Myanmar gives clearer path to investors

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Myanmar investmentThe Myanmar government on January 31 released bylaws to its foreign investment law, clarifying specific conditions for the entry of foreign capital in various  sectors.

The bylaws now authorise wholly foreign-owned ventures and joint foreign-domestic ventures. The ratios of foreign capital should be between 30 per cent and 80 per cent in the latter case, according to Ashai Shimbun.

The bylaws grant foreign investors the right to use not only state-owned land, but also privately owned plots, and extend the terms of lease from the current maximum of 30 years to 50 years, which is renewable.

The bylaws explicitly state that foreign entry will be restricted in coastal fisheries and in enterprises prone to environmental pollution. That provision could be applied to ironworks and other large-scale investment projects.

Although the new bylaws contain provisions that are favourable to foreign investors, some provisions are not clearly defined and leave much to the discretion of the government, raising concerns about a lack of transparency.

The minimal capital requirements, which were not included in the Foreign Investment Law when it was enacted in November 2012, were defined at $500,000 for the manufacturing industry, $300,000 for the services and other industries, and $10 million for mineral resources development.

The bylaws defined no restrictions on foreign capital ratios in specific fields, such as the food, hotel and transport industries. Such matters will likely be left to the discretion of the government’s investment commission.

 

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Reading Time: 1 minute

The Myanmar government on January 31 released bylaws to its foreign investment law, clarifying specific conditions for the entry of foreign capital in various  sectors.

Reading Time: 1 minute

Myanmar investmentThe Myanmar government on January 31 released bylaws to its foreign investment law, clarifying specific conditions for the entry of foreign capital in various  sectors.

The bylaws now authorise wholly foreign-owned ventures and joint foreign-domestic ventures. The ratios of foreign capital should be between 30 per cent and 80 per cent in the latter case, according to Ashai Shimbun.

The bylaws grant foreign investors the right to use not only state-owned land, but also privately owned plots, and extend the terms of lease from the current maximum of 30 years to 50 years, which is renewable.

The bylaws explicitly state that foreign entry will be restricted in coastal fisheries and in enterprises prone to environmental pollution. That provision could be applied to ironworks and other large-scale investment projects.

Although the new bylaws contain provisions that are favourable to foreign investors, some provisions are not clearly defined and leave much to the discretion of the government, raising concerns about a lack of transparency.

The minimal capital requirements, which were not included in the Foreign Investment Law when it was enacted in November 2012, were defined at $500,000 for the manufacturing industry, $300,000 for the services and other industries, and $10 million for mineral resources development.

The bylaws defined no restrictions on foreign capital ratios in specific fields, such as the food, hotel and transport industries. Such matters will likely be left to the discretion of the government’s investment commission.

 

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