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Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
Enhancing Investment Climates in MYANMAR
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Enhancing Investment Climates in MYANMAR

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Enhancing Investment Climates in MYANMAR is presented by Ms. Ladda Mongkolchaiwiwat, GM - VNU Exhibitions Asia Pacific, prepared by Mr. Sarawut Burapapat, Strategic Communication Consultant - …

Enhancing Investment Climates in MYANMAR is presented by Ms. Ladda Mongkolchaiwiwat, GM - VNU Exhibitions Asia Pacific, prepared by Mr. Sarawut Burapapat, Strategic Communication Consultant - Market-Comms and sourced by Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI)
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  • 1. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Enhancing InvestmentClimates in MYANMAR
  • 2. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Outline Profile of the Republic of theUnion of Myanmar Natural environment (Natural &Human Resources) Economic system and markets Law and regulations Financial and banking system Financial and banking system Investment opportunities Overview Exhibition Industry inMyanmar (Preparing for AEC2015) Some highlighted exhibition inMyanmar Where and Why Myanmar
  • 3. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)The Republic ofThe Union Of Myanmar• The Land: The largest country on themainland of South East Asia.• Total land area: 676,577 sq. km (50%mountains and forests (northern andeastern)• Total coastline: 2,832 sq.km Totalinternational borders of 5,858 kmPopulation: 60 million (2010) GrowthRate: 1.84% Literacy Rate: 90 %• GDP: 19,000 in billion Kyat (2009-10)Yangon GDP per capita: 571 thousandKyats (2009-10)
  • 4. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Natural Environment RESOURCE- RICH Natural resources Humanresources Skills
  • 5. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Policy and EconomicLandscape in Myanmar Greater international stage! 2014 CHAIR OF ASEAN Free flow 2015 AEC ASEAN ECONOMICCOMMUNITY 2015 AEC ASEAN Free Trade Agreement AFTA
  • 6. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)MyanmarGDP - compositionby sector:Agriculture: 43%Industry: 20.5%Services: 36.6%(2011 est.)Labor force –by occupation:Agriculture: 65%Industry: 12%Services: 23% (2001est.)Labor force:32.53 million (2011est.)Country comparisonto the world: 19
  • 7. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)
  • 8. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)
  • 9. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)No Items Value(USDollarinMillion)1 NaturalGas 3463.4822 BeanandPulses 1120.9383 jade 780.3404 MarineProducts 705.8665 Garment 498.6086 Rice 324.6227 Rubber 311.0908 Teaklog 283.9239 HardwoodLog 272.88310 Corn 216.789Top Ten Export Items of Myanmar (2011-2012)
  • 10. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Natural Gas 38%Bean and Pulses 12%Jade 9%Rice 4%Garment 5%Fishery products 8%Rubber 3%Teak log3%Hardwood log 3%Corn 2%Top Ten Export Items of Myanmar (2011-2012)
  • 11. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)No Items Value(USDollarinMillion)1 PetroleumProducts 2079.7652 Vehicles&SpareParts 1178.7613 Iron&SteelConstructionmaterials603.7684 IronandSteelMaterials 512.4605 MachineryandSpareParts 511.5186 PalmOil 388.2917 PlasticRawMaterials 314.1298 Ships,BoatsandSpareParts 311.3839 Pharmaceuticals 226.06110 Fertilizers 174.590Top Ten Import Items of Myanmar (2011-2012)
  • 12. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Ships, Boats & SpareParts, 3%Pharamaceuticals, 2%Major Import Commodities 2011-2012Plastic Raw Materials, 3%Palm Oil, 4%Machinery & Spare Parts, 6%Iron & Steel COnstructions, 7%Iron & Steel Materials, 6% Vehicles &Spare Parts,13%PetroleumProducts, 23%Fertilizers, 2%
  • 13. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Laws and RegulationsInvestment Laws of Myanmar The Union of Myanmar Foreign Investment Law (FIL) wasenacted on 30 November 1988. The Union of Myanmar Special Economic Zone Law wasenacted on January 2011. The Dawei Special Economic Zone Law was also enacted inJanuary 2011 subsequently.
  • 14. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Foreign Investment – LeadingInvestors (2007-2011) FDI in US$m (2007-2011) China: 13,472 Hong Kong: 5,774 Thailand: 2,991 Korea: 2,707 Malaysia: 317 Singapore: 291 Others: 304China52%Thailand12%Hong Kong22%SouthKorea11%Singapore 1%Other 1%Malaysia1%
  • 15. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Foreign Investment – LeadingSectors (2007-2011) Other Sectors: Real Estate Manufacturing Tourism Agri/Aqua-culture Development Measures Cellular Subscriptions: 1% Registered cars: 279,000 2011 Tourist Arrivals: 464,000 Office space: 62,000 sq m Retail space: 133,700 sq m No of hotel rooms: 25,002 Power: 104 kWh per capitaTransport & 1%CommunicationOil and Gas35%Hotel andTourism3%Manufacturing4%Mining7%Fisheries1%AgricultureConstructionOtherServicesPower46%Industrial estateReal Estate3%
  • 16. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)The MyanmarInvestmentCommission Criteria for investment: Support the national economicdevelopment plan Opening up of more employmentopportunities Increase exports Production for import substitution Production of products which requireheavy investment To develop high-skill technology anddevelop advance technology forproduction Development of the manufacturing andservices sector requiring heavy capital Businesses which would save energyconsumption Exploration/Production of new energyand renewable energy Development of modern industriesConservation of the environment• Formed under the ForeignInvestment Law• Reviews investmentproposals• Issues MIC Permit andDecisionForeign Investment Regime
  • 17. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Incentives under the ForeignInvestment Law (1988) 5 years tax holiday Further tax exemption/relief for an appropriate period incase if it is considered beneficial for the State Export tax - 10% to 0 % (except for 18 special commodities)
  • 18. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Non-tax Incentives under theForeign Investment LawLand LeaseInvestors are allowed to lease the land either from the government orfrom the private for 30 years as initial to be extended 2 times, each time allow 5 yearsExchange RateCurrency exchange rate will be calculated based on prevailingmarket rate.
  • 19. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Non-tax Incentives under theForeign Investment LawGuaranteeEnterprises operating under the Foreign Investment Law shallhave the State guaranteesagainst nationalization and expropriationto transfer the entitled Foreign Capital to investor on theexpiry of the term of the contractagainst termination of investment during the permitted term
  • 20. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Incentives under the ForeignInvestment Law (1988)• at the rate fixed by the MICAccelerate Depreciation• At rates applicable to citizens• Deductible from assessable incomePayment of taxes for Expat Employees• Deductible from assessable incomeR&D expenses
  • 21. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Incentives under the ForeignInvestment Law (1988)• Carry forward losses for 3 consecutive years• If losses are sustained within two years after the initialtax holidayCarry forward losses• On Imported Equipment and Materials used in businessfor the period of construction and for the first 3 years ofcommercial productionTax exemption on Imports
  • 22. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)MIC andIncorporationRegistering Company or Branch Officewith the CROApplying for aPermit to TradeWith the CRO(Business License)Regulated by theForeign InvestmentLaw which isadministered by theMICEstablishingBranch OfficeRegulated by the MyanmarCompanies Act andAdministered by theDirectorate of Investmentand CompanyAdministration under theMinistry of NationalPlanning and EconomicDevelopmentMyanmarInvestment CommissionApprovalEstablishinga CompanyCabinetCommitteeExecutiveCommittee
  • 23. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Investment Law of MyanmarAny Myanmar PartnerAn IndividualA Private CompanyA Cooperative SocietyState Owned Enterprise35%
  • 24. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Type ofvehiclesActivitiesIs an MICPermit requiredWhat is theminimumcapitalizationAre taxIncentivesavailableTax StatusPrivateCompanyIndustry Yes US$500,000 YesResidentforeignerPrivateCompany ServicesDepending onthe needs of thebusiness–landlease and importof goodsUS$300,000with an MICPermitYesResidentforeignerUS$50,000without an MICPermitNoResidentforeignerBranchofficeRepresentative office/ ServicesNo US$50,000 NoNon-residentforeignerCorporate Vehicles
  • 25. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Existing Law Revised LawNo specific definition on investment Specific definition on investmentNo specific definition on grantee of land lease or grantee ofland usedSpecific definition on grantee of land lease or grantee of landusedNot mentioned on restricted activities Mentioned on restricted activitiesExport Promotion Export promotion and import substitutionNo description on rights and obligation of investor Description on rights & obligation of investor3 years tax holidays 5 years tax holidaysNo description on land use Description on land useOfficial exchange rate Market exchange rateNo description on administrative penalty Description on administrative penaltyNo description on dispute settlementDescription on dispute settlementChanges in Investment Law
  • 26. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)SpecialEconomic Zonesin MyanmarYangonThilawaDawei
  • 27. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)AfricaIndiaMiddle East /EuropeDawei SEZ Project Location asAsia Regional Hub
  • 28. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)
  • 29. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Thilawa SEZIn the SEZ plan, SEZ and industrialzones will be as follows;•Special Industrial Zone (for FDI)-2300 acres•Local Industrial Zone- 430 acres Singapore Myanmar Development•(SINMARDEV) Industrial Zone-247 acres•Sea ports and container yard•Thilawa Special Industrial Zone –3,170 acres
  • 30. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Manufacturing SectorExport Oriented Industry Resource-based Industry agro-based industry wood-based industry leather, rubber-based industry processed and semi-processed seafood.Export Oriented Industry Non-Resource-based industry/labour intensive industry garment/textile light manufacturing / electricalappliance electronic industry footwear industry other export oriented industry
  • 31. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Manufacturing SectorDomestic market orientedindustry Resource-based industry food processing agro supportive industry(farming tools, fertilizer,pesticides)Domestic market orientedindustry Non-Resource-based industry Cement Electronic and machinerycomponent Plastic ware Iron and steel Agro-supportive industry(tractor, water pump) Packaging industry
  • 32. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Visible Reforms | Previously Misallocated InvestmentLiberalized in car import- any citizen withforeign exchange account is allowed to import car
  • 33. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Property Development
  • 34. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Ports, Shipping / Logistics
  • 35. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Telecommunication and Broadcasting
  • 36. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Financial andBanking Myanmar starts new FXregime at 818 kyat per dollar(2 April 2012) 19 Private Banks are runningin local with 205 branches thatis one opportunity to run theBanking Business in Myanmar In 2013, Myanmar will hostthe SEA Games, most of thepayments will come throughcards system, so MyanmarGovernment is implementingthe credit cards and ATMs. MCB intends to monitor theinflow of local and foreigninvestment in order to avoidspeculation in any sector ofthe economy which will makeit vulnerable to crises.
  • 37. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Food ProcessingMineral ProcessingWood ProcessingPetrochemicalAgricultureFisheryMiningForestryOil & GasGarmentElectronic PartsAssemblyOthersHotel & TourismLogisticsReal EstateOtherPromising FDI SectorResourceLabourServices
  • 38. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)Tourism Snow-capped mountainsin the north, Unspoiled beaches in thewest and south, Bagan Mandalay Inlay Lake Myauk-Oo and otherscenes of breadth takingbeauty all over thecountry.Myanmar also rich intraditional and culturalheritage sites, such as
  • 39. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)ExhibitionIndustry inMyanmar To Strengthen the economicand bilateral trade relationship To build a genuine partnershipand mutual cooperation withthe business community andconsumers To provide a formal platformto allow the businesscommunity to develop astrong, friendly and solidinterpersonal Relationship To help expand the contactsfor the ASEAN/GMSbusiness opportunitiesnetworking To expand businesses, explorejoint-venture, trade businesspartner and deeperdistribution network(Preparing for AEC 2015)Although the exhibitionindustry is not fully developedyet, Myanmar has the capacityto host exhibition, trade fairsand expo.With the following aim andobjectives, Chambers &Associations organized series ofexhibitions, trade fairs and expocum seminars, businessmatching in Myanmar :
  • 40. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)ExhibitionIndustry inMyanmar Access to InternationalMarket AEC and FTA which will bein place will not only createnew opportunities but alsoformidable challenges Government is introducingeconomic transformationprogram to boost the nation’seconomy, to enhance thecompetitiveness to penetrateforeign markets Create opportunities forMyanmar Companies toexpand out domestic marketand enter into the regionalmarket or global market,through participation indomestic and internationalexhibitions, trade forum andexpo, etc.
  • 41. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)SomeHighlightedExhibition inMyanmar First Myanmar FoodExhibition (2009) Second Myanmar FoodExhibition (2010) Myanmar Malaysia InnovativeProducts & Services Expo2011 Renewable Energy, Energyefficiency business andFinance Forum & Exhibition(since 2009, every year) India, China, Vietnam andThailand National Exhibition National Expo and Car Show(2012) Yangon Trade Exhibition &Car Expo (2012)
  • 42. Sources : Republic of the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)The most valued professionaltrade exhibition organizerin Asia PacificFor more information please contact VNU Exhibitions Asia Pacific195 Empire Tower, 23rd Floor, Room no. 2307, South Sathorn Road, Yannawa, Bangkok, ThailandTel. : +662 670 0900 Fax : +662 670 0908Email : info@vnuexhibitionsap.com Website : www.vnuexhibitionsap.com

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