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) .

1. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)

Enhancing Investment
Climates in MYANMAR

2. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Outline
 Profile of the Republic of the
Union 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 in
Myanmar (Preparing for AEC
2015)
 Some highlighted exhibition in
Myanmar
 Where and Why Myanmar

3. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
The Republic of
The Union Of Myanmar
• The Land: The largest country on the
mainland of South East Asia.
• Total land area: 676,577 sq. km (50%
mountains and forests (northern and
eastern)
• Total coastline: 2,832 sq.km Total
international borders of 5,858 km
Population: 60 million (2010) Growth
Rate: 1.84% Literacy Rate: 90 %
• GDP: 19,000 in billion Kyat (2009-10)
Yangon GDP per capita: 571 thousand
Kyats (2009-10)

4. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Natural Environment
 RESOURCE- RICH
 Natural resources Human
resources Skills

5. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Policy and Economic
Landscape in Myanmar
 Greater international stage!
 2014 CHAIR OF ASEAN
 Free flow 2015 AEC
 ASEAN ECONOMIC
COMMUNITY 2015 AEC
 ASEAN Free Trade Agreement
 AFTA

6. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Myanmar
GDP - composition
by sector:
Agriculture: 43%
Industry: 20.5%
Services: 36.6%
(2011 est.)
Labor force –
by occupation:
Agriculture: 65%
Industry: 12%
Services: 23% (2001
est.)
Labor force:
32.53 million (2011
est.)
Country comparison
to the world: 19

7. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)

8. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)

9. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
No Items Value
(USDollarinMillion)
1 NaturalGas 3463.482
2 BeanandPulses 1120.938
3 jade 780.340
4 MarineProducts 705.866
5 Garment 498.608
6 Rice 324.622
7 Rubber 311.090
8 Teaklog 283.923
9 HardwoodLog 272.883
10 Corn 216.789
Top Ten Export Items of Myanmar (2011-2012)

10. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Natural Gas 38%
Bean and Pulses 12%
Jade 9%
Rice 4%
Garment 5%
Fishery products 8%
Rubber 3%
Teak log
3%
Hardwood log 3%
Corn 2%
Top Ten Export Items of Myanmar (2011-2012)

11. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
No Items Value(USDollarinMillion)
1 PetroleumProducts 2079.765
2 Vehicles&SpareParts 1178.761
3 Iron&SteelConstruction
materials
603.768
4 IronandSteelMaterials 512.460
5 MachineryandSpareParts 511.518
6 PalmOil 388.291
7 PlasticRawMaterials 314.129
8 Ships,BoatsandSpareParts 311.383
9 Pharmaceuticals 226.061
10 Fertilizers 174.590
Top Ten Import Items of Myanmar (2011-2012)

12. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Ships, Boats & SpareParts, 3%
Pharamaceuticals, 2%
Major Import Commodities 2011-2012
Plastic Raw Materials, 3%
Palm Oil, 4%
Machinery & Spare Parts, 6%
Iron & Steel COnstructions, 7%
Iron & Steel Materials, 6% Vehicles &
Spare Parts,
13%
Petroleum
Products, 23%
Fertilizers, 2%

13. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Laws and Regulations
Investment Laws of Myanmar
 The Union of Myanmar Foreign Investment Law (FIL) was
enacted on 30 November 1988.
 The Union of Myanmar Special Economic Zone Law was
enacted on January 2011.
 The Dawei Special Economic Zone Law was also enacted in
January 2011 subsequently.

14. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Foreign Investment – Leading
Investors (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: 304
China
52%
Thailand
12%
Hong Kong
22%
South
Korea
11%
Singapore 1%
Other 1%
Malaysia
1%

15. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Foreign Investment – Leading
Sectors (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 capita
Transport & 1%
Communication
Oil and Gas
35%
Hotel and
Tourism
3%
Manufacturing
4%
Mining
7%
Fisheries
1%
Agriculture
Construction
Other
Services
Power
46%
Industrial estate
Real Estate
3%

16. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
The Myanmar
Investment
Commission
 Criteria for investment:
 Support the national economic
development plan
 Opening up of more employment
opportunities Increase exports
 Production for import substitution
 Production of products which require
heavy investment
 To develop high-skill technology and
develop advance technology for
production
 Development of the manufacturing and
services sector requiring heavy capital
 Businesses which would save energy
consumption
 Exploration/Production of new energy
and renewable energy
 Development of modern industries
Conservation of the environment
• Formed under the Foreign
Investment Law
• Reviews investment
proposals
• Issues MIC Permit and
Decision
Foreign Investment Regime

17. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Incentives under the Foreign
Investment Law (1988)
 5 years tax holiday
 Further tax exemption/relief for an appropriate period in
case 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 of
Chambers of Commerce and Industry (UMFCCI)
Non-tax Incentives under the
Foreign Investment Law
Land Lease
Investors are allowed to lease the land either from the government or
from the private
 for 30 years as initial
 to be extended 2 times, each time allow 5 years
Exchange Rate
Currency exchange rate will be calculated based on prevailing
market rate.

19. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Non-tax Incentives under the
Foreign Investment Law
Guarantee
Enterprises operating under the Foreign Investment Law shall
have the State guarantees
against nationalization and expropriation
to transfer the entitled Foreign Capital to investor on the
expiry of the term of the contract
against termination of investment during the permitted term

20. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Incentives under the Foreign
Investment Law (1988)
• at the rate fixed by the MIC
Accelerate Depreciation
• At rates applicable to citizens
• Deductible from assessable income
Payment of taxes for Expat Employees
• Deductible from assessable income
R&D expenses

21. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Incentives under the Foreign
Investment Law (1988)
• Carry forward losses for 3 consecutive years
• If losses are sustained within two years after the initial
tax holiday
Carry forward losses
• On Imported Equipment and Materials used in business
for the period of construction and for the first 3 years of
commercial production
Tax exemption on Imports

22. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
MIC and
Incorporation
Registering Company or Branch Office
with the CRO
Applying for a
Permit to Trade
With the CRO
(Business License)
Regulated by the
Foreign Investment
Law which is
administered by the
MIC
Establishing
Branch Office
Regulated by the Myanmar
Companies Act and
Administered by the
Directorate of Investment
and Company
Administration under the
Ministry of National
Planning and Economic
Development
Myanmar
Investment Commission
Approval
Establishing
a Company
Cabinet
Committee
Executive
Committee

23. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Investment Law of Myanmar
Any Myanmar Partner
An Individual
A Private Company
A Cooperative Society
State Owned Enterprise
35%

24. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Type of
vehicles
Activities
Is an MIC
Permit required
What is the
minimum
capitalization
Are tax
Incentives
available
Tax Status
Private
Company
Industry Yes US$500,000 Yes
Resident
foreigner
Private
Company Services
Depending on
the needs of the
business–land
lease and import
of goods
US$300,000
with an MIC
Permit
Yes
Resident
foreigner
US$50,000
without an MIC
Permit
No
Resident
foreigner
Branch
office
Representative office
/ Services
No US$50,000 No
Non-resident
foreigner
Corporate Vehicles

25. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Existing Law Revised Law
No specific definition on investment Specific definition on investment
No specific definition on grantee of land lease or grantee of
land used
Specific definition on grantee of land lease or grantee of land
used
Not mentioned on restricted activities Mentioned on restricted activities
Export Promotion Export promotion and import substitution
No description on rights and obligation of investor Description on rights & obligation of investor
3 years tax holidays 5 years tax holidays
No description on land use Description on land use
Official exchange rate Market exchange rate
No description on administrative penalty Description on administrative penalty
No description on dispute settlement
Description on dispute settlement
Changes in Investment Law

26. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Special
Economic Zones
in Myanmar
Yangon
Thilawa
Dawei

27. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Africa
India
Middle East /
Europe
Dawei SEZ Project Location as
Asia Regional Hub

28. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)

29. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Thilawa SEZ
In the SEZ plan, SEZ and industrial
zones 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 of
Chambers of Commerce and Industry (UMFCCI)
Manufacturing Sector
Export 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 / electrical
appliance
 electronic industry
 footwear industry
 other export oriented industry

31. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Manufacturing Sector
Domestic market oriented
industry
 Resource-based industry
 food processing
 agro supportive industry
(farming tools, fertilizer,
pesticides)
Domestic market oriented
industry
 Non-Resource-based industry
 Cement
 Electronic and machinery
component
 Plastic ware
 Iron and steel
 Agro-supportive industry
(tractor, water pump)
 Packaging industry

32. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Visible Reforms | Previously Misallocated Investment
Liberalized in car import- any citizen with
foreign exchange account is allowed to import car

33. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Property Development

34. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Ports, Shipping / Logistics

35. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Telecommunication and Broadcasting

36. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Financial and
Banking
 Myanmar starts new FX
regime at 818 kyat per dollar
(2 April 2012)
 19 Private Banks are running
in local with 205 branches that
is one opportunity to run the
Banking Business in Myanmar
 In 2013, Myanmar will host
the SEA Games, most of the
payments will come through
cards system, so Myanmar
Government is implementing
the credit cards and ATMs.
 MCB intends to monitor the
inflow of local and foreign
investment in order to avoid
speculation in any sector of
the economy which will make
it vulnerable to crises.

37. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Food Processing
Mineral Processing
Wood Processing
Petrochemical
Agriculture
Fishery
Mining
Forestry
Oil & Gas
Garment
Electronic Parts
Assembly
Others
Hotel & Tourism
Logistics
Real Estate
Other
Promising FDI Sector
Resource
Labour
Services

38. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Tourism
 Snow-capped mountains
in the north,
 Unspoiled beaches in the
west and south,
 Bagan
 Mandalay
 Inlay Lake
 Myauk-Oo and other
scenes of breadth taking
beauty all over the
country.
Myanmar also rich in
traditional and cultural
heritage sites, such as

39. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Exhibition
Industry in
Myanmar
 To Strengthen the economic
and bilateral trade relationship
 To build a genuine partnership
and mutual cooperation with
the business community and
consumers
 To provide a formal platform
to allow the business
community to develop a
strong, friendly and solid
interpersonal Relationship
 To help expand the contacts
for the ASEAN/GMS
business opportunities
networking
 To expand businesses, explore
joint-venture, trade business
partner and deeper
distribution network
(Preparing for AEC 2015)
Although the exhibition
industry is not fully developed
yet, Myanmar has the capacity
to host exhibition, trade fairs
and expo.
With the following aim and
objectives, Chambers &
Associations organized series of
exhibitions, trade fairs and expo
cum seminars, business
matching in Myanmar :

40. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Exhibition
Industry in
Myanmar
 Access to International
Market
 AEC and FTA which will be
in place will not only create
new opportunities but also
formidable challenges
 Government is introducing
economic transformation
program to boost the nation’s
economy, to enhance the
competitiveness to penetrate
foreign markets
 Create opportunities for
Myanmar Companies to
expand out domestic market
and enter into the regional
market or global market,
through participation in
domestic and international
exhibitions, trade forum and
expo, etc.

41. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)
Some
Highlighted
Exhibition in
Myanmar
 First Myanmar Food
Exhibition (2009)
 Second Myanmar Food
Exhibition (2010)
 Myanmar Malaysia Innovative
Products & Services Expo
2011
 Renewable Energy, Energy
efficiency business and
Finance Forum & Exhibition
(since 2009, every year)
 India, China, Vietnam and
Thailand National Exhibition
 National Expo and Car Show
(2012)
 Yangon Trade Exhibition &
Car Expo (2012)

42. Sources : Republic of the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI)

The most valued professional
trade exhibition organizer
in Asia Pacific
For more information please contact VNU Exhibitions Asia Pacific
195 Empire Tower, 23rd Floor, Room no. 2307, South Sathorn Road, Yannawa, Bangkok, Thailand
Tel. : +662 670 0900 Fax : +662 670 0908
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