Search

(…) The Foreign Investment Law also contains social and environmental protection provisions.

Accordingly, the GOM (Government of Myanmar) attaches the highest priority to drawing up the necessary procedures as well as environmental and social guidelines for foreign investment in accordance with the new Foreign Investment Law (FIL) promulgated in November 2012. (…)

Under the new FIL (Foreign Investment Law), foreign investment is to be approved if it: supports the objectives of the national development plan, activities lacking money and technology, and those still not exercisable by the citizens; develops job opportunities; promotes and expands exports; produces import substitution goods; facilitates technology development; supports projects requiring large investment; encourages energy saving, and the exploration and extraction of new energy, as well as sustainable energy development (such as new bio-based energy); develops modern industry; conserves the environment; (…) and meets the short- and long-term domestic utilization of state energy resources.

The two new laws (FIL - Foreign Investment Law and CIL - Citizens' Investment Law), which were closely scrutinized by Parliament, envisage not only wide range of activities where foreign investment can involve 100% equity ownership, but also lower and non-discriminatory minimum capital requirements, tax incentives (especially tax holidays), longer leasing of real estate, and vigorous standards for environmental and social protection.

The Greater Mekong Sub-region (GMS) programme appears to have aided integration within the region. In 1992, Myanmar, together with Cambodia, Lao PDR, Thailand, Viet Nam, and Yunnan Province of China , launched a programme of sub-regional economic cooperation, to enhance economic linkages across their borders. The GMS programme covers nine priority sectors: transport, energy, telecommunications, environment, human resource development, tourism, trade, private sector investment, and agriculture. (…)

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.