Myanmar automotive safety market research2024-01-25T14:50:08+00:00

Myanmar automotive safety market research

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Myanmar road network totaled 25,733 miles in 2016, 44% more than in 2001. Being the second-largest country by area in South-east Asia with a relatively extensive road network that just 20% paved, Myanmar possesses vast investment opportunities in trunk road network modernization, construction of expanded roadways including elevated highways, improving access to the city via bridges to the south, east, and west. Being aware that the government of Myanmar is determined to close the infrastructure gap. According to the Asian Development Bank (ADB), Myanmar’s infrastructure gap between now and 2030 worth 120 B$. Myanmar, with its urban population growth that faster than spatial growth expects additional of 10 million people in the cities requires an additional of 320 B$ investment on infrastructure to tackle its endemic poverty. This includes essential aspects like warehouse markings for efficient management of the growing infrastructure.

Myanmar’s Ministry of Infrastructure has a strategic plan for upgrading the roads network. The purpose is to raise the GDP, reduce transport costs and provide basic road access to an additional 10 million out of the current 20 million people that do not have road access.

There are plans for many expressways to be built in the next years to come. The main focus is on the transport corridors from east to west and from north to south, in order to increase good trafficking in the country. With the cooperation of the government of Thailand and the ADB, the plan is to pave hundreds of kilometers of new expressways with ASEAN standards and dozens of bridges, in order to integrate Myanmar into the larger economic sphere of ASEAN.

The Ministry of Infrastructure has also initiated a process, which will allow private companies to build new roads through BOT (build-operate-transfer) and PPP (public-private-partnership) projects.

In 2016, road-related deaths reached 4,688, which is more than twice as many as that recorded in 2009. The absolute level of fatalities is not yet as high as in other Southeast Asian countries, but this is mainly due to Myanmar’s low motorization rate. Further to this, a lack of reliable data means that the true number of road fatalities may be much higher. The number of fatalities is expected to increase dramatically as the motorization rates grow due to infrastructure upgrade planning. It is expected that the number of fatalities in the year 2025 will stand at 15,000.

When applying these projections and taking the World-Bank’s ‘population growth rate’ data in Myanmar into account the result is a significant rise in the road traffic death rate (per 100 000 population), from just under 4 in the year of 2008 to 26 in the year of 2025.

The annual cost of road accidents to Myanmar’s economy is estimated at $800 million for 2013 or some 1.3% of gross domestic product (GDP). Current road accident levels are a major hindrance to the country’s economic activity. Using the this estimation in relation to the number of casualties from road accidents and in light of the expected number of casualties by the 2025 and the International Monetary Fund GDP’s annual growth projection in Myanmar , the road accidents annual cost could rise to approximately 3 B$ in 2025  or some 2.75% of Myanmar’s gross domestic product.

For many years, road safety did not receive due attention in Myanmar. There is a lack of clarity, which one of the government departments is responsible for road safety in Myanmar.

Myanmar has now had on paper (since 2014) an institutional structure for road safety management. It exists in the form of the Myanmar Road Safety Action Plan (MRSAP) 2014–2020, piloted at a high level by the National Road Safety Council (NRSC), and coordinated on the ground by the Traffic Rules Enforcement Supervisory Committees (TRESCs), which operate at the regional/state level.

The Department of Highways admitted that it did not have any specific road safety guidelines that could be applied to its road designs. This is indicative of the substantial knowledge-development task ahead.

Since the rail network in Myanmar is very old, the main means of transportation are buses. There are about 96 bus lines run by the Yangon Bus Services (YBS) and another 88 bus lines run by private express companies. Many lines are due to lunch in the next few years both in Yangon and in other cities. It is planned to connect many cities to the roads and improve the already existing poor maintained roads in the next decade, the population in those cities will probably use public transportation in order to travel in the country. According to estimations in 2015, there were about 16,000 buses in Yangon city owned by about 5000 private people. Most of these buses are more than 10 years old.

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Table of context

1. Executive Summary

2. Introduction

3. Market and business surrounding

    3.1.Infrastructure and development in Myanmar

    3.2.Road Accidents in Myanmar

    3.3.Awareness for road safety

    3.4.Regulations

    3.5.Industry main sectors

           3.5.1 Public transportation

           3.5.2 Automobile market

    3.6. The product analysis

            3.6.1Type of costumers

            3.6.2Target market

      3.7.Competition and business environment

      3.8. Swot model

4. Company analysis

5. Business model and strategy

5.1       Vision and objectives

5.2       Analyzing external forces

5.3       Analyzing internal forces

5.4       Source of income

5.5       Milestones

5.6       Positioning strategy

5.7 Risks managements

6          Finance model

6.1       Basic assumptions

6.2. Investment forecast

6.3       Sales forecast

6.4       Costs structure

6.5       Finance model results

6.6       Economic indicators

6.7       Sensitivity analysis

Legal Opinions

Valuations and capitalization of cash flow, using the DCF system in accordance to the instructions

Business Plans

Thorough evaluation of your company, identification of challenges Review of relevant markets - opp