Foreign investment overview for myanmar myanmar 2016. Types of land farmland paddy land and several types of nonpaddy land non. Combines the foreign investment law 2012 and the citizens investment law 20 proposals under the new law submitted since april 2017 distinguishes between citizen investor and foreign investor citizen investor includes enterprises established only by citizens which is at odds with the draft of the new companies law. Investment promotion and facilitation in myanmar chapter 5. Fet is among the most farreaching, and widely criticized, investor rights that investment treaties grant to foreign investors. The myanmar government is in the process of passing additional investor friendly laws and regulations to promote foreign investment. A guide to the myanmar investment law the passing of the myanmar investment law 402016 mil has brought about significant changes to myanmars investment framework affecting both myanmar and foreign investors. The republic of the union of myanmar pyidaungsu hluttaw. 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.
This law shall be called the union of myanmar foreign investment. New myanmar foreign investment law enacted on 2 november. Burma law times 19071920 indian law reports rangoon series 19231937 burma law journal 19221927 all india reporter, rangoon 19231937 rangoon law reports 19371942. The following expressions contained in this law shall have the meaning given hereunder.
Myanmar update on foreign investment baker mckenzie. Myanmar investment law, the ministry of planning and finance, with the approval of the union government, hereby issues these rules. Fdi in myanmar was on the rise even before the new investment law was being drafted, a trend continued during extensive public discussion and debate about the legislation. The new myanmar companies act takes effect from 1 august 2018.
However, companies registered under the myanmar investment law mil are permitted to repatriate investments and profits in the foreign currency in which the investments were made, subject to the approval of the investment commission and the central bank of myanmar. During the first four months of the fiscal year up to july, 3. 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. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity. While there is no specific rule on the minimum investment threshold for the grant of an mic permit under the myanmar foreign investment law, the mic has generally expected a minimum investment. Licensing of foreign investment in real estate 11 chapter 3. Pursuant to the mil, when doing business in myanmar, foreign investors can. Pursuant to the mil, when doing business in myanmar, foreign investors can benefit from significant tax exemptions and other benefits. Myanmar is in the midst of rapid economic and social change, with dramatic consequences for land tenure. Positioning myanmar as an attractive new investment destination in southeast asia 8thmeeting of the asiapacific foreign direct investment fdi network united nations conference centre, bangkok, thailand 2526 september 2018. This law shall be called the foreign investment law. Evaluation of the new foreign investment law in myanmar. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. Myanmar investment law burmese version18102016 approved 1.
The words and expressions in this law shall mean as designated hereundera the state means the republic of the union of myanmar. Myanmar investment guide 2018 directorate of investment and. While the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. Myanmar investment law directorate of investment and. Myanmars investment outlook for 2018 asean business news. Myanmar promulgated the long anticipated new foreign investment law the new fil when president u thein sein signed the bill on 2 november 2012. Investor means a myanmar citizen investor or foreign investor who invests within the union in accordance. Oct 19, 2016 myo aung myanmar, retirement work in home. Foreign investment law burmese and english myanmar law. Fallow and virgin lands management law 2012 foreign investment law 2012 special economic zones law 2012.
Myanmar foreign investment law implementing rules table of contents prohibited activities joint ventures restricted activities procedural information on 31 january, 20 the ministry of national planning and economic development of myanmar released new detailed regulations to augment the 2012 myanmar foreign investment law fil. However, bylaws implementing the new mil have not been issued yet and as such the rules issued under the old myanmar. The new myanmar investment law mil took effect in 2017 to combine the old citizens investment law and the myanmar investment law. This page provides the latest reported value for myanmar foreign direct investment plus. 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. Foreign exchange regulation act central bank of myanmar. In addition, the government revised myanmars investment law that serves to bring the countrys investment law under one regulatory roof by combining the myanmar citizen investment law and the myanmar foreign investment law. Foreign direct investment policy myanmars foreign direct investment policy is a component of the overall restructuring and development policy of the government. A revised draft of the myanmar companies law was approved by cabinet last week and has been forwarded to parliament. However, these separate legal regimes created the perception of an uneven playing field for foreign investors on the one hand and domestic investors on the other. Positioning myanmar as an attractive new investment.
Attorneygeneral lawauditorgeneral lawlaw amending the myanmar red cross society act, 1959adaptation of expressions lawunion of myanmar foreign investment law. Myanmar continued to strive for attracting foreign investment into the country in the current 201718 fiscal year which began in april. 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. The myanmar citizen investment law and myanmar foreign investment law have been repealed with effect from 18 october 2016. Construction permits and change of land use 19 chapter 6. This update to the most important investment related legislation helps establish the coherent legal framework for both domestic and foreign investors.
Myanmar foreign direct investment 20122019 data 2020. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Foreign direct investment and economic transformation in myanmar 2 ii. The new fil makes some significant changes to the previous version of the law which was passed in 1988 the old fil. Myanmar foreign investment tracking project the unofficial myanmar language translation of this response is available here 1. International investment law understanding concepts and. 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. Regulation and protection of investment in myanmar chapter 4. Ministry of investment and foreign economic relations mifer. Foreign direct investment in myanmar increased by 734. 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. The draft law combines elements of the myanmar companies act of 1914 and the special companies act of 1950, reworked in hopes of attracting foreign investment, said deputy minister for planning and finance u maung. The new regulatory environment recognizes that foreign investment and an active and engaged private sector are crucial to.
Important land laws transfer of property act 1882 upper myanmar land and revenue regulations 1889. Myanmar investment law burmese version18102016 approved. Myanmar investment guide 2018 directorate of investment. Foreign investors may also wish to locate in an sez and for this they will need to apply for an sez permit. As of november 2015, 1024 enterprises have been permitted to conduct business under the myanmar foreign investment law. Foreign investment law 2012 and citizen investment law 20 to improve on. Where any foreign exchange is acquired by any person other than an authorized dealer for any particular purpose, or where. May 03, 20 foreign investors will be entitled to income tax exemption for a period of 5 consecutive years as compared to 3 years under the previous law, although the myanmar investment commission the mic. The government of the union of myanmar has been striving hard. The dica regularly provides information on investment permit applications that have been granted by the mic. Moreover, the myanmar investment law defines fet very differently from the way that investment. Mar 01, 2017 myanmar companies act and enterprises formed in accordance with the laws of any other country are also included.
This update to the most important investmentrelated legislation helps establish the coherent legal framework for both domestic and foreign investors. These rules shall be called the myanmar investment rules. The new regulatory environment recognizes that foreign investment and an active and engaged private sector are crucial to myanmars economic growth and future prosperity. These include the myanmar companies law and implementing rules, the condominium law rules, and the mining law amendment act rules. Commission means the myanmar investment commission formed under this law c. However, bylaws implementing the new mil have not been issued yet and as such the rules issued under the old myanmar foreign investment law continue to be in effect to the extent that they are not contrary to the new mil. Central bank of myanmar notice allowing foreign investment in myanmar.
Foreigners are allowed to lease land, and the lease duration is a maximum of one year. Myanmar myanmar investment law investment laws navigator. Investor protection market access entry procedures investment incentives to reduce complex and lengthy entry process, to increase transparency reform the incentive scheme from blanket approval to targeted incentive. In particular, the new fil provides for more flexible shareholding ratios for joint ventures between local and foreign.
With the mil affecting all investments in myanmar, no matter how large or small, or whether being made by local or. The study was based on secondary data source of myanmar over the. Aug 01, 2018 naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. It shall also include investments stipulated under section 40. The expressions in these rules shall have the same meanings in the myanmar investment law.
The information in this book give insights into the business opportunities that exit in myanmar and the practical steps that need to be taken to bring them to fruition. Pdf the role of foreign direct investment fdi in myanmar. Oct 27, 2016 while the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. Land law stamp duty in myanmar seminar, 4 august 2016. The legal and regulatory framework of foreign investment in myanmar s power sector september 15, 2017 as myanmar increasingly liberalizes, decentralizes and opens its power sector to foreign investment, foreign ipps are faced with a legal and regulatory framework that is in full transition. The legal and regulatory framework of foreign investment. Does your company have investments or operations in myanmar or is it seriously considering investing or operating there. Myanmar companies law english and burmese version from dica pdf 1. 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 mil, foreign companies investing under a permit from the myanmar investment commission mic can enter into a 50year lease agreement with two 10year extensions. The new law is set to be implemented by august 2018. The government of the republic of the union of myanmar the.
Law of 1987, foreigners are restricted from owning land. The myanmar foreign investment law also expressly provides that recipients of an mic permit will not be nationalised during the term of their investment. Naypyitaw the myanmar government submitted a draft of the new myanmar companies law to the upper house on thursday. On 2 november 2012 myanmars president thein sein endorsed the countrys new foreign investment law fil. New investment law helps myanmar rebuild its economy and. The amended foreign investment law the law of the union assembly no.
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