The Integration of Myanmar's SMEs into global value chains

Abstract

Myanmar has been endeavoring to implement an industrialized nation from an agricultural country as the other developed nations. After the significant political transition from the Military Government to Democratic Government in 2011, the rate of FDIs investing in Myanmar is getting higher dramatically because of its economically geographic location and advantageous economic reform. The effective way of industrialization is to support and encourage the growth of industrial based-Small and Medium Enterprises (SMEs) such as automotive parts supplier SMEs to FDI-MNCs. As the major players of the national economy, the Union Government has been providing fundamental needs of SMEs and nurturing the skilled labours required for foreign investment. However, development is invisible significantly and they are still having multiple obstacles and challenges in receiving technologies, access to finance and market. The study comes to conclude that the agricultural-based SMEs are getting more supports rather than supportive SMEs for heavy industry. Thu, the government must encourage the growth of these types of SMEs in order to cooperate with FDI and to integrate into the global value chains (GVCs) for the industrialization of the nation rapidly.