The Analysis Of Investment Environment On Myanmar's Transportation Infrastructure

Because of the dictatorial rule and closed-door past before 2010,Myanmar has to be faced with the political isolation and economic sanctions in the world,so the development of whole society is almost at a standstill.In recent years,with the new situation of democratic transition and reform and opening up,Myanmar,with geopolitical advantage and geo-economic advantage,has become one of the world's popular place for investment.FDI has diversified investors and investment pattern,and broaden investment fields.Myanmar gives priority to develop its transportation infrastructure in the national economic development strategy,liberalizes entry restructions,offers preferential policies to attract foreign investment.Nowadays,China put forward the strategy of one belt and one road,and set up AIIB for capital support,which would like to unite the neighboring countries,in order to realize the transformation from traffic connectivity to economy connectivity.Chinese enterprises step up the pace of investment in Myanmar's transportation infrastructure construction so as to achieve the win-win situaton.But they might go through a variety of problems from investment environment.Hence in such a special period,Chinese enterprises had better focus on the changes of its investment environment in this field,so as to take advantage of the favorable policies,avoid adverse risks,reduce investment cost,and improve investment benefits.Under this background,through field study,investigation analysis and other methods,this article detailedly displays the development and investment status quo of Myanmar's transportation infrastructure,and analyzes its potential investment demand.By using the theory and method of investment environment analyses,this paper will analyze the investment environment in the field of Myanmar's transportation infrastructure.First,this article analyzes the disappointed current situation of development and investment on Myanmar's transportation infrastructure,and the potential and strong investment demand.The development of Myanmar's road,railway,port and other transportation infrastructure is extremely weak,which hasn't meet the development of trade and investment,such as personnel flow and goods transportation.Through such a contradictory situation of demand exceeding supply,FDI is likely to be urgently needed to improve the quality of its transportation infrastructure in order to realize investment and trade facilitation and lay a foundation for FDI in other areas.Second,on the basis of the changes of investment environment and the imbalance between supply and demand in the transportation field,this paper use the method of PEST and Hot and Cold comparison to analyze the investment environment of Myanmar's transportation infrastructure from political,economic,legal,social culture and technological aspects respectively and deeply.Such investment environment brings investors large opportunities,and unknown risks as well.For example,the frequent alternation of domestic situation,political game of international diplomacy,discontinuity of laws and regulations,unstability of macroeconomic circumstance,high cost of financing and credit,conflicts of ethnic and religious,increase of anti-Chinese sentiment,lack of labour's skills,backwardness of professional technology and so on,which bring investors uncertainty and risks.Third,taking the Yunnan-Myanmar railway as an example,this paper further analyzes how the investment environment affect the investment project in transportation field.Finally,based on the analysis of the above current situation,investment environment and the relevant project,this paper comes up with the corresponding countermeasures and Suggestions to make some contributions to Chinese enterprises investing in the transportation infrastructure in Myanmar.