The ADB report Myanmar in transition: opportunities and challenges says the market could grow at a rate of seven to eight per cent per year for a decade or more, raising its per capita income to between $2,000 and $3,000 by 2030.
The ADB said as the market modernises it offers opportunities for foreign and domestic investors across all sectors, adding that the services sector is “ripe for investment”. In particular, the telecommunications sector is in "urgent need of investment", it noted.
“Myanmar could be Asia’s next rising star, but for this to happen there needs to be a firm and lasting commitment to reform,” said Stephen Groff, ADB’s Vice President for East Asia, Southeast Asia and the Pacific.
Just months after the restrictive sanctions were lifted in Myanmar, international players such as Coca-Cola and Pepsi have already outlined ambitions to enter the market.
Agencies are keen to invest. Ogilvy recently acquired a stake in Myanmar’s leading advertising agency Today Advertising as it looks to establish a presence in the market.
John Goodman, regional president of Ogilvy Action Asia-Pacific, said Myanmar offers a rare opportunity for brands as there are very few new markets left globally.
But he said although there is a lot of excitement around the potential of Myanmar and the industry must move quickly, caution must also be exercised.
He said it is worth noting that the majority of Myanmar's population is still very poor and outside the two big cities there is still a very rural economy with little access to electricity.
“Things will change, but they might not change as quickly as people hope,” he said.
Goodman said a huge number of clients are showing interest in the market, suggesting that consumer goods brands, such as P&G, Unilever and Kraft, will be the early entrants in the market.
He said this will be followed by players in the electronic goods sector, with opportunities for investment from the telco sector naturally following.
“At the moment there is only one state-owned network," he said. "Most countries when they go through economic change will open this up to other offers and we could see international telcos trying to establish a foothold there.”