Myanmar Recent Foreign Investment Policy Dr. Marlar Myo Nyunt Deputy Director Directorate of Investment and Company Administration
Myanmar Recent Foreign Investment Policy
Dr. Marlar Myo Nyunt
Deputy Director Directorate of Investment and Company Administration
10th largest resources of natural gas in
the world
Expansive forest which
covers half of total area of
the country
Fertile land for
agriculture which
amounts 19.3 million
hectares arable land and
out of these, over 6
million hectares
have not yet been
exploited
Fishery resources currently being
used is less than 60% of
sustainable yield
Abundance of precious
gem stone. Ruby
accounts for 90% of
world supply and the
largest jade resource
country in the world.
Has gold deposit
across the
country
Copper is the
largest export of
mining product
Others mining product
such as silver, lead, tin,
tungsten and antimony
deposit are widespread in
the country
Myanmar in Brief
Over 60 million population with working age of
37.35 million, 62.25% of total population
Over 91% of population is literate
Relatively low wage
Much of Myanmar’s intellectual speaks English
Myanmar in Brief
Myanmar’s Priorities
• Rural Development and Poverty Reduction
• Agriculture development and industrialization
• Energy sector development
• Telecommunication development
• Microfinance for rural people and SMEs
• Education and health sector development
• HRD
Reforms
Vision Second Phase First Phase
Focused on politic
-National Reconsolidation
- Peace and Stability
- Freedom of Media
Focusing on Economic
Development
- Invite more FDI
- Change of Trade Policy
-Monetary & Finance
Policy
-Conduct National
Workshops in various
economic sectors
To be a modernized,
developed
industrialize nation
More reforms
Third Phase
Focusing on
Administrative Measures
- Good Governance
- Clean Government
- Efficient Administration
Investment Laws
Foreign Investment Rules issued on 31 January 2013
Amending Economic Activities
The Union of Myanmar Foreign Investment Law (FIL) was
enacted on 30 November 1988 and the parliament has approved a new
foreign investment law on 2nd November 2012.
The Special Economic Zone Law was also enacted in 23rd January
2014.
What DICA is?
The Secretariat of MIC.
Investment Promotion Agency of Myanmar
Registrar
Gateway for doing business in Myanmar
DICA’s Functions for Investment
Scrutinizing investment proposals
Organizing investment promotion activities
Facilitating investment / business
Coordinating with Ministries / Region and State
Governments
Facilitate Business, Promote Investment and
Sustain the Country’s Development
Principles of MIC
Not to violate the interest of the State and
people
Not to have any impact on national dignity
Not to breach of sovereignty
Not to affect on environment
Mode of Doing Business
Business
MIC Permit Start enjoy incentives
Company
Incorporation Registration/
Permit
Start no incentives
Form of Investment
100%
Foreign
Owned
Joint
Venture
A Citizen
or
Concerned
Government
Organization
Any System
Included in
the Mutually
Agreed
Contract
1
2
3
Proposal Assessment Team (PAT)
• According to Rule 38 of Foreign Investment Rules, the Commission shall form the Proposal
Assessment Team to scrutinize the completed proposals respectively with the senior officials from
the following departments:
• (a) Directorate of Investment and Company Administration
• (b) Customs Department
• (c) Internal Revenue Department
• (d) Directorate of Labour
• (e) Relevant Department under the Ministry of Electric Power
• (f) Department of Human Settlement and Housing Development
• (g) Department of Industrial Supervision and Inspection
• (h) Directorate of Trade
• (i) Project Appraisal & Progress Reporting Department
• (j) Department of Environmental Conversation
Mode of Doing Business in Myanar
The MIC;-
(a) May accept or refuse the proposal within 15 days
(b) Shall allow or refuse the proposal within 90 days to the person who submit
the proposal if the proposal is accepted.
According to Rule 49 of Foreign Investment Rules, the Commission shall
scrutinize the proposal and if it is accepted, the Permit Form (2) shall be
issued within 90 days from the date of receipt.
Exemptions and Reliefs
5 years tax holiday
Further tax exemption/relief for an appropriate period in
case if it is considered beneficial for the State
Exemptions and Reliefs (Cont.)
Exemption or relief of income tax on reinvestment;
Right to accelerate depreciation of capital assets for the purpose of
income-tax assessment;
Relief from income tax up to 50 percent on the profit from exports;
Same rate of income tax between foreigners and Myanmar citizens;
Right to deduct the research and development expenditure from
taxable income;
Right to carry forward and set off losses up to 3 consecutive years.
Exemptions and Reliefs (Cont.)
Imported machinery & equipment - construction period
Imported raw material - first 3 years of
commercial production
Exemption/Relief of Customs Duties and/or
Other Internal Taxes
Exemption/Relief of Commercial Tax
Exports
Guarantees
No nationalization and expropriation.
No termination during the permitted period.
Right to repatriation.
Right to Use Land
50 Years
(For Initial Period)
10 Years
(First Renewal)
10 Years
(Second Renewal)
Depending on the
business, type of
business and
investment amount
Land
Lease
Settlement of Dispute
It shall be compiled and carried out in accord with the existing laws of Myanmar if the dispute settlement mechanism is not stipulated in the relevant agreement;
It shall be compiled and carried out in accord with the dispute settlement mechanism stipulated in the relevant agreement.
Become a member of UNCITRAL (New York Convention) on July 2013.
Incorporation of Companies
Laws related to incorporation of companies
- The Myanmar Companies Act 1914,
- Special Companies Act 1950,
- Myanmar Companies (Amendment) Act 1955 and
- Myanmar Companies regulations 1957.
The Directorate of Investment and Company
Administration is responsible for permission and
registration of the incorporation of companies.
Right to Transfer Foreign Currency
The investor has the right to transfer abroad the following foreign currency through
the bank which has the right to carry out foreign banking within the Union in the
relevant foreign currency at the stipulated exchange rate:
(a) foreign currency entitle to the person who has brought in foreign capital;
(b) foreign currency permitted for withdrawal by the Commission to the person
who has brought in foreign capital;
(c) net profit after deducting all taxes and the relevant funds from the annual
profit received by the person who has brought in foreign capital;
(d) legitimate balance, after causing payment to be made in respect of taxes and
after deducting in the manner prescribed, living expenses incurred for
himself and his family, out of the salary and lawful income obtained by the
foreign staff during performance of service in the Union;
Labor Intensive
Value Added
Heavy / Hi-tech Industry
Way Forward
Resource
Agriculture
Fishery
Mining
Forestry
Oil & Gas
Food Processing
Mineral Processing
Wood Processing
Petrochemical
Down Stream
Labour (Quality, Quantity, Cost)
Garment
Electronic Parts Assembly
Others
Services
Hotel & Tourism
Logistics
Real Estate
Other
Location
Investment Opportunities in Myanmar
Reforms
Legal framework (FIL, FIL Rules, MCIL,
MCA, SEEL)
Enhance Cooperation (OECD, UNCTAD,
UNDP, IFC, ADB, JICA, JETRO, GIZ & BC
etc.)
Policy review
Capacity Development
Who are now in Myanmar?
Thank You
www.dica.gov.mm
Cooperator of Business Community,
Developer of National Economy
DICA