The new investment law enacted on 18 th october 2016 combines the foreign investment law 2012 and the. Although the foreign investment law is repealed, the myanmar investment commission formedby that law shall have the power to perform its duties until the date that. The new regulatory regime aims to restore the growth trajectory of fdi in myanmar. Oct 19, 2016 myanmar investment law burmese version18102016 approved 1. Thursday 31, december, 2020 embassy will be closed on 01012021 friday. Myanmar enactment of amended foreign investment law in myanmar. However, these separate legal regimes created the perception of an uneven playing field for foreign investors on the one hand and domestic investors on the other. The government announced to make revisions in the foreign investment law fil which was originally issued in 1988.
Investor means a myanmar citizen investor or foreign investor who invests within the union. Additional mic permit under the myanmar investment law 2016. Foreign investment rule directorate of investment and company. The following terms mentioned in this law must be interpreted as stated below. The following expressions contained in this law shall have the meanings given hereunder. Aung hla tun, myanmar parliament passes investment law.
The amended law is generally designed to increase the benefits to foreign investors in the governments efforts to attract foreign investment to myanmar. May 03, 20 on 2 november 2012, president thein sein signed into law myanmar s new foreign investment law the new fil, replacing the previous union of myanmar foreign investment law of 1988. Myanmar citizen investment directorate of investment and. Investment requiring mic permit businesses that are strategic for the union large capital intensive investment projects projects which have large. Overview of economic growth and foreign direct investment in myanmar 3.
Pdf the effect of myanmars foreign investment policies on. Myanmar s new foreign investment law allows overseas firms to fully own ventures and offers tax breaks and lengthy land leases, state media said on saturday, releasing details of legislation. The impact of foreign direct investment on economic growth in. The myanmar citizen investment law and myanmar foreign investment law have been repealed with effect from 18. Pdf the effect of myanmars foreign investment policies. Laws, decrees, bills and regulations relating to business and. Foreign investment law of 2012 open development myanmar. While the prospects of this new market have captured the excitement of investors, myanmar has yet to facilitate foreign investment efficiently. The uncitral arbitration rules are widely used for contacts with foreign investors. Foreign investment law 2012 and citizen investment law 20 to improve on. Union of myanmar on november 2, 2012, the detailed negative lists notification no.
This update to the most important investment related legislation helps establish the coherent legal framework for both domestic and foreign investors. Myanmar investment law directorate of investment and company. New myanmar foreign investment law enacted on 2 november. This paper highlighted the important historic role that thailand has played as an economic partner of myanmar, though the timing of the paper, in early 2008, came just at the beginning of the rapid rise of chinas investment in myanmar. The new fiscal year will start on april 1, which also marks the start of new laws and economic policies for myanmar. Evaluation of the new foreign investment law in myanmar. The new myanmar companies act takes effect from 1 august 2018. Foreign investment law and investment procedures in myanmar. Investor protection market access entry procedures investment incentives to reduce complex and lengthy entry process, to increase transparency reform the incentive scheme from blanket approval to targeted incentive. The lifting of international sanctions in 2012 saw myanmar open up its economy to the world with the introduction of the foreign investment law, which set out. The new myanmar investment law, which was recently passed, will come into effect on april 1 and its implementation and enactment will spell. In 2017, the century old companies law was substantially revised. After the enactment of the foreign investment law in 2012, the myanmar citizen investment law was enacted in 20. On 2 november 2012 myanmar s president thein sein endorsed the countrys new foreign investment law fil.
With new foreign investment laws and the lifting of. Therefore the period from 1989 to 2012 is designated as the study period. The foreign investment law the pyidaungsu hluttaw law no 21 2012 the 3rd waning of thadingyut, 74 me 2nd november, 2012 the pyidaungsu hluttaw hereby enacts this law. Myanmar enactment of amended foreign investment law. In particular, the provisions that require a minimum foreign investment of usd 5 million as well as that caps a foreign investors stake in a myanmar joint venture at 50% have been deleted. This study focuses on the inflows of foreign direct investment into myanmar and vietnam. This law shall be called the union of myanmar foreign investment law. Key changes to the draft that was submitted earlier this year concern land use. The new myanmar investment law mil took effect in 2017 to combine the old citizens investment law and the myanmar investment law.
Kingdom of great britain and northern ireland visiting myanmar to prevent the spread of. This gives the right to enforce foreign arbitration awards in myanmar by foreign investors. Charltons accepts no responsibility for its completeness andor accuracy. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Investor protection market access entry procedures investment incentives. Myanmar s new foreign investment law 3 o if the mic decides to evaluate an investment proposal, it must approve or reject that proposal within 90 days from the. A foreign investor wishing to invest in myanmar under the foreign investment law must apply to the myanmar investment commission in the prescribed form for a permit, for the commissions permission to undertake the proposed investment. Pdf the role of foreign direct investment fdi in myanmar. The myanmar government has implemented the countrys 2012 foreign. New 2012 myanmar foreign investment law now in force full text.
The introduction of the fil is good news for potential investors and. Investment promotion and facilitation in myanmar chapter 5. Overview section 57 of the new law repeals the foreign investment law of the union of myanmar 1988 1988 fil. Under the new fil, foreign investors will be able to invest their capital in foreign currency and to remit such amounts out of myanmar, in addition. Foreign investors who wish to undertake specific business activities in myanmar may rely on the foreign investment framework available under the myanmar companies act, the 2012 myanmar foreign investment law and the 2014 sez law. Myanmar investment law reform asiapacific research and. Jul 10, 2017 the mil, from its start date, applies to existing or new investments in myanmar except for matters coming under the old foreign investment law 2012 such as investment disputes or prior permit investments previously suspended from business operations before the start date or investment projects suspended by governmental measures under general. Its objective is to establish a levelplaying field for local and foreign investors by providing a legal framework and incentives for investment by myanmar government. Investment law fil with two notifications together referred to here as the. Myanmar investment law directorate of investment and company administration dica ministry of construction ministry of agriculture livestock and irrigation myanmar investment commission mic myanmar citizens investment law of 20 foreign investment law of 2012 myanmar investment law of 2016 special economic zones sez.
Foreign direct investment fdi is projected to increase as the government drafts and enforces businessfriendly measures. The foreign investment law the pyidaungsu hluttaw law no. The international monetary fund provides quarterly foreign direct investment in usd. The new regulatory environment recognizes that foreign investment and an active and engaged private sector are crucial to myanmar. Myanmar state media details new foreign investment law. See applies equally to both foreigners and myanmar citizens.
Through these laws, foreign investors may choose to establish a foreign branch office in myanmar. Foreign direct investment and economic transformation in myanmar 3 acronyms cmp cutmakepack cso central statistical organisation dica directorate of investment and company administration dtt double taxation treaty fdi foreign direct investment fil foreign investment law fob free on board gdp gross domestic product. Pdf since the new government took office in march 2011, myanmar has embarked on a process of extensive political and economic reform. The myanmar government is committed to promote foreign and local investment equally. Foreign investment law 2012, the union parliament law no.
Oct 27, 2016 while the 2012 law stipulated the rules relating to foreign investment, separate legislation the 20 law, regulated investments by citizens of myanmar. Myanmar foreign investment law was issued in 2012 to promote and regulate foreign investments. Early last month myanmar s parliament passed the updated foreign investment law, which was signed into law by president u thein sein on november 3, 2012. Owned economic enterprises law see 1989 and the foreign investment law fil. New myanmar investment law myanmar citizens investment foreign investment myanmar investment dica the efficient. Myanmar myanmar investment law investment laws navigator.
Investment permits with corresponding incentives and benefits continue to be issued under the 2012 myanmar foreign investment law, as well as investment. Yangon reuters myanmars new foreign investment law allows overseas firms to fully own ventures and offers tax. The investment law of 2015 online burmamyanmar library. The pdf file with the full text in english of the new foreign investment. There are two investment promotion regimes in myanmar aimed at attracting large scale foreign investment. Myanmars new foreign investment law fil was passed on november 2. Reform of the myanmar investment law challenges on positioning myanmar as an investment destination.
The additional issuance of a long term stay permit, which is only available to persons holding a foreigner registration certificate, allows foreigners to reside in myanmar without having to leave the country after expiry of the visas validity e. Charltons does not currently advise on the law of myanmar. President u thein sein highlighted the importance of workable laws. Overview the myanmar government is committed to promote foreign and local investment equally. Myanmar s new foreign investment law 3 o if the mic decides to evaluate an investment proposal, it must approve or reject that proposal within 90 days from the date the mic accepted the proposal for evaluation i. Myanmar law updates november 2012 new myanmar foreign investment law enacted on 2 november 2012 table of contents background overview key changes risk profile background on 2 november 2012 myanmar s president thein sein endorsed the countrys new foreign investment law fil. The myanmar government has implemented the countrys 2012 foreign investment law fil with two notifications together referred to here. The myanmar investment law 2016 mil was enacted to replace the foreign investment law 2012 and the myanmar citizens investment law 20 on 18th october 2016. Foreign investment law 2012 union parliament law no xxi 3 chapter i title and definition 1. Before the enactment of the new myanmar investment law.
Wanning day of thadingyut the union parliament hereby enacts the following law. This law shall be called the foreign investment law. The mil introduces a new type of mic approval in the form of an mic. The investment policies of both countries are presented. This is the unofficial english translation of the new. This law shall be called the myanmar investment law. Foreign investment overview for myanmar myanmar 2016. The union government firstly introduced the foreign investment law in 1988 was apparently based on union of burma investment act 1959. Myanmar investment commission mic promotion under the myanmar investment law 2016 mil, and special economic zones under the special economic zone law 2014 sezl. This was replaced by the myanmar investment law in 2016 so as to combine the regulation of both foreign and domestic investments under one set of laws. Specific legal advice should be sought in relation to investment in myanmar. The republic of the union of myanmar, myanmar investment commission, in exercise of the powers conferred under section 56, subsection b of the foreign investment law, in stipulating the applicable business under chapter 2 of the foreign investment law, and with the approval of the union government, prescribes the list of economic activities which are prohibited, the list of.
New myanmar foreign investment law enacted on 2 november 2012. With the mil affecting all investments in myanmar, no matter how large or small, or whether being made by local or. Myanmar investment law burmese version18102016 approved. Regulation and protection of investment in myanmar chapter 4. Mar 01, 2017 myanmar companies act and enterprises formed in accordance with the laws of any other country are also included.
On 30th march 2017, the ministry of planning and finance, therefore, published the myanmar investment rules mir under the myanmar investment law 2016 mil as notification no. Foreign investment rules in practice clifford chance. Amended foreign investment law set for july 4 parliament session myanmar s amended foreign investment law will be resubmitted to parliament on july 4. The international monetary fund provides quarterly foreign direct investment in.
Vietnam and myanmar enacted foreign investment laws in 1987 and 1988 respectively. After decades of isolation, foreign direct investment began to flourish as a seemingly civilian government replaced the military junta in 2011. The trade and investment regimes are still undergoing liberalisation to encourage entry. Jun 12, 2017 the new myanmar investment law first experiences 23 rd june, 2017. A guide to the myanmar investment law the passing of the myanmar investment law 402016 mil has brought about significant changes to myanmar s investment framework affecting both myanmar and foreign investors. Usd mn net flows data is updated quarterly, available from mar 1976 to jun 2020. To further encourage the inflow of foreign investment, the. Positioning myanmar as an attractive new investment. Being cognizant that the myanmar citizens investment law, pyidaungsu htluttaw law no. Embassy of the republic of the union of myanmar, london. Guide to the myanmar investment law berwin leighton paisner. A new myanmar investment law mil was enacted in april 2017. This is the unofficial english translation of the new myanmar. Fdi foreign direct investment fil foreign investment law fob free on board gdp gross domestic product.
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