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Dr. Marlar Myo NyuntDirector
Directorate of Investment and Company Administration
Investment Trend and Economic Situation in Myanmar
• Expanding our financial resources
• Improving the operations of state-owned enterprises and privatizing those
enterprises
• Fostering the human capital
• The rapid development of fundamental economic infrastructure
Myanmar Economic Policies
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• The rapid development of fundamental economic infrastructure
• Creating employment opportunities for all citizens
• Establishing an economic model
• Asserting the right individuals to freely pursue the economic opportunities
• Achieving financial stability
• Building environmentally sustainable cities, upgrading public services and
utilities
• Establishing a fair and efficient tax
• Establishing technical systems and procedures
• Identifying the changing and developing business environment
Myanmar Economic Policies (Cont.)
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• Identifying the changing and developing business environment
Target Amounts of FDI in FDIPPTarget Amounts of FDI in FDIPP
• In order to achieve a 6-9% annual GDP growth, an accumulative amount of USD140 billion is necessary during the period 2014 - 2030.
Required Annual Investment to Achieve GDP Growth Target
Year/PeriodTotal
InvestmentFDI
Domestic investment
Government Capital Investment
2014 11,899 3,282 3,146 5,470
Unit: Million USD
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2014 11,899 3,282 3,146 5,470
2015 14,308 4,661 3,763 5,884
2016-20 Average 20,558 6,306 5,093 7,416
2021-25 Average 32,025 8,120 10,672 10,516
2026-30 Average 49,886 11,405 19,095 14,888
Total 495,091 138,429 181,206 175,455
4
Vision, Goals and Targets of FDIPP
VisionDynamic economic growth led by FDI worth USD140 billion* during the period of 2014 to 2030
*accumulated amount
Short-term (2015)
USD 4 billion/year
Increase of FDI to achieve access to the Global Supply Chain for Myanmar's economy and to contribute to the development of the domestic market as well as to export
Goals (with Target FDI amount)
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USD 4 billion/year domestic market as well as to export
Mid-term (2016-2020)
USD 6 billion/year
Achievement of comparative advantage in the AEC with internationally-recognized reputation and realization of domestic industrial diversification
Long-term (2021-2030)
USD 8 billion/year (2021-2025)
USD 11 billion/year (2026-2030)
Development of industrial agglomeration through continuous FDI-led industrial development with sophisticated infrastructure and multi-layered supporting industries that contributing as the core driver of Myanmar's sustainable economic growth
Trend of Investment
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Industry Change
Resource Based
Resource Based
Low TechLow Tech Value AddedValue Added DiversificationDiversification
LabourIntensive
Skill Intensive
Capital Intensive
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BasedBasedLow TechLow Tech Value AddedValue Added DiversificationDiversification
1998-2011 2015 2017-2018 ?
Policy Change
1988-20111988-2011 2011-20152011-20152016-2016-
Inward Looking Getting the Policy Right
Enabling Environment
Sustainable
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1988-20111988-2011 2011-20152011-20152016-
onwards2016-
onwardsSustainable Development
Myanmar Investment Law
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New Myanmar Investment Law
Myanmar Citizens
Investment
Foreign Investment
Myanmar Investment
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Citizens Investment Law (2013)
Investment Law (2012)
Investment Law
Investment Requiring MIC Permit
• Businesses that are strategic • Businesses that are strategic for the Union
• Large capital intensive investment projects
• Projects which have large potential impact on the environment and the local
Submitting Proposal
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environment and the local community
• Business carried out in State-owned land and building
• businesses which are designated by the government to require the submission of a proposal to the Commission
Proposal (Section 36)
Endorsement Application Submission
Business except where it concerns
investments stipulated under
section 36
Endorsement application to the
Commission
To enjoy the Rights to Use Land under Chapter (12) and
Exemptions and Reliefs under sections 75,77 and 78
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Not required to submit a Proposal to the
Commission
Prohibited Investment
Business:
the hazardous or poisonous wastes;
technologies, medicines and instruments which are stillbeing tested abroad or which have not obtained relevantapprovals for use, planting except for the purpose ofR&D;
may affect the traditional culture and customs of the racial
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may affect the traditional culture and customs of the racialgroups;
may affect the public health
may cause damage to the natural environment andecosystem;
manufactured goods that are prohibited in accordancewith existing laws.
Restricted Investment
Investment activities allowed to carry out
by State only;
Investment activities restricted to foreign
investors;
Investment activities allowed only in
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Investment activities allowed only in
form of joint venture with a citizen owned
entity or a citizen of Myanmar; and
Investment activities permitted with the
recommendation of the relevant ministries
Restricted Investment
Treatment of Investors
National Treatment for
the Foreign investors and
Most-FavouredNation
Treatment
Fair and Equitable Treatment
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investors and investments
Treatment of Investors
Rights to Use Land
• From any government body or government organization
• From private land-holders
• From any government body or government organization
consecutive The period of consecutive
10 years • From any government body or government organization
• From private land-holders
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holders
Initial 50 years
organization• From private land-
holders
holders
Further Further 10 years
Employment of Staff and Workers
Any Citizen Only Myanmar
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Any Citizen Only Myanmar Citizens
Senior Manager
Expert
Advisor
The work which does not require skills
Investment Guarantee
Guarantees not to expropriate or nationalize or indirect expropriation to any investment
Conditions for
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For a public interest In a non-discriminatory manner In accordance with due process of law Upon payment of prompt, fair, adequate and effective compensation
for expropriation
Incentives under New Myanmar Investment Law
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Exemption & Reliefs
Incentive is not granted automatically
Investors may apply one or more than one the exemptions and reliefs
Incentives under New Myanmar Investment Law
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Income Tax Exemption & Relief
Exemption from Customs Duty & Other
Internal Taxes
Other Other Exemption & Relief
Zone(1)Least- Developed
Regions and StatesIncome Tax Seven Years
Zone(2)Moderately Developed
Incentives under New Myanmar Investment Law
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Moderately Developed Regions and States
Income Tax Five Years
Zone(3)Adequately Regions and
StatesIncome Tax Three Years
Promoted Sectors
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Agriculture and its related services
(except cultivation and production of
tobacco and virginia)
Plantation and conservation of forest, and other businesses
with forest
Livestock production, breeding and
production of fishery products, and itsrelated services
Promoted Sectors
Manufacturing
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Manufacturing (Except
manufacturing of cigarette, liqueur, beer,
and otherharmful products to
health)
Establishment of Industrial Zones
Establishment of New Urban Areas
Promoted Sectors
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City Development Activities
Construction of Road, Bridge and Railway
Line
Construction of Seaport, River Port
and Dry Port
Promoted Sectors
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Management, Operation and
Maintenance of Airport
Maintenance of Aircrafts
Supply and Transport Services
Promoted Sectors
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Power Generation, Transmission and
Distribution
Production of Renewable Energy
Telecommunication Businesses
Promoted Sectors
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Education Services
Health ServicesInformation Technology
Services
Promoted Sectors
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Hotel and TourismScience Research
Development Business
FDI Situation in Myanmar
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Foreign Investment in Myanmar(1988-1989 to July, 2017)
Oil and Gas31%
Transport & Communication11%
Real Estate7%
Mining4%
Hotel and Tourism
4%
Livestock & Fisheries1%
Agriculture0%
Industrial Estate0%
Construction0%
Other Services
2%
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Power28%
Manufacturing12%
FDI Situation in MyanmarFDI Situation in Myanmar
Foreign Investment of Permitted Enterprises as of (31/7/2017) (Sectors)
Sectors (2011-2012 to 2017-2018, as the end of June)
Manufacturing19%
Transport and Telecommunica
tion23%
Real Estate8%
Industrial Esatate
0% Other Services
3%
Oil and Gas31%
Real Estate
7%
Mining4%
Hotel and Tourism
4%
Livestock & Fisheries
1% Agriculture0%
Industrial Estate0%
Construction0%
Other Services2%
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Power17%
Oil and Gas24%
Hotel and Tourism
5%
Mining0%
Agriculture0%
Livestock and
Fisheries1%
31%
Power28%
Manufacturing12%
Transport & Communication
11%
Investment Situation in MyanmarInvestment Situation in Myanmar
6000
7000
8000
9000
10000
Chebawenge Power
US$ in Million
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0
1000
2000
3000
4000
5000
6000
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018(the end of
July)
300.482 1419.467
4107.054
8010.533
9481.275
6649.812
2989.813
4343.978 Other Services- Oil and Gas- Mining- Industrial Estate- Hotel and Tourism- Real Estate- Livestock & Fisheries - Agricultural - Other
Major Foreign Investors in MyanmarMajor Foreign Investors in Myanmar
US$ in MillionsForeign Investment of Permitted Enterprises as of (30/6/2017) (Countries)
15.00
20.00
25.00
30.00
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0.00
5.00
10.00
Chi
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Major Foreign Investors in MyanmarMajor Foreign Investors in Myanmar
US$ in Millions
Countries (2011-2012 to 2017 June)
8000
10000
12000
14000
16000
18000
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0
2000
4000
6000
Sin
gapo
re
Chi
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Vie
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Tha
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Ner
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Rep
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Rep
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Phi
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s
Investment Flow in MyanmarInvestment Flow in Myanmar
US$ in Millions
19,998.97
15,000.00
20,000.00
25,000.00
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7,751.38
6,065.68
719.70 205.70 984.76
329.58
4,644.46
1,419.46
4,107.05
8,010.53
9,481.27
6,649.81
2989.813
-
5,000.00
10,000.00
1988-1989 to 2004-2005
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 (end of July)
Thank YouThank You
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Cooperator of Business Community,
Developer of National Economy
DICAwww.dica.gov.mm