Foreign direct investment in myanmarfdi guide and opportunity. Foreign direct investment in myanmar will increase stability. Escap trade and investment division staff working paper 0112, revised 31 dec 2012 2 and unnext, is well placed to support efforts to strengthen evidencebased policymaking for trade and investment in myanmar. Based on data for actual and approved foreign direct investment fdi from 19892011, this paper explores the major trends in fdi in myanmar, focusing on changes over time in the source and sector of investment. In midaugust state counsellor daw aung san suu kyi met with chinese premier li keqiang to discuss economic relations, including resuming work on the suspended myitsone dam project on myanmars ayeyawaddy river. Given continued inflows since the start of the new year, the growth in investment has exceeded 100% yearoveryear. This page provides the latest reported value for myanmar foreign. Myanmars new foreign investment law 3 o if the mic decides to evaluate an investment proposal, it must approve or reject that proposal within 90 days from the date the mic accepted the proposal for evaluation i. Chinese investment in hydropower in vietnam and myanmar. Regulation and protection of investment in myanmar chapter 4. This paper explores the impact of chinese investment in myanmars manufacturing sector. Paragraph 7 of procedures relating to the union of myanmar foreign investment law. Foreign investment in myanmar may 12, 2016 by yfpfwong in china, foreign investment, myanmar. Double taxation treaties myanmar has double taxation treaties with the united kingdom.
Currently, foreign investment in myanmar is concentrated in oil and gas, minerals and power. Myanmar as a foreign direct investment destination. Promise and hurdles for foreign investment in myanmar having keen observer and participant in the myanmars transition since socio political changes commencing in 2011, it came as no surprise to those that know me, when i wrote a number of articles on the importance of sound corporate governance. Following recent political changes, myanmar has been trying to detach itself from its economic overdependence on china and has been looking to the west and its partners in asean to. We have built up an impressive stable of fast growing businesses and a firstclass team of yangonbased professionals. The investment challenges in a context where the economy is still dominated by the interests of the military and their connected crony businessmen are obvious. The government seeks to push development into manufacturing, real estate, agriculture and services, areas that are virtually untouched currently by. The directorate of investment and company administration dica has issued a consultation draft of the rules under the myanmar investment law 2016 mil. Myanmar is still a highrisk country, requiring a rigorous responsible investment strategy. Since the countrys economic reforms launched in the last 34 years, and the lifting of most sanctions by western countries in 2012,official figures suggest a significant increase in foreign direct investment fdi into myanmar. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012.
Investment and company administration, ministry of national planning and. Longterm foreign direct investment promotion plan in. A sharperthanexpected slowdown in chinas growth would also have a negative impact on myanmar through the trade channel. Foreign direct investment in myanmar graphics not included since 1962 the burmese government has been under military rule country profile, 2007. A recent report by yun sun published by the stimson center points out that there has been a sharp decrease in chinese investment in myanmar over the past few years. Law must apply to the myanmar investment commission in the prescribed form for a permit, for the commissions permission to undertake the proposed investment. Myanmar foreign direct investment bill seen as antifdi. Foreign direct investment promotion plan in myanmar fdipp in 2014. The lives of the burmese citizen are dictated by the totalitarian style of government which led to horror and starvation, causing numerous protests against the government. It focuses on foreign direct investment in myanmar, in particular from china which has itself undergone rapid transformation in the past few decades, and the four subsectors with the potential to accelerate economic transformation, namely garments, agriculture and agroprocessing, construction, and tourism. To boost infrastructure investment, myanmar is looking to kickstart a number of projects with china, its largest investor. Chinas hydropower investments in mainland southeast asia.
Yangon foreign direct investment is crucial to aung san suu kyis plans to build a flourishing and dynamic economy in a country that has suffered decades of mismanagement. Data on foreign direct investment fdi in myanmar are reported by the directorate of. The myanmar stamp act 1899, as amended, prescribes stamp duties for instruments that transfer or create property interests. Promise and hurdles for foreign investment in myanmar. Considered by many to be one of the last economic frontiers, myanmar has been the object of investor interest for the past three years. However, these timeframes are discretionary and could be extended by the mic. Rates for instruments attracting stamp duty and instruments exempted are enumerated in the schedules subsequently enacted by notifications. In addition to scrapping a mooted fiveyear tax exemption period for new myanmar foreign direct investments, which was seen by many as placing existing myanmar businesses at a disadvantage, reports on the new myanmar foreign direct investment bill have failed to also mention a mooted 50 percent profits tax moratorium and changes to land rental periods. Longterm foreign direct investment promotion plan in myanmar. Conformity to the investment policy announced in 2016 and new investment regime of myanmar under the myanmar investment law and special economic zone sez law. Foreign investment by country directorate of investment. Foreign direct investment and economic transformation in myanmar. Ministry of investment and foreign economic relations mifer. This paper presents a picture of the countrys trade and foreign direct.
Freelance researcher freelance researcher and writer myanmar engineering society mes, 3f, hlaing universities campus march 15, 2014 kgumarced the 1st international conference on development alternatives kumamoto gakuen. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. Myanmar will look to foreign investors to transfer such skills as part of the foreign investment process. May 07, 2014 under section 27a of the myanmar companies act, a foreign company, whether a hundred percent owned or a jointventure and a branchrepresentative office, is required to obtain a permit before. Foreign investment by country directorate of investment and. It was the first decline in international inflows since the 201220 fiscal year. The study was based on secondary data source of myanmar over the. Foreign direct investment in myanmar 1969 words 123. Myanmar investments international limited was the first myanmarfocused company to be admitted to trading on the aim market of the london stock exchange. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. Moreover, a tightening of monetary policy in the united states could strengthen the u. Foreign direct investment policy myanmars foreign direct investment policy is a component of the overall restructuring and development policy of the government. Myanmars foreign direct investment rush recedes financial. Partly as a result of that, and in part due to teething issues associated with the transition to a new government, foreign direct investment fdi and gdp growth.
Though results suggest an overall positive attitude toward foreign direct investment fdi, foreign investors need to be wary of the publics pervasive and. Structural economic transformation is the reallocation of resources especially labour from lessproductive to moreproductive activities, as well as changes in the composition. Foreign direct investment in myanmar 1969 words 123 help me. An example of this is the crude oil pipeline that opened in april 2017 which links petrochinas kunming refinery through myanmar to the bay of bengal. Under section 27a of the myanmar companies act, a foreign company, whether a hundred percent owned or a jointventure and a branchrepresentative office, is required to obtain a permit before. Myanmar struggles to sustain foreign investment nikkei. Directorate of investment and company administration national economic policy reforms process principals of myanmar investment commission criteria of investments infrastructure sectors of myanmar. This page provides the latest reported value for myanmar foreign direct investment plus. Do you know ratio of foreign direct investment in myanmar and opportunity in several sectors. Alternatively, the permit may simply not be renewed at the end of the relevant twoyear period. Foreign direct investment has the potential to spur transformation in myanmar. The myanmar investment commission mic, which had the authority to approve foreign investment applications, disbanded in march. Investment promotion and facilitation in myanmar chapter 5. The nations neighboring myanmar are bangladesh, china, india, laos and thailand.
Pdf trade, foreign investment and myanmars economic. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. Public perception of chinese investment in myanmar and its political. Myanmar looks to china to increase foreign direct investment. Jul 31, 2019 this statistic shows the value of foreign direct investment fdi net inflows in myanmar from 20 to 2018. The myanmar government and the international business community have a great opportunity to bring about much needed changes to myanmar through investment and development.
Support labour circulation to enable skilled and experienced employees of foreign firms in myanmar to set up their own enterprises, via mechanisms to assist access to finance and land. Freelance researcher freelance researcher and writer myanmar engineering society mes, 3f, hlaing universities campus march 15, 2014 kgumarced the 1st international. Organization for economic cooperation and development countries. On the one hand, the countrys recent inflow of foreign investment and the governments economic reforms seem to promise great growth for the impoverished southeast asian nation. Easing of economic sanctions imposed on myanmar by western countries will lead to higher levels of trade and investment. Foreign direct investment in myanmar increased by 734.
Myanmar, is a southeast asian nation comprised of 100 plus ethnic groups. May 03, 20 the rules also limit foreign investment in a joint venture with a myanmar citizen to a maximum of 80% of the total equity for a range of restricted sectors, such as infrastructure development and. This statistic shows the value of foreign direct investment fdi net inflows in myanmar from 20 to 2018. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity.
As myanmar starts to rebuild its trade and investment links with the. Myanmar update on foreign investment baker mckenzie. Foreign investment in myanmar yvonne wong consulting. Foreign direct investment and economic transformation in. Trade, foreign investment and myanmars economic development during the transition to an open economy article pdf available january 2007 with 2,432 reads how we measure reads. Jan 23, 2017 the myanmar investment commission mic, which had the authority to approve foreign investment applications, disbanded in march last year to coincide with the change of government. A 3rd draft of january 2016 in myanmar language only is available at. The objective of the study is to examine the role of foreign direct investment fdi and the situation of fdi flows in myanmar. Title foreign direct investment relations between myanmar. Foreign direct investment fdi is argued to play a pivotal role in accelerating economic growth eg of a host country especially in developing and. Foreign direct investment and economic transformation in myanmar 2 ii. Foreign investment overview for myanmar myanmar 2016. The rules also limit foreign investment in a joint venture with a myanmar citizen to a maximum of 80% of the total equity for a range of restricted sectors, such as infrastructure development and.
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