Myanmar SMEss Participation in ASEAN and East Asian Regional Economic Integration With a Focus on Processed Food and Apparel Manufacturing

Abstract

For decades, Myanmar’s economic system has been characterized by economic isolation and central planning. Today, however, as Myanmar is in the middle of a far-reaching political and economic transition, it is leaving this past behind. For Myanmar’s enterprises, and Small and Medium Sizes Enterprises (SMEs) in particular, the opening of the country’s economy in general and the intensification of regional economic integration more specifically, most notably through the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC), bring both opportunities and challenges. It is in this context that the present study investigates the extent of Myanmar SMEs’ participation in ASEAN and East Asian regional economic relations as well as the challenges they face and the policy support they need for deeper integration. More specifically, this research attempts to address the following four questions: What is the state of Myanmar SMEs’ participation in regional trade, production networks, and investment activities? What are the enabling factors and obstacles to SME participation in regional economic activities? How have regional and preferential trade agreements affected SMEs’ activities and performance? And what are the policy imperatives to promote active participation of Myanmar SMEs in regional economic integration? To find answers to these questions, this study, on the one hand, analyzes existing secondary data while, on the other hand, also drawing on a new dataset collected by the Myanmar Centre for Economic and Social Development (CESD) through a survey among Myanmar enterprises, particularly in the food-processing and garment sectors.