Burma Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in burma, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview  

Before the COVID-19 pandemic, Burma’s digital economy contributed approximately 1-3 percent to the overall GDP. This figure included sectors such as telecommunications, e-Commerce, digital services, and fintech. Projected growth has been moderated by ongoing political instability and infrastructure challenges.  

Market Challenges  

Regulatory environment

Many sectors face inconsistent enforcement and a lack of transparent laws and regulations, creating hurdles for growth.  More broadly, electricity blackouts, fuel shortages, internet coverage restrictions, conscription laws, and brain drain all hinder overall economic potential.

Digital Economy Roadmap 2030: The Ministry of Transport and Communication is expected to finalize the draft roadmap in 2025. It focuses on several areas, including infrastructure development, digital literacy, and innovation across key sectors, promoting e-commerce, fintech, and digital startups, and enhancing public-private partnerships.

Cybersecurity: The Burma military regime recently enacted a cybersecurity law, which among other things criminalizes the unauthorized provision of virtual private networks (VPNs), imposing potential penalties including imprisonment and fines on VPN providers. Additionally, the law mandates that digital service providers retain user data for up to three years and comply with government requests for data disclosure. Critics warn that the law is a tool for suppressing dissent, stifling freedom of expression, and further restricting information flows.  

Data Protection: Burma doesn’t have a standalone data protection law. As the digital economy is expected to slowly evolve in the coming years, concerns about data privacy, security, and the handling of personal information have grown. Political instability and weak governance have prevented the establishment of a data protection framework. Although the new cybersecurity law includes data protection and privacy provisions, the law grants broad powers to military authorities and is not aligned with international standards for data protection. Although the banking and telecommunication sectors have specific regulations related to data handling, these regulations are limited in scope and do not offer data protection across all sectors.

Digital Trade Barriers

Data localization: As of November 2024, Burma does not have standalone data localization laws. Additionally, no specific localization requirements have been issued for IT firms. Ongoing discussions suggest that the current government may introduce data localization requirements as it continues to expand its control over digital infrastructure.

Technology Barriers: Some barriers include limited access to high-speed internet and lack of mobile network coverage in rural areas amid the civil conflict, as well as slow data speeds and low digital literacy. Many foreign websites, including Western social media sites, are blocked and only accessible by using virtual private networks (VPNs).

Third country bias/influence: In Burma, U.S. products and technology are favored for their high-tech features and quality. However, third-country products are often considered substitutes due to price advantages.  

Digital Trade Opportunities

The Myanmar Digital Economy Roadmap 2030, currently in its final draft stage and expected to be launched in 2025, will focus on a range of areas, including administration, basic infrastructure, trade, education, fintech, telecommunications, digital services, and social sectors for digitalization.

Spending on IT security and risk management technology is expected to continue to expand. The key industry sectors investing in cybersecurity technologies are healthcare, financial institutions, IT and telecommunications, and the public sector. Most cybersecurity equipment and solutions are imported. U.S. equipment is perceived to be of higher quality with better technology, but the market is price sensitive.

Digital payment platforms represent one area of opportunity. Banks and mobile financial service providers are required to utilize the Central Bank of Myanmar’s CBM-NET System.

Partnering with a local agent or distributor is the most effective strategy for entering the Burma market and reaching potential and reputable local buyers. Such an agent or distributor can streamline market entry by leveraging their in-depth market knowledge, established distribution networks, and relationships with key businesses and entities.

Helpful Resources

  • I&A’s Office of Digital Services Industries (ODSI)
  • National Trade Estimates Report – Digital Trade Barriers
  • White House CET List, e.g., Artificial Intelligence -> Machine Learning

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