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2013/SOM1/IEG/DIA/002 Session 1-1
An Attractive Foreign Direct Investment Climate – A Positive-Sum Game (for Government, Business and
Community)
Submitted by: World Bank
Public-Private Dialogue on Investment - Corporate Social Responsibility for Local
CommunitiesJakarta, Indonesia
30 January 2013
1
An Attractive FDI Climate –A Positive-Sum Game (for Government, Business and Community)
Joseph BattatSenior Consultant, World Bank
APEC INVESTMENT EXPERTS’ GROUPJakarta, January 30, 2013
PLAN OF THE PRESENTATION
IMPORTANCE & CONTEXT OF THE FDI CLIMATESELECTED ISSUES IN THE FDI CLIMATEAN ATTRACTIVE FDI CLIMATE: BENEFITS TO HOST COUNTRIES, AND TO DOMESTIC AND FOREIGN INVESTORSCONCLUSION
2
IMPORTANCE OF FDI TO HOST COUNTRIES
1. CAPITAL, TECHNOLOGY, ACCESS TO GLOBAL MARKETS, MANAGEMENT & KNOW-HOW
2. RISKS HELD BY INVESTORS [vsCREDITS]
3. IMPRESSIVE GROWTH OF FDI FLOWS: $50 BILLION [1981-85 AVG] TO $1.9 TRILLION IN 2007
4. VARIOUS LEVELS OF INTEGRATION IN GLOBAL PRODUCTION NETWORKS
5. CENTRAL ROLE OF MNEs IN GLOBAL TRADE
CONTEXT & ROLE OF FDI CLIMATE
FDI HAPPENS BECAUSE OF BUSINESS OPPORTUNITIES (NATURAL RESOURCES, MARKET POTENTIAL, EFFICIENT PRODUCTION, ECONOMIC GROWTH…)FDI CLIMATE IS A CATALYST TO FDI FLOWS AND TO THEIR BENEFITS TO ALL PARTIESSO AN ATTRACTIVE FDI CLIMATE IS A NECESSARY BUT NOT SUFFICENT CONDITION
3
PLAN OF THE PRESENTATION
IMPORTANCE & CONTEXT OF THE FDI CLIMATESELECTED ISSUES IN THE FDI CLIMATEAN ATTRACTIVE FDI CLIMATE: BENEFITS TO HOST COUNTRIES, AND TO DOMESTIC AND FOREIGN INVESTORSCONCLUSION
SELECTED ISSUES IN FDI CLIMATE
SECTORAL RESTRICTIONSNATIONAL INTEREST or PROTECTIONISM?ARBITRATING AND MEDIATING DISPUTESEMPLOYING SKILLED EXPATRIATES
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EQUITY LIMITS ON FOREIGN OWNERSHIP [2010]
SECTORS IAB AVERAGES APEC AVERAGES
Construction, Tourism & Retail 98.1 96.0Light Manufacturing 96.7 93.1Healthcare & Waste Management 96.2 87.9Agriculture & Forestry 94.6 82.8Mining, Oil & Gas 91.7 83.3Insurance 91.7 86.3Banking 91.5 87.5Electricity 88.1 82.9Telecom 87.7 71.6Transport 78.8 71.1Media 69.8 53.1Higher Score = Less RestrictiveSource: Investing Across Borders
PROTECTIONISM & NATIONAL INTEREST
PERCENTAGE OF REGULATORY CHANGES THAT WERE LESS WELCOMING TO FDI:
6% [1992-2002], 12% [2003-2004], 21% [2005-2007]
INCREASE IN SCREENING BASED ON NATIONAL INTEREST [IN DEV’D & DEV’ING ECONOMIES]FOCUS ON M&A & SOVEREIGN CAPITALISSUES: TRANSPARENCY & SELF-JUDGINGMAKE EXPLICIT A COST/BENEFIT ANALYSIS
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FDI Regulations Database 2012: Topics covered
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Arbitrating and Mediating Disputes in APEC: Average length of arbitration proceedings
10
6
Arbitrating and Mediating Disputes in APEC: Average length of recognition and enforcement of a foreign arbitral award
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APEC: Average Time required to obtain a TWP (in calendar weeks)
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0
2
4
6
8
10
12
14
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Australia Brunei China Indonesia Japan Korea Malayasia Philippines Singapore Thailand Vietnam
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Online Application? Fast‐track option? One‐Stop Shop? Quotas? Spousal Work Permit
Australia Yes No Yes No Yes
Brunei No Yes No Yes No
China No Yes No No No
Indonesia No No No Yes No
Japan No No No Yes No
Korea Yes Yes No No No
Malaysia No No No No No
Philippines No No No No No
Singapore Yes No Yes No No
Thailand No Yes Yes Yes No
Vietnam No No No No No
APEC modalities of skilled immigration regime
13
PLAN OF THE PRESENTATION
IMPORTANCE & CONTEXT OF THE FDI CLIMATESELECTED ISSUES IN THE FDI CLIMATEAN ATTRACTIVE FDI CLIMATE: BENEFITS TO HOST COUNTRIES, AND TO DOMESTIC AND FOREIGN INVESTORSCONCLUSION
8
15Relative to China
Source: Eifert, Gelb, Ramachandran 2005
IC accounts for large share of productivity gaps
0.0 0.2 0.4 0.6 0.8 1.0
India
Morocco
Senegal
Bangladesh
Kenya
Tanzania
Uganda
Bolivia
Ethiopia
Nigeria
Mozambique
Zambia TFP
Gap accounted for byweaker IC
Potential from better IC is huge
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Potential from better IC – con’t
It is not just the level of investment climate indicators that matter – the variability does too.
Firms reporting more policy predictability invest more – up to 30% more.
And the impact varies across types of firmsE.g. Costs of a weak IC are up to a third higher for SMEs – so they stand to benefit most from a better IC.
9
17
Barriers to entry slow growth and innovation – con’t
Source: World Bank Investment Climate Surveys
More competitive pressure, more innovation and investment
Why should Governments be concerned?Better investment climate associated with lower political risk premiums
0
50
100
150
200
250
300
0 20 40 60 80 100
MIGA
Politi
cal Risk
(Bps), 20
10
Investing Across Borders Index (0‐100), 2010Lowest Highest
Least Risk
Most Risk
0
50
100
150
200
250
300
0 20 40 60 80 100
MIGA
Politi
cal Risk
(Bps), 20
10
Investing Across Borders Index (0‐100), 2010Lowest Highest
Least Risk
Most Risk
10
Why should Governments be concerned?Political risk concerns force cancelations and withdrawals from investments
* MIGA WIPR 2010 survey
FDI and investment climate changes in West and Central Africa
-20
020
40-2
00
2040
-20
020
40
1995 2000 2005 1995 2000 2005 1995 2000 2005 1995 2000 2005
BEN BFA CAF CIV
CMR COG GAB MLI
NER SEN TCD TGO
FDI perc GDP change inv climate
FDI p
erc
GD
P
year
Graphs by country_code
11
Efficacy of Fiscal Incentives and Investment Climate
AUS
AUT
BEL
BWA
BGR
CANCHL
DNK
FJI
FINFRA
GEO
DEU
HKG HUN
ISL
IRL
JAM
JPNKOR
LVA
MYSMUS
MEX
NLD
NZLNOR
PER
PRT
ROM
SGP
SVK
ZAF
ESPSWE
CHE
THATUR
GBR
USA ARGBGD BOL
BRA
TCD
CHN
CRI
HRV
CZE
ECU ETH
GHA
GRCINDIDN
IRNITA
KAZJOR
KEN
LSO
MDG
MARNGA PAKPOL
RUS
RWA
SRBSLE
VNM
TUNUGA
UKREGY
TZA
UZB
ZMB
05
1015
2025
30FD
I as
% o
f GD
P
-20 0 20 40 60Marginal Effective Tax Rate (METR)
High Inv. Climate (IC) countries Low Inv. Climate (IC) CountriesTrend High IC countries Trend Low IC Countries
Corporate Social Responsibility
ENVIRONMENTAL AND SOCIAL SUSTAINABILITY: CORPORATE ROLESUCCESSFUL INVESTMENT MORE LIKELY TO BE SOCIALLY RESPONSIBLEGOOD INVESTMENT CLIMATE [IC] NECESSARY FOR SUCCESSCSR IS ALSO GOOD FOR THE BOTTOM LINE, E.G., LABOR
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IMPROVING THE INVESTMENT CLIMATEEXAMPLES OF ADVISORY PROJECTS FROM
THE REGION:Investment Climate in Infrastructure (PPP upstream work)
Timor Leste PPP (On going)Development of Legal Framework for Investment/FDI
Vietnam Business Forum (Completed)Laos Investment Law (Completed)Myanmar Investment Law (Starting)
FDI PromotionPNG Investment Policy/Promotion and ADR Projects (On going) 23
CONCLUSION
A GOOD IC IS NECESSARY BUT NOT SUFFICIENTA GOOD IC IS CRUCIAL FOR ALL PARTIES TO BENEFIT FROM FDI:
BUSINESS: MEET BUS. GOALS, INTEGRATE IN HOST ECONOMY, GOV’T: EFFICACITY OF POLICIES, ACHIEVE ECONOMIC OBJECTIVESLOCAL COMMUNITY: JOBS, LINKAGES WITH FDI PROJECT
24
13
THANK YOUJOSEPH [email protected]
Robert EchandiGlobal Product Leader
Investment Climate Advisory Service/FIASThe World Bank Group
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FDI Regulations DatabaseIndicators of foreign direct investment regulation
APEC Presentation, 2013
14
Presentation of FDI Regulations Database 2012
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Overview Objectives
FDI Regulations Database (formerly know as Investing Across Borders) is a World Bank Group initiative presenting indicators on countries’ laws, regulations, and practices affecting how foreign companies:
Invest across sectors.
Start foreign investments.
Arbitrate commercial disputes.
Convert and repatriate currency.
Employ skilled expatriates.
Respond to information requests for benchmarks on FDI regulations by governments, private sector, development partners and academics.
Facilitate policy dialogue by identifying good practices and sharing of reform experiences.
Stimulate reforms.
Inform reform advisory work, research and analysis.
gCountry coverage (105 countries across 7 regions)
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Since 2010: 87 countries across 7 regions 2012 new economies
LAC: Dominican Republic
SSA: Burundi, Chad, Democratic Rep. of Congo.
EAP: Brunei Darussalam, Hong Kong and Chinese Taipei, China.
ECA: Cyprus
MNA: Algeria, Iraq, Jordan, Syria
SAR: Nepal
High-income OECD: Australia, Germany, Italy, Netherlands, New Zealand•
Latin America and the Caribbean (LAC – 14 economies): Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Peru, Venezuela R.B.
Sub-Saharan Africa (SSA – 21 economies): Angola, Burkina Faso, Cameroon, Côte d'Ivoire, Ethiopia, Ghana, Kenya, Liberia, Madagascar, Mali, Mauritius, Mozambique, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Sudan, Tanzania, Uganda, Zambia
East Asia and the Pacific (EAP – 10 economies): Cambodia, China, Indonesia, Malaysia, Philippines, Papua New Guinea, Singapore, Solomon Islands, Thailand, Vietnam
Eastern Europe and Central Asia (ECA – 20 economies): Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kazakhstan, Kosovo, Kyrgyzstan, Macedonia, FYR, Moldova, Montenegro, Poland, Romania, Russian Federation, Serbia, Turkey, Ukraine
Middle East and North Africa (MNA – 5 economies): Egypt Arab Rep., Morocco, Saudi Arabia, Tunisia, Yemen Rep.
South Asia (SAR - 5 economies): Afghanistan, Bangladesh, India, Pakistan, Sri Lanka
High-income OECD (12 economies): Austria, Canada, Czech Rep., France, Greece, Ireland, Japan, Korea Rep., Slovak Rep., Spain, United Kingdom, United States
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FDI Regulations Database 2012: Topics covered
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FDI Regulations Database 2012: Methodology
FDI Regulations Database presents indicators of laws and regulations (de jure indicators) and their implementation (de facto indicators).
They are not indicators of company or investor perception.
More than 200 individual data points are presented for each country.
Limited focus on 5 thematic areas of FDI policy*.
Data is based on a hypothetical case study assumptions tailored for each of topic in order to ensure comparability of responses across countries.
Surveys developed in consultation with Expert Consultative Groups (ECGs), whose 50+ members include specialists from UNCTAD, OECD, UNCITRAL, leading universities, etc. (see next slide)
FDI Regulations Database relied on a survey of over 3,500 expert respondents in the 105 economies covered. Respondents include primarily investment promotion institutions, lawyers, accounting and consulting firms, chambers of commerce, and law professors.
FDI Regulations Database does not rank countries, but benchmarks them against a regional average score.
The indicators feature a set of substantive and methodological limitations, in addition to some limitations related to the interpretation of the data. For a comprehensive list of the project’s limitations, including topic-specific ones, please visit our website: www.investingacrossborders.org
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* Some aspects of the business environment that matter to investors (such as security, macroeconomic stability, market size, corruption) are not measured by the indicators.
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FDI Regulations Database: Presentation of 2012 data
Topics:
Arbitrating and Mediating Commercial Disputes
Converting and Transferring Currency
Employing Skilled Expatriates
APEC Countries covered in this presentation:
Australia, Brunei Darussalam, China, Indonesia, Japan, The Republic of Korea, Malaysia, New Zealand, Papua New Guinea, The Philippines, Singapore, Thailand, Vietnam.
31
Arbitrating and Mediating Disputes: Topic overview
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An effective commercial arbitration regime matters for foreign investors.
Complex commercial contracts require reliable, flexible dispute resolution mechanisms.
Commercial arbitration (and other alternative dispute resolution mechanisms) give commercial parties considerable autonomy to create systems tailored to their disputes.
The characteristics of arbitration – confidentiality, flexible procedures, party autonomy and easy enforcement – cater to businesses’ concerns in dispute resolutions.
Foreign investors often prefer to have alternatives to court litigation.
Domestic litigation can be slow and ineffective.
Even if courts treat foreign companies fairly, domestic firms have an advantage over foreign investors, as they are more familiar with court procedures and can use their own lawyers and language.
Foreign investors views well-established, predictable arbitration regime as mitigating risk by providing legal security to investors (including assurance of contract enforcement rights, due process and access to justice).
17
g gDisputes in APEC: Average length of arbitration proceedings
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Disputes in APEC: Average length of recognition and enforcement of a foreign arbitral award
34
18
Singapore:The International Arbitration Act allows courts to continue legal proceedings while arbitration proceedings are pending. It is frequently amended to make it more user-friendly, and there is currently an undergoing review. Foreign arbitral awards made in a country signatory of the New York Convention may be enforced in the same manner as an arbitral award rendered in Singapore. There are no time limits for enforcing an award.
Korea:The parties are free to select arbitrators irrespective of their gender, nationality or ability to speak the local official language, i.e. Korean. In addition, in accordance with the Foreign Legal Consultant Act, foreign attorneys who are not licensed to practice law in Korea are qualified to provide representation services in an international arbitration if the applicable law is either the law of a foreign country or international public law and the venue of arbitration is Korea (Articles 2 and 24). However, Article 109 of the Lawyer Act requires that lawyers licensed in Korea represent parties in a domestic arbitration.The Cyber Mediation Center of the E-commerce Mediation Committee offers on-line methods for resolution of domain name and internet address disputes.
Indonesia:The application for recognition and enforcement is made simultaneously, not sequentially, which is a gain of time.Under the Arbitration Law, the arbitrators shall fulfill the following restrictive requirements: (i) being authorized or competent to perform legal action, (ii) being at least 35 years of age, (iii) having no family relationship by blood or marriage, to the second degree, with either of the disputing parties, (iv) having no financial or other interest in the arbitral award and (v) having at least 15 years experience and active mastery in the field.
g gDisputes in APEC:Examples of notable practices across countries - 1
10
Japan:The most commonly used arbitration institution, the Japan Commercial Arbitration Association, provides fast-track arbitration exclusively for claims not exceeding JPY 20,000,000.The parties are free to select arbitrators irrespective of their gender, nationality, legal qualifications, or ability to speak the local language. However, the use of a foreign counsel(s) is not permitted in a domestic arbitration.
Malaysia:The application for recognition and enforcement is made simultaneously, not sequentially, which is a gain of time.In addition, the Kuala Lumpur Regional Centre for Arbitration, in conjunction with the Malaysian Network Information Centre, provides limited online dispute resolution services for internet domain name disputes. It also provides fast-track arbitration services.However, in Malaysia, it is required that parties in domestic arbitration must choose Malaysian law as the applicable law. In addition, Malaysia does not recognize oral agreements or conduct as constituting binding arbitration agreements.
Brunei Darussalam:Parties are free to choose who they wish to have as an arbitrator; to select the number of arbitrators and their special qualifications (if any). In addition, there is no procedural distinction between recognition and enforcement of a foreign arbitral award in Brunei and both are done through a single application.However, there are no established arbitration bodies in Brunei Darussalam. In addition, there is not a consolidated law encompassing substantially all aspects of commercial mediation or conciliation.
g gDisputes in APEC:Examples of notable practices across countries - 2
36
19
An open foreign exchange regime, with no restrictions on converting and transferring currency abroad, is an attractive aspect of the investment climate for foreign-owned firms.Foreign investors confirm this: 18 % of multinational executives identify political risks as the greatest constraint to investment, and see transfer/convertibility restrictions as the most concerning political risk.The Converting and Transferring Currency topic addressed these issues, gathering data on controls or restrictions on:
FDI-related capital flows and foreign loans.Repatriating assets/dividends and making other payments abroad.Export proceeds and holding bank accounts in foreign
h
Converting and Transferring Currency: Topic overview
37
Australia, Japan, New Zealand, and Singapore all maintain fully open foreign exchange regimes.Firms may purchase foreign exchange and transfer assets and payments abroad freely.There may be notification requirements for statistical purposes or anti-money laundering reasons, but not that create any undue burden on investors.
Converting and Transferring Currency in APEC:Fully open regimes
38
20
Indonesia, Korea, Malaysia, and Thailand maintain generally open regimes, but do impose some administrative requirements.At least some export proceeds earned abroad must be repatriated to be held in a local bank account.Thailand and Korea require by law that documentation be provided to support all cross-border transactions.Indonesia and Malaysia do implement the good practice of allowing banks to determine the validity of foreign exchange transactions using a risk-based approach.
g gCurrency in APEC:Regimes with some administrative restrictions
39
China, Papua New Guinea, Philippines, and Vietnam impose substantive controls on some foreign exchange operations.Government approval is required in the Philippines and Vietnam for firms to receive foreign loans.China requires government approval to purchase foreign exchange to repatriate investments or make foreign loan payments abroad.Papua New Guinea requires government approval for firms to hold foreign bank accounts (although other restrictions are more administrative in nature)
g gCurrency in APEC:Regimes with some heavy controls
40
21
Countries need to prepare to face challenges of demographic shifts and a fast-changing labor market environment by defining adequate skilled migration policies as a complement to skills gaps and low employability. Human capital will soon rival financial capital as the critical economic engine of the future (World Economic Forum).
Companies increasingly take the ease of hiring foreign skilled labor into account with regard to their location decisions. In “Prosperity at Risk” (January 2012) Michael Porter found that 16% of US investors cited current immigration policies as the reason for the limited inflow of foreign talent . Lack of access to skilled labor was the third reason for moving existing activities out of the US (after lower wage rates and proximity to customers).
Employing Skilled Expatriates: Topic Overview - 1
The Employing Skilled Expatriates topic gauges the current immigration regime with regard to skilled expatriates by gathering data on the application process of a temporary work permit (procedures and time), as well as restrictions and limitations to hiring foreign skilled expatriates. In addition, the attractiveness of the immigration regime to foreign skilled expatriates is measured in terms of ability to secure a permanent residency, obtain citizenship and the existence of a spousal work permit.Data analysis will highlight areas where countries can improve their skilled immigration regime so as to attract foreign skilled labor, FDI and support competitiveness of their economy.
Employing Skilled Expatriates: Topic Overview - 2
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22
Employing Skilled Expatriates:General Trends
The time to obtain a TWP ranges widely: from 2 days to 8 months. In most countries it takes on average 5 weeks to obtain a TWP.Only 25% (mostly OECD) has a Skilled Expatriates Program to attract skilled expats, simplify TWP procedures and decrease processing times. The majority of the countries does not allow online completion of a TWP application, has no fast-track or a one-stop shop option.The majority of the countries applies quotas or has other limitations with regard to employing skilled expats.85% does not have a Spousal Work Permit.
APEC: Average Time required to obtain a TWP (in calendar weeks)
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0
2
4
6
8
10
12
14
16
Australia Brunei China Indonesia Japan Korea Malayasia Philippines Singapore Thailand Vietnam
23
Online Application? Fast‐track option? One‐Stop Shop? Quotas? Spousal Work Permit
Australia Yes No Yes No Yes
Brunei No Yes No Yes No
China No Yes No No No
Indonesia No No No Yes No
Japan No No No Yes No
Korea Yes Yes No No No
Malaysia No No No No No
Philippines No No No No No
Singapore Yes No Yes No No
Thailand No Yes Yes Yes No
Vietnam No No No No No
APEC modalities of skilled immigration regime
45
SAMPLES OF ADVISORY SUPPORT IFC PROVIDES IN THE REGIONTO ENHANCE THE INVESTMENT CLIMATE
24
TABLE OF CONTENTS
Investment Climate in Infrastructure (PPP upstream work)
Timor Leste PPP (On going)Development of Legal Framework for Investment/FDI
Vietnam Business Forum (Completed)Laos Investment Law (Completed)Myanmar Investment Law (Starting)
FDI PromotionPNG Investment Policy/Promotion and ADR Projects (On going)
47
Timor Leste PPP (On going)Project objectives:
Help identify opportunities for private sector investment in infrastructureFacilitate private investment in infrastructure through a transparent and competitive tender process to maximize benefits to Timor-Leste.Provide access to new and improved infrastructure services for the people of Timor-Leste.Generate fiscal benefits to GoTL from direct payments of fees and taxes.
Counterpart:Government of Timor Leste
Main activities/results: IFC worked with GoTL to identify, screen and prioritize its existing list of potential PPP 22 projects on the basis of expected development impact as well as suitability and likelihood of successful implementation as PPPs to develop a shortlist of up to 3 candidate projects. The work was done jointly with the ABD. IFC then assessed the financial viability of three candidate projects (port, airport and government building)
48
25
Timor Leste PPP (On going)
Main activities/results(cont): Based on IFC recommendations the GoTLdecided to go ahead with two projects – the development of a Greenfield port at Tibar Bay and the upgrade of Dili international airport. IFC has been engaged as a transaction adviser and is now in the process of preparing the projects.• Tibar Bay Port – est. $200+m greenfield port
development• Dili Airport upgrade. – est $40m upgrade to Timor-
Leste’s main international airport
49
Vietnam Business Forum (Completed)
Project Objectives:Launched in 1998 as a joint initiative of donors, government, and the private sector to improve the investment environment in VietnamPart of government’s strategy to promote FDIPlatform for ongoing, structured policy dialogue between the business community and the GovernmentSeven sectoral working groups
Counterpart: Ministry of Planning and InvestmentMain results:
Unified legal framework for domestic and foreign investments and businessPhase-out of dual pricing of goods and services between foreign and domestic enterprisesStreamlined investment licensing and approval processImproved protections on patents and industrial designFormulation of vital business laws, including the Investment and Enterprise laws, the Securities Law, and the amended Labour CodeSupport to Vietnam’s WTO accession/implementation50
26
Laos Investment Law (Completed)Project Objectives:
To support the development of a best practice legal and regulatory framework for investment and to strengthen investment promotion capabilities in Lao PDR.
Counterpart: Ministry of Planning and Investment (MPI)Main results:
Complete Investment Promotion Law Project (Dec. 2011) • Full implementation of the new legal and regulatory framework for
investment (A uniform framework for both foreign and domestic investment which provides a level playing field for all investors)
• The new Investment Promotion Law has facilitated Lao PDR accession to WTO
Implementing Decree of Investment Promotion Law:• Abolished investment license for general business activities (non-
concessional activities) – streamlined and transparent procedures for starting a business
• Established time-bound tax incentives• MPI role from regulator to investment promoter and facilitator
51
Myanmar Investment Law (Starting)
Project Objective: To lay the groundwork for the future investment climate reforms in Myanmar and identify key specific issues by i) Conducting investment climate diagnostics and regulatory review; ii) Assisting UMFCCI and the government stakeholders in shaping up the public private dialog platforms using the example of the successful regional programs ; and iii) Supporting the Ministry of National Planning and Economic Development (MNPED) with the implementation of recently adopted Investment Law
Counterpart: Ministry of National Planning and Economic DevelopmentMyanmar Chamber of Commerce52
27
Myanmar Investment Law (cont)
Main activities/results:Provided advisory services on the implementing regulations of the Foreign Investment LawCarried out inter-ministerial workshop on international practices on sectoral restrictions to foreign direct investment (FDI) providing practical advice on preparing negative lists, emphasized the importance of understanding the long-term costs of excessive sectoral restrictions versus the short-term benefits and provided examples from neighboring countries, such as Vietnam, Thailand, China and Indonesia and in other countries that are more distant both geographically and economically-speaking (Korea, Singapore, Australia, New Zealand, and the US.) A similar workshop was also carried out with the private sector at the request of the Myanmar Chamber of Commerce.Provided detailed comments on the draft implementing regulations.
53
PNG Investment Policy & Promotion and ADR Projects (On going)
Project objectives: To increase formal sector activity and investment in PNG by improving business environment through a series of investment climate interventions including improve PNG's ability to attract foreign and facilitate use of mediation in commercial disputes at the National Court.To assist the ADR Committee to successfully implement court-annexed mediation at the National Court via the ADR Centre
Counterpart: Government of PNGPNG JudiciaryPNG National CourtPNG Investment Promotion Authority
54
28
PNG Investment Policy & Promotion and ADR Projects (On going)Main activities/results:
Legal Reforms to PNG business and investment laws: Legislative reforms to Investment Promotion Authority Act, Companies Act, Business Names Act and Associations Incorporation Act – to facilitate on-line registration, streamline foreign investment approvals, simplify process to obtain business names and improve the management of the Investment Promotion Authority, increasing formal sector jobs by 30,000. ADR Centre established at National Court in mid 2010: 141 mediations completed successfully; 17 mediators accredited; 5.45m USD in funds released; $350,000 in direct cost savings.
55
