aye maw / doing business in myanmar

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Min Zaw Oo, Director

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Page 1: Aye Maw / Doing business in Myanmar

Min Zaw Oo, Director

Page 2: Aye Maw / Doing business in Myanmar

Outline

3

Highlight of Myanmar1

2

3

4

Reforms

Investment Laws

5 Why Myanmar is …

6 Way Forward

Incorporation of Company

Page 3: Aye Maw / Doing business in Myanmar

Highlight of MyanmarStrategic Geographic Location

China – 1347

India - 1220

Bangladesh-158

Thailand – 70

Laos – 6

Total – 2801

40% of World Population

Page 4: Aye Maw / Doing business in Myanmar

Highlight of MyanmarTopography

Topography can roughly be divided into 3 parts:

the Western Hills Region,

the Central Valley Region and

the Eastern Hills Region.

Page 5: Aye Maw / Doing business in Myanmar

Highlight of MyanmarRich in Natural Resources

10th largest resources of natural gas in the world, over 90 trillion cubic feet

Expansive forest which covers half of total area of the country, exports 80% of world teak supply

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, potential of 1.05 million MT of

fish and fishery product

Page 6: Aye Maw / Doing business in Myanmar

Abundance of precious gem stone such as ruby, sapphire, jadeand diamond. Ruby accounts for 90% of world supply and thelargest 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 andantimony deposit are widespread in the country

Highlight of MyanmarRich in Natural Resources

Page 7: Aye Maw / Doing business in Myanmar

Over 60 million population with working age of

37.35 million, 62.25% of total population

Over 91% of population is literate which is highest

in the region

Relatively low wage

Much of Myanmar’s intellectual speaks English

Highlight of MyanmarModest Human Resource

Page 8: Aye Maw / Doing business in Myanmar

Foreign Investment of Permitted Enterprises as of (31/9/2012)(By Sector)

(US$ in Million)Sr.

Particulars No. Approved %No. Amount

1 Power 5 19067.498 46.40

2 Oil and Gas 113 14181.972 34.51

3 Mining 66 2814.360 6.85

4 Manufacturing 179 1830.131 4.45

5 Hotel and Tourism 45 1064.811 2.59

6 Real Estate 19 1056.453 2.57

7 Livestock & Fisheries 25 324.358 0.79

8 Transport & Communication 16 313.906 0.76

9 Industrial Estate 3 193.113 0.47

10 Agriculture 9 182.751 0.44

11 Construction 2 37.767 0.09

12 Other Services 6 23.686 0.06

Total 488 41090.806 100.00

Permitted Enterprises

Investments in Myanmar

Page 9: Aye Maw / Doing business in Myanmar

Investments in Myanmar

Sr.

Particulars No. Approved %

No. Amount

1 China 34 14142.674 34.42

2 Thailand 61 9568.093 23.29

3 Hong Kong 40 6371.495 15.51

4 Republic of Korea 55 2963.104 7.21

5 U.K * 54 2799.185 6.81

6 Singapore 76 1852.224 4.51

7 Malaysia 43 1031.285 2.51

8 France 2 469.000 1.14

9 U.S.A 15 243.565 0.59

10 Indonesia 12 241.497 0.59

11 The Netherlands 5 238.835 0.58

12 Japan 25 216.940 0.53

13 India 8 273.500 0.67

14 Philippine 2 146.667 0.36

15 Russia Federation 2 94.000 0.23

16 Australia 14 82.080 0.20

17 Austria 2 72.500 0.18

18 Panama 2 55.101 0.13

19 Viet Nam 4 49.796 0.12

20 United Arab Emirates 1 41.000 0.10

21 Canada 15 40.791 0.10

22 Mauritius 2 30.575 0.07

23 Germany 2 17.500 0.04

24 Republic of Liberia** 2 14.600 0.04

25 Denmark 1 13.370 0.03

26 Cyprus 1 5.250 0.01

27 Macau 2 4.400 0.01

28 Switzerland 1 3.382 0.01

29 Bangladesh 2 2.957 0.01

30 Israel 1 2.400 0.01

31 Brunei Darussalam 1 2.040 0.00

32 Sri Lanka 1 1.000 0.00

Total 488 41090.806 100.00

Permitted Enterprises

Page 10: Aye Maw / Doing business in Myanmar

No. Country 1989-2001 Country 1989-2012

1 UK 1380 China 13947

2 Singapore 1351 Thailand 9568

3 Thailand 1187 Hong Kong 6308

4 Malaysia 599 Korea 2938

5 USA 583 UK 2659

6 France 470 Singapore 1818

7 Indonesia 239 Malaysia 977

8 Netherland 238 France 469

9 Japan 229 USA 243

10 Korea 156 Indonesia 241

11 Phillippines 147 Netherland 238

12 Hong Kong 144 Japan 211

13 China 67 India 189

14 Canada 64 Phillippines 146

15 Others 243 Others 472

Total 7097 Total 40424

USD - Million

Singapore’s Investment in Myanmar

Page 11: Aye Maw / Doing business in Myanmar

Investment Law

100% Foreign Owned

Forms of Investment

JointVenture

A Citizen or

Concerned Government Organization

Any System Included in the Mutually

AgreedContract

1

2

3

Page 12: Aye Maw / Doing business in Myanmar

Minimum Foreign Capital Requirements

� US Dollars 500,000/- for Manufacturing (MIC)

� US Dollars 300,000/- for Service (under MIC)

� US Dollars 50,000/- for Service (under DICA)

Investment Law

(Until the declaration of the required rules, regulations, procedures,

orders, notifications and directives by the Ministry of Nat ional Planning

and Economic Development)

Page 13: Aye Maw / Doing business in Myanmar

Tax Incentives

5 years tax holiday (MIC)

Further tax exemption/relief for an appropriate

period in case if it is considered beneficial for the

State (MIC)

Other tax incentives (imported machinery, raw

materials up to 3 years etc.)

Investment Law

Page 14: Aye Maw / Doing business in Myanmar

Land LeaseInvestment Law

50 Years(For Initial Period)

10 Years(First Extension )

10 Years(Second Extension)

Depending on the business, type of

business and investment amount

Land

Lease

Page 15: Aye Maw / Doing business in Myanmar

Kyauk Phyu

Yangon

Thilawa

Dawei

Dawei SEZ

- being developed

Thilawa SEZ

- in the process

Kyaukphyu SEZ

- to be developed

SEZs in Myanmar

Page 16: Aye Maw / Doing business in Myanmar

Dawei

Kunming

Asia Regional Hub

Africa

India

Middle East /Europe

Dawei SEZ Project Location

Page 17: Aye Maw / Doing business in Myanmar

Dawei SEZ Project Location

Page 18: Aye Maw / Doing business in Myanmar

Yangon

Thilawa SEZ Project Location

Page 19: Aye Maw / Doing business in Myanmar

Kyauk Phyu SEZ Project Location

Page 20: Aye Maw / Doing business in Myanmar

Monywa,Kalay,

Shwe Bo(3)

Magwe,Pakhokku,

Yenanchaung(3)

Pyay (1)

Pathein,Myaungmya,

Hinthada(3)

Yangon(14)

Myeik(1)

Mawlamyine(1)

Taungyi(1)

Mandalay,Myingyan,Meikhtila

(3)

30 Industrial Zones

are already developed

Industrial Zones

Page 21: Aye Maw / Doing business in Myanmar

Tatkone(1)

Ponnakyun (1)Myawaddy

(1)

Phaan(1)

Mandalay(Tadaoo)

(1)

Muse(1)

7 Industrial Zones to

be established

Phaya Thone Zu(1)

Industrial Zones

Page 22: Aye Maw / Doing business in Myanmar

� Geographical Advantages

� Abundant Workforce

� Rich Resources

� Cultural Heritages andUnique Landscape

Why Myanmar is…

Page 23: Aye Maw / Doing business in Myanmar

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

Why Myanmar is…

Page 24: Aye Maw / Doing business in Myanmar

Min Zaw [email protected]