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Infrastructure (Economics)

Myanmar Construction Market to Grow by 2.3% in 2025, Driven by Infrastructure and Energy Development

Strategic Insights

— 2 min read

Myanmar's construction industry is poised for growth in 2025, driven by development in the infrastructure and energy sectors, alongside an increase in foreign direct investment (FDI). According to the Directorate of Investment and Company Administration (DICA), the country secured MMK1.8 trillion ($690.2 million) in FDI for the financial year (FY) 2024-25. This growth is expected to be supported by investments in renewable energy, infrastructure projects, and manufacturing activities, leading to an annual average growth of 3.9% from 2026 to 2029. The Chinese government has pledged MMK354.8 billion ($137 million) in humanitarian aid to fund the reconstruction of homes after the devastating earthquake in March 2025.

Key Takeaways:

  • The Myanmar construction industry is projected to grow by 2.3% in real terms in 2025, driven by infrastructure, energy, and utilities project developments.
  • Foreign direct investment (FDI) in Myanmar secured MMK1.8 trillion ($690.2 million) for the FY 2024-25, with the oil and gas industry attracting MMK924.5 billion ($357 million) in FDI.
  • The reconstruction activity by the government after the devastating earthquake in March 2025 will support the development of construction activity in the country.
  • In May 2025, Myanmar's government and Russia signed an MMK57.2 trillion ($60 billion) agreement to cooperate on investments in the Dawei Special Economic Zone.
  • The construction industry is expected to register an annual average growth of 3.9% from 2026 to 2029, supported by investments in renewable energy, infrastructure projects, and manufacturing activities.

Statistics:

  • 2.3%: real growth forecast for the Myanmar construction industry in 2025 (ResearchAndMarkets.com)
  • MMK1.8 trillion ($690.2 million): FDI secured in Myanmar for the FY 2024-25 (DICA)
  • MMK924.5 billion ($357 million): FDI in the oil and gas industry in Myanmar (DICA)
  • MMK354.8 billion ($137 million): Chinese government's humanitarian aid to fund the reconstruction of homes in Myanmar (Chinese government)
  • 3.9%: annual average growth forecast for the construction industry in Myanmar from 2026 to 2029 (ResearchAndMarkets.com)
  • MMK57.2 trillion ($60 billion): agreement between Myanmar and Russia for the Dawei Special Economic Zone (Myanmar government and Russian government)

Sources:

  • ResearchAndMarkets.com: "Myanmar Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)"
  • Directorate of Investment and Company Administration (DICA): FDI figures for FY 2024-25
  • Chinese government: humanitarian aid to fund the reconstruction of homes in Myanmar
  • Myanmar government and Russian government: agreement for the Dawei Special Economic Zone

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