Myanmar is rich in minerals, including metal ores, petroleum, and natural gas, and also has significant deposits of precious and semiprecious stones. Although production generally has been increasing since the late 20th century, mining accounts for only a tiny fraction of the country’s GDP and a comparable portion of the workforce.

Large-scale exploitation of Myanmar’s mineral deposits began in the mid-1970s. Deposits of silver, lead, zinc, and gold are concentrated in the northern Shan Plateau, tin and tungsten in the Tenasserim region, and barite around the town of Maymyo in the central basin. Copper mining at the town of Monywa began in the early 1980s and has been growing, despite intermittent setbacks caused by shortages of fuel and supplies as well as by economic sanctions imposed by foreign governments.

Rubies and sapphires have been mined in the northern Shan Plateau since precolonial times. Jade is mined in the northern mountains. The country also produces smaller quantities of spinels, diamonds, and other gemstones.

When Myanmar was colonized by the British in the late 19th century, the extraction of petroleum from the country’s central region already was an established local practice. The industry was expanded by the British and, since the mid-20th century, by the government of independent Myanmar. Although exploration for onshore petroleum resources since independence has not proved particularly fruitful, exploration for natural gas has been especially productive. Exploitation of onshore gas fields began in the 1970s, and in the 1990s extensive gas fields were opened offshore—especially in the Gulf of Martaban—and a pipeline was constructed to serve Thailand. There are oil refineries at Chauk, Syriam, Mann, and other locations.

Myanmar also has major deposits of coal, and production rose sharply in the early 21st century. Coal is mined primarily in the upper Irrawaddy and Chindwin valleys.

The demand for electricity chronically has outstripped capacity. Although much of the country’s energy is drawn from fossil fuels, hydroelectricity accounts for a significant and rapidly expanding segment of Myanmar’s total power supply. The government has built several hydroelectric power plants, including those on the Balu River (a tributary of the Salween), at Taikkyi near the city of Bago (Pegu), in the northern Rakhine region, and near Mandalay.

Manufacturing

There was little industrialization in Myanmar until the mid-20th century, when a limited program was initiated after the country achieved independence. Yangon, Myingyan (in the dry zone), and the Rakhine area were selected to become the new industrial centers. Although the manufacturing sector has expanded, it has not grown as rapidly in Myanmar as it has in other countries of the region.

A major enterprise in Myanmar is tobacco production, consisting of government-owned factories, which manufacture cigarettes, and cottage industries, which produce cheroots (a type of small cigar). Other important industries include steel processing, the manufacture of nonelectrical machinery and transportation equipment, and cement production. Textile factories have been established in Yangon, Myingyan, and other cities, but growth of the industry has been hindered since the late 20th century by intermittent sanctions by foreign governments. Myanmar also produces lumber, paper, processed foods (mainly rice), and some pharmaceuticals. Cottage industries are encouraged by subsidies.

Trade

The government’s decision in the early 1960s to limit foreign trade reversed the export orientation of the British colonial period. However, the subsequent relaxation of trade restrictions, notably the legalization of trade with China and Thailand in the late 20th century, allowed trade again to become a significant component of the national economy. Natural gas is Myanmar’s primary export, followed by pulses (mostly dried beans), teak, and minerals and gems. Its principal imports include machinery and equipment, industrial raw materials, and consumer goods. Largely because of sanctions imposed by the United States and members of the European Union in the late 20th century, Myanmar’s Asian neighbors—including Thailand, Singapore, China, South Korea, India, and Japan—became its chief trading partners. In 2012 the EU suspended its economic sanctions before lifting them altogether the following year. After the return of civilian rule in Myanmar in March 2016, the United States ended its sanctions program.

Taxation

Businesses remaining in the private sector after nationalization account for only a small fraction of the country’s tax income. The balance is collected from the public sector. The principal sources of revenue are taxes (income, commercial, and customs) and receipts from state enterprises.

Transportation

The country’s trade in rice is dependent on water transport. The Irrawaddy River is the backbone of Myanmar’s transportation system. The Irrawaddy is navigable year-round up to Bhamo and to Myitkyina during the dry season, when there are no rapids. The Chindwin is navigable for some 500 miles (800 km) from its confluence with the Irrawaddy below Mandalay. The many streams of the Irrawaddy delta are navigable, and there is a system of connecting canals. The Sittang, in spite of its silt, is usable by smaller boats, but the Salween, because of its rapids, is navigable for less than 100 miles (160 km) from the sea. Small steamers and country boats also serve the coasts of the Rakhine and Tenasserim regions.

The first railway line, running from Yangon to Pyay (Prome) and built in 1877, followed the Irrawaddy valley. The line was not extended to Mandalay; instead, after 1886 a new railway from Yangon up the Sittang valley was constructed, meeting the Irrawaddy at Mandalay. From Mandalay it crossed the river and, avoiding the Irrawaddy valley, went up the Mu River valley to connect with the Irrawaddy again at Myitkyina. A short branchline now connects Naba to Katha on the Irrawaddy below Bhamo.

The Yangon-Mandalay-Myitkyina railway is the main artery, and from it branchlines connect the northern and central Shan Plateau with the Irrawaddy. Other branches run from Pyinmana across the Bago Mountains to Kyaukpadaung and from Bago to Mawlamyine to Ye. The Pyay-Yangon railway has a branchline crossing the apex of the delta to Hinthada and Pathein (Bassein).

The road system, until independence, was confined to the Irrawaddy and Sittang valleys, duplicating the railway route. A road goes from Pyay along the Irrawaddy to the oil fields, and many roads extend into the rural areas. These rural roads, however, are often impassable during the wet season. There were originally three international roads in use during World War II: the Burma Road from Lashio to Kunming in China; the Stilwell, or Ledo, Road between Myitkyina and Ledo in India; and the road between Kengtung, in the southeastern Shan Plateau, and northern Thailand. These roads subsequently became neglected but more recently were rebuilt and extended.

The state-run Myanmar Airways International runs frequent domestic flights between Yangon and other cities; it also has international service from Yangon to several major Southeast Asian cities. There are also small privately owned airlines that offer domestic and very limited international service. International airports are located in Yangon and Mandalay.

Yangon, as the terminus of road, rail, and river-transport systems, is the country’s major port, with up-to-date equipment and facilities. Pathein, Mawlamyine, and Sittwe are also important ports.