Country risk in Myanmar is high with an OECD country credit grade of 7. 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 171 out of 190 economies. Myanmar underperforms the regional average on most gauges of doing business, though dealing with construction permits is on par with the rest of the region.
Myanmar lags behind the region on all dimensions of governance, which is consistent with the 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 also makes it difficult for investors to bring legal action against expropriation.