This Tiny Country Nestled Between China And India Is Set To Become The Next Major Global Trading Hub

The victory of Aung San Suu Kyi’s National League for Democracy party in Myanmar earlier this month has seen the U.S. and now Europe ease sanctions on the country. 

This signals that investment restrictions on the country are likely to ease in the future as well, and that its economy will benefit from modernization. Benefiting from this investment, and from its ongoing currency reform, the country is set to become a massive trading hub between China, India and South East Asia.

In a new note, Jefferies analysts Sean Darby, Kenneth Chan and Dodo Cheng say:

“Longer term, it is Myanmar’s position as a trade route between China and India that will mould its future. Thailand is currently its biggest export market, but Myanmar imports most goods from China. Myanmar bestrides territories that were once linked by the fabled Silk Road. Today, Europe, Central and SE Asia are being connected by a series of highways and railway networks that will allow more efficient transportation of goods.

Despite many political uncertainties and funding difficulties, the development of the Asian Highway has been a successful co-operative project between the nations of Asia, Europe and the United Nations Economic and Social Commission for Asia and the Pacific(ESCAP).”

Here’s a map from Jefferies that shows the Trans-Asian Railway a network of 114,000 kilometers between 28 countries that provide regional connectivity to Europe via the Russian Federation and the Middle-East via Iran and that will help make Myanmar a giant trading hub:

Photo: Jefferies

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