Investment Climate in Myanmar U San Myint Deputy Director General Directorate of Investment and Company Administration

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Alvin Greene
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1 Investment Climate in Myanmar U San Myint Deputy Director General Directorate of Investment and Company Administration

2 Content 1. Investment Situation in Myanmar 2. Investment Policy 3. New Myanmar Investment Law 4. Investment Opportunities for EU Companies

3 Investment Situation in Myanmar

Foreign Investment in Myanmar (1988-1989 to 2016-2017 17 th March) (By Country) 20000.000 18000.

4 Foreign Investment in Myanmar ( to th March) (By Country) (US$ in Million)

5 Foreign Investment in Myanmar ( to th March) (By Region) % (US$ in Million) % 1.43 % Asia EU Other Asia EU Other

951 14564.525 US $ in Million 7990.256 6413.

6 Foreign Investment of Existing Enterprises in Myanmar As of 17 th March 2017 ( By Sector) US $ in Million

7 Investment Policy

8 Promoted Sectors Manufacturing Infrastructure Agriculture Tourism

9 Promoted Sectors Cont; Education Health Renewable Energy Technology

10 New Myanmar Investment Law

11 New Myanmar Investment Law Myanmar Citizens Investment Law (2013) Foreign Investment Law (2012) Myanmar Investment Law

12 Admission of Investment Investment in Any Allowed Sector Enterprise Registration Endorsement MIC Permit MIC Permit Notification for endorsement Approval

13 Investment Required MIC Permit Submitting Proposal (Section 36) Businesses that are strategic for the Union Large capital intensive investment projects Projects which have large potential impact on the environment and the local community Business carried out in Stateowned land and building businesses which are designated by the government to require the submission of a proposal to the Commission

14 Endorsement Application Submission Business except where it concerns investments stipulated under section 36 Endorsement application to the Commission To enjoy the Rights to Use Land under Chapter (12) and Exemptions and Reliefs under sections 75,77 and 78 Not required to submit a Proposal to the Commission

15 Prohibited Investment Business: the hazardous or poisonous wastes; technologies, medicines and instruments which are still being tested abroad or which have not obtained relevant approvals for use, planting except for the purpose of R&D; may affect the traditional culture and customs of the racial groups; may affect the public health may cause damage to the natural environment and ecosystem; manufactured goods that are prohibited in accordance with existing laws.

16 Restricted Investment Investment activities allowed to carry out by State only; Investment activities restricted to foreign investors; Investment activities allowed only in form of joint venture with a citizen owned entity or a citizen of Myanmar; and Restricted Investment Investment activities permitted with the recommendation of the relevant ministries

17 Rights to Use Land From any government body or government organization From private landholders Initial 50 years The period of consecutive 10 years From any government From any government body or government organization From private landholders body or government organization From private landholders Further 10 years

18 Employment of Staff and Workers Any Citizen Senior Manager Expert Advisor Only Myanmar Citizens The work which does not require skills

19 Conditions for Expropriation Guarantees not to expropriate or nationalize or indirect expropriation to any investment Conditions for expropriation For a public interest In a non-discriminatory manner In accordance with due process of law Upon payment of prompt, fair, adequate and effective compensation

20 Incentives under New Myanmar Investment Law Incentive is not granted automatically Investors may apply one or more than one the exemptions and reliefs Exemption & Reliefs Income Tax Exemption & Relief Exemption from Customs Duty & Other Internal Taxes Other Exemption & Relief

21 Incentives under New Myanmar Investment Law Zone(1) Least- Developed Regions and States Income Tax Seven Years Zone(2) Moderately Developed Regions and States Income Tax Five Years Zone(3) Adequately Regions and States Income Tax Three Years According to Notification No 10/2017 as of 22 nd February 2017, Zone (1) 166 Tsp in 13 State/Region Zone (2) 122 Tsp in 11 State/Region Zone (3) 46 Tsp in 2 Region

22 Treatment of Investors National Treatment for the Foreign investors and investments Most Faboured Nation Treatment Fair and Equitable Treatment Treatment of Investors

23 Investment Opportunities for EU Companies

24 Forms of Investment 100 % foreign capital Joint Venture between a foreigner and a citizen or relevant government department Any system contained in the contract which approved by both parties

25 List of Restricted Investment Business (Draft) (A). Investment Business to be carried out only by the Union 9 Business Activities were drafted as the Investment Business to be carried out only by the Union

26 List of Restricted Investment Business (Draft Cont; ) (B) 12 Business Activities were drafted as the Investment Business not allowed for foreign investor (C) (D) 22 Business Activities were drafted as the Investment businesses allowed only in the form of joint venture with any citizen or any business entity owned by citizen residing in Myanmar 125 Business Activities were drafted as the Investment businesses allowed with the approvals of the relevant ministries

27 List of Investment Business in Promoted Sectors (Draft) (1) 30 Business Activities were drafted as the Promoted Investment Business relating to the agriculture sector (2) 4 Business Activities were drafted as the Promoted Investment businesses relating to the forestry sector (3) 10 Business Activities were drafted as the Promoted Investment businesses relating to livestock and fishery sector

28 List of Investment Business in Promoted Sectors (Draft) (4) 93 Business Activities were drafted as the Promoted Investment Business relating to the manufacturing sector (5) Development of new industrial zone Developer need to construct city development including road, open space, water supply, electricity, hospital, or clinic, administration office, fire brigade school, communication area and green area etc) (6) Development of new city, town and regional development Developer need to construct city development including road, open space, water supply, electricity, hospital, or clinic, administration office, fire brigade school, communication area and green area etc)

29 List of Investment Business in Promoted Sectors (Draft) (7) 5 Business Activities were drafted as the Promoted Investment Business relating to the civic works (8) 4 Business Activities were drafted as the Promoted Investment Business relating to the construction of road, bridge and railway (9) Construction of deep seaport and river port

30 List of Investment Business in Promoted Sectors (Draft) (10) Airport management, operation and matainance works (11) Airbus Workshop (12) 12 Business Activities were drafted as the Promoted Investment Business relating to the logistic sector

31 List of Investment Business in Promoted Sectors (Draft) (13) Electricity manufacturing, transmission and disturbing (14) 2 Business Activities were drafted as the Promoted Investment Business relating to the renewable energy sector (15) 3 Business Activities were drafted as the Promoted Investment Business relating to the communication sector

32 List of Investment Business in Promoted Sectors (Draft) (16) 7 Business Activities were drafted as the Promoted Investment Business relating to the education service sector (17) 5 Business Activities were drafted as the Promoted Investment Business relating to the health care service sector (18) 3 Business Activities were drafted as the Promoted Investment Business relating to the information and technology service sector

33 List of Investment Business in Promoted Sectors (Draft) (19) 3 Business Activities were drafted as the Promoted Investment Business relating to the hotel and tourism sector (20) 7 Business Activities were drafted as the Promoted Investment Business relating to the R&D sector

34 Thank You Cooperator of Business Community, Developer of National Economy DICA

Investment Trend and Economic Situation in Myanmar

Investment Trend and Economic Situation in Myanmar Dr. Marlar Myo Nyunt Director Directorate of Investment and Company Administration Myanmar Economic Policies Expanding our financial resources Improving