Introduction of Myanmar Business

Myanmar is tremendously resource rich .Half of the country's land area is covered with forests. As there are vast area of uncultivated land in various parts of the country, there are potentials for the expansion of mixed and multiple cropping. Mineral resources- lead, zinc, silver, copper and gold are abundant. The length of the coastline from the mouth of Naaf River to Kawthaung is approximately 1,358 miles (2832 kilometers) and most of this coastline remains largely unexploited ,thus the success of fishery concerns are assured Gemstones- principally jade, rubies, sapphires and other gems have been mined since a long time ago. However, as there are indications that numerous deposits still lie untapped Pearls from Myeik are famous for theirs superb qualities and the world's largest pearl was also found in this region. Myanmar's largely intact culture, fascinating historical sites such as Bagan, Beikthano, Srikshetra and Mrauk- U are major tourist attractions. More over colourful and and diverse ethnic groups make it a potentially premier tourists destination. +Back to Top Market-oriented Policy The Government declared Market Economy System on October 29th ,1988 and laid down four Economic Objectives. The Government promulgated the Foreign Investment Law on 30th November and Procedures pertaining to that law was proclaimed on 7th December,1988.Economic activities in the private sector and foreign investment are being encouraged in an unprecedented manner. The basic principles of the Foreign Investment Law are to develop natural resources requiring huge investment, assist in the production and services requiring large capital, acquire new technology, promote exports, to increase employment opportunities , development of works on conservation of energy consumption and regional development. +Back to Top Foreign Investment and Benefits Foreign Investment can be in the form of fully partly-owned undertaking, or a joint venture with the local counterpart that could be a private or public entity. If a joint venture or partly -owned concern is constituted , the minimum component of foreign capital is 35 percent of equity capital and at least US$ 100,000 at present +Back to Top INCENTIVES A foreigner investor in turn enjoy economic benefits in taxes-- free tax holiday for three consecutive years from the date which is bilaterally fixed by the Myanmar Government and the Company involved. Repatriation of profits and withdrawal of legitimate assets on winding of the business. A foreign Company here means a business in which a foreigner of a foreign organization has equity of 100% (or) a business in which a foreigner or a foreign organization has an equity of 35 % at least. Capital prescribed by the Foreign Investment Commission for overseas Investors are (1) Kyats 1,000,000 for an industrial company, (2) Kyats 500,000 for trading company (3) Kyats 300,000 for a service company (4) Negotiable for any company approved by Myanmar Investment Commission. TYPES OF BUSINESS EXECUTED IN MYANMAR 1. Sole Proprietor 2. Partnership 3. Limited Liability Company 4. Private Company 5. Foreign Company (Branch ) 6. Public Company 7. Business Consultancy INVESTMENT Since the proclamation of this Foreign Investment Law up to 31st Dember,1998, foreign investors from various countries and regions totaling 23 in number had already invested US$7105.298 millions in eleven economic sectors. At present , five ASEAN countries have invested US$ 3716.869 millions in 147 enterprises that amount equals to 52.31 per cent of the total foreign investment. +Back to Top Amount of the Foreign Investments(by sectors) (US Dollars- Millions, up to 31-12-1998 No Subject Enterprises Number Value 1 Petrol and natural gas 46 2303.12 2 Industry 117 1465.96 3 Building-Construction 18 997.14 4 Hotel & Tourism Enterprises 40 1038.91 5 Mines 47 506.25 6 Transportation 13 275.39 7 Livestock & Fisheries 19 280.11 8 Industrial Projects 3 193.11 9 Construction 1 17.27 10 Agriculture 3 14.35 11 Other Services 5 13.67 Total 312 7105.29 +Back to Top Foreign Investment of Permitted Enterprises up to 31-12-1998 (By Country and Region) No Country and Region Permitted Number Approved Amount 1 Singapore 67 1501.065 2 United Kingdom 33 1354.923 3 Thailand 44 1244.548 4 Malaysia 25 587.169 5 U.S.A 16 582.065 6 France 3 470.370 7 The Netherlands 5 233.835 8 Indonesia 9 237.420 9 Japan 20 227.785 10 Philippines 2 146.667 11 Hong Kong 21 125.323 12 Republic of Korea 20 99.568 13 Australia 14 82.080 14 Austria 2 72.500 15 Canada 12 37.831 16 Peoples Republic of China 11 31.921 17 Panama 1 29.101 18 Germany 1 15.000 19 Denmark 1 13.370 20 Bangladesh 2 2.957 21 Israel 1 2.400 22 Macau 1 2.400 23 Sri Lanka 1 1.000 Total 312 7105.298 +Back to Top Prohibited Items In relation to conventional trade, the items prohibited are (1)Teak (2)Petroleum and Natural Gas (3)Pearl (4)Jade and other Gems and (5) Metals . In relation to Border Trade, the items prohibited are (1)Teak,(2)Petroleum, (3) Jade/ Pearl/Gems (4) Rice (5) Ammunition (6) Antique (7)Cotton (8)Hide/Leather (9)Peanuts (10) Fresh Water Fish/ Prawn( Raw or Dried:) (11)Salt Water Prawn ( Raw)(12) Fowl, Cattle, Pig ( Alive or processed;) (13)Elephant and other Exotic Animals (14) Ivory (15) Coal (16) Rubber( 17) Lead, Zinc, Copper, Tin, Tungsten, and other Metals (18) Gold, Silver, and Diamond. In conventional trade, the incoterms mostly practised are (1) FOB (2) CFR and (3) CIF; as regards importation, CIF alone is to be observed here. +Back to Top