Myanmar is well endowed with forests resources and perfect location beside the biggest furniture demand market – China. According the restriction published in 2014, Myanmar’s logs are not allowed export directly. It made huge demand of wood processing. Meanwhile, Myanmar’s government is slowly releasing the restriction of foreign investment in wood processing. The local wood processing factories with laggard equipment certainly will face strong competition from the foreign companies. Upgrading equipment will be the necessary means.
Owing to laggard technique of furniture manufacturing, most of Myanmar’s logs are directly exporting after basic processed. There are lack of local furniture manufacturers in Myanmar. However, with the perfect location beside the biggest furniture demand market and production base – China and the rising labor cost in China, moving furniture production base to Myanmar is expectable.
With GDP growth rates that are threatening to overtake China’s, and a youthful, growing and increasingly educated population, the allure of the ASEAN markets is obvious. Emerging markets in ASEAN are expected to see high growth this year. Myanmar tops the list, projected by the International Monetary Fund (IMF) to grow 8.4 per cent in 2016.