Strategies for doing business in Myanmar amid border conflict
Thailand’s Foreign Ministry has offered a crash course on the challenges and opportunities of doing business in Myanmar amid widespread military conflict in the neighbouring country.
Over 30 Thai business operators joined a seminar held by ministry’s Consular Affairs Department in Yangon on Monday
Minister-Counsellor for Commerce Akgavat Thanaprasitpattana began the session with an update on the situation in Myanmar after last month’s fighting between Karen rebels and junta troops in the border trade hub of Myawaddy, adjacent to Thailand’s Mae Sot in Tak province.
Despite ongoing conflicts, Akgavat highlighted that Myanmar's economy remains resilient and continues to grow, with Yangon’s streets, restaurants, and hotels bustling with customers.
However, Thai exporters face challenges due to junta-imposed restrictions in conflict areas, he added.
“Myanmar has adopted a cautious policy, restricting imports to necessities and items not produced domestically, such as pharmaceuticals, drugs, fuel, machinery, and raw materials,” Akgavat said.
He advised Thai businesses to adapt their strategies accordingly, while also emphasising the ongoing negotiations with Myanmar's central bank and commerce and investment ministries to ease import restrictions.
Thai exports to Myanmar are worth about 300 billion baht annually, led by fuel, consumer products and industrial raw materials.
Akgavat urged Thai exporters to monitor the situation closely and be prepared to switch import-export routes if disruption occurs at the main border trade hub of Mae Sot. Alternatives include Mae Sai in Chiang Rai and Pu Nam Ron in Kanchanaburi, or the shipping route from Chonburi’s Laem Chabang Port to Yangon Port, he said.
Regarding concerns that Myanmar’s newly imposed mandatory military service law will impact businesses that rely on local labour, Akgavat reassured attendees that the situation should gradually improve and normalise.
Despite the ongoing challenges, he also highlighted the potential for Thai entrepreneurs to capitalise on the current circumstances.
“Thai businesses can take advantage of the lack of competitors in Myanmar to strengthen their production and distribution bases in this high-potential country, which is a member of both Asean and RCEP [Regional Comprehensive Economic Partnership],” he said.
