update business landscape in myanmar
TRANSCRIPT
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The Update of Business Landscape in
Myanmar
1
Aung Naing OoPermanent Secretary
Ministry of Investment and Foreign Economic Relations
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v Policy updates
v Improvement updates
v Upcoming programmes
v Thai Investment
Outline
2
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3
Policies bound for more liberalizations …..
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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
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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
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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
6
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Auto Policy
7
Roadmap
SKD
CKD(BBC, SPV, EV)
MoreCKD(BBC, Export)
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8
and improvements have been made in such areas as …..
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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
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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
10
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11
What next ?…..
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Laws
Regulations
Administrative Practices,
Procedures, Notifications
Institutions (to administer
laws)
Courts (to enforce laws)
Standard Operating Procedures
12
Passing laws alone will not create a conducive legal framework
SOP
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New Industrial Zones
13
F
F
F
F
F
2910 Rai
1405 Rai
4515 Rai
22770 Rai
Thilawa SEZ
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Foreign Investment of Existing Enterprises
14
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Thai Investment
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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
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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%
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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
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Registration of Thailand Companies
18
Trading15%
Industry11%
Services72%
Construction0%
Hotel1%
Tourism1%
Bank0% General
0%
Total 1809