Monday 28 October 2013

John’s Guide

A foreign investor’s guide to doing business in Myanmar

Foreigners seeking investment opportunities in Myanmar need to be positive, patient and willing to accept risk, says the author of a guide to doing business in the country.

It’s also essential that prospective foreign investors adapt quickly to Myanmar business culture and that they have reliable, trusted partners, said Australian Jonathan Paul Nichols.

‘Mr John’s 20 Rules for Investing in Myanmar’, published earlier this year by hong Kong-based Asia Business Books, is the third guide by the prolific Mr Nichols on doing business in Myanmar since he first visited the country in April last year.

“My books were written to help foreign businessmen in Myanmar and to bridge the gap between the two cultures,” Mr Nichols, 33, told Business Weekly Magazine in late September.

Much of the advice in his latest book is derived from personal experience: Mr Nichols is involved in the real estate, heavy machinery and general investment sectors.

Mr Nichols, who has been investing and working in emerging markets in Asia for nearly 10 years, says it is essential that prospective foreign investors are patient.

Expressing frustration at business conditions in Myanmar, he said potential investors must be prepared to wait until the foreign investment laws are finally passed.

“It is still very difficult for foreigners to invest sensibly in Myanmar as the current laws do not allow foreign investors to operate on a level playing field with locals,” Mr Nichols said.

“Competition and a free market economy would be a very good thing for Myanmar,” he said.

Despite the challenges of doing business, Mr Nichols is optimistic about the future in terms of economic development.

“The Myanmar government appears to be on the right track,” he said, while acknowledging that the reform process will take time.

“We are very bullish on Myanmar in the short, medium and long term; the country has so much potential and it will be exciting to witness it being realised.”

The 20 rules outlined in short chapters in the 39-page book range from pragmatic advice, (‘You must spend time on the ground’, ‘You must adopt realistic expectations’) to words of encouragement (‘You must persist until you find success’, ‘You must adopt realistic expectations’).

One of the chapters is devoted to the risk of doing business in Myanmar.

“Risk is something that cannot be avoided in Myanmar; it must be calculated and mitigated where possible,” says ‘Rule #9: There is no escaping risk in Myanmar’.

“Of course, a risk-free investment is a fiction in any market, but every deal you do in Myanmar carries risk,” Nichols writes in the chapter.

“As a foreigner you cannot own land or property. The business environment is restrictive. The country still carries a degree of sovereign risk,” he writes.

“Invest with caution by all means, mitigate this and that if you can, but it is important that you can steel yourself to or, better still, enjoy embracing risk with arms open.

“If you are not prepared for that, simply don’t come to Myanmar.”

For those foreigners who do find success in Myanmar, Mr Nichols urges, in ‘Rule #20, that they give something back to the country’.

“You as a businessman – or woman – must do everything you can to bring good to ordinary folk and give protection to the poor. There can be no place for foreign carpetbaggers,” writes Mr Nichols.

“Myanmar has nothing but itself to give to the world. The world should give something back,” he writes.

Perhaps Mr Nichols, who is described on the Asia Business Books website as “an expert” on Myanmar, may wish to consider adding a chapter on the use of Myanmar names in future editions of the guide.

The book contains references to ‘President Sein’, when in accordance with the correct usage of Myanmar
names, he should be referred to on each reference as President Thein Sein.

Mr Nichols said his next book, ‘My Myanmar: The new Frontier of Capitalism’, will be published in november.

Apart from ‘Mr John’s 20 Rules for Investing in Myanmar’, he has already authored ‘Myanmar for Foreign Dummies: The Businessman’s 18 point Guide to Myanmar’ and ‘Puk Time: Stories & Business Lessons on how to Make it happen in Myanmar’.

The books are distributed by the Myanmar Book Centre, corner of Baho and Ahlone roads, Ahlone Township, Yangon.

source: Mizzima
http://www.mizzima.com/opinion/features/item/10431-john-s-guide 






No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...