Opportunities and Challenges for a Foreign Invested Company at Yatanarpon Cyber City, Myanmar

Abstract

Information & Communication Technology (ICT) Parks have proved a vital element for economic improvement in developing countries. Studies have shown that attracting foreign investments in technology parks can impact the quality of human capital and the country’s development. With that in mind, Myanmar government has started adopting the market economy and allowing foreign investments, especially in high-tech investments. The most significant high-tech initiative was the establishment of the Yatanarpon Cyber City (YCC) in late 2007.This paper reports on that establishment of YCC in Myanmar. This paper focuses on the opportunities and challenges for foreign investors who are intending to invest in the newly established Cyber City. Based on Myanmar’s current investment environment, this paper shows that both host country and foreign investors get benefits from YCC. In fact, foreign investors can access growing market potential, lower labor costs, and potential for expanding markets. Similarly, Myanmar could diffuse technical know-how from foreign investments, something considered beneficial for economic development. However, the paper argues that Myanmar still needs to improve policies and procedures for making YCC an attractive place for investments.