A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1993

Foreign investments plays a pivotal role in economic development of developing countries, and joint venture is a common form of foreign investment. Host country environmental factors are considered to be the primary issues in investment decision. Myanmar practiced a closed door-economic system for more than 26 years. In November 1988, the new military government introduced "the Union of Myanmar Foreign Investment Law" to ease the flow of foreign capital, technology, and management skills. Interested foreign investors have come to Myanmar looking for investment opportunities. The aims of the research are to study the country environment and motives for forming joint ventures in Myanmar. Based on the analysis, the success and failure factors towards the foreign investment have been identified. According to the findings labor cost and the potential domestic market are the main attractions to foreign investors. As for local partner the main reason is to generate the foreign exchange. Early entrants have to face higher risks, however it is possible to attain market leadership and associated advantages. Begin with trade and later integrate into manufacturing, and enter into a joint venture with a suitable local partner are the possible channels of entering into Myanmar.