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The previous law of 1989 adopted a "positive list" approach where foreign investors were allowed to invest only in listed sectors. The new law lists certain activities that are restricted or prohibited to foreign investment (Article 4), including:
a. businesses that can affect the traditional culture and customs of the ethnic nationalities of the country, and public health;
b. businesses that can cause damage to the natural environment and ecosystem;
c. importation of hazardous or toxic waste materials;
d. production or use of hazardous chemicals specified in international agreements;
(…)

(…) Imports of GMOs are not permitted.

Table 2.4 Sectors reserved for Myanmar citizens
Groups: Schedule 1
Sectors: Manufacturing and services sectors reserved for Myanmar citizens only:
Manufacturing: Administration and maintenance of natural forest
(…)

Further, the MIC (Myanmar Investment Commission) Notification No. 1/2013 lists sectors prohibited or restricted for foreign investment (Table 2.5). Restricted businesses include: those carried out by joint ventures with local investors (for the purpose of knowledge sharing), and those requiring certain conditions. These conditions may be attached to implement and meet certain manufacturing practices and standards, to properly use natural resources, or to apply environmental impact assessment.

(…) The MIC evaluates foreign investment proposals, stipulates the terms and conditions of investment permits, and assesses foreign investment situations. Permits are issued to investments that do not affect the interests of the State and the people, national dignity, sovereignty, and the environment. An investor with a permit from the MIC under the 1988 FIL may continue to work and enjoy benefits until expiry of the contract.

Table 2.5 FDI prohibitions/restrictions
Prohibited sectors: 21 types of activities including: Defence; electricity trading; natural forest management; small to medium-scale mining and extraction; exploration and production of jade/gem stones; exploitation of minerals including gold in the water way; air control management service; navigation service; printing and broadcasting; and certain environmentally hazardous activities
(…)

Table 2.5 FDI prohibitions/restrictions
(…)
Businesses requiring Environmental Impact Assessment: 34 activities requiring an Environmental Impact Assessment from the Ministry of Environmental Conservation and Forestry

[for power generation projects] A foreign investor must, inter alia, conclude a memorandum of understanding on a pre feasibility study and memorandum of agreement, and a joint-venture agreement with the MOEP (Ministry of Electric Power), and obtain approval from the MIC (Myanmar Investment Commission), the Attorney General’s Office, the Ministry of Finance, the Ministry of National Planning and Economic Development, and the Cabinet. Approval of environmental impact assessment and social impact assessment by the Ministry of Environmental Conservation and Forestry is also required.

The Government plans to establish three SEZs [special economic zones]: Dawei, Kyauk Phyu, and Thilawa. Infrastructure is being developed in the Dawei SEZ. A plan for infrastructure development in Thilawa is being prepared, and an environmental impact assessment is being conducted in the Kyauk Phyu.

The Ministry of Commerce maintains a list of prohibited imports; any changes to the list are reviewed by the Directorate of Trade of the Ministry of Commerce. Under Section 18 of the Sea Customs Act, import prohibitions apply to, inter alia: counterfeit currency and coins; pornographic material; all kinds of narcotic drugs and psychotropic substances; playing cards; goods bearing the imprint or reproduction of the flag of Myanmar; goods bearing the emblem of Buddha and pagodas of Myanmar; arms and ammunition; antiques and archeologically valuable items; and wildlife and endangered species.