Update Business Landscape in Myanmar

The Update of Business Landscape in

Myanmar

1

Aung Naing OoPermanent Secretary

Ministry of Investment and Foreign Economic Relations

v Policy updates

v Improvement updates

v Upcoming programmes

v Thai Investment

Outline

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3

Policies bound for more liberalizations …..

v Responsible investment;

v Facilitation through transparency and expeditious procedure;

v Macroeconomic stability & credible dispute settlement;

v FET, protection, repatriations & long terms land lease;

v Environmental and natural resources;

v Less restriction;

v Promotion.

Investment policy

4

Liberalization

v Export business for foreign companies;

v Import business for foreign companies;

v Retail and Wholesale.

Go automatic

v From non-automatic to broader automatic licensing system;

(4613 commodity lines of HS 2017)

v More commodity lines will be included in the automatic licensing system soon;

Go online

v Electronic export / import license application system will be commenced by the end of 2019.

Trade Policy

5

Concept

v To link MNEs with local MSMEs ;

v Assembling and production shall be conducted for the acceleration of Unit in Operation (UIO).

Principles

v LHD vehicles;

v Initial encouragement of SKD with defined taxation scheme;

v Encourage auto-parts manufacturing industries;

v Enhance cooperation between local and/or international partners in auto related business.

Auto Policy

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Auto Policy

7

Roadmap

SKD

CKD(BBC, SPV, EV)

MoreCKD(BBC, Export)

8

and improvements have been made in such areas as …..

Functions

v Online registration for all types of companies;

v Filing online;

v Payment online;

v Automated alert system for compliance.

Myanmar Companies Online - MyCO

9

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019

7060 7525 7878

10458 10575

17944

v Corporate and investment – Companies Law, Investment Law, SEZ Law & Securities

Exchange Law.

v Banking and Finance – Financial Institutions Law, Foreign Exchange

Management Law, Microfinance Business Law &

Myanmar Central Bank Law.

v Trade - Import and Export Law, Consumer Protection Law &

Competition Law.

v Commercial transactions – Registration Law.

v Industrial activities – SME Development Law, Shops and Establishment Law &

Factories Act 1951 (amended in 2016).

v Taxation – Income Tax Law (amended in 2016), Commercial Tax

Law (amended in 2015), The Myanmar Stamp Duty Act

(amended in 2017), Special Commodity Tax Law,

Tax Administration Law & Union Tax Law.

v Intellectual property – Trademarks Law, Patent Law, Industrial Design Law & Copyright Law.

v Dispute resolution – Arbitration Law.

Foundational Legal Framework

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What next ?…..

Laws

Regulations

Administrative Practices,

Procedures, Notifications

Institutions (to administer

laws)

Courts (to enforce laws)

Standard Operating Procedures

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Passing laws alone will not create a conducive legal framework

SOP

New Industrial Zones

13

F

F

F

F

F

2910 Rai

1405 Rai

4515 Rai

22770 Rai

Thilawa SEZ

Foreign Investment of Existing Enterprises

14

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Thai Investment

Yearly Approved FDI

15

0

1000

2000

3000

4000

5000

6000

7000

2016-2017 2017-2018 2018(Interim Fiscal Year)

2018-2019(as of July)

6649.812

5717.096

1764.701

3526.215

262.588 401.880179.596 221.430

6912.4

6118.976

1944.297

3747.645

MIL SEZL Total

Total FDI

Thai Investment

16

Agriculture Sector0%

Livestock & Fisheries Sector

5%Mining Sector0%

Manufacturing Sector21%

Transport Sector

1%Power Sector7%

Oil & Gas Sector 50%

Hotels and Tourism Sector

10%

Others Sector2%

SEZ4%

Thai Investment

17

0

50

100

150

200

250

300

350

400

450

500

2016-2017 2017-2018 2018-2019

423.058

123.115

262.2

67.6 67.694

19.496

490.658

190.809

281.696

MIL SEZL Total

Registration of Thailand Companies

18

Trading15%

Industry11%

Services72%

Construction0%

Hotel1%

Tourism1%

Bank0% General

0%

Total 1809

Thank you !

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[email protected]@gmail.comwww.mifer.gov.mm