One obvious entry strategy for
Myanmar market is to form a binding partnership with an established local business
group, a local company, or a local individual.
There are a number of large
business groups in Myanmar with high financial and non-financial resources, strongest
possible local ‘network’ or influence, and reasonable industry expertise at
least for the local market level.
Some similarities among these
large local groups include:
* Diversified business interests: such as airline,
bank, construction, real estate, hotel, trading, distribution, and so on
* Backing/support of former or current
ruling/power family member(s)
* Strong presence in key city such as Yangon and
Mandalay and focus/specific presence to a certain region or state
* Availability of financial resources in terms of
local funding
* Relatively bright, young, promising new
generation of staff and supervisor level employees; young managers related to
various ruling families and power brokers
* Founder, owner or a member of senior management
was or is still under the ‘sanction list’
Are all these large local groups
equal?
They certainly are not. Therefore
foreign partner with specific business interest or business model needs to do
its own independent studies, feasibility works, reviews, due diligence, structure,
negotiation and agreement on case by case basis.
Some general criteria/check list items
that one needs to be aware of include:
* Specific industrial synergy that both parties
can utilize: for example, Airline? Hotels? Property development? FMCG? Banking?
* Mutually agreeable terms and conditions (I will
discuss this in details at a later post)
* Chemistry and mutual trust at a senior
management level and also at a middle management level – Contracts are always
useful, at least to meet the check list of your corporate legal department
colleagues; but chemistry and mutual trust at management level will take your
partnership much further and faster in Myanmar
Who, how, or what specific
details to look in your potential local partner, and what specific steps to
take in shortlisting and final selection process? We would be happy to further discuss
and advise you directly. We really want you to succeed in Myanmar, not just for yourself, but for the development of the country's economy and people.
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