Competition will throw up best investors for Myanmar

NEWLY-democratic Myanmar faces many of the same economic opportunities and constraints that have confronted other late-developing Asian economies, including in their search for foreign investment.

On the opportunities front, relatively abundant natural resources and unskilled labour, and an excellent geographical location abutting the world's fastest-growing large economies, bode well for the development of competitive exports and employment creation in land- and labour-intensive sectors, as nearby Vietnam has enjoyed for three decades. The country's many unique cultural and physical attractions, long "closure" from the outside world and relatively low costs have also spawned a booming tourist industry.

Like other late-developing countries, Myanmar suffers from low productivity, inadequate infrastructure, weak institutions and regulatory uncertainty, all of which will take time to improve, even in the best of circumstances.