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Dr. Marlar Myo NyuntDirector

Directorate of Investment and Company Administration

Investment Trend and Economic Situation in Myanmar

• Expanding our financial resources

• Improving the operations of state-owned enterprises and privatizing those

enterprises

• Fostering the human capital

• The rapid development of fundamental economic infrastructure

Myanmar Economic Policies

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• The rapid development of fundamental economic infrastructure

• Creating employment opportunities for all citizens

• Establishing an economic model

• Asserting the right individuals to freely pursue the economic opportunities

• Achieving financial stability

• Building environmentally sustainable cities, upgrading public services and

utilities

• Establishing a fair and efficient tax

• Establishing technical systems and procedures

• Identifying the changing and developing business environment

Myanmar Economic Policies (Cont.)

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• Identifying the changing and developing business environment

Target Amounts of FDI in FDIPPTarget Amounts of FDI in FDIPP

• In order to achieve a 6-9% annual GDP growth, an accumulative amount of USD140 billion is necessary during the period 2014 - 2030.

Required Annual Investment to Achieve GDP Growth Target

Year/PeriodTotal

InvestmentFDI

Domestic investment

Government Capital Investment

2014 11,899 3,282 3,146 5,470

Unit: Million USD

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2014 11,899 3,282 3,146 5,470

2015 14,308 4,661 3,763 5,884

2016-20 Average 20,558 6,306 5,093 7,416

2021-25 Average 32,025 8,120 10,672 10,516

2026-30 Average 49,886 11,405 19,095 14,888

Total 495,091 138,429 181,206 175,455

4

Vision, Goals and Targets of FDIPP

VisionDynamic economic growth led by FDI worth USD140 billion* during the period of 2014 to 2030

*accumulated amount

Short-term (2015)

USD 4 billion/year

Increase of FDI to achieve access to the Global Supply Chain for Myanmar's economy and to contribute to the development of the domestic market as well as to export

Goals (with Target FDI amount)

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USD 4 billion/year domestic market as well as to export

Mid-term (2016-2020)

USD 6 billion/year

Achievement of comparative advantage in the AEC with internationally-recognized reputation and realization of domestic industrial diversification

Long-term (2021-2030)

USD 8 billion/year (2021-2025)

USD 11 billion/year (2026-2030)

Development of industrial agglomeration through continuous FDI-led industrial development with sophisticated infrastructure and multi-layered supporting industries that contributing as the core driver of Myanmar's sustainable economic growth

Trend of Investment

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Industry Change

Resource Based

Resource Based

Low TechLow Tech Value AddedValue Added DiversificationDiversification

LabourIntensive

Skill Intensive

Capital Intensive

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BasedBasedLow TechLow Tech Value AddedValue Added DiversificationDiversification

1998-2011 2015 2017-2018 ?

Policy Change

1988-20111988-2011 2011-20152011-20152016-2016-

Inward Looking Getting the Policy Right

Enabling Environment

Sustainable

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1988-20111988-2011 2011-20152011-20152016-

onwards2016-

onwardsSustainable Development

Myanmar Investment Law

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New Myanmar Investment Law

Myanmar Citizens

Investment

Foreign Investment

Myanmar Investment

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Citizens Investment Law (2013)

Investment Law (2012)

Investment Law

Investment Requiring MIC Permit

• Businesses that are strategic • Businesses that are strategic for the Union

• Large capital intensive investment projects

• Projects which have large potential impact on the environment and the local

Submitting Proposal

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environment and the local community

• Business carried out in State-owned land and building

• businesses which are designated by the government to require the submission of a proposal to the Commission

Proposal (Section 36)

Endorsement Application Submission

Business except where it concerns

investments stipulated under

section 36

Endorsement application to the

Commission

To enjoy the Rights to Use Land under Chapter (12) and

Exemptions and Reliefs under sections 75,77 and 78

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Not required to submit a Proposal to the

Commission

Prohibited Investment

Business:

the hazardous or poisonous wastes;

technologies, medicines and instruments which are stillbeing tested abroad or which have not obtained relevantapprovals for use, planting except for the purpose ofR&D;

may affect the traditional culture and customs of the racial

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may affect the traditional culture and customs of the racialgroups;

may affect the public health

may cause damage to the natural environment andecosystem;

manufactured goods that are prohibited in accordancewith existing laws.

Restricted Investment

Investment activities allowed to carry out

by State only;

Investment activities restricted to foreign

investors;

Investment activities allowed only in

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Investment activities allowed only in

form of joint venture with a citizen owned

entity or a citizen of Myanmar; and

Investment activities permitted with the

recommendation of the relevant ministries

Restricted Investment

Treatment of Investors

National Treatment for

the Foreign investors and

Most-FavouredNation

Treatment

Fair and Equitable Treatment

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investors and investments

Treatment of Investors

Rights to Use Land

• From any government body or government organization

• From private land-holders

• From any government body or government organization

consecutive The period of consecutive

10 years • From any government body or government organization

• From private land-holders

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holders

Initial 50 years

organization• From private land-

holders

holders

Further Further 10 years

Employment of Staff and Workers

Any Citizen Only Myanmar

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Any Citizen Only Myanmar Citizens

Senior Manager

Expert

Advisor

The work which does not require skills

Investment Guarantee

Guarantees not to expropriate or nationalize or indirect expropriation to any investment

Conditions for

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For a public interest In a non-discriminatory manner In accordance with due process of law Upon payment of prompt, fair, adequate and effective compensation

for expropriation

Incentives under New Myanmar Investment Law

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Exemption & Reliefs

Incentive is not granted automatically

Investors may apply one or more than one the exemptions and reliefs

Incentives under New Myanmar Investment Law

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Income Tax Exemption & Relief

Exemption from Customs Duty & Other

Internal Taxes

Other Other Exemption & Relief

Zone(1)Least- Developed

Regions and StatesIncome Tax Seven Years

Zone(2)Moderately Developed

Incentives under New Myanmar Investment Law

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Moderately Developed Regions and States

Income Tax Five Years

Zone(3)Adequately Regions and

StatesIncome Tax Three Years

Promoted Sectors

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Agriculture and its related services

(except cultivation and production of

tobacco and virginia)

Plantation and conservation of forest, and other businesses

with forest

Livestock production, breeding and

production of fishery products, and itsrelated services

Promoted Sectors

Manufacturing

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Manufacturing (Except

manufacturing of cigarette, liqueur, beer,

and otherharmful products to

health)

Establishment of Industrial Zones

Establishment of New Urban Areas

Promoted Sectors

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City Development Activities

Construction of Road, Bridge and Railway

Line

Construction of Seaport, River Port

and Dry Port

Promoted Sectors

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Management, Operation and

Maintenance of Airport

Maintenance of Aircrafts

Supply and Transport Services

Promoted Sectors

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Power Generation, Transmission and

Distribution

Production of Renewable Energy

Telecommunication Businesses

Promoted Sectors

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Education Services

Health ServicesInformation Technology

Services

Promoted Sectors

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Hotel and TourismScience Research

Development Business

FDI Situation in Myanmar

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Foreign Investment in Myanmar(1988-1989 to July, 2017)

Oil and Gas31%

Transport & Communication11%

Real Estate7%

Mining4%

Hotel and Tourism

4%

Livestock & Fisheries1%

Agriculture0%

Industrial Estate0%

Construction0%

Other Services

2%

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Power28%

Manufacturing12%

FDI Situation in MyanmarFDI Situation in Myanmar

Foreign Investment of Permitted Enterprises as of (31/7/2017) (Sectors)

Sectors (2011-2012 to 2017-2018, as the end of June)

Manufacturing19%

Transport and Telecommunica

tion23%

Real Estate8%

Industrial Esatate

0% Other Services

3%

Oil and Gas31%

Real Estate

7%

Mining4%

Hotel and Tourism

4%

Livestock & Fisheries

1% Agriculture0%

Industrial Estate0%

Construction0%

Other Services2%

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Power17%

Oil and Gas24%

Hotel and Tourism

5%

Mining0%

Agriculture0%

Livestock and

Fisheries1%

31%

Power28%

Manufacturing12%

Transport & Communication

11%

Investment Situation in MyanmarInvestment Situation in Myanmar

6000

7000

8000

9000

10000

Chebawenge Power

US$ in Million

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0

1000

2000

3000

4000

5000

6000

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018(the end of

July)

300.482 1419.467

4107.054

8010.533

9481.275

6649.812

2989.813

4343.978 Other Services- Oil and Gas- Mining- Industrial Estate- Hotel and Tourism- Real Estate- Livestock & Fisheries - Agricultural - Other

Major Foreign Investors in MyanmarMajor Foreign Investors in Myanmar

US$ in MillionsForeign Investment of Permitted Enterprises as of (30/6/2017) (Countries)

15.00

20.00

25.00

30.00

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0.00

5.00

10.00

Chi

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Sin

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Major Foreign Investors in MyanmarMajor Foreign Investors in Myanmar

US$ in Millions

Countries (2011-2012 to 2017 June)

8000

10000

12000

14000

16000

18000

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0

2000

4000

6000

Sin

gapo

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Chi

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Phi

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line

s

Investment Flow in MyanmarInvestment Flow in Myanmar

US$ in Millions

19,998.97

15,000.00

20,000.00

25,000.00

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7,751.38

6,065.68

719.70 205.70 984.76

329.58

4,644.46

1,419.46

4,107.05

8,010.53

9,481.27

6,649.81

2989.813

-

5,000.00

10,000.00

1988-1989 to 2004-2005

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 (end of July)

Thank YouThank You

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Cooperator of Business Community,

Developer of National Economy

DICAwww.dica.gov.mm

maymarlar@gmail.com