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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Market Challenges
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Overview

Businesses in Burma face significant market challenges, including lack of accurate market and financial. The country’s underdeveloped human resource talent pool, a condition exacerbated by the regime’s military conscription efforts that began in February 2024, is a further obstacle to businesses in Burma. The country’s infrastructure remains a barrier to growth as less than 40 percent of the country’s road network is paved and half of the population lacks access to all-weather roads and electricity.   

The military regime enacted import and export license requirements that frequently change, often without formal written notice, and are inconsistently applied. These limitations have disrupted raw material and intermediate goods imports, impacting both foreign and domestic business continuity and profitability. The military regime’s foreign exchange control measures, currently utilizing four official exchange rates and one market exchange rate, contribute to the volatility of the Myanmar kyat (MMK). Producers in-country have had to reduce the variety of their inventory and product sizes, while relying more on domestic resources over imports. Supply chain disruptions and electricity shortages further constrain manufacturing capacity and economic productivity. The April 2024 implementation of the 2010 conscription law has led to significant migration from urban areas to border regions, Thailand, and other countries. This exodus has led to a shortfall of labor needed to sustain production levels, resulting in challenges for businesses trying to meet market demand.

Impact of 2021 Coup

The military coup had a significant negative impact on the country’s economy, already weakened by the COVID-19 pandemic. Banking sector vulnerabilities prompted the imposition of the Financial Action Task Force countermeasures and more stringent overseas banking policies regarding transactions with Burma.  In addition, armed conflict, restrictions on exports and imports, unstable foreign exchange policies, electricity outages, fuel supply shortages, and targeted international sanctions have further slowed economic growth and reduced Burma’s international trade and investment. The military regime continues to restrict internet connectivity at times, especially in conflict zones, which comprise at least 40 percent of Burma’s territory. These restrictions impact mobile banking for businesses and foreign remittance transfers. Widespread power outages — at times up to 20 hours per day — affect businesses, particularly manufacturing.  

Reputational Risk

Burma’s market is subject to reputational risk following the military’s 2021 coup and the 2017 attacks on the Rohingya people in Rakhine State. See the Supplemental Business Advisory released in January 2024. The United States sanctioned Burma military Commander-in-Chief Min Aung Hlaing in 2017 following the massacre of Rohingya in Rakhine State. For investors remaining in Burma, considering new investments, or seeking to exit the market, it is important to undertake a comprehensive due diligence review of operations and plans, considering applicable sanctions, restrictions, and human rights abuses. Visit the U.S. Department of State 2025 Investment Climate Statements website for additional information.

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