Population: Approximately 54.6 million (2024 estimate).
Nominal GDP: Around USD 600 billion (2024), with moderate growth (2–4% annually).
Median Age: 29.2 years, reflecting a relatively young population.
Economic Growth: Growth has slowed sharply since 2021, with estimates of 1–2% in 2024, and even recession in certain sectors due to internal conflicts, international sanctions, and political instability.

Strengths of Myanmar for SMEs and Investors

Young and abundant workforce: 53.9 million inhabitants with a median age of 29.2, providing a cheap—though often low-skilled—labor pool.
Rich natural resources: gas, minerals, hydropower, farmland, timber, jade, still underexploited.
Strategic geographic position: a crossroads between India, China, and ASEAN, offering access to dynamic markets.
Growing domestic market: despite a low GDP per capita, Myanmar displayed one of the region’s fastest growth rates prior to the political crisis.
Key sectors: electricity (30% of FDI), manufacturing, real estate, tourism, telecommunications (with only 10% of the population having telephone access, the growth potential is immense).

Regional integration: Member of ASEAN and RCEP, facilitating trade with neighboring countries.
Tax incentives: possibility to lease land and buildings for 50 years (renewable), benefits for foreign investors under the Foreign Investment Law (FIL).
Attractive sectors: energy, textiles, agribusiness, infrastructure, tourism.

Total (France): Present since 1992, often cited as a model of “responsible development,” despite past controversies. The group invested in offshore gas and implemented social and environmental programs.
Telenor (Norway): initially successful in telecoms, leveraging market opening and strong connectivity demand.
French SMEs: cosmetics, medical equipment, and animal feed companies successfully established themselves, attracted by a market of 60+ million people and annual growth exceeding 6% before 2021.

2. Major Challenges for Investors

Coup d’état (Feb 2021): the military junta overthrew the civilian government, triggering international sanctions, civil war, and ongoing insecurity. By 2025, resistance groups control over 40% of the territory, especially border regions.
Conscription risk: since Feb 2024, a law enforces mandatory military service for men (18–35) and women (18–27), potentially affecting both local labor and expatriates considered Burmese.
International sanctions: US and EU sanctions target state-owned banks and junta-linked companies, complicating financial transactions and investment.

Weak banking system: currency restrictions, foreign exchange shortages, difficulties repatriating profits.
Poor infrastructure: frequent blackouts, underdeveloped roads and ports, reliance on generators.
Bureaucracy and corruption: burdensome administrative procedures, complex import licenses, lack of transparency.
Inflation and currency depreciation: the kyat has lost more than half its value against the dollar since 2021, increasing business costs.

Ethnic conflicts and human rights issues: natural resource exploitation (jade, timber, minerals) often tied to violence and displacement.
Natural disasters: a magnitude 7.7 earthquake in March 2025 and destructive monsoon seasons worsened humanitarian needs.
Weak environmental standards: deforestation, unregulated mining, reputational risks for foreign firms.

Telenor and Ooredoo: both telecom operators exited Myanmar (2022–2023) under sanctions and instability, selling assets to junta-linked entities.
Hydropower projects: several dams (e.g., Myitsone, suspended since 2011) were blocked due to local opposition and environmental impacts.
European SMEs: some reduced or ceased operations due to logistical issues, sanctions, and falling local demand.

Local partnerships: collaborate with Burmese or regional partners to navigate regulations and political risks.
Enhanced due diligence: verify partners’ ties to the junta or sanctions; assess social and environmental impacts.
Resilient sectors: prioritize agribusiness, renewable energy (solar, hydropower), and technologies adapted to local needs (telecoms, fintech).
Support networks: leverage chambers of commerce (e.g., CCI France Myanmar) or incubators to ease market entry.

Sluggish growth: GDP expected to remain low due to conflict, declining exports, and plunging FDI (USD 651.9 million in 2023–24 vs. USD 5.5 billion pre-2021).
Limited but real opportunities: Chinese, Thai, and Singaporean investors remain active, particularly in industry and electricity. China is the top investor (over USD 3 billion approved 2021–2023).
Stabilization awaited: improvement hinges on democratic transition and sanctions relief, but no rapid change is in sight.