting aquaculture estates, for larger entrepreneurs.
7.0 POLICY INITIATIVES
Experience in South Asia particularly, has shown, that the growth of aquaculture invariably results in the achievement of other social economic goals like increase in food production, rural employment, improved nutrition etc. Export oriented shrimp culture would generate new sources of employment and lead to an overall development of rural areas through integrated projects besides, earning precious foreign exchange for the country.
Considering the profit potential of shrimp culture, it is clear that with the development of this sector, subsidies should be reduced. What is necessary are the removal of impediments as well as development of infrastructure for realizing the potential of this high priority growth sector.
The following guidelines are recommended for facilitating organized development of shrimp culture by foreign investors;
8.0 GUIDELINES
8.1. Land:- Guidelines
8.1.1. Most of the brackishwater lands identified as suitable for aquaculture are under the Government ownership. Despite communication of specific guidelines for the leasing of such lands to private entrepreneurs for aquaculture purpose, the actual handling over of lands have been rather negligible. It is therefore desirable that the government concerned expedite land allotment for shrimp farming.
8.1.2. Micro level surveys of the potentially suitable lands maybe carried out and all lands identitied suitable for aquaculture may be allotted for the activity and not for any other activity.
Application for allotment of Government lands, preferably disposed off on merit, within 45 days from the date of application.
Lease period may be fixed at a minimum of 20 years, with a provision for renewal for another period of ten years the option of the investors
8.2. Land Use Plans and Environment
8.2.1. DOF with the assistance of the of the Deparment of Environment would work out a plan for land use and and environmental management.
8.2.2. The plan prepared by DOF may be taken as a model by the State to prepare Master Plans for development of shrimp farming
8.2.3. Such Master Plans for development of shrimp industry may be get approval from the Department of Environment.
8.2.4. Specific proposal for development of farms shall be based on the Master Plans and each proposal maybe submitted to the Department of Environment.
8.2.5. Environmental clearance to aquaculture farms where necessary may be given preferably within 60 days from the date of submission of the application.
8.2.6. Effluent treatment systems measuring not less that 5% of the farming area may be made mandatory in case of aquaculture units of size more 10 ha.
8.2.7. State Governments may provide common effluent treatment system for areas leased out by them to small and marginal entrepreneurs.
8.2.8. DOF would formulate norms of land use plans and set environment standards jointly with the Environment department
8.3. Setting up shrimp farm estates
8.3.1. It is desirable that the government or private sector consortium to develop estates for export oriented aquaculture in suitable areas.
8.3.2. The Master Plan for the estates may be on similar lines as those for industrial estates, with delineation of water supply and drainage, and other infrastructure development, it maybe made mandatory on the part of land allotted to conform their project plans to the Master Plan.
State Governments or private consortium may set up aquaculture infrastructure development corporations on a commercial and self financing basis in order that it may help small entrepreneurs to obtain standard basic infrastructural facilities such as road, electricity, communication etc. It is also highly desirable that in such areas the government/consortium to construct common main feeder canals and drainage canals, both from cost effectiveness as well as pollution points of view.
8.4. Satellite Farming
8.4.1. DOF will promote integrated units with farm, hatchery, feed mill and processing facilities with tie-ups for technology, seed and feed and buy back arrangements with small entrepreneurs functioning as ‘satellite’.
8.5. Man Power Development
8.5.1. DOF in association will draw up a plan for suitable man power development. In order to overcome the shortage of trained man power for aquaculture, the University system may be re-oriented to produce trained manpower for the industry.
8.6. Availability of Finance
8.6.1. Credit constraints are still continuing to impede the development of aquaculture. In view of the instructions from the Central Bank will be approached to accord priority for aquaculture lending.
8.7. Seed
8.7.1. Integrated farms with hatcheries will be encouraged.
8.7.2. Subsidy for setting up hatcheries may be continued for a period of three more years.
8.8. Development Council
8.8.1. A development Council for export Oriented Aquaculture will be set up in the Ministry of Commerce to oversee the growth of this sector as well as to take policy decisions for the same. The Development council shall be headed by the Minister of Commerce and will comprise representatives of various Ministries and organisations as well representatives of the Trade.
