Invest in Myanmar Ms. Ei Ei Khine Economic counsellor Embassy of the Republic of the Union of Myanmar Myanmar Embassy, Tokyo 1
Myanmar Embassy, Tokyo
Myanmar s Economic Indicators GDP Growth Rate GDP (in US$ Billion) 10.0 5.0 5.6 7.3 8.4 8.0 7.3 70 65 60 55 57.31 56.95 59.2 66.59 56.64 0.0 2011-12 2012-13 2013-14 2014-15 2015-16 50 2011-12 2012-13 2013-14 2014-15 2015-16 2015-2016 GDP by Sector 27% 38% 35% Agriculture Industry Services GDP per Capita (in US$) 1143 1157 1124 1280 1079 2011-12 2012-13 2013-14 2014-15 2015-16 Source: Ministry of Planning and Finance Myanmar Embassy, Tokyo 3
Potential Market Bangladesh 162.9 Mil 51.4 Mil Laos 6.7 Mil Bangladesh $ 221 Bil $ 67 Bil Laos $ 16 Bil Total People 2,994 Million 40% Worlds Population Total GDP (Current Price) US$ 14,174 Billion Myanmar Embassy, Tokyo 4 Source : The World Bank Database World 2016 Factbook
Human Resource Endowment Population : 51.4 Million (2014) Age between 15-65 year old : 65.6% Wages ( 8 hours ) 3600 Kyat = 300 Yen Adult Literacy rate: 89.6% Source: Ministry of Planning and Finance Myanmar Embassy, Tokyo 5
Rich Natural Resources Gold Pearl Jade Myanmar Embassy, Tokyo 6
Export by Types of Commodity (FY 2016-2017) Source: Ministry of Commerce Myanmar Embassy, Tokyo 7
Positioning ASEAN and Myanmar in the Regionalism Myanmar Embassy, Tokyo 8
Myanmar Embassy, Tokyo
Legal Framework Special Economic Zone Law (2014) Myanmar Investment Law (2016) Myanmar Embassy, Tokyo 10
Corporate tax Import tax exemption Subject Free Zone Investment in SEZ Promotion Zone Tax exemption 7 years 5 years 50% tax relief 5 years 5 years 50% tax relief for reinvestment Import of construction materials, machinery, equipment 5 years 5 years Exempted 5 years exempted + 5 years (50% relief) Import of raw material Exempted Export portion is refundable Myanmar Embassy, Tokyo
Land Use in SEZ Initial Year 50 + Extension Year 25 Total Year 75 Source: Myanmar SEZ Law Myanmar Embassy, Tokyo 12
Pioneer SEZs: Special Economic Zones in Myanmar 3 Pioneer SEZs namely; - Dawei SEZ - Kyauk Phyu SEZ -Thilawa SEZ Myanmar Embassy, Tokyo 13
Transborder Cooridor Link between Dawei SEZ and Bangkok Myanmar Embassy, Tokyo 14
Kyauk Phyu SEZ Myanmar Embassy, Tokyo 15
Thilawa SEZ 16 Myanmar Embassy, Tokyo
Investment in Thilawa SEZ ( As of 31 st August 2017) 600.0 500.0 Investment by top 6 countries 514.4 Trading 11% Services 5% Investment By Sector Real Estate 2% Hotel 1% US$ in million 400.0 300.0 200.0 134.8 119.7 108.0 Logistics 7% Manufacturing 74% 100.0 63.1 56.0 0.0 Japan Thailand Republic of Korea Malaysia Taiwan USA Source: Thilawa SEZ Management Committee Myanmar Embassy, Tokyo 17
New Myanmar Investment Law http://www.myanmar-embassytokyo.net/eco2017/ Myanmar Embassy, Tokyo 18
National Treatment and Most Favored Nation Treatment Fair & Equitable Treatment Rights to Use Land Right to Employ Expatriates Investment Guarantee Transfer of Funds Myanmar Embassy, Tokyo 19
Agriculture and its related services (except cultivation and production of tobacco and Virginia) Plantation and conservation of forest, and other businesses with forest Livestock production, breeding and production of fishery products, and its related services Manufacturing (Except manufacturing of cigarette, liqueur, beer, and other harmful products to health) Establishment of Industrial Zones Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo 20
Establishment of New Urban Areas City Development Activities Construction of Road, Bridge and Railway Line Construction of Seaport, River Port and Dry Port Management, Operation and Maintenance of Airport Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo 21
Maintenance of Aircrafts Supply and Transport Services Power Generation, Transmission and Distribution Production of Renewable Energy Telecommunic ation Businesses Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo 22
Education Services Health Services Information Technology Services Hotel and Tourism Science Research Development Business Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo 23
Zone 1: Less Developed Zone Total: 166 Townships in 13 States and Regions except Yangon and Nay Pyi Taw Union Terriority States (98 Townships) Kachin (14), Kayah (7), Kayin (7), Chin (9), Mon (2), Rakhine (17), Shan (42) Regions (68 Townships) Sagaing (34), Tanintharyi (4), Bago (5), Magwe (13), Mandalay (2), Ayeyarwady (10) Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo 24
Zone 2: Moderate Developed Zone Total: 122 Townships in 3 States, 7 Regions and Nay Pyi Taw Union Terriority States (26 Townships) Kachin (4), Mon (8) and Shan (14) Regions (88 Townships) Sagaing (3), Tanintharyi (7), Bago (23), Magwe (12), Mandalay (13), Yangon (13), Ayeyarwady (17) Nay Pyi Taw Union Terriority (8 Townships) Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo 25
Zone 3: Developed Regions Total: 46 Townships in 2 Regions 14 townships in Mandalay Region 32 townships in Yangon Region Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo 26
Exemptions or reliefs Customs Duty or other internal taxes or both Income tax Subject Import of construction materials, machineries, equipments, instruments, machinery components, spare parts, materials used for business Import of raw materials and partially manufactured goods for export oriented business Import of raw materials for export products Reinvestment Right to deduct the depreciation Right to deduct the expense for research and development Investors have Right to pay the income tax rate same as the citizens Myanmar Embassy, Tokyo
For Issuance of Endorsement Order MIC Investment Capital Amount up to USD 5 Million or MMK 6 Billion State and Regional Investment Committees Myanmar Embassy, Tokyo 28
Legal Framework Special Economic Zone Law (2014) Myanmar Investment Law (2016) Myanmar Embassy, Tokyo 29
Foreign Direct Investment in Myanmar US$ in Million 25000 20000 15000 10000 5000 0 China Singapore Thailand Hong Kong U.K * Republic of Korea Viet Nam Malaysia The Netherlands Source: Directorate of Investment and Company Administration India 714.902 Japan France U.S.A US$ in Million Indonesia 80000 70000 60000 50000 40000 30000 20000 10000 0 Canada 42120 Myanmar Embassy, Tokyo Total Investment 46227 54237 63719 70368 74047 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 End of August 2017 30
Japanese Investment in Myanmar (1988-89 to 2016-2017 ) Total Japanese Investment US $ in million 800 700 600 500 400 300 200 100 0 411.734 325.994 270.283 211.902 216.220 1988-1989 to 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 631.527 694.182 714.902 2015-2016 2016-2017 2017 (end of August) Real Estate 5% Hotels and Tourism Sector 11% Oil and Gas Sector 6% Japanese Investment by Sector Others Services 15% Fisheries Sector 2% Manufacturing 58% Source: Directorate of Investment and Company Administration Agriculture Sector 3% Myanmar Embassy, Tokyo 31
3500 3000 2500 Hotel & Tourism Sector Investment 3004.484 US$ in Million 2000 1500 1000 500 0 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 End of August 2017 Source: Directorate of Investment and Company Administration Myanmar Embassy, Tokyo
Myanmar Embassy, Tokyo