New Zealand has opened its first embassy office in Myanmar in recognition of the Southeast Asian nation's political and economic reforms, Foreign Affairs Minister Murray McCully announced Wednesday.

"This new office in Yangon reflects Myanmar's remarkable progress in implementing political and economic reforms over the past two years," McCully said in a statement.

"New Zealand has substantially increased its development assistance to Myanmar, with major commitments to dairy cooperation and capacity building. There is also considerable scope for New Zealand companies to invest," he said.

"The opening of this office comes as the region focuses its attention on Myanmar, which as the next chair of the Association of Southeast Asian Nations, will host a number of ministerial and official level meetings throughout 2014, culminating in the East Asia Summit."

New Zealand has moved to normalize relations following reforms under the government of President Thein Sein, which has been in place since March 2011.

Myanmar is due to hold general elections in 2015.

In the year to the end of April, New Zealand exports to Myanmar were valued at around 22 million NZ dollars (18.12 million US dollars), but the government believes Myanmar has potential to one day be a significant trading partner.