Investment Environment in Myanmar - ASEAN · Investment Environment in Myanmar . Endeavour to...
Transcript of Investment Environment in Myanmar - ASEAN · Investment Environment in Myanmar . Endeavour to...
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Aung Naing Oo
Director General Directorate of Investment and Company Administration
Investment Environment in Myanmar
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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
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Endeavour to create better investment environment
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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
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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
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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
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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
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8
National Treatment Most -Favoured-Nation
Treatment
Prohibition of Performance Requirement
Non-Conforming Measures
Enhanced Liberalisation
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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
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10
Fair & Equitable Treatment
Full Protection
and Security Expropriation Transfer
Main Protections
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A snapshot on SEZs
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Kyauk Phyu
Yangon
Thilawa
Dawei
Dawei SEZ
- being developed
Thilawa SEZ
- to be commenced
Kyaukphyu SEZ
- to be developed
Special Economic Zones
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• 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
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Investment in Myanmar
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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
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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)
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Million USD
Foreign Investment of Permitted Enterprises
As of (30-6-2015) (By Country)
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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
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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)
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Bilateral Cooperation
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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
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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
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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
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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)
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Why Myanmar?
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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?
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27
Myanmar as an investment destination
Strategic geographic location
Sizeable Market
Resource Rich
Large youthful population Efficiency
Resource
Market
Strategic asset
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28
• Labour intensive industries
• Agro-based Industries with value-added projects
• Infrastructure projects
Priorities for Foreign Investment
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How we can?
Japan Myanmar
Technology
Human capital Market access
Natural resource
Let’s enjoy mutual benefit together
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Thank You Cooperator of Business Community,
Developer of National Economy
DICA
www.dica.gov.mm