Investment Climate in Myanmar U San Myint Deputy Director General Directorate of Investment and Company Administration
Content 1. Investment Situation in Myanmar 2. Investment Policy 3. New Myanmar Investment Law 4. Investment Opportunities for EU Companies
Investment Situation in Myanmar
Foreign Investment in Myanmar (1988-1989 to 2016-2017 17 th March) (By Country) 20000.000 18000.000 16000.000 (US$ in Million) 14000.000 12000.000 10000.000 8000.000 6000.000 4000.000 2000.000 0.000
Foreign Investment in Myanmar (1988-1989 to 2016-2017 17 th March) (By Region) 70000 90.2 % 60000 50000 (US$ in Million) 40000 30000 20000 10000 0 8.37 % 1.43 % Asia EU Other Asia EU Other
Foreign Investment of Existing Enterprises in Myanmar As of 17 th March 2017 ( By Sector) 21486.951 14564.525 US $ in Million 7990.256 6413.58 2656.872 2589.675 2352.624 298.351 221.185 189.113 864.966
Investment Policy
Promoted Sectors Manufacturing Infrastructure Agriculture Tourism
Promoted Sectors Cont; Education Health Renewable Energy Technology
New Myanmar Investment Law
New Myanmar Investment Law Myanmar Citizens Investment Law (2013) Foreign Investment Law (2012) Myanmar Investment Law
Admission of Investment Investment in Any Allowed Sector Enterprise Registration Endorsement MIC Permit MIC Permit Notification for endorsement Approval
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
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
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.
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
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
Employment of Staff and Workers Any Citizen Senior Manager Expert Advisor Only Myanmar Citizens The work which does not require skills
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
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
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
Treatment of Investors National Treatment for the Foreign investors and investments Most Faboured Nation Treatment Fair and Equitable Treatment Treatment of Investors
Investment Opportunities for EU Companies
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
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
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
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
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)
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
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
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
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
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
Thank You Cooperator of Business Community, Developer of National Economy DICA www.dica.gov.mm