Foreign direct investment and economic transformation in myanmar 2 ii. Do you know ratio of foreign direct investment in myanmar and opportunity in several sectors. We provide a complete range of investment advisory and business consulting services that are tailored to your specific objectives. Partly as a result of that, and in part due to teething issues associated with the transition to a new government, foreign direct investment fdi and gdp growth. While the prospects of this new market have captured the excitement of investors, myanmar has yet to facilitate foreign investment efficiently. Myanmar fdi is an investment advisory and business consultancy firm dedicated to supporting foreign direct investment fdi into myanmar. Foreign direct investment policy myanmars foreign direct investment policy is a component of the overall restructuring and development policy of the government. Use similar mechanisms to attract diaspora entrepreneurs back to myanmar. Adoption of marketoriented system for the allocation of resources encouragement of private investment and entrepreneurial activity. Based on data for actual and approved foreign direct investment fdi from 19892011, this paper explores the major trends in fdi in myanmar, focusing on changes over time in. Trade and competitiveness issues are integral to economywide efforts to spur growth, productivity, and job creation. Considered by many to be one of the last economic frontiers, myanmar has been the object of investor interest for the past three years. Foreign direct investment promotion plan in myanmar fdipp in 2014. After decades of isolation, foreign direct investment began to flourish as a seemingly civilian government replaced the military junta in 2011.
As the value of announced fdi greenfield projects is an. Approximately 40 firms were interviewed in both myanmar and china to assess the extent to. The objective of the study is to examine the role of foreign direct investment fdi and the situation of fdi flows in myanmar. This page provides the latest reported value for myanmar foreign direct investment plus. The report looks at foreign direct investment fdi in myanmar, with a focus on chinese investment, to assess how it contributes to economic transformation in four sectors. Investment and company administration, ministry of national planning and. A large and cheap workforce, natural resources and generally low production costs make myanmar a perfect destination for foreign investment. Foreign investment by country directorate of investment. Our neighbouring country, india had amended the foreign direct investment law in 2014. The following expressions contained in this law shall have the meaning given hereunder. Myanmar investment promotion plan mipp,integrating domestic investment promotion and foreign investment promotion into one plan in line with the directions of the national comprehensive development plan 201 and the investment policy of 2016. Foreign direct investment in myanmar online burmamyanmar. Economics foreign direct investment isbn 9786025798245 asean. Jul 31, 2019 this statistic shows the value of foreign direct investment fdi net inflows in myanmar from 20 to 2018.
Jared bissinger, approved and actual foreign direct investment in myanmar by sector and source, unpublished dataset. Apr 03, 2019 yangon, myanmar 3 april 2019 myanmars economic growth is expected to pick up in 2019 and 2020, thanks to higher foreign direct investment fdi and positive responses to the governments economic and policy reforms, according to a new report by the asian development bank adb. A 3rd draft of january 2016 in myanmar language only is available at. Escap trade and investment division staff working paper 0112, revised 31 dec 2012 2 and unnext, is well placed to support efforts to strengthen evidencebased policymaking for trade and investment in myanmar. Title foreign direct investment relations between myanmar. Foreign direct investment in myanmarfdi guide and opportunity. Myanmars investment outlook for 2019 asean business news. Foreign investment policy since late 1988 the government has been actively encouraging foreign investment in myanmar. Strategically located between china, india and thailand, myanmar is surrounded by some of the fastest growing economies in the world. Based on data for actual and approved foreign direct investment fdi from 19892011, this paper explores the major trends in fdi in myanmar, focusing on changes over time in the source and sector of investment.
Foreign investment, policy reforms to boost myanmars growth. Adoption of a marketoriented system for the allocation of resources. This law shall be called the foreign investment law. There is no evidence that the myanmar investment commission mic discriminates against foreign investors. Development economists know that rapid growth requires a high level of investment, which in the absence of foreign direct. Foreign investment by country directorate of investment and. Although the lack of detail in the 12point economic plan had been criticised, in august 2018 the ministry of planning and finance released a much more comprehensive document called the myanmar sustainable development plan 201830viii. Alternatively, the permit may simply not be renewed at the end of the relevant twoyear period. Pdf the role of foreign direct investment fdi in myanmar. Therefore almost every country tries to attract the foreign investment by offering the incentive such as tax incentive, tax grace period and etc.
Data on foreign direct investment fdi in myanmar are reported by the directorate of. Myanmar companies act and enterprises formed in accordance with the laws of any other country are also included. Myanmars ambitious 20year plan to attract foreign investment. Fdi inflows distribution by industry 2018 statista. A new myanmar investment law mil was enacted in april 2017. Encouragement of private investment and entrepreneurial activity. Myanmar highly appreciates foreign direct investment fdi as a key solution reducing the development gap with leading asean countries. Investment promotion and facilitation in myanmar chapter 5.
Regulation and protection of investment in myanmar chapter 4. Conformity to the investment policy announced in 2016 and new investment regime of myanmar under the myanmar investment law and special economic zone sez law. Its main foreign investment policy objectives are started as the. The graph shows the distribution of foreign direct investment fdi in myanmar in 2018, broken down by country of origin. In may 2018, the ministry of commerce issued notification 252018, which opened up the wholesale and retail sector to direct foreign investment. Foreign direct investment relations between myanmar and asean. Asean investment report 2018 foreign direct investment and the digital economy in asean jakarta.
It shall also include investments stipulated under section 40. Pdf longterm foreign direct investment promotion plan in. Fdi is desired by most of the countries as it can help in boosting the economic development of the country. Foreign direct investment in myanmar increased by 734. The nations neighboring myanmar are bangladesh, china, india, laos and thailand. Most of this investment was in the energy sector, garment industry, information technology, and food and beverages. 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. Myanmar foreign direct investment 20122019 data 2020. Myanmar is still a highrisk country, requiring a rigorous responsible investment strategy. The graph shows the distribution of foreign direct investment fdi inflows in myanmar in 2018, broken down by industry. The investment challenges in a context where the economy is still dominated by the interests of the military and their connected crony businessmen are obvious.
Foreign direct investment is one of the main factors to improve trade in each and. Dec, 2019 the graph shows the distribution of foreign direct investment fdi in myanmar in 2018, broken down by country of origin. Foreign direct investment fdi is projected to increase as the government drafts and enforces businessfriendly measures. Foreign investors jittery amid myanmar s rohingya crisis by yigal chazan western companies have been slow to exploit opportunities in myanmar, especially as the rohingya crisis worsens. Pdf since the new government took office in march 2011, myanmar has embarked on a process of extensive political and economic reform. Myanmars foreign investment law was enacted in 1988 soon after the adoption of a marketoriented economic system to boost the flow of fdi into the country. Myanmar, is a southeast asian nation comprised of 100 plus ethnic groups. The study was based on secondary data source of myanmar over the. Longterm foreign direct investment promotion plan in myanmar final report. Foreign direct investment global new light of myanmar. Myanmar, foreign direct investment, asean, chinaindia competition.