|
TRADE AND COMMERCE |
|
Fundamental Rules and Objectives
|
| The State has been
implementing, laying down three fundamental trade and commerce rules: the
objectives of three rules are for the welfare of the State and her citizens who
should not be oppressed by commercial activities and these activities to be
carried out not aiming at profit but only for long-term continuance. |
| The Ministry of
Trade and Commerce has carried out the activities based on four objectives
namely "to support the activities of domestic and foreign trade, to promote the
nation's economy, to make trading enterprises capable and business-like
organizations, to get more foreign currency for the State by exporting more, to
provide supportive measures for commercial activities of the cooperative and
private entrepreneurs." |
Domestic and Foreign Trade Activities The following
fundamental activities are included in domestic and foreign trade:
-
The Field of trade
-
Exports
-
Imports
-
Border trade
-
Activities of buying and selling rice, paddy, pulse and maize.
|
|
The Field of trade
|
| Since 1988, the
market-oriented economic system has been in practice in Myanmar Processes such
as giving freedom to the agricultural sector, encouraging foreign investment,
giving legal service for border trade, encouraging the participation of private
sector in foreign trade and letting companies, joint-ventures, traders and
Association of Union of Myanmar Chamber of Commerce and Industry have been
orgainzed in sequences and are being implemented step by step. |
|
Trade Policy
|
| Myanmar Naing-Ngan
believes in the concept of freedom in commerce and wishes for an independent
and fair commercial system all over the world. Myanmar is one of the first
countries in GATT. Now, Myanmar is a member nation of the World Trade
Organization which was organized through GATT. Therefore, foreign trade
activities of Myanmar Naing-Ngan are carried out according to the system of
W.T.O. |
| Myanmar Naing-Ngan
signed agreements with the countries within Asian regions, the Republic of
Korea, the People's Republic of China, Thailand, Bangladesh, India, Pakistan,
Vietnam, Laos, the Philippines, Malaysia, so also with seven Eastern. |
| European Countries.
Such agreements are aimed at the reinforcement of possible trading techniques
for long-term development, based on the attitude of mutual benefit. Moreover,
the terms contained in these agreements are in accordance with the norms of
W.T.O. |
| Major trading
countries of Myanmar Naing-Ngan are the People's Republic of China, Singapore,
Japan, Thailand, India and Malaysia which are countries within Asia. European
Economic Community is the second important trading counterparts. |
|
Export
|
| In October 1988, the State gave
up Planning And Economic System centrally controlled and practised independent
market-oriented economic system. As a result, economic and trading businesses
developed considerably. |
 |
| The main exports are farm
produce such as rice, pulses, maize, animal food and wood products such as
teak, hardwood, sawed wood, metallurgical products and jewellery. |
|
Statement Showing Domestic Export of Prinicipal Commodities
|
| [Kyat in Million] |
| Sr.No |
Groups of Commodities |
1996-97 |
1997-98 |
1998-99 |
1999-2000 |
| 1. |
agriculture Product |
1981 |
1952 |
1890 |
1602 |
| 2. |
Animal Product |
9 |
8 |
34 |
28 |
| 3. |
Marine Product |
887 |
945 |
941 |
807 |
| 4. |
Timber Product |
985 |
853 |
789 |
925 |
| 5. |
Metallurgical Product and Jewellery |
192 |
237 |
223 |
508 |
| 6. |
Others |
1032 |
2016 |
2380 |
2296 |
|
Total |
5488 |
6447 |
6728 |
7043 |
|
|
|
|
Imports from Abroad
|
| The State has been
steadily increasing the volume of imports of commodities in order to adequately
fulfil the basic needs of the people and the commodities required by the
infrastructure development projects being implemented by the State. A
comparison of the imports is shown below: |
| [Kyat in Million] |
| Sr No. |
Groups of Commodities |
1996-97 |
1997-98 |
1998-99 |
1999-2000 |
| 1. |
Capital Goods |
4714.2 |
6172.1 |
7358.0 |
5335.1 |
| 2. |
Intermediate Goods |
3046.0 |
3350.1 |
4171.3 |
5132.0 |
| 3. |
Comsumer Goods |
4018.6 |
4843.9 |
5342.4 |
5797.7 |
|
Total |
11778.8 |
14366.1 |
16871.7 |
16264.8 |
|
| DOMESTIC AND FOREIGN INVESTMENT AND
COMPANY |
| REGISTRATION |
|
Foreign Investment
|
| In late 1988, the
government of the Union of Myanmar changed the economic system from centrally
planned economic system to a market-oriented one. Accordingly, series of
legislation were regulated, new laws being promulgated, and moreover, existing
laws that are no longer appropriate for the new system were amended to be
compatible with the changing economic environment. |
| In this context, with an aim
that foreign investors can participate actively in exploiting natural and human
resources thereby enhancing long-term mutually beneficial economic cooperation,
the Union of Myanmar Foreign Investment Law was promulgated on 30 November 1988
and the Procedures relating to the said Law were endorsed on 7 December 1998. |
 |
| In exercise of the powers
conferred under section 7 of the Union of Myanmar Foreign Investment Law, the
Government formed the Union of Myanmar Foreign Investment Commission (FIC) by
Notification 12/88 dated 7 December 1988 with the Minister for Planning and
Finance as the Chairman and a Secretary to be appointed. |
| FIC was reformed by
Notification 4/93 dated 21 April 1994. Two Deputy Prime Ministers act as
Chairman and Vice-Chairman respectively. There are 16 Ministers in FIC with the
Minister for National Planning and Economic Development acting as the Secretary
and the Joint Secretary is to supervise the office. Director-General of the
Directorate of Investment and Company Administration (DICA) has been appointed
as the Joint Secretary and DICA is serving as the Secretariat of FIC. |
| With the
promulgation of the Myanmar Citizens Investment Law, the government formed the
Myanmar Investment Commission (MIC) by Notification 7/94 dated 4 May 1994 with
the same numbers. MIC will act as an authority for both foreign and Myanmar
citizens' investments. The Secretary to MIC is now the Minister for the State
Peace and Development Council Chairman's Office. |
| Duties and powers
of MIC are to accept proposals which will promote the development activities
and which are in line with the rules and regulations laid down by the State, to
scrutinize the proposal with regard to financial credibility, economic
justification and appropriateness of technology. MIC also grant terms and
conditions on issuance of Permit, monitor and evaluate foreign investment
situation, relax and amend the terms and conditions previously defined, provide
suggestions and recommendations to facilitate and promote foreign investment
and take necessary and prompt action in respect of issues regarding foreign
investment. |
The basic principles of the Union of Myanmar Foreign Investment Law are as
follows:
-
Promotion and expansion of exports;
-
Exploitation of natural resources which require heavy investment;
-
Acquisition of high technology;
-
Supporting and assisting production and services involving large capital;
-
Opening up of more employment opportunities;
-
Development of works which would save energy consumption; and
-
Regional development.
|
| The Law provides
attractive incentives to foreign investors in the form of tariff and taxes. It
also provides repatriation of profit after deduction of all taxes and the
prescribed funds. Moreover, the Law provides irrevocable State guarantee that
an enterprise permitted under the said Law and shall not be nationalized during
the permitted period. |
| Since the Law has
been promulgated, and up to the end of January 2001, a total of 350 foreign
investment projects in 11 economic sectors have been committed by foreign
investors from 25 countries and regions around the world, with the total amount
of US$ 7357.27 million. Detail information of foreign investment by economic
sectors and by country and region is presented in Table-1 and Table-2
repectively. |
| Among the five
leading investors in Myanmar, there are three ASEAN countries namely,
Singapore, Thailand and Malaysia. At present, five ASEAN countries are
investing in Myanmar and up to the end of January 2001, the ASEAN countries
have committed US$ 3786.21 million in 151 projects, realizing 52.12 per cent of
the total permitted amount of foreign investment during the same period. |
| [US$ in Million] |
| Sr No. |
Sector |
Permitted Enterprises |
|
|
No |
Approve Amount |
| 1. |
Oil and Gas |
51 |
2355.92 |
| 2. |
Manufactoring |
140 |
1563.43 |
| 3. |
Hotel and Tourism |
42 |
1054.41 |
| 4. |
Real Estate |
18 |
1025.14 |
| 5. |
Mining |
51 |
523.36 |
| 6. |
Libvestock & Fisheries |
20 |
283.32 |
| 7. |
Transports & Communication |
14 |
283.27 |
| 8. |
Industrial Estate |
3 |
193.113 |
| 9. |
Construction |
1 |
17.267 |
| 10. |
Agriculture |
4 |
34.35 |
| 11. |
Other Services |
6 |
23.69 |
|
Total |
350 |
7357.27 |
|
|
Domestic Investment [Myanmar Citizen's Investment]
|
With a view to
promoting investment of Myanmar citizens and to provide equal treatment as
foreign investors by granting them the right to enjoy tax incentives, the
Myanmar Citizens Investment Law (MCIL) was promulgated on 31 March 1994 and its
Procedures were prescribed on 3 August 1994. The objectives of the said Law are
as follows; 
-
to cause investments of Myanmar citizens to be beneficial to the State;
-
to promote development of production and services;
-
to cause production of goods by utilizing the natural resources of the country;
-
to establish enterprises for import substitution;
-
to promote and expand export;
-
to promote development of technology;
-
to open up more employment opportunities;
-
to promote development of private and cooperative sectors;
-
to contribute towards regional development; and
-
to enable extensive participation in the money market.
|
| [US$ in Million] |
| Sr No. |
Sector |
Permitted Enterprises |
|
|
No |
Approve Amount |
| 1 |
Singapore |
70 |
1541.63 |
| 2 |
United Kingdom |
37 |
1402.46 |
| 3 |
Thailand |
47 |
1264.45 |
| 4 |
Malaysia |
27 |
597.00 |
| 5 |
U.S.A |
16 |
582.06 |
| 6 |
France |
3 |
470.37 |
| 7 |
Indonesia |
11 |
240.00 |
| 8 |
The Natherlands |
5 |
238.84 |
| 9 |
Japan |
22 |
232.88 |
| 10 |
Republic of Korea |
29 |
146.90 |
| 11 |
Philippines |
2 |
146.67 |
| 12 |
Hong Kong |
26 |
140.82 |
| 13 |
Australia |
14 |
82.08 |
| 14 |
Austria |
2 |
72.50 |
| 15 |
People Republic of China |
12 |
60.90 |
| 16 |
Canada |
16 |
59.78 |
| 17 |
Panama |
1 |
29.10 |
| 18 |
Germany |
1 |
15.00 |
| 19 |
Denmark |
1 |
13.37 |
| 20 |
Cyprus |
1 |
5.25 |
| 21 |
India |
1 |
4.50 |
| 22 |
Macau |
2 |
4.40 |
| 23 |
Bangladesh |
2 |
2.96 |
| 24 |
Israel |
1 |
2.40 |
| 25 |
Sri Lanka |
1 |
1.00 |
|
Total |
350 |
7357.32 |
|
| Since the
promulgation of the Myanmar Citizens Investment Law, the domestic investment
has been increasing yearly. Up to the end of January 2001, a total number of
457 enterprises have been permitted to invest in 10 sectors of the economy. The
total investment of such enterprises amounted to K. 698625.05 million. Detail
list of investment is presented as Table-3. |
| Majority of
the domestic investment was made in Real Estate Development. Second largest
investment was made in small and medium industries, which indicates that a
strong base has been established for the development of the industrial sector.
Besides, it also supplements and supports the acquirement of technology,
employment creation and export expansion. |
| [Kyats in Million] |
| Sr No. |
Sector |
Permitted Enterprises |
|
|
No |
Approve Amount |
| 1 |
Real Estate Development |
23 |
27462.21 |
| 2 |
Manufacturing |
333 |
7302.32 |
| 3 |
Transportation |
5 |
4367.74 |
| 4 |
Construction |
6 |
8496.00 |
| 5 |
Hotel and Tourism |
13 |
1103.89 |
| 6 |
Others |
10 |
1260.86 |
| 7 |
Industial Estate |
1 |
1012.79 |
| 8 |
Liverstock & Fisheries |
26 |
2190.56 |
| 9 |
Agriculture |
5 |
1012.79 |
| 10 |
Mining |
35 |
1084.17 |
|
Total |
457 |
69862.05 |
|
|
Company Registration
|
| Business
organizations such as partnership firms, limited companies and associations not
for profit, which are formed in Myanmar, shall register at the Company
Administration Department of the Directorate of Investment and Company
Administration. |
| The rights and
obligations of a partnership firm is governed by the partnership agreement and
the Partnership Act of 1932. Registration of partnership firm is optional.
However, if registered, it shall have the right to sue and to be sued.
Registration of limited companies is compulsory. The governing laws for the
limited companies are the Myanmar Companies Act 1914; Special Company Act 1950;
Myanmar Companies (Amendment) Act 1955 and Myanmar Companies Regulations 1957. |
| Limited companies
are, classified into Myanmar companies, foreign companies and joint venture
companies. Foreign companies are required to apply for a PERMIT, before
registration, under section 27A of the Myanmar Companies Act. A joint venture
with the participation of the State capital shall be registered under the 1950.
Special Company Act and the Myanmar Companies Act. Associations not for profit
shall register under section 26 of the Myanmar Companies Act with prohibition
of payment of dividend to its members. |
The
objectives of the company shall be stated clearly in the Memorandum of
Association and the following types of companies are categorized in accordance
with the respective objectives.
-
Industrial, Manufacturing and Construction Company;
-
Trading Company;
-
Services Company;
-
Hotel Services Company;
-
Tourism Company;
-
Gems Company (for local citizens only);
-
Banking Company; and
-
Insurance Company.
|
| Business organizations registered at
the Company Registration Department up to 31-1-2001 are as follows; |
| Partnership firms |
1259 |
| Myanmar companies |
15139 |
| Foreign companies |
1389 |
| Joint ventures with the participation of State
capital |
142 |
| Associations |
39 |
|
|
Border bade Licenses [2000-2001]
|
|
[US$ in Million]
|
|
-Import Licenses
|
14187
|
160.066
|
|
|
|
-Export Licenses
|
12563
|
117.767
|
|
|
|
|
Total
|
277.833
|
|
|
|
Domestic Trade Fairs in 2000-2002
|
-
The Medicine and Foodstuffes Trade Promotion Exhibition
-
The Millenium Cosmetic & Consumer Products Expo' 2000
-
2000 Year Myanmar Trade Fair
-
3rd Housing & Building Technology Exhibition 2000
-
The Millenium Myanmar Products Expo & International Trade Fair
-
The Millenium Mandalay & International Trade Fair
-
3rd Yangon Gems & Thingyan Festival' 2000 [Hot Shop 20001]
-
New Millenium International Exhibition
-
International Multiplex Consumer Products Expo' 2000 Yangon Myanmar
-
International IT Exhibition' 2000
-
The Golden Trangle Friendship Trade Fair 2000
-
Thailand Trade Exhibition 2001
-
Yangon Trade Fair 2001
-
Myanmar - Thai Friendship Trade Fair 2002
|
|
Foreign Trade Fairs in 2000
|
-
15th Bangkok International Feshion Show
-
Foodex Japan 2000
-
Bangkok Int'l Gift & Housewar 2000 & Thailand Int'l Furniture Fair 2000
-
Thailand Int'l Food Exhibition 2000 & Thailand Int'l Muslin Food Exhibition
2000
-
Kumin Trade Fair' 2000
-
International Furniture Tokyo' 2000
|
| Sr No. |
Border |
Office |
Opeining Date |
| 1 |
Myanmar-India |
Tamu |
12-4-1995 |
| 2 |
Myanmar-Bangladesh |
Maungdaw |
5-9-1995 |
| 3 |
Myanmar-Thailand |
Tercheleike |
16-3-1996 |
| 4 |
Myanmar-Thailand |
Kawthaung |
1-6-1996 |
| 5 |
Myanmar-China |
Muse |
12-1-1991 |
| 6 |
Myanmar-China |
Bahmaw |
23-8-1998 |
| 7 |
Myanmar-Thailand |
Myawady |
16-9-1998 |
| 8 |
Myanmar-Bangladesh |
Sittwe |
11-12-1998 |
| 9 |
Myanmar-Thailand |
Myeik |
1-5-2000 |
| 10 |
Myanmar-China |
Lyzar |
1-5-2000 |
|
| Year |
Export |
Import |
| 1976-77 |
1715.7 |
1627.9 |
| 1977-78 |
1756.9 |
2086.5 |
| 1978-79 |
1852.7 |
3223.7 |
| 1979-80 |
2696.0 |
4309.5 |
| 1980-81 |
3225.1 |
4635.0 |
| 1981-82 |
3452.8 |
5611.3 |
| 1982-83 |
3036.3 |
6313.6 |
| 1983-84 |
3419.5 |
5197.3 |
| 1984-85 |
3194.5 |
5041.2 |
| 1985-86 |
2653.9 |
4802.0 |
| 1986-87 |
2513.9 |
3936.1 |
| 1987-88 |
1679.4 |
4065.7 |
| 1988-89 |
2193.0 |
3443.0 |
| 1989-90 |
2846.5 |
3395.0 |
| 1990-91 |
2961.9 |
5522.8 |
| 1991-92 |
2931.8 |
5336.7 |
| 1992-93 |
3655.4 |
5365.3 |
| 1993-94 |
4227.8 |
7923.3 |
| 1994-95 |
5405.2 |
8332.3 |
| 1995-96 |
5032.7 |
10301.6 |
| 1996-97 |
5487.7 |
11778.8 |
| 1997-98 |
6446.8 |
14366.1 |
| 1998-99 |
6755.8 |
16871.7 |
| 1999-2000 |
8947.3 |
16264.8 |
| 2000-2001 |
11863.7 |
14899.7 |
| 2001-2002 |
4889.6 |
6053.6 |
|
| [Kyats in Million] |
| Year |
Export Unit
Price Index |
Import Unit
Price Index |
Terms of
Trade |
| 1976-77 |
85.1 |
78.5 |
108.4 |
| 1977-78 |
92.6 |
81.2 |
114.0 |
| 1978-79 |
100.1 |
88.7 |
112.9 |
| 1979-80 |
107.3 |
89.9 |
119.9 |
| 1980-81 |
125.1 |
92.6 |
135.1 |
| 1981-82 |
135.2 |
97.7 |
138.4 |
| 1982-83 |
109.8 |
98.2 |
111.8 |
| 1983-84 |
110.8 |
98.8 |
112.2 |
| 1984-85 |
115.7 |
99.5 |
116.3 |
| 1985-86 |
100.0 |
100.0 |
100.0 |
| 1986-87 |
82.5 |
100.6 |
82.0 |
| 1987-88 |
68.1 |
103.6 |
65.7 |
| 1988-89 |
83.4 |
112.2 |
74.3 |
| 1989-90 |
96.4 |
119.0 |
81.0 |
| 1990-91 |
97.7 |
131.1 |
74.5 |
| 1991-92 |
91.1 |
138.7 |
65.7 |
| 1992-93 |
73.8 |
140.1 |
52.7 |
| 1993-94 |
68.9 |
145.9 |
47.2 |
| 1994-95 |
91.3 |
163.2 |
55.9 |
| 1995-96 |
107.8 |
168.4 |
64.1 |
| 1996-97 |
101.5 |
208.0 |
48.8 |
| 1997-98 |
91.8 |
245.3 |
37.3 |
| 1998-99 |
84.3 |
247.0 |
31.4 |
| 1999-2000 |
78.1 |
240.0 |
32.5 |
|
