Press Release 06.06 - EuroCham Myanmar · 2019-06-06 · Mr. Kamil Pikal, head of Economic &...

Eurocham – Myanmar EU Economic forum 2019

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Press Release06.06.2019


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EuroCham Myanmar

The European Chamber of Commerce in Myanmar (EuroCham)

serves as the voice of European business in Myanmar. Its main

mission is to significantly increase the presence of European

companies in the country and to facilitate market access

particularly for European SMEs – by advocating for member

interests with the government and organisations in Myanmar, the

ASEAN region and the EU.

With a strong, growing network of partners, EuroCham offers on-

the-ground assistance for European businesses interested in

commercial endeavours in Myanmar, whether in the form of

advocacy, business services, research or networking.

EuroCham Myanmar, through its various activities and in the

framework of EU economic diplomacy, wishes to initiate positive

and lasting change in economic governance, in order to contribute

to a sustainable way of development in Myanmar. By working

closely with both European and Myanmar stakeholders as well as

with the network of European Chambers of Commerce in the

ASEAN region, EuroCham seeks to create a mutually beneficial

relationship and trusting environment for both parties, and to

position itself as a significant provider of entry-level information for

European companies.


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Myanmar-EU Economic Forum

The Myanmar-EU Economic Forum in Nay Pyi Taw on 5 June 2019 was the third edition of

EuroCham Myanmar’s annual signature event on advocacy. The forum hosted by EuroCham

Myanmar provided a platform for more than 500 business leaders and policy makers from the

Union of Myanmar and Europe to interact and debate key business and trade issues.

Among the government representatives, the forum welcomed 6 unions ministers, The deputy

speaker of Amyotha Hluttaw, Union Minister of Transport and Commerce, Union Minister of

Commerce, Union Minister of Planning and Finance, Union Minister of Hotels and Tourism, Union

Auditor General, Chairman of Anti-Corruption Commission, Deputy Governor of Central Bank of

Myanmar, Deputy Minister of Information, Deputy minister of electricity and energy, Members

of Joint bill committee and senior officials.

H.E. U Myint Swe, Vice-President of the Republic of the Union of Myanmar gave his keynote

address, followed by H.E. Kristian Schmidt, European Union Ambassador to Myanmar, Mr

Philipp Dupuis, Minister Counsellor, Head of the economic and Trade section, Delegation of the

European Union and Dr Myo Thet, Vice President of the Union of Myanmar Federation

Chamber of Commerce (UMFCCI).

EuroCham Chairman David Levrat officially opened the forum by delivering the opening

speech, followed by a gong ring with Dr Myo Thet, Vice President of UMFCCI.

The panels sessions included leading private sector representatives, high-level government

officials and key experts from international organisations and academics. The Forum provided

an overview of the “Economic Development of Myanmar and current business

initiatives” and additionally on “Trade Affairs and European Investment”.

The Myanmar-EU Economic Forum also provided the EuroCham Advocacy Groups with the

chance to publicly acknowledge the tremendous improvements in business regulations by the

government, while pointing out remaining challenges and offering the support of European

companies in tackling them.


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Key issues in the following sectors have been discussed:

• Energy: Powering the Myanmar Sustainable

Development Plan

• Construction: Building a Sustainable

Myanmar

• Healthcare: Promoting innovation and co-

operation to develop a sustainable

healthcare system in Myanmar

• Logistics: Accelerating Myanmar growth

through logistics – challenges and

opportunities

• Digital Innovation: Beyond Connectivity -

harnessing internet access to benefit

Myanmar

• Anti-Illicit Trade: Tackling Illicit Trade-

Challenges and Opportunities for the Public

and Private Sectors

• Legal and Tax: Competition Law and

Simplifying the Tax System

• Agrobusiness: Making food safety work

along the entire supply chain

• Garment: A seamless industry for the future

• Automotive: Vehicles safety: how could we

improve it?

• Wine & Spirits: The shared benefits of

opening Myanmar’s spirits market

Additionally, 2 presentations in the framework of the newly launched EuroCham Myanmar Initiative were given.

Mr Nicolas Delange, Vice Chair of EuroCham Myanmar, addressed the Air pollution theme, to echo the World

Environment day topic. The 2nd presentation was focusing on Respectful and Inclusive workplaces presented

by Ms Vicky Bowman, Director of Myanmar center for Responsible Business.

Through this event, European companies acknowledged they would like to see a continued government effort

in working constructively on an investment friendly business climate to attract foreign investment, create jobs

in Myanmar and assure sustainable and inclusive economic growth.

This 3rd edition of the Myanmar-EU economic forum proved to be a great event for businesses to meet and

share knowledge on how to improve the business climate and attract more investments.


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“We are extremely

grateful to EuroCham and warmly welcome your kind efforts to organise this economic forum which I’m sure will bring a new chapter for enhancing the economic relations between Myanmar and the EU member

countries.” Dr Myo Thet, Vice- President,

Union of Myanmar Federation of

Chamber of Commerce

“Our constituencies

demand that companies operating in the EU know about human rights and labour conditions all along the chain of supply and that they are transparent enough, and the ultimate demand that EU policies promote corporate social responsibility across the production

chain.” Philipp Dupuis, Minister

Counsellor, Head of the

economic and Trade section,

Delegation of the European

Union

“Our advocacy

groups met nearly

every week with

government

officials, whom I

would like to thank

warmly for their

continuous

support..” David Levrat, Chairman

Eurocham Myanmar

“We believe the

Myanmar sustainable development plan is an excellent blueprint, it is very clear and bold ambitious mission for

Myanmar’s future.” H.E Kristian Schmidt, EU

Ambassador to Myanmar

“This event is

organised every year, not to criticise, but to discuss together the challenges that Myanmar is facing and how Myanmar and European Union companies can address them

together” H.E Kristian Schmidt, EU

Ambassador to Myanmar


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Keynote Speeches

His Excellency U Myint Swe spoke of a vision of peace and national reconciliation and the sustainable development of

Myanmar, noting the desire to work with partners who share this vision through mutually beneficial investment. Particular

mention was given to the garment sector which has undergone considerable growth as a result of the Generalised Scheme of

Preferences (GSP) introduced by the EU. His Excellency also spoke of the achievements the Myanmar Government has made

in adjusting existing laws to facilitate greater investment in the country.

His Excellency Kristian Schmidt, opened the second keynote address by congratulating Myanmar on making considerable

progress on the sustainable development goals, adding that it was an excellent blueprint for the nation with bold ambitions

for the future. The EU hopes to continue working with the Myanmar Government in pursuit of this agenda and wishes to

expand mutually beneficial cooperation. Importantly, the benefits of European investment were exemplified through the

example of Myanmar’s growing garment sector, which has benefitted more than 450 000 workers, the majority of which

have been female. His Excellency expressed that the purpose of the Forum was to discuss openly the challenges the

country faces and was a demonstration of the commitment on behalf of the EU and European businesses to encourage

sustainable economic growth.

Philipp Dupuis, Minister Counsellor, Head of the economic and Trade section, Delegation of the European Union spoke

in great detail about the complexities involved in trade liberalisation and the vast supply chain networks this creates. As

a result of consumers seeking the best quality at the best price, issues of sustainability and conditions have become

increasingly important concerns. Nowhere is this more evident than in the European Union, where the concept of

sustainability and human rights have become a central part of decision making, extending to both external relations and

trade policy. Businesses have therefore become much more sensitive to these expectations and this has created a

benchmark for what is considered a good corporate citizen. The European Union is working closely with countries to

adopt these principles in both public and private sectors, and Mr. Dupuis stressed that those who espouse these values

are only set to benefit from the international community.

Dr. Myo Thet, Vice President of the Union of Myanmar Federation Chamber of Commerce (UMFCCI) expressed his

deep appreciation to the EU for organising such an event to assist Myanmar in their development efforts. He reaffirmed

its commitment to maintaining cordial relations with the private sector and is confident that it is achieving its endeavours.

The UMFCCI hopes to continue its close cooperation with EuroCham Myanmar and believes the forum will bring a new

era in relations between the two.

Mr. David Levrat warmly welcomed the audience and expressed his gratitude to His Excellency Vice President U Myint

Swe for his continuous participation in the Forum since its inception in 2017. Particular mention was given to the

implementation of the Myanmar Sustainable Development Plan and the Myanmar Investment Promotion Plan, initiatives

aim at encouraging economic development and FDI promotion in Myanmar. Mr. Levrat introduced the newly formed

EuroCham Myanmar Responsible Business Initiative (EMRBI) which personifies European values in the corporate

sector. The Economic Forum coincided with World Environment Day and provided a fitting backdrop to the sustainable

develop ambitions the European Union wishes to share with Myanmar.


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Trade Affairs and European Investment

The Panel focused on the general climate of the affair in Myanmar and

highlighted which area were fast growing for European Investments. After the

recent opening of the country, representatives from all over Europe drew their

first conclusions based on their experience as well as their vision of future

partnership with Myanmar. The panel was moderated by Mr. Filip Lauwerysen,

Executive director of EuroCham Myanmar and the panelists included Mr. Philipp

Dupuis, Minister Counsellor from the Delegation of The European Union; Ms.

Eaimt Phoo Phoo, Economic And Commercial Attaché for the Flemish Region,

Embassy of Belgium; Mr. Huub Buise, Deputy Ambassador from the kingdom of

The Netherlands; Mr. Matteo D'Alonzo, Deputy Head of Missions from the Italian

Embassy; Mr. Kamil Pikal, head of Economic & Development Section, Embassy

of Czech Republic; Mr. Warren Pain, Director of Trade and Investment from the

British Embassy.

Representatives from the European Union expressed optimism for a fruitful

collaboration to build strong foundations together. Myanmar's case is unique in

the region because of its fast digital transition process combined with a young

labour force.

Panellists agreed to the fact that most remarkable increase in exports and

investments the agribusiness, garment and digital innovation sector. Mr. d'Alonzo

from the Italian Embassy deemed that " the increasing export of machinery in

Myanmar will help the garment sector to gain in productivity and efficiency". Mr.

Pain from the British Embassy that the common history with Myanmar "can be

taken as lessons to consolidate a mutually beneficial partnership".

Mr. Filip Lauwerysen asked the audience to raise the hand if they believed that

the business climate was improving in recent years, the two third of the raised

hands were a proof of the overall optimism when it comes to the Myanmar-EU

patnership for the years to come.

“Transition is not

fixed in time with

a precise goal, it

is an everlasting

to process where

we learn to adapt

to inside and

outside

externalities.”

-Mr. Kamil Pikal, head of Economic &

Development Section, Embassy of Czech Republic


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EuroCham Myanmar Responsible

Business Initiative Presentation of EMRBI and on respectfu and inclusive

workplaces

Nicolas Delange, Vice Chairman of EuroCham Myanmar, introduced

the EuroCham Myanmar Responsible Business Initiative (EMRBI). He

emphasized the importance of partnerships between the European

private sector and Myanmar companies and government. Likewise, he

highlighted the importance of supporting the MSDP and the European

Commission’s reflection paper: Towards a sustainable Europe by 2030.

Responsible business is about creating value for the triple bottom line:

people, planet and profit. In Myanmar, it is often seen as charity and

philanthropy, however it is a business model that goes beyond that. Mr

Delange presented some examples of responsible business practices

implemented by the European companies Novotel, Melia Total, Telenor

and H&M. He finally Introduced the World Environment Day’s theme:

Air Pollution and announced the first EMRBI breakfast talk that will take

place in July about this topic.

Vicky Bowman, Director of the Myanmar Centre for Responsible

Business spoke about creating respectful workplaces and highlighted

the important role the private sector can play in promoting tolerance

and inclusion in Myanmar.

This includes addressing issues such as gender inequality, LGTBI

rights, workers with disabilities or religious practices. Some initiatives

of European companies were presented, such as Heineken’s Social

Media Policy or Total’s Practical Guide to dealing with religion

questions, as well as H&M SIDA ILO report on gender equality or IFC

and Dana Facility’s on bullying and sexual harassment.

.

“Respectful

workplaces increase productivity

by 14% on average” IFC and DaNa facility study


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Health Promoting innovation and co-operation to develop a sustainable healthcare system in Myanmar “We have seen

a tremendous

improvement in

transparency

during the tender

process,

although there is

still room for

improvement.

But Myanmar is

on the right

path”

- Mr. Fabian Singer, Siemens Healthineers

Diederik Vanvliet, Fresenius Medical Care, moderated this Panel that

counted with the presence of Prof. Dr. S Kyaw Hla, President of the

Myanmar Medical Council, U Zaw Moe Khine, Chairman of the

MPMEEA, Dr.Win Naing, Deputy Director General of Medical Services

Department Dr. Theingi Zin, Director of the FDA.

They highlighted that they have seen a tremendous improvement in

tender process transparency, although there is still room for

improvement. But Myanmar is on the right path.

Code of conduct is something that Myanmar should consider establishing

in the future.

The Government, companies and doctors should unite to promote

affordable healthcare and fight corruption practices.

Driving sustainable care is highly important and European healthcare

companies in the country are promoting this in their efforts.

The private sector has become very important when it comes to

healthcare. As Myanmar is lacking proper technicians, the private sector,

for instance, can help fill those gaps.

Providing affordable and high-quality healthcare demands cooperation

between different Ministries and different sectors.

There has been some progress done in terms of pharmaceutical

manufacturing, but as a new industry, regulations are needed to make it

more competitive.

The government has been investing in human capital, and this is an area

in which European companies could help even further.

There has been an improvement in the registration process as well as

the quality-assurance process. The FDA takes into account assurance

and safety concerns. They assess the risk for the patient as well as the

benefit, and the affordability of the products.

The government priority is to ensure quality and efficiency of healthcare.

Private-public partnerships is something the government will try to

reinforce in the future and welcomes European companies to join in this

effort.


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Digital Innovation Beyond Connectivity - harnessing internet access to benefit Myanmar

The Digital Innovation Advocacy Group included

Rianne Roggema, EuroCham Myanmar Digital Innovation

Advocacy Group Co-Chair, Founder of Irie Digital as

Moderator, Director General U Minn Minn, Department of

Trade, Ministry of Commerce, Erwin Sikma, Digital

Innovation Co-Chair, Milla Chaplin, KBZ Bank, Robbert

Groenen, One to Watch, U Thet Lynn Han, Bagan

Innovation Technology.

The panel discussion centred on the primary challenges and

opportunities that are present in Myanmar given the rapid

adoption of mobile technology. Discussions explore the

issues the various enterprises encountered in delivering their

products to users. A common thread amongst panellists was

the need to change customer perceptions regarding e-

commerce and the panel gave their insights to overcome

such challenges. Director General U MInn Minn shared with

the audience the number of ways the government is

supporting the growing share of e-commerce transactions

and the increasing role it plays in central sectors of the

economy.

.

“The most important

thing is talking to your

consumer and figuring

out what your

consumer wants” -Rianne Roggema, EuroCham

Myanmar Digital Innovation

Advocacy Group Co-Chair, Founder

of Irie Digital


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Garment A seamless industry for the future

The panel was made of different stakeholders from the industry,

Tobias Fischer, H&M Country Manager and EuroCham

garment advocacy group Co-Chair, Manoj Bhardwaj, Sioen

Country Manager, Sebastian Taylor, Solidaridad Country

Manager, and U Win Aung, General Manager of No.3 Heavy

Enterprises and moderated by Nicolas Delange, Managing

Partner at Yever.

The panel began with a role play to demonstrate the real every-

day challenges in doing business in the garment sector from a

buyer, manufacturer and NGO prospective. The discussion was

very lively and covered most of the struggles and opportunities

of the industry. All the panellists agreed that Myanmar should

become a FOB based garment industry, however challenges

such as banking payment system and electricity shortage should

be overcome first. In general, the development of the industry

needs to be concentrated around three main areas: policies,

infrastructures and skills, as Sebastian Taylor explained.

The formula: EU brands (demand) + Chinese/Korean/Japanese

manufacturing companies (supply) seems to be the right one for

the development of the industry in the country. In particular, EU

companies play an important role to enhance the quality level of

doing business. However, the future is still uncertain. When

asked “What is your vision for the Myanmar garment sector in

2030?” the most common answer was: depends.

Despite the many challenges that needs to be overcome to build

a sustainable industry, Tobias stressed that the elephant in the

room is currently represented by the GSP-EBA. If the EBA is

removed, not only thousands of jobs will be put at risk, but a

sustainable development of the industry could be hindered,

since many EU companies might move their operations in other

countries.

“I have been

working in different

markets, and I

have never seen

such a quick

development of the

industry in the

positive direction

especially on the

sustainability

areas, but

everything can

stop if EBA is

gone.’’ -Tobias Fischer, Co-Chair of Garments Advocacy group, Country manager H&M


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Construction Building a Sustainable Myanmar

The panel encompassed the challenges and opportunities in the

construction and infrastructure sector and picked from a variety of topics

including the 2030 Agenda for sustainable development or the most suitable

collaborations between the private and public financing sector in Myanmar.

The discussion was moderated by Mr. Vadim Nunez, EuroCham Myanmar

Co-Chair of the EuroCham Myanmar Construction Advocacy Group and

Country Manager of Razel-Fayat, and the panellists included U Aung Myo

Oo, Chief Engineer of the Road Department of the Ministry of Construction;

Rio Ueki, Program Formulation Advisor at JICA; and Nishant Choudhary,

Deputy Managing Director of DFDL Myanmar and Co-Chair of Legal & Tax

Advocacy Group.

The panel overviewed the constraints in technology and infrastructure that

threaten the Myanmar Sustainable Development Plan. As U Aung Myo Oo

pointed out, the growth of the construction and infrastructure sector needs

to entail a cultivated safety culture in construction that adheres to Myanmar’s

culture.

Also, the panel delved on other topics such as infrastructure financing and

Public-Private Partnerships (PPP). Mr. Choudhary recognized “the need for

a transparent and comprehensive source for project tendering.” He outlined

that prior to this measure there was little certainty about power projects

procedures. The implementation of PPP represents an asset to the

Government and the securities for financing might be ensured by direct

investment in major infrastructure projects. However, the involvement of the

ministries is necessary in order to implement sustainable development

projects. In order to ensure sustainable projects, the private sector must

work with the ministries to implement sustainable development projects.

Finally, the panellists overviewed how the Project Bank works and the

limitations and potentialities for the private and public sector.

“Quality comes

with costs.”

-Mr Rio Ueki, Program Formulation Advisor at JICA


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Anti-Illicit Trade Challenges and Opportunities for the Public and Private

The Anti-Illicit Trade Panel aimed to create a dialogue between Public

Institutions and European companies in order to find a common ground to

tackle illicit trade. The panel discussion was moderated by Ms Khine Wai

Thwe, Co-Chair of the EuroCham Anti-Illicit Trade Advocacy Group and Head

of External Affairs at British American Tobacco Myanmar Ltd; Daw Mya Mya

Su, Commissioner from the Anti-Corruption Commission; U Aung San Tun

Deputy Director General of the Customs Department; Mr. Alex Nyi Nyi Aung,

Head of Communications and External Affairs (Myanmar, Cambodia, Laos),

Unilever Myanmar, Mr. Jens Michel, Metro Wholesale Myanmar CEO.

During the panel discussion, multiple facets of this global issue including

porous border, product safety and corruption were discussed. Representatives

from the wholesale sector shared their insights and various challenges

regarding high price differential for foreign companies, lack of traceability/

transparency and a difficulty to create a level playing field for all companies are

frequent examples faced when operating in Myanmar.

Not only illegitimate products pose health hazard to consumer's health, it also

represents an important tax revenue loss for the government. The fast-growing

agricultural and digital innovation field create numerous opportunities for

collaboration between the public and private sector to build relationship based

on trust and transparency.

Panelists from the Custom Department and the Anti-Corruption Commission

informed and updated the audience on the steps that the public institutions

have taken to tackle anti-illicit trade efficiently. Top priorities reside in the

reforming of the regulatory mechanism as well as the fine and penalty system

to discourage offenders. There is an ever-growing partnership between

various departments and foreign organization resulting in training programs

inspired by the best practices around the world. The public institutions favour

a proactive approach to anchor a collective culture of zero tolerance towards

illicit trade all across the country. As 5-year plan to drastically reduce the

corruption was announced by the ACC, the inclusion of credible information as

well as a reinforced cross institutional cooperation are crucial to eradicate this

decades old issue in Myanmar."

“Myanmar is

taking its first

steps of its

transition

process. The

Myanmar EU

Economic Forum

is way to

guarantee the

Public and

Private sectors

that we are

heading in the

right direction.”

- Ms Khine Wai Thwe, Co-Chair of the EuroCham Anti-Illicit Trade Advocacy Group and Head of External Affairs


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Energy Powering the Myanmar Sustainable Development Plan

The Panel comprehended various topics of crucial importance for the

electrification of Myanmar by 2030. The panel, was moderated by Mr.

Romaric Roignan, Co-chair of the EuroCham Myanmar Energy Advocacy

Group and Country Manager of TOTAL Myanmar, and the panellists

attending where U Kyaw Kyaw Hlaing, Chairman of SMART Group, U Than

Zaw, Director General of the Oil and Gas Production Department (OGPD),

U Chit Toe, Director General of the Department of Hydropower

Implementation (DHPI), and Mr. Erik Knive, Project Director at SN Power.

The discussion gathered a variety of perspectives on the current energy

issues such as finding the right energy-mix for the electrification efforts for

the 2030 Agenda, meeting the upstream industry challenges, and satisfying

the projected energy demand. U Than Zaw commented that the MOEE will

continue to support the big role hydropower generation plays in Myanmar.

“In order to hit the power generation targeted by 2030, the share of energy

planned is 38% on hydropower, 33% on coal, and 20% on gas” – U Chit Toe

added. In addition, U Than Zaw suggested that another 19% on renewables

would be the fourth source of energy. Mr. Knive commented that domestic

sources of energy are a better way to satisfy local needs and he observed

that “stablishing an exemplary project is a must to set as benchmark for

future development, which will further attract investment.” U Kyaw Kyaw

Hlaing lamented the return of coal as “Myanmar should be planning on the

next 10 years of energy revolution, […] we have to think about our own

sources such as hydropower and natural gas.”

In regard to the plan of the Government pricing of the energy in the future,

U Chit Toe commented on the lack of investors to finance the energy sector

and that some measures are already on their way to tackle this issue.

“In order to hit

the power

generation

targeted by

2030, the share

of energy

planned is 38%

on hydropower,

33% on coal, and

20% on gas”

- U Chit Toe, Director General of the Department of Hydropower Implementation (DHPI)


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Logistics Accelerating Myanmar growth through logistics –

challenges and opportunities

Moderated by Thompson Chau, Digital Editor and Deputy

Business Director of the Myanmar Times, the panel was composed

of Flora Pintusoontorn, Maersk Myanmar Country Manager and

Co-Chair of the Logistics and Transportation Advocacy Group at

EuroCham Myanmar, Thorstein Svendsen, CEO at Nordic Group

Limited and Co-Chair of the Logistics and Transportation Advocacy

Group at EuroCham Myanmar, U Nyi Htut, Director KM Terminal

and Logistics Ltd, U Than Win Aung, Chairman of Pale Nadi

Group, and U Aung Ye Tun, Assistant Secretary MOTC.

The panel started with a short presentation by the Co-Chairs, Flora

and Thorstein, of the main issues highlighted in the White Book.

Panelists acknowledged the efforts from the government to

overcome some important issues, however there are still some

crucial and vital obstacles that should be fully addressed.

Compared to neighboring ASEAN countries, Myanmar lacks behind

in logistics term, having higher costs and longer transportation

times.

Creating bonded warehouse procedures, easing cross-border

operations and making the custom procedures clear and

transparent are the first steps that should be taken in order to ease

logistics activities in the country, and hence enhance the

competitiveness of Myanmar. In addition, panelists seemed to be

satisfied with the many infrastructures plans in Myanmar, however

it is important that such projects are completed in the short-term.

Having the dry ports to be fully in operation would be an important

step for the country and for the Mandalay region. Furthermore, it

was discussed that new deep-sea ports need to be able to handle

bigger vessels and should be built near industrial zones.

“There is the

investment

coming in but

then other

supportive

policies and

processes also

need to follow to

facilitate logistics

activities.”

- Flora Pintusoontorn, Maersk Country Manager and Co-Chair of the Logistics and Transportation Advocacy Group at EuroCham Myanmar


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Tax Simplifying the Tax System

“We need

greater

simplification in

the Tax law and

to move to where

big revenue is

(real state,

financial

services, etc.”

--Paul Cornelius – Tax partner at PwC

Eddy Jabnoune, Resident Director of Audier&Partners, took the lead

on the discussions which counted with the presence of: Paul Cornelius,

Tax Partner at PwC, Nang Ying, Head of Tax at Telenor and U Zayar

Kyi Nyunt, Deputy Director General of the Internal Revenue

Department (IRD).

It was pointed out that the Myanmar’s tax system is still behind

compared to other ASEAN countries in term of raising revenues.

There is a lack of analysis on the cost-benefits and the excessive

paperwork also gets in the way. All of this makes things difficult for

businesses in Myanmar. There is a need for greater simplification in the

Tax law and move to where big revenue lies (real state, financial

services, etc.).

The tax administration law that is going through the Parliament was

congratulated by the panel except regarding the time needed for its

application.

The increase of digitalisation of tax payment and potential public

consultation was also addressed during the exchanges.

The IRD representative highlighted that the ongoing reform is based

on accountability and transparency. The government is seeking to

modernise the tax administration and improve tax collection. They are

working on simplifying procedures. The parliament approved on the 4th

of June a new chapter in the tax reform. However, passing the bill is

easier than the implementation of the law. There is a need to educate

the administration as well as the taxpayers and this takes time.

The objective of the government is to collect taxes efficiently and unify

procedures, ensuring the rights of the taxpayers.

It was made clear that investors have been heard and that the

constructive criticism raised in the Forum will echo at a higher level.


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Legal Competition Law Eddy Jabnoune, Resident Director of Audier&Partners, as moderator

took the wheel on this debate that had as Panelists: Alexander

Bohusch, Managing Director for Luther, Nishant Choudhary,

Deputy Managing Director for DFDL, Lingyi Quek, Resident

Managing Lawyer at Dentons Rodyk, U Than Maung, Vice-Chairman

of the Competition Commission, and Daw Marlar Maw, Deputy

Director of the International Relation and Research Department of the

Supreme Court of the Union.

The Legal panel took as an example the Competition Law to point out

that unfortunately in Myanmar the delays for the implementation of the

law are too significant. Event as of now, the law is suffering a lack of

clarity and harmonisation towards other regulations (such as the

Telecommunication Law).

All these issues create a situation of uncertainty, which is always

troublesome for foreign companies in Myanmar.

Some businesses have a monopoly on some sectors and legal

uncertainty makes even more difficult to promote a level playing field.

A clear legal framework is needed.

Excessive ambiguity in the law affects severely sectors such as

telecommunications. There needs to be more clarity in the laws.

The government representatives, however, assured that the

Competition Law will be implemented only fur future cases and will

not affect past operations (e.g. mergers and acquisitions). They

admitted that the legal framework is burdened with hurdles and

difficulties, but they emphasized that they would consider seriously

the recommendations given during the Panel.

“Uncertainty in

the legal

framework

hampers the

activities of

foreign

companies in

Myanmar and

makes difficult to

promote a level

playing field”

-Alex Bohusch – Managing Director for Luther Myanmar

They are seeking to support fair competition. The current

legal framework has very consolidated laws and extensive

provisions that make some changes difficult but they will

move on a case by case basis


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AgroBusiness

Making food safety work along the entire

supply chain

The Agrobusiness Advocacy Group conducted its panel discussion

with Esther Wintraecken, EuroCham Myanmar Agrobusiness

Advocacy Group Co-Chair and Fresh Studio Country manager, as

Moderator, Jens Michel, METRO Wholesale Myanmar, U Sein

Thaung Oo, MFPEA, Alex Nyi Nyi Aung, Unilever, Ye Tint Tun,

Director General, Department of Agriculture, Daw Ohnmar Soe Win,

Director of FDA.

Each participant represented a unique facet of the supply chain

giving a fascinating insight into the issues at each stage. The need

for consumer awareness was highlighted as a powerful catalyst for

changing attitudes, as well as the ability of the private sector provide

clean and safe food products at competitive prices.

Regular testing and quality control are essential for consistency of

product, however the inadequacy of government lab testing facilities

was underscored as being a key issue in the Myanmar context.

Progress is being made and all members of the panel expressed a

great willingness to work in closer collaboration with one another to

ensure food safety for all.

“Competition

eliminates

complacency, and

this is a key trigger

which will bring food

safety standards in

Myanmar forward as

it eliminated

complacency in the

system as well as in

the communities’’ -Mr Jens Michel, , METRO

Wholesale CEO


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Automotive Vehicles safety: how could we improve it?

The automotive panel focused on specific recommendations on how

to ensure everyone can drive safer cars, trucks or buses in the future.

The panel was moderated by Ms. Eaimt Phoo Phoo Aung,

Economic and Commercial Attaché for the Flemish Region, Embassy

of Belgium. Joining her at the panel were Mr. Adrian Short, Cycle &

Carriage, Ms. Mya Thinzar Khine, Suu Foundation, and U Augn

Win, Automotive Association Myanmar. The panel was also attended

by U Thein Han Oo, Chief Engineer of the Road Transport

Administration Department

The capacity of RTAD, in particular in Yangon and Mandalay, is not

enough to ensure proper inspections to the vehicles visiting RTAD on

a daily basis. Although panelists remarked important improvements

in the recent years, inspections are still mainly visual checks. U Thein

Han Oo explained ”We cannot do machine testing for all the cars

coming for inspection, that’s a reality”

Thus, the need to open the process of inspections to third parties was

highlighted as potential solution. The representative from the RTAD

announced that there is a provision in the new automotive law to

involve the private sector for inspections. The new Information

Management System will help in sharing the information about

vehicles between the RTAD and private contractors.

“When it comes to

vehicles safety,

inspection plays a

crucial role’’ Ms. Mya Thinzar Khine, Suu

Foundation


20

Wine & Spirits The shared benefits of opening Myanmar’s spirits market

The panel, moderated by Matthieu Glorieux, EuroCham Myanmar Wine &

Spirits Co-chair and Pernod Ricard Myanmar Managing Director, focused on the

different perspectives of opening the spirits market in Myanmar. The panelists

were Cyril Sayag, Director of the Asia Pacific International Wine and Spirits

Alliance (APIWSA); Jennifer Peterson. First Secretary at the US Embassy;

Warren Pain, Director of Trade and Investment at the British Embassy; U Naing

Lin, Vice Chairman of the Myanmar Retailers Association and U Hla Myint,

Director of International and Regional Cooperation at the Ministry of Hotels and

Tourism.

Panelists agreed that the major benefits would be the reduction of illicit trade and

the consequent increase of tax revenue, as well as protecting consumers from

counterfeit alcohol. Moreover, it would bring Myanmar to comply with its

commitment to the WTO and help develop trade relationships with foreign

countries since investors will further look at the country.

The impact the economic liberalization would have on local producers was widely

discussed. Panellists emphasized that foreign spirits are high-end products,

hence local producers should not be concerned as they would not compete with

local established players. Benefits include creating joint ventures and other forms

of partnerships, increasing the prices of foreign spirits due to taxation, raising

standards and sharing best practices.

The discussion also covered topics such as the need to improve the licensing

process to sell alcohol; the importance of providing quality wine and spirits to

offer better experiences to tourists and help develop the tourism industry, and

responsible drinking campaigns.

“The Government

revenue that could

be collected if they

were to tax foreign

spirits would be at

least $20M’’ Cyril Sayag, APIWSA


21

Economic Development of Myanmar & Current Business Initiatives

This panel brought together experts from the private sector and international organisations to discuss

about current challenges and future possibilities in Myanmar. The panel was moderator by Mr. Graham

Stewart, Klareco Communications.

The country is facing a robust growth in the last few years and the GDP is expected to reach 7% by 2020.

In the last year, nevertheless, inflation has also represented a potential alarming factor. The government

has undertaken the necessary measures in their power, for instance, by reducing the borrowing from the

Central Bank.

Economic growth needs to be inclusive, as pointed out by the central government in the Myanmar

Sustainable Development Plan (MSDP). Although poverty has declined significantly in the last decades in

Myanmar, big challenges remain in rural areas where almost 75% of the population lives. Mr. Peter

Batchelor, UNDP Myanmar, commented how investments by the government in these areas will benefit the

entire economy.

Local businesses play a crucial part in making sure the development of a country is a sustainable one. Mr.

Vicky Bowman, Myanmar Centre for Responsible Business, started by looking at the upcoming election.

The elector process should be more transparent from both government and business sides, in particular

when it comes to donations. The freedom of media is an important topic to create a good climate to attract

more businesses in Myanmar. More engagement with media and better advertisements decisions are keys

in this regard.

European businesses have shown the ability to bring ‘something else’ into Myanmar if compared with other

Asian investors. Mr. Marc de la Fouchardiere, EuroCham Myanmar, identifies the value of European

investments with “key takeaways from different panel discussions: transparency, respectful workplaces,

technological transfer, compliance, innovation.”

Irish investors have a strong interest in empowering young citizens of Myanmar. According to Mr. Kieran J

Rabbit, Irish Thai Chamber of Commerce, Irish businesses are successfully brining experts and

technologies into two main sectors: mobile and construction. This is helping to transfer human and

technological knowledge to Myanmar.

Mr. Suntke Heeren gave an overview about the current German businesses operating in Myanmar.

Investments from Germany are directed to the Garment, Chemical, Agriculture, Food and Beverage and

Energy sectors. Myanmar ranks 82th out of 238th commercial partners of Germany.

British Chamber of Commerce CEO, Mr. Peter Crowhurst, outlined how actions are needed from the

government. Great business possibilities for British investors are in the education sector.

Mr. Nicolas Delange stressed the importance of the reforms during the last years and the need for

European investors to be “a little bit patient” and support the government in its effort. “The direction is right,

and we should believe it”. As of business opportunities, the financial sector as a great potential according

to Mr.Delange.


22

Closing & Thank you notes

For the final thank you note the Head of the Board of

Directors, Mr David Levrat, addressed his greetings to all the

participants. During his speech, Mr. Levrat said that "several

challenges have been identified such as simplification of more

transparent procedures, the need to tackle infrastructure

needs, scarcity of skilled labour, and modernisation of

existing rules”, but he also noted that the great affluence, is a

sign of the increasing interest of the European companies in

Myanmar.

Moreover, the Executive Director, Mr Filip Lauwerysen, took

the chance to thank all the participants, speakers, panelist,

and sponsors for making the event remarkable and for their

constructive dialogues.

He reminded the first objective of the Chamber since the

beginning: promoting trade and investment between EU and

Myanmar with the main target of making positive and lasting

changes. He also concluded that "as a committed

organisation, EuroCham is looking forward to collaborating

closely with governments and business partners in the future

to accelerate progress towards a better investment climate

and better economic development in all the country, not only

in Yangon."

“As a committed

organisation, EuroCham is looking forward to collaborating closely with governments and business partners in the future to accelerate progress towards a better investment climate and better economic development in all the country, not

only in Yangon” Mr Filip Lauwerysen, . Executive

Director, EuroCham Myanmar


23

EuroCham 2019 White Book

The EuroCham Myanmar 2019 White Book is the third edition of an annually released publication by the

European Chamber of Commerce in Myanmar identifying the year’s focal business, trade and investment

issues affecting EuroCham’s members, the business community and in many cases society at large.

Compiled from white papers drafted by EuroCham’s advocacy groups, the White Book offers holistic and

realistic recommendations to the heads of relevant ministries and departments of the Myanmar

government, the Delegation of the European Union to Myanmar, Ambassadors, Consuls and Trade

Commissioners of the European member state missions in Myanmar, as well as international and sectoral

partner organisations in Myanmar and media.

In its third edition, the White Book focusses on a collection of industry-specific issues and

recommendations from European businesses in the sectors Agrobusiness, Anti-Illicit Trade, Automotive,

Construction, Digital Innovation, Energy, Garments, Health, Legal and Tax, Logistics, Wine & Spirits. By

sharing their perspective on how to improve the business environment in Myanmar – for the benefit of

foreign investors, domestic industry and consumers – some of the most important European companies

operating in the country form the basis for an ongoing and intensive dialogue between EuroCham

Myanmar and the Myanmar government.

Press Release 06.06 - EuroCham Myanmar · 2019-06-06 · Mr. Kamil Pikal, head of Economic &...

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Transcript of Press Release 06.06 - EuroCham Myanmar · 2019-06-06 · Mr. Kamil Pikal, head of Economic &...