Tractus in Myanmar

Tractus Asia opened its office in Yangon, Myanmar (Burma) immediately after US sanctions were suspended in 2013 and it began its long awaited political and economic transformation. Myanmar’s untapped and undeveloped market has been viewed by the global business community as Asia’s “last frontier”; a country with an abundance of opportunities, but not without its share of challenges across all aspects of the economy and society. The monumental changes that took place in 2016, including the election of the first civilian president in decades and the complete lifting of U.S. sanctions, will be the foundation upon which the country can build its economy as an attractive location for FDI and trade.

Tractus has a proven track record of advising and assisting companies make informed decisions about how to enter the Myanmar market, optimize and implement their local strategy, and where to locate their investments in Myanmar’s challenging business environment. Our Myanmar team of professionals, located in our office in Yangon support our consulting, economic development and business Inc.ubator clients.

Strategy & Execution

Tractus’ Myanmar office has been advising and assisting our clients to undertake market research, business case and opportunity assessments, as well as government negotiations and advise them on the most appropriate market entry strategy to be effective in Myanmar’s highly challenging business environment.

While Myanmar is considered to have vast untapped market potential, it is one of the world’s most challenging places to do business. Market entry strategies need to be evaluated systematically and executed with long-term business objectives in mind. While sanctions are no longer a significant legal impediment to doing business in the country, choosing the right person or company to do business or partner with is critical to maintaining a firm’s reputation. Tractus’ Myanmar team has undertaken highly complex reference checking and business due diligence research in support of our client’s market entry.

Companies also rely on us to undertake market research and market opportunity and business case assessments and advise them on the most appropriate market entry strategy for their business. These strategies may include:

  • exporting into the country through a dedicated representative or agent
  • establishing a start-up greenfield investment requiring the identification of a new site and construction of facilities
  • entering into an equity joint venture or acquiring an existing business, or
  • entering the market utilizing Tractus’ business Inc.ubator services

Management relies on us to find optimal site locations for their manufacturing investments, acquire industrial real estate and negotiate competitive investment incentive packages in Myanmar. We have undertaken manufacturing site selection assignments for women’s intimate apparel, ceramic tableware manufacturing, finished pharmaceuticals, automotive parts and components and animal feed, amongst others.

Tractus’ business Inc.ubator was conceived as a cost effective and low risk way for companies to evaluate the Myanmar market without the expense of formally establishing a subsidiary or business entity. Our business Inc.ubator clients utilize Tractus services such as:

  • legal entity to employ dedicated Myanmar staff
  • office space as a place to do business
  • HR, administration and accounting shared services team for back-office support
  • senior management and Directors for experienced oversight

to establish a presence in the market before making a formal commitment to establish a legal entity and start-up operation in Myanmar. Tractus’ business Inc.ubator has proven to be an effective vehicle for companies such as:

  • Honeywell to market their diversified products and services
  • MetLife to understand the market for their insurance services, and
  • Dow Chemical evaluate the market for its portfolio of specialty materials and chemicals

to build their business in Myanmar. They have all benefited from leveraging the Tractus Inc.ubator to accelerate their Myanmar market entry execution.

Regardless of the investment strategy chosen, the Tractus Myanmar team has the expertise and experience to support our clients with their investment strategy execution from registration of the legal entity, recruiting key management personnel, government land lease conversion for foreign company use, selection of professional service vendors to managing the design, engineering and construction project management of a new or existing facility.

Strategy

  • Market Opportunity Analysis
  • Regulatory Analysis
  • Business Case Assessments
  • Feasibility Studies

Execution

  • Site Selection
  • Real Estate Acquisition
  • Incentives Negotiations
  • Government Approvals
  • Start-up Management
  • PM & Client Rep

Business Inc.ubator

  • Recruiting Assistance
  • Office Space, Admin & Management Oversight
  • Operations Management

Corporate Finance

As markets in Asia mature and become more competitive, oftentimes the best strategy for accelerating market entry is to enter into a joint venture or acquire and established firm. While Myanmar is ranked as one of the most difficult places to do business in Asia from a number of perspectives, joint ventures and acquisitions in the Golden Land can be deceptively difficult to conclude successfully due to the complex business environment.

Tractus’ corporate finance team has years of experience negotiating joint ventures, acquisitions and dispositions.

The Myanmar corporate finance team has assisted companies to:

  • identify and screen acquisition targets and joint venture partners
  • formulate optimal corporate/deal structures
  • undertake financial modeling and analysis
  • undertake financial and operational due diligence, and
  • support negotiations and deal documentation through closing on both acquisitions and dispositions

As markets in Asia mature and become more competitive, oftentimes the best strategy for accelerating market entry is to enter into a joint venture or acquire and established firm. While Myanmar is ranked as one of the most difficult places to do business in Asia from a number of perspectives, joint ventures and acquisitions in the Golden Land can be deceptively difficult to conclude successfully due tothe complex business environment.

Tractus’ corporate finance team has years of experience negotiating joint ventures, acquisitions and dispositions.

The China corporate finance team has assisted companies to:

  • identify and screen acquisition targets and joint venture partners
  • formulate optimal corporate/deal structures
  • undertake financial modeling and analysis
  • undertake financial and operational due diligence, and
  • support negotiations and deal documentation through closing on both acquisitions and dispositions

Investment Attraction

  • Strategy Development
  • Targeted Marketing
  • Lead Generation
  • FDI Missions

Trade Promotion

  • Market Research
  • Distributor Searches
  • Background Checks
  • Trade Show Representation

Technical Assistance

  • FDI & Trade Attractiveness Benchmarking
  • FDI & Trade Strategy Development
  • Economic Research & Analysis
  • Government Advocacy

Economic Development

For economic development organizations (EDOs), private developers, industry trade associations, government investment promotion agencies (IPAs) seeking to attract foreign direct investment (FDI), promote trade or develop investment attraction and trade promotion strategies and policies, the Myanmar team leverages its experience advising and assisting corporate investors make informed decisions about where to invest to develop targeted export and investment attraction strategies.

Sharing these experiences gives these organizations unique insights into what strategies should be used to attract and retain investors and promote exports as well as policies to implement to promote economic growth.

Tractus represents US, EU and Asian EDOs and IPAs of regions, states and provinces, and municipalities to promote exports. We also provide sector analyses, trade show and trade mission support and representation for economic development and industry trade associations in Myanmar.

The Tractus Myanmar economic development team also has significant experience undertaking technical assistance projects in China funded by multilateral organizations such as The World Bank, UNCTAD and others develop FDI attraction policies and strategies; benchmark the attractiveness of countries as destinations for FDI andundertake economic research and analysis.

Our Clients

What People Say About us

  • I want to take this opportunity to thank you for all your hard work in helping us diligence AML and generally learn an immense about Myanmar. Beyond looking at and understanding the Myanmar market, I think this experience illuminated to us new pathways for conducting diligence on / in these kinds of markets. Needless to say, the quality of your work is second to none.

    Each and every member of the Tractus team exhibited impressive work ethic in assisting us in our diligence processes. Our team came to understand that each member of the team brought a unique perspective and skill set to the table. We sensed that the team communicated well in generating helpful, all-encompassing deliverables for us to learn from and use. Beyond helping us evaluate and understand the specific company and jurisdiction in which we are invested, Tractus illuminated to us new pathways for conducting diligence on / in these kinds of markets and this is clearly because of their experience and well-roundedness.

    Given the time distance, we thought that it may have been difficult constantly to be kept in the loop on their process. But this was not the case. Everything worked perfectly.

    Salmira Investment Fund – Due Diligence

For more information about the business strategy and execution capabilities of Tractus Myanmar and how we can assist you to make informed decisions about how to invest in Myanmar contact below

Strategy & Execution

Economic Development

Martin Jancik

Country Manager

 

Corporate Finance

Richard J. Smith

Head of Corporate Finance

Download our FREE Tractus Economic Development RAMP for 2016

Contact Tractus Myanmar

35(c) U Kyaw Hla St,
Pyay Road
Mayangone Township,
Yangon MYANMAR

O: 1-662-260-8200
F: +662.260.8280
myanmar@tractus-asia.com
www.tractus-asia.com/myanmar