This page provides the latest reported value for myanmar foreign. The republic of the union of myanmar pyidaungsu hluttaw foreign investment law pyidaungsu hluttaw law no. Foreign direct investment policy myanmars foreign direct investment policy is a component of the overall restructuring and development policy of the government. Foreign direct investment in myanmarfdi guide and opportunity. Ministry of investment and foreign economic relations wikipedia. Investment trend and economic situation in myanmar boi. Pdf the role of foreign direct investment fdi in myanmar. Mar 01, 2017 myanmar investment law the pyidaungsu hluttaw law no.
Investors registered under the new fil are eligible for a lease term of up to 50 years, with the option of two consecutive tenyear renewals. In the current reform process, smallholders are reclaiming their legal land rights at the same time that foreign investment is flooding the country, placing all previous land use arrangements under increasing pressure. Investment and company administration, ministry of national planning and. According to the myanmar investment commission, inward fdi grew in 201718 the country received more than 6. Foreign direct investment and economic transformation in myanmar 2 ii. Overview chinese investment in myanmar has fallen dramatically since myanmars. Foreign direct investment fdi is argued to play a pivotal role in accelerating economic growth eg of a host country especially in developing and. Myanmar permits full foreign capital investments in education sector this means foreigners will now be able to fully own and operate private schools teaching a curriculum prescribed by the ministry of education moe or an international curriculum. Mar 11, 2020 the myanmar chapter is available below as a pdf. 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. Under the myanmar investment law 2016 mil the myanmar investment commission mic is the regulator for foreign investment.
Pdf since the new government took office in march 2011, myanmar has embarked on a process of extensive political and economic reform. On 30th march 2017, the ministry of planning and finance, therefore, published the myanmar investment rules mir under the myanmar investment law 2016 mil as notification no. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. The union of myanmar foreign investment law 1988 statement on foreign investment law of myanmar the government of the union of myanmar has been striving hard to promote all round development of national economy to improve provisions of food, clothing and shelter for the people so as to ameliorate their living standards. Myanmar foreign investment law was issued in 2012 to promote and regulate foreign investments.
State financing and the central bank of myanmar, 200506 to 2014 kyat, millions 59 table 3. Myanmar is the passing of the new foreign investment law on 2 november 2012. These include the myanmar companies law and implementing rules, the condominium law rules, and the mining law amendment act rules. This study focuses on the inflows of foreign direct investment into myanmar and vietnam. 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. Myanmar had signed and entered many agreements in regard to the asean investment area to collaborate with the member countries and to enhance free flows of investments into. Myanmar is in the midst of rapid economic and social change, with dramatic consequences for land tenure. 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. 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. Vietnam and myanmar enacted foreign investment laws in 1987 and 1988 respectively. Foreign investment, policy reforms to boost myanmars. To browse all 19 jurisdictions covered by the guide, please visit the getting the deal through website. Therefore the period from 1989 to 2012 is designated as the study period. The following expressions contained in this law shall have the meanings.
At the same time, myanmars rich natural resource base, abundant labor and strategic location wedged between india and china, make the country a very attractive destination for foreign investment. Myanmar s foreign investment law was enacted in 1988 soon after the adoption of a marketoriented economic system to accelerate the flow of fdi into the country. With the mil affecting all investments in myanmar, no matter how large or small, or whether being made by local or foreign investors, it is important to have an. Public consumption and private investment driving growth p. Ministry of investment and foreign economic relations mifer. Investment promotion and facilitation in myanmar chapter 5. As part of the reform process, the government of myanmar is. The mil, the investment rules and the myanmar companies law 2017 are the key pieces of legislation underpinning the governments efforts to attract foreign investment to myanmar.
Myanmar investment law and its implementing rules, the environmental conservation law and the foreign exchange management act. The ministry of investment and foreign economic relations burmese. Organization for economic cooperation and development countries. Local or foreign investor wants tax incentives, or foreign investor wants to lease land for more than one year and the investment does not require an mic permit submitted by the investor or its authorized representative new. The objective of the study is to examine the role of foreign direct investment fdi and the situation of fdi flows in myanmar.
Guide to the myanmar investment law berwin leighton paisner. Under the 2016 myanmar investment law, investment with 100% foreign ownership is permitted after obtaining approval from the relevant ministry. Development economists know that rapid growth requires a high level of investment, which in the absence of foreign direct. The nations neighboring myanmar are bangladesh, china, india, laos and thailand. Introduction with the easing of economic sanctions by the united states and europe, myanmar is now a prime target for foreign investors looking to gain a foothold in this resourcerich, strategicallylocated southeast asian nation. Foreign investment by country directorate of investment and. A foreign investor may want to consider obtaining an mic permit investment permit, which would allow a foreign investor to benefit from certain investment incentives available under the mil. On 3 november 2012, a new foreign investment law 2012 fil came into force, replacing the myanmar foreign investment law 101988. The new law is expected to encourage greater foreign direct investment into myanmar. Data on foreign direct investment fdi in myanmar are reported by the directorate of. Regulation and protection of investment in myanmar chapter 4. The investment policies of both countries are presented. Myanmars investment outlook for 2018 asean business news.
The asian development outlook ado 2019 forecasts myanmars. In 2017, the century old companies law was substantially revised. Chinas investment in myanmar declines in 20162017 fiscal. This page provides the latest reported value for myanmar foreign direct investment plus. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. The new myanmar investment law mil took effect in 2017 to combine the old citizens investment law and the myanmar investment law. The study was based on secondary data source of myanmar over the. 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. Do you know ratio of foreign direct investment in myanmar and opportunity in several sectors. Apr 03, 2019 yangon, myanmar 3 april 2019 myanmars economic growth is expected to pick up in 2019 and 2020, thanks to higher foreign direct investment fdi and positive responses to the governments economic and policy reforms, according to a new report by the asian development bank adb. This was replaced by the myanmar investment law in 2016 so as to combine the regulation of both foreign and domestic investments under one set of laws. Foreign investment by country directorate of investment. Foreign investment overview for myanmar myanmar 2016. The republic of the union of myanmar pyidaungsu hluttaw.
Myanmar foreign investment tracking project the unofficial myanmar language translation of this response is available here 1. This law shall be called the foreign investment law. This update to the most important investment related legislation helps establish the coherent legal framework for both domestic and foreign investors. The passing of the myanmar investment law 402016 mil has brought about significant changes to myanmars investment framework affecting both myanmar and foreign investors. Highlights english highlights myanmar download report english sections in this edition. The following expressions contained in this law shall have the meaning given hereunder. Does your company have investments or operations in myanmar or is it seriously considering investing or operating there. The myanmar investment law 2016 mil was enacted to replace the foreign investment law 2012 and the myanmar citizens investment law 20 on 18th october 2016. Myanmars fiscal position, 201112 to 201516 per cent of gdp 60 table 3. The myanmar government is in the process of passing additional investor friendly laws and regulations to promote foreign investment. Myanmar investment law the pyidaungsu hluttaw law no.
Foreign direct investment in myanmar increased by 734. Yangon, myanmar 3 april 2019 myanmars economic growth is expected to pick up in 2019 and 2020, thanks to higher foreign direct investment fdi and positive responses to the governments economic and policy reforms, according to a new report by the asian development bank adb. The potential for rapid growth and development is enormous. Foreign investment, policy reforms to boost myanmars growth. The new myanmar companies act takes effect from 1 august 2018. Ministry of investment and foreign economic relations. Myanmar, is a southeast asian nation comprised of 100 plus ethnic groups. Foreign direct investment promotion plan in myanmar fdipp in 2014. The number of activities to be carried out only in the form of joint.
In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign. There are also promoted investment activities of both foreign and. Myanmars fiscal position, 201112 to 201516 per cent of gdp 60. This law shall be called the myanmar investment law. Pursuant to the mil, when doing business in myanmar, foreign investors can benefit from significant tax exemptions and other benefits.
The report looks at foreign direct investment fdi in myanmar, with a focus on chinese investment, to assess how it contributes to economic transformation in four sectors. Myanmar permits full foreign capital investments in. Considered by many to be one of the last economic frontiers, myanmar has been the object of investor interest for the past three years. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. This update to the most important investmentrelated legislation helps establish the coherent legal framework for both domestic and foreign investors. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity. Foreign investment law for fruitful investment in myanmar. Dynamic economic growth led by fdi worth usd140 billion during the period of 2014.
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