Country risk in Myanmar is high. The OECD has a country credit grade of 6. This is akin to a speculative grade sovereign rating, which indicates an elevated risk of Myanmar being unable and/or unwilling to meet its external debt obligations.
The World Bank’s ease of doing business gauge—which attempts to measure regulation and red tape relevant to a domestic small to mid-sized firm—ranks Myanmar’s business climate 165th out of 190 economies. Myanmar underperforms the regional average on most gauges of doing business, though dealing with construction permits and starting a business are broadly in line with the rest of the region.
Myanmar lags behind the emerging and developing Asia region on all dimensions of governance, which is consistent with elevated political risk.
The risk of expropriation is elevated. The OECD’s 2014 investment policy review found that Myanmar did not have adequate legal provisions to protect investors against indirect expropriation. The inadequate legal system and lack of transparency makes it difficult for investors to take legal action against expropriation.