I have been trying to build relationships with the Korean companies. We have Korean technicians at our company. They have very detailed plans on how to execute our projects. They, however, do not quite understand about Myanmar culture. This cultural differences on attitude often create misunderstanding. Sometimes we have a cultural conflict each other. For example, Korean people are pretty aggressive in business unlike Myanmar people. Myanmar people think Korean businessmen are angry, not so flexible, and stubborn, even if it might not be the case. As Myanmar is located in the middle between India and China, so is their mindset in the middle. But Korea, Japan, and China are more aggressive and active. Sometimes this is where the difficulties happen because the Korean people might think Myanmar people are too slow, not so eager, and without passion. I feel, Korean people look down on Myanmar people because of the situation of our country. You see, Myanmar is still the least developing country in the area. In the minds of foreigners, Myanmar people are too quiet that it seems we do not want to seize the opportunities to develop.
Michael Mang Hen Dal @ Michael Advisor Thaichumsin Engineering Co.,Ltd. (Myanmar Branch)Machanical and Electrical M&E Co.,Ltd.
In Myanmar, the top management only mandates orders without checking. I believe this comes from many years under the ruling of army. For example, they would order to get the water without checking whether or not there were any leaks in the bucket. Eventually, we all will get in trouble when we collect the water only in a small quantity. Sometimes, foreigners are not aware of the working conditions, situations, and mindset of the Myanmar people. There is still a lack of systematic practices in Myanmar.We simply do not have a lot of experience.
Aung Zaya(Director of Myanmar Workstation Management & Development)
According to the World Bank, Myanmar has improved economically during 2014-2015. Myanmar has over 7% economic growth. In addition to the prospect of the better new government, I believe foreign investments will flock Myanmar. But at this moment, there are a lot of foreign investors who are still waiting and watching the development of our country. They are not quite sure about the stability of our economic development. In my opinion, the economy of Myanmar will continue to improve but will not reach 8.5%. This, of course, also depends on the energy sector, infrastructure, and the government regulations.
MK: There are many obstacles in Myanmar, even the basic infrastructure such as electricity. It is simply not reliable. This poses a big problem for the investors who want to invest in Myanmar. They want to launch their businesses, but they are not confident. In comparison to Vietnam, for example, when Samsung started to invest in Vietnam, they would receive some privileges as a foreign investor. But here in Myanmar, not only they are faced with the infrastructure instability, but also the exorbitant prices for the land use. In other words, the Vietnamese government promotes a healthy opportunity for the foreign investors to thrive in their country. They do it with regulations and other means, especially in the manufacturing industry. In comparison, foreign investors almost have no supports from the Myanmar government. The majority of them return to their countries. Another example, in the tourism industry, there are many Korean people who would love to visit Myanmar but the prices of lodging and transportation are double if not triple the prices in Thailand or Vietnam.The Myanmar authorities should be aware of these situations in order to maintain and further develop the country’s economy in general and tourism sector in particular.
Aung Zeya : The economic reform will be the most challenging problem facing the new government. One thing I remember from the meeting of the representatives from the Lower House(Yan Kin Township) , Zin Mar Aung, she stated that in the new Myanmar government there are many well educated people and experienced businessmen who will contribute their wealth of knowledge and experience in the economic committee.
MK: Right now, I believe the first and most important thing for this new government is the national reconciliation. They need to ensure the peace treaty between the national government and the ethnic minorities. The second is the economic development for the lower class. The poverty in Myanmar should definitely be the priority of the new government. The provision of the basic infrastructure is in dire need for the people in the rural areas. Then, after achieving both, the development of the entire Myanmar will be more easily achieved together. I should hope there is a focus on eradicating the poverty in Myanmar that the people from the lower class, too, should take pride in their country. They should be able to manage their daily lives with more ease.
Aung Zeya: Other governments have good clear regulations but ours cannot yet do check and balance. There are too many procedures and even conflicting procedures in our regulations. Maybe the new government will make a big change in these procedures for the sake of the economic development. Essentially, we have to change everything.We have to change our ideology from the top to the bottom. This may take five to twenty years. It is crucial, for example, to develop discipline in our work ethic.For example, from Daw Su, the cleaning campaign is important even though it is a small change. She sets the example on how to change the mindsets of the people. There are too many examples that we can find. Above all, from the top we have to change the constitution to give the same protection and opportunities to every Burmese.
Aung Zeya: Hopefully, the new government will be more successful in eradicating corruption. But this is the Asian practice, not only in Myanmar. Sometimes people think corruption or nepotism is a good thing because it creates closer relationships between people involved. They become like brothers and family members. But what they could not see is that this practice is actually hurting the rest of the country.
Si Thu Maw: There are many businesses in Myanmar but I do not know what the best business in Myanmar is. There are construction businesses, energy, sea food, forestry, and mining industries. However, forestry industry in Myanmar is nearly over. We have to stop cutting tree and rejuvenate our forests. There is still a bit left opportunity in mining but most of the mines are taken by other countries. We need to manage our mining industry in a more effective way for the sake of the future of Myanmar.
Aung Zeya: The government needs to give more financial supports to small and medium businesses because they are not strong on their own. They will not be able to compete and survive in the international arena as more industries from ASEAN countries will come to Myanmar in 2016. Our small and medium businesses also cannot access a stable infrastructure. In addition, the production costs in Myanmar are very high, so they cannot provide products with competitive prices and will struggle to compete in the international arena. The government should create a healthy and effective financial support such as providing good banking system. This way, these businesses in Myanmar may get loans from the banks and are able to make more investments in their companies.
Michael Meng Hen Dal
Cosmetics are in the sector of chemical engineering, but the health and safety standard has not been well-developed yet in Myanmar. We will need to improve our standards. Right now, it is almost impossible for the majority of consumers in Myanmar to afford higher-priced cosmetics. We provide Myanmar consumers with imported cosmetic products. However, even the cosmetics that come from China will not be so successful here as the consumers know the low quality it usually has.
Aung Zeya: Korean liquor, Soju depends on the quality, the price, and how you market it. Korean culture already has much influence in Myanmar because of the K-Pop and the drama. So I think Soju has a lot of potential to be successful in Myanmar.
I think Korean electrical products are the best. All of the electrical materials, solar, hydro, and wind-powered generators, transformers, and circuit breakers, for examples. Currently, Myanmar only distributes electrical products from Korea, Japan, and Europe. So, I think electrical products have good prospect to be market here.
As mentioned before, Korean products are good products to market here in Myanmar because of the cultural influence. Many of our youth want to be like Korean actors and actresses.
