Small and Medium Enterprise AgencyMETI Dispatched a Public-Private SME Mission to Myanmar

As it is expected that many Japanese SMEs will develop their businesses in various sectors in Myanmar in view of the planned development of the Thilawa Special Economic Zone in Myanmar (for details, see the reference below), the Small and Medium Enterprise Agency (SMEA) of METI organized a public-private mission composed of small- and medium-enterprise (SME) owners, SME support organizations, and others, and METI dispatched the mission to Myanmar. There, SMEA held business-matching and other events, aiming to discover future business partners for Japanese companies.

At the same time, from the viewpoint of supporting Myanmar, which has just started its efforts to encourage SMEs, Japan carried out high-level policy dialogues with officials from the government of Myanmar concerning the development of SMEs in Myanmar and interexchange between Japanese and Myanmar SMEs.

Reference: Announcement of the Memorandum on the Cooperation for the Development of the Thilawa Special Economic Zone on December 21, 2012

From Saturday, March 23 to Monday, March 25, 2013
(including travel days: from Friday, March 22 to Tuesday, March 26, 2013)

Organizer:

SMEA, METI

Co-organizers:

Japan External Trade Organization (JETRO), Organization for Small & Medium Enterprises and Regional Innovation, Japan (SMRJ), National Federation of Small Business Associations, Japan Finance Corporation, Shoko Chukin Bank, and Japan Myanmar Association

Support organizations:

Japan Chamber of Commerce and Industry, and Central Federation of Societies of Commerce and Industry

About 60 Japanese SMEs (the total number of participants was about 110).

1) A Japan-Myanmar business matching event (organizer: SMRJ)

• SMEA held a business-matching event, and 50 Japanese enterprises as members of the mission and 55 Myanmar's enterprises that wish to form business tie-ups with Japanese SMEs and deal with such SMEs' technology or products took part in the event.
• In the event, 316 business-matching talks were conducted, the largest number at such an event. A thirty-minute talk was held eight times among participants who registered in advance, and there were many SMEs that conducted additional business talks that were not planned initially.
• Data is now being collected, and 40 business agreements have been concluded at the event,* worth a total amount of US$ 9 million. It is expected that the number of actual contracts concluded will increase if future follow-ups are carried out.

* Including forecasts. SMRJ has checked questionnaires for participating companies after the event.

2) Courtesy call to President Thein Sein and exchanging views with Myanmar high-rank officials

• State Minister Akaba and executives of SME support organizations paid a courtesy call to President Thein Sein, and at the same time, they exchanged views with Mr. U Aye Myint, Minister of Industry, Dr. Pwint San, Deputy Minister of Commerce, Dr. Daw Khin San Yi, Deputy Minister for National Planning and Economic Development, and Mr. U Win Aung, President of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
• When the mission paid a courtesy call to President Thein Sein on March 25, he requested Japan to provide cooperation concerning SMEs in terms of microfinance for micro enterprises, which are commonly found in Myanmar, and of Japanese enterprises' investment in the country. In response, State Minister Akaba stated that Japan will ensure the advancement of SMEs' business exchange between the countries and will cooperate with Myanmar's efforts to develop SMEs in the country to the maximum extent possible.
• Before paying a courtesy call to the President, Japan exchanged views with Minister U Aye Myint and Deputy Minister Pwint San on March 25, and with Deputy Minister Daw Khin San Yi and Mr. U Win Aung on March 23, and both sides mainly discussed the following issues:

1. Both sides confirmed that economy development requires sound growth of SMEs, and based on this view, they agreed on the direction to which Japan-Myanmar cooperation is to be advanced, including Japan's acceptance of Myanmar's administrative officials and experts as trainees in response to the efforts of Myanmar's Central Committee for Development of Small and Medium Enterprises, which was inaugurated in January 2013.
2. Concerning interexchange between Japanese and Myanmar SMEs, both sides agreed on the direction to which they will advance their cooperation, including the follow-ups after the business-matching event and inviting 20 Myanmar's SME owners to Japan.
3. In addition, they confirmed the necessity to develop a business environment, including infrastructures and establishment of legislative systems, as a requirement to encourage business development of overseas enterprises in Myanmar.

3) Other efforts

• Myanmar investment environment seminar (organizer: JETRO) (March 23)
  The seminar consists of 170 people, including 110 members of Japan's mission and 60 people from the Myanmar side, such as Deputy Minister Khin San Yi, Mr. U Myint Swe, Chief-minister of the Yangon Region, and Mr. U Win Aung and other high- rank officials from UMFCCI. In the seminar, Deputy Minister Khin San Yi and Mr. U Win Aung made keynote speeches concerning policies to attract overseas businesses and economic policies of Myanmar. Japanese lawyers playing an active role and Japanese enterprises developing their businesses in the country also made presentations.
• Visit to the planned site for the Thilawa Special Economic Zone (March 24)
  The mission visited the site planned to be developed as the Thilawa Special Economic Zone, which will be launched in 2015, under the cooperation between Japan and Myanmar.
• Meeting to exchange views between the Ministry of National Planning and Economic Development and Japanese SMEs (March 25)
  A meeting was held to exchange views between 60 members of the missions composed of SME and SME support organizations and Myanmar's officials from Investment and Enterprises Management Office in charge of accepting foreign investment under the Ministry of National Planning and Economic Development. This meeting provided a good opportunity for both sides since Japanese SMEs were able to receive an explanation of Myanmar's revised Foreign Investment Law directly from persons in charge of the law and the Myanmar side was able to hear direct opinions from Japanese SMEs. Both sides proactively exchanged their views on specific concerns over investment.

Japan-Myanmar Business-matching event

Courtesy call to President Thein Sein

March 28, 2013

International Affairs Office, Business Environment Department, Small and Medium Enterprise Agency