Myanmar’s underdeveloped infrastructure presents serious impediments to factory production and product shipment.
Chief infrastructure problems include:
- Inconsistent and often unreliable electricity.
- Deep sea port access for garment producers is currently unavailable.
- Internet bandwidth is very low.
- Railway infrastructure is a half-century old.
- Relatively poor roadway connections.
So, that is all the bad news.
The good news? All of these issues are current areas of active investment & development. Internet speeds in the country will improve dramatically in late 2014 as international mobile companies begin activating their networks. Electricity access has already improved somewhat in the past several years as the Government of Myanmar has prioritized service improvements. In particular, small & quick fixes such as new turbines on old hydroelectric plants have already yielded appreciable benefits in terms of increased electricity production. And, deep sea port access will be possible for garment factories setting up in the special economic zone of Thilawa, reducing lead times for newly establishing foreign factories.
Contact MGMA for an industry-specific infrastructure brief.