| 1. |
Foreign Direct Investment Policy |
| |
Myanmar’s foreign direct
investment policy is a component of the overall restructuring
and development policy of the Government. The main components
of the policy are: |
| |
(a) |
adoption of market oriented system for the allocation
of resources. |
| |
(b) |
encouragement of private investment and entrepreneurial
activity. |
| |
(c) |
opening of the economy for foreign
trade and investment. |
| |
|
| |
The objectives of the Union of Myanmar Foreign
Investment Law are: |
| |
(a) |
promotion and expansion of exports, |
| |
(b) |
exploitation of natural resources, which require
heavy investments |
| |
(c) |
acquisition of high technology, |
| |
(d) |
supporting and assisting production and services
involving large capital, |
| |
(e) |
opening up of more employment opportunities, |
| |
(f) |
development of works which would save energy consumption
and |
| |
(g) |
regional development. |
| |
In order to oversee
and administer the FIL, the Myanmar Investment Commission (MIC)
was formed and it acts as initial approving authority for investment
proposals. The Directorate of Investment and Company Administration
(DICA) serves as the Secretariat of MIC.
|
| 2. |
Forms of Investment
|
| |
Foreign investors can set up their business either
in the form of a wholly foreign-owned or a joint venture with
any partner (an individual, a private company, a cooperative
society or a state-owned enterprise). In all joint ventures,
the minimum share of the foreign party is 35 percent of the
total equity capital.
|
| 3. |
Minimum Capital Requirement
|
| |
The minimum amount of foreign capital required
to be eligible under the Foreign Investment Law is: |
| |
|
For an industry |
US $ 500,000 |
| |
|
For services |
US $ 300,000
|
| 4. |
Eligible Economic
Activities |
| |
Economic activities allowed under
the Foreign Investment Law cover almost all sectors of the economy.
It has been notified by the Myanmar Investment Commission (MIC).Any
economic activity not included in the notification can be considered
individually.
|
| 5. |
Restricted Activities
|
| |
The State-owned Economic Enterprises
Law defines 12 economic activities in which private investment
is restricted and are reserved to be carried out solely by the
State. However, according to Section 4 of the said law, the
Government may in the interest of the State, permit by notification
to carry out such activities. |
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