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