Post on 28-Jun-2020
Aung Naing Oo
Director General Directorate of Investment and Company Administration
Investment Environment in Myanmar
Endeavour to create better investment environment
A snapshot on Special Economic Zones
Investment in Myanmar
1
2
3
Outline
Bilateral cooperation 4
Why Myanmar? 5
Endeavour to create better investment environment
Legal framework : enactment of new FIL, SEZ & Rules for FIL;
Policy framework : more open, more liberalize, diversify, transparent;
Institutional framework : new setup of the MIC, rollout of DICA ;
Procedural framework : streamlining, simplifying, establishment of OSS.
Initiatives towards better investment climate
2011
Notification
39,40
2013 2014 2015 2016
FIL FIR SEZL SEZR
New IL
New CL
Revised SOEL Notification
49,50,51
Notification
1
2012
Remove Constraints Improve Legal Framework Accelerate Actions
Milestones in Legal Framework Improvement
December, 2013
May, 2014
February, 2015
July, 2015
July/August
2015
August , 2015
2015/2016 ?
Began
drafting
First draft
Second draft
Final draft
Internal process
Parliament
Enactment
Timeline for Approval of New Investment Law
Autonomy of the MIC;
Automatic approval of some projects;
More focus on FET, NT & MFN;
Delegation of power;
Zoning based incentives;
Performance based incentives;
International good practices;
Full protection.
Jointly drafted by the legal experts from International Financial Corporation and
Myanmar legal task force.
Salience of New Investment Law
8
National Treatment Most -Favoured-Nation
Treatment
Prohibition of Performance Requirement
Non-Conforming Measures
Enhanced Liberalisation
More transparent,
consistent and predictable
investment rules, regulations, policies and procedures;
Streamlined and simplified
procedures for investment
applications and approvals; and
Dissemination of investment
information, rules,
regulations, policies and procedures.
9
Facilitation
10
Fair & Equitable Treatment
Full Protection
and Security Expropriation Transfer
Main Protections
A snapshot on SEZs
Kyauk Phyu
Yangon
Thilawa
Dawei
Dawei SEZ
- being developed
Thilawa SEZ
- to be commenced
Kyaukphyu SEZ
- to be developed
Special Economic Zones
• Thilawa Special Economic Zone,
one of the three implementing
special Economic zones, is the
project which is situated near
Thanlyin and Kyauktan
Townships.
• It is 18 Km away from Yangon
downtown area and its total area
is about 2400 hector (12.836km2)
behind Thilawa port.
Thanlyin
Kyauktan
Thilawa Special Economic Zone
Investment in Myanmar
Inflow of FDI
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 (Last
week of June)
300.482
1419.467
4107.054
8010.533
2380.818
4343.978
Chebawenge Power
Other Services
- Oil and Gas
- Mining
- Industrial Estate
- Hotel and Tourism
- Real Estate
- Livestock &
Fisheries
- Agricultural
- Other
Oil and Gas
35%
Power
34%
Manufacturing
10%
Transport &
Communication
6%
Mining
5%
Real Estate
4% Hotel and
Tourism
4%
Livestock & Fisheries
1%
Agriculture
Industrial
Estate
Construction
Other
Services
1%
Oil and Gas 19641.778
Power 19324.542
Manufacturing 5728.907
Transport & Communication 3183.442
Mining 2868.683
Real Estate 2277.771
Hotel and Tourism 2208.720
Livestock & Fisheries 452.835
Agriculture 242.686
Industrial Estate 193.113
Construction 37.767
Other Services 457.873
Total 56618.117
Million USD
Foreign Investment of Permitted Enterprises
As of (30-6-2015) (By Sector)
0.000
2000.000
4000.000
6000.000
8000.000
10000.000
12000.000
14000.000
16000.000
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Million USD
Foreign Investment of Permitted Enterprises
As of (30-6-2015) (By Country)
Japan’s Investment in Myanmar
(As of June 30 , 2015)
Sr. Particulars No. Approved Amount
No. (US $ in million)
1 Fisheries Sector 3 13.972
2 Manufacturing Sector 52 307.814
3 Agriculture Sector 2 20.250
4 Oil and Gas Sector 1 40.000
5 Hotels and Tourism
Sector 3 68.000
6 Real Estate 1 31.313
7 Others 8 36.603
Total 70 517.952
Japan Companies Registration
(As of 31-6-2015)
Trading 47
Industry 61
Services 510
Construction 1
Hotel 4
Tourism 7
Bank 12
Total 642
Japan’s Investment in Myanmar (As of June 30 , 2015)
Bilateral Cooperation
Bilateral Summit in Tokyo (4th July, 2015)
Creation of Thilawa Special Economic
Zone and Dawei Special Economic Zone
Development of vital infrastructure,
agriculture and human resources
No Country Signing Date
Investment Promotion and Protection Agreement
1 Philippines 17-2-1998
2 Vietnam 12-5-2000
3 China 12-12-2001
4 Lao PDR 5-5-2003
5 Thailand 14-3-2008
6 India 24-6-2008
7 Kuwait 6-8-2008
8 Korea 5-6-2014
9 Israel 5-10-2014
Investment Incentive Agreement
10 United States of America 21-5-2013
Investment Liberalization, Promotion and Protection Agreement
11 Japan 15-12-2013
Entry into force on 8-7-2014
Bilateral Investment Agreements
Time Frame Goal (Draft) Target amount of FDI/Year
Short-term
(2015)
Increased FDI facilitates access to
global supply chain for Myanmar's
products and contributes to the
development of the domestic and
international market
USD 4 billion
Mid-term
(2016-2020)
Based on industrial diversification,
Myanmar enjoys the comparative
advantages in AEC, establishing a
solid reputation in attracting and
keeping FDI
USD 6 billion
Long-term
(2021-2030)
Continuous FDI-led industrial
development spurs infrastructure
development and multilayered
supporting industries, serving as core
driver of Myanmar's sustainable
economic growth
USD 8~11 billion
Jointly developed by the MIC and JICA
Cooperation with Japan International
Cooperation Agency - JICA
Foreign Direct Investment Promotion Plan-FDIPP
Study Tour to Malaysia with the cooperation of
Japan International Cooperation Agency(JICA)
(18-23 January, 2015)
Cooperation with Japan International
Cooperation Agency - JICA
Coming Event
Mandalay Investment Fair (Cooperation with JICA)
(the end of September,2015)
Why Myanmar?
26
Safeguard of environment conservation
Create job opportunities
Transfer of Technology
Support corporate social responsibilities consistent with regional and
international standard and agreements
What Myanmar needs?
27
Myanmar as an investment destination
Strategic geographic location
Sizeable Market
Resource Rich
Large youthful population Efficiency
Resource
Market
Strategic asset
28
• Labour intensive industries
• Agro-based Industries with value-added projects
• Infrastructure projects
Priorities for Foreign Investment
How we can?
Japan Myanmar
Technology
Human capital Market access
Natural resource
Let’s enjoy mutual benefit together
Thank You Cooperator of Business Community,
Developer of National Economy
DICA
www.dica.gov.mm