Wednesday, October 31, 2012

Asian countries eye investment in Myanmar's property, Hotel Sector

Korea, Japan and Vietnam are eyeing investments in Myanmar’s property, hotel and construction sectors, a Cabinet minister said.
“Investors from those countries have been visiting Myanmar to discuss possible investments in real estate, hotel and other construction sectors," said Dr Kan Zaw, union minister for national planning and economic development.
Myanmar Investment Commission (MIC) has received many proposals from local and foreign investors.
Businessmen interested in these sectors, however, must follow the government’s city development plan., an official said.
“We will only allow foreign investors to do business in the hotel and construction sectors within the limitations of those plans,” said an official from the housing department under the Construction Ministry.
“In Nay Pyi Taw, the regional government designates hotel zones, car parking lots, houses or high rise buildings according to the city plan,” the official noted.
Myanmar’s commercial centre, Yangon, has 6 million people. The population is estimated to increase to 15 million in the next 10 years and town planners are urging the adoption of a city and land use plan in light of this.

Source elevenmyanmar

Vietnam investors keen on joint ventures in 4 sectors

Vietnamese businessmen have shown interest in partnering Myanmar businessmen to start joint ventures in the country’s real estate, food, textile and tourism sectors.
A Vietnam business delegation conveyed this message during a meeting with a Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) delegation in Yangon on October 18, said UMFCCI sources.
Businessmen of the two countries discussed about real estate, food, textile, tourism, beverages and machine maintenance sectors.
According to the UMFCCI sources, the Vietnam businessmen expressed their interest to invest in real estate, food, textile and tourism sectors.
The 20-member Vietnamese delegation, headed by Nyuyen Ngo An, vice chairman of Phu Yen province’s Public Commission, inquired about business opportunities in the context of Myanmar’s Investment Law, which is expected to be finalised soon.

Source elevenmyanmar

Thilawa SEZ work to start

Japan External Trade Organisation and the Union of Myanmar Federation of Chambers of Commerce and Industry will begin building the Thilawa Special Economic Zone in early 2013, officials said on October 21.
U Win Aung, UMFCCI chairman and head of Dagon International Construction, said the Myanmar side will own 51 percent of the venture, while the Japanese will have the remaining 49pc.
“We will invite investors to take part in the Thilawa SEZ. We will sell shares to the public before the project is launched in January,” U Win Aung told The Myanmar Times.
The 2400-hectare zone, which was announced in January 2011, is about 25 kilometres south of Yangon along the Yangon River in Thanlyin and Kyauktan townships. It incorporates the Myanmar International Terminals Thilawa – a deepsea port facility built in the mid 1990s.
Major Japanese companies reportedly involved in the project include Mitsubishi, Marubeni and Sumitomo corporations.
Minister for National Planning and Economic Development Dr Kan Zaw said the zone is the first step towards building an attractive business environment for investors – and a keystone of economic reforms intended to create the investor friendly-environment in Myanmar.
Deputy Minister for the National Planning and Economic Development U Set Aung said potential investors are required to accomplish a number of tasks before beginning projects.
“Investing companies must register their companies first,” he said “We have already simplified the registration process, which can be done in three hours, where it used to up to one year. Even when there is a delay it should take only a day to register,” U Set Aung said.
Interested companies must also register their planned projects with the Myanmar Investment Commission. Each economic zone will have a one-stop service centre to assist companies interested in investing, he said.
“Although investment is so far limited to private businesspeople, we plan to ease limitations later, especially in the energy and communication sectors,” U Set Aung said.
“Some large foreign companies have applied to invest in mining and energy projects too,” he added.
He said the special economic zones would be classified as either free zones or promotion zones. He said companies that focused on exports would be encouraged to work in the free zones.
“If they distribute goods to the domestic market from the free zones they will be required to pay taxes. And residential houses will not be allowed to be built in the free zones,” he said.
Shopping centres, hospitals, education centres, banks and insurance companies will be placed in the promotion zone, where companies focused on the domestic market would be based.
“From the promotion zone, they can distribute to the domestic market freely but they have to pay tax on products, importing raw materials and instruments when they export the products to other countries from the promotion zone,” U Set Aung said.

Source mmtimes

Dutch trade team visits Myanmar

A Dutch trade delegation flew into Yangon on October 29 for a five-day mission.
The delegation plans to visit industry associations, including the Union of Myanmar Federation of Chambers of Commerce and Industry, and will also hold talks with government officials.
During the trade mission, the Dutch Centre for the Promotion of Imports from Developing Countries (CBI) will organise a training session on EU market access for Myanmar producers.
Delegation leader and director of the Netherlands Council of Trade Promotion Gerard Vaandrager said the recent opening up of Myanmar was highly attractive to international companies.
“The growth potential is enormous. But at the same time there’s reason to be cautious. The new investment law is still under debate and potential investors benefit by clarity and business security,” he said.
“It’s important the law is agreed upon and ratified soon. Our main aim now is to be here, to learn and to forge relationships we can build upon in the future,” he said.
He added that some deals have been struck already.
“As a result of our first mission one of the participants is advising on port development. Another participant is supplying trucks. It’s still early days, but there are opportunities to be had in virtually all business sectors.”

Source mmtimes

Tuesday, October 30, 2012

ILFC delivers Airbus A320 to Myanmar Airway International

International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc. (NYS: AIG) , announced today that it has delivered an Airbus A320-200 aircraft to Myanmar Airways International (MAI). This A320 is the first commercial jet aircraft of its type to be provided on an operating lease to an airline in Myanmar by a global aircraft leasing company.

"ILFC is very pleased to be the first international leasing company to lease an A320 in Myanmar. We look forward to supporting MAI's growth and that of the aviation industry in Myanmar," said ILFC's Head of Asia Pacific, David Nixon. "ILFC believes MAI will succeed on their plan to offer the region a preferred premium carrier. The A320 delivered to MAI will modernize and expand MAI's current A320 fleet and offer increased takeoff weight, greater range and improved fuel economy."

Si Thu, Managing Director and Chief Executive Officer of Myanmar Airways International, commented, "ILFC is one of the best brands in aviation, providing advanced total aircraft fleet solutions to its global partners. ILFC is the right partner for MAI, and the timing of this first ILFC A320 aircraft delivery to our airline will help us expand our fleet and extend our routes in this new era in Myanmar."

The A320 single-aisle jetliner is the best-selling aircraft product line of all time. It is used in a full range of services from very short-haul airline routes to intercontinental segments. The aircraft is best known as the first airliner to introduce a fly-by-wire flight control system.

About Myanmar Airways International (MAI)

Launched in 1993, MAI is the first joint venture airline between the government and the private sector in Myanmar (20% owned by the government through Myanmar Airways and 80% by Kanbawza Group). MAI is the international airline of Myanmar with regular flights between Yangon (commercial capital of Myanmar), Singapore, Kuala Lumpur, Bangkok, Gaya and Guangzhou. In 2012, MAI will initiate its capacity expansion in the region with flights to Cambodia and Hong Kong. MAI operates six Airbus A320 with maintenance agreements in place with Sepang Aircraft Engineering (an EADS Company) and Air France Industries. ILFC's A320 will be the seventh A320 in its fleet. MAI is currently in discussion with airframe manufacturers to modernize its fleet with either A320NEOs or 737MAX. www.maiair.com

About ILFC

ILFC is the world's largest independent aircraft lessor measured by number of owned aircraft. ILFC's portfolio consists of over 1,000 owned or managed aircraft, as well as commitments to purchase 239 new high-demand, fuel-efficient aircraft and rights to purchase an additional 50 of such aircraft. www.ilfc.com

Source: Daily Finance

Myanmar to ban timber exports in 2014

Myanmar plans to completely stop exporting timber on April 1, 2014 to save its forests, authorities said.

“The project is focusing to save the remaining one-fifth of the country’s total area and also to manufacture high quality wood products to export,” said Thein Lwin, secretary of the Parliament’s Natural Resources and Environment Conservation Committee.

Myanmar’s forest coverage was down to 24 per cent in 2008 from 51 per cent in 2005, and 57 per cent in 1962. The main causes of deforestation are excessive harvesting of trees, rampant illegal logging, increasing use of firewood, as well as shifting cultivation system.

Under the project, the timber export is scheduled to reduce year by year. The government has also expressed readiness to completely stop exporting wood logs.

Myanmar produces about 283,000 cubic metres of teak and 1.98 million cubic metres of hardwood annually. Myanmar is a major exporter of teak in the world, taking up 75 per cent of the global market. It ships teak to China, India and other regional countries.

In 2011-2012, the country exported 371,000 metric tonnes of teak and 1,789,400 metric tonnes of hardwood.

Source: Eleven Media Group

Myanmar to upgrade international highway

Myanmar is undergoing the process of asphalting and expanding its international highways as the country prepares to enter the Asean Economic Community (AEC) in 2015, according to the Ministry of Construction.

The 12-foot-wide international highways such as the Asian Highway, Bimstec Highway, and GMS Highway are being widened to 24 feet.

Interstate highways are also being expanded to 12 feet wide asphalt roads.

The ministry will also construct permanent concrete bridges along both international and interstate highways.

Myanmar is in discussions with the Korea-based Korea Expressway Co to construct three road sections, including the Kawkareik-Mudon Road.

Myanmar is also implementing road and bridge projects in the region with Official Development Assistance from the Japan International Cooperation Agency.

Source: Eleven Media Group

Sunday, October 28, 2012

Myanmar says main airport needs urgent upgrade

Yangon International Airport will exceed its limit of 2.7 million passengers this year, prompting Tin Naing Tun, head of the Department of Civil Aviation, to warn it needs "upgrading urgently."

Hidden from the world for decades under a brutal military junta, the Southeast Asian nation has seen an influx of tourists and business travelers in recent months, attracted by a swathe of changes under a new reformist regime.

"We estimate 1.7 million international passengers this year. Adding the 1.1 million average local passengers for 2012... we will receive 2.8 million passengers this year," added Nweni Win Kyaw, an assistant director at the civil aviation department.

Airlines are already battling congested flight schedules and leaving passengers stuck in the terminals when slots are missed, he added.

The department urged local and foreign firms to work as part of a joint venture or a consortium to upgrade Yangon airport, adding it could hand over operations at the hub from May next year.

Plans for a new international airport have already been put forward. The proposed site will be nine times bigger than Yangon Airport and about 50 miles (80 kilometres) from the centre of the city, the country's commercial hub.

Work is expected to start in June 2013, with the airport set to become operational in 2016.

Source: AFP

JETRO chief touts Myanmar market

The head of the Japan External Trade Organization has voiced expectations that the rise of a middle class in Myanmar will boost opportunities for Japanese businesses in the country.

JETRO Chairman Hiroyuki Ishige, who recently hosted a tour of a new industrial estate in Yangon for Japanese companies, said Myanmar is attractive as an investment destination because of its high literacy rate and cheap labor costs compared with neighboring countries.

Myanmar is designated by the United Nations as one of the least developed countries in the world, but the expansion of its middle class "could spur the nation's consumer market," he said in a recent interview.

"I got the impression that many (Japanese) companies were seriously thinking about investing" in Myanmar, Ishige said.

During the tour of the industrial estate on the outskirts of Yangon, many participants asked questions, such as the type of fuel to be used for private electricity generators in case of power outages, he said.

Asked about the challenges in doing business in Myanmar, Ishige cited the lack of an adequate power supply and water services, chronic traffic congestion and difficulties in transporting workers to company offices.

Blackouts are frequent in Myanmar and factory operators are required to prepare in-house power generation systems, said Ishige, a former vice economy, trade and industry minister for international affairs who was appointed chairman of JETRO last year.

In selecting business partners in Myanmar, where economic sanctions imposed by the West have been substantially eased, Ishige advised Japanese companies to consult with Myanmar government officials to examine potential partners' trustworthiness.

Myanmar, which is rapidly democratizing after years of military rule, is considering releasing a list of local companies that have potential to become partners of foreign businesses, he said.

Source: Japan Times

Thursday, October 25, 2012

Australia eyes investment opportunities in Myanmar

The business delegation led by Minister for Employment and Workplace Relations and for Financial Services and Superannuation The Hon. Bill Shorten Mp of Australia called on Union Minister for Commerce U Win Myint at the Ministry of Commerce, here, yesterday.

At the meeting, the Union Minister said that the Myanmar trade policy would be presented to World Trade Organization in 2013, expressed willingness to promote private sector in cooperation with CCIs between the two countries, urging those to launch educational courses including English proficiency courses in Myanmar, to make invest in agricultural sector to easily penerate into the foreign market because now is the best time to make investments in Myanmar.

Source New Light of Myanmar

Myanmar joins Asean-India summit

Myanmar firms will be participating in the 20th Asean-India Commemorative Summit to be held in New Delhi from December 20 to 21.
Investors from the country are planning to set up special booths and pavilions showcasing Myanmar jewels, gems, handicrafts and agriculture products.
Investors interested in attending the event need to register with the Republic of Union of Myanmar Federation of Chambers of Commerce and Industry, the country’s representative.
The summit will be the finale of several events organised to celebrate the Asean-India relations. Other events such as ministerial-level meetings, people-to-people initiatives, workshops, and cultural programmes will be held prior to the main event.
With the theme, “Asean-India Partnership for Peace and Shared Prosperity”, the summit is expected to direct the future of Asean-India relations.
“Enhancing relations with Asean has been central to India’s ‘Look East Policy’ and there has been steady progress in the Asean-India relations since the policy was initiated in the early 90s,” the official website on the event says.

Source: elevenmyanmar

Chinese miner looks at Myanmar

Small Chinese companies as well as big state enterprises are casting their eyes on neighbouring Myanmar as it opens its economy to foreign investment. Among them is China Polymetallic Mining (CPM), a Hong-Kong-listed mining group, based in the minerals-rich province of Yunnan which lies along China’s border with Myanmar.

Company officials claim CPM is well placed to profit from developing Myanmar’s mining riches. But, with far bigger Chinese and international resource companies looking at Myanmar, CPM will have to be quick if it is to get ahead of the game.

“Yunnan is close to Myanmar, which has similar mining formations to Yunnan. Also our employees share their culture and living style with people in Myanmar… So we think it’s relatively easy for us to take our operational model into those countries. We have looked at projects to consider doing investments but we have not done due diligence on any,” says Li Tao, chief financial officer.

Crucially, CPM says it has the backing of the Yunnan provincial government both for its expansion in the province, for which it has a mandate to take over and consolidate smaller mining companies, and for its overseas ambitions. Li says, “The government fully supports us to go into south east Asia for investments.”

Chairman Ran Xiaochuan says: “We have a very strong portfolio of assets. By leveraging our title as a consolidator granted by Yunnan province I think there’s no doubt we will be a very good mining company in five years’ time. Our production in the next five years will be three times our current capacity and our assets will be doubled.”

Ran, together with other managers, controls 33 per cent of the company, which was founded in 2009 and floated on the Hong Kong Stock Exchange in December 2012, raising HK$834m net.

Launched at a time of global market turmoil, the shares tanked on their debut and have still not regained the offer price.

But the company has focused on its business and concentrated on consolidating its ownership of six mining sites in Yunnan and developing production. CPM says it has established a track record of buying good assets at low prices “for significant value creation” and of implementing investments to schedule.

The Shizishan mine is due to reach full capacity at the year-end; so is Dakuangshan. The plans for the other mines foresee Menghu achieving full output in early 2013, Lushan in late 2013, Liziping in mid-2014, and Dazhupeng later in 2014.

Lushan is a tungsten-tin mine project. All the other sites are lead-zinc silver sites, with Shizishan having by far the largest reserves of 9.3m tonnes. Ran says: “We are the largest private pure mining company in Yunnan.”

With a large silver content in the ore at Shizishan, the revenues from silver alone more than cover the full costs of the mining. This ensures that the company will make money from its lead and zinc production regardless of swings to base metal prices.

In the first half of 2012, CPM had adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of Rmb82.4m on revenues of Rmb157.3m, compared to ebitda of Rmb32.1m on revenues of Rmb70.2m in the whole of 2011.

Given the company’s expansion plans this is only the beginning. But for investors there are, of course, considerable risks buying into a small mining enterprise in a remote corner of China, however good the mineral resources. As the IPO prospectus said, these include everything from volatility in metals prices to natural disasters and changes in Chinese regulations. Also, with 33 per cent in the hands of Ran and other executives, minority investors cannot be sure their interests will be given sufficient priority.

CPM has moved to reassure shareholders by recruiting international executives as independent board members, including Edward Charlton, a senior Citigroup advisor.

Like other Chinese IPOs last December, the stock plunged on the first day of trading – from HK$2.20 to HK$1.61.

Under pressure from the decline in base metal prices, the shares hit a low of HK$1.14 in late September before the company announced a share buy-back programme that helped the stock recover to trade at HK$1.48 recently.

The company says it has now bought 1.7m shares, or about 86 per cent of the issued capital. Nina Zhan, investor relations director, said: “We will continue to execute the program while we believe the company remains significantly undervalued in our view and that this is in the best interest of our shareholders.”

CPM says that Citigroup, the US bank which sponsored the IPO, has a target share price of HK$3.10 and Renaissance Capital, a joint bookrunner for the offer, is aiming for HK$4.40.

Given the slow down in the world economy, these are ambitious numbers. But investment in small mining companies is generally for the brave.

Source: Financial Times

INVITATION TO PREQUALIFICATION

Date of issue         ;             25th October, 2012
Name of Project     ;             Private Sector Participation in the Development of Yangon  
                                          International Airport

1.     The Department of Civil Aviation (DCA), Ministry of Transport, intends to develop Yangon International Airport as business center in Yangon Region with private sector participation. Accordingly, DCA will accept submissions for prequalification for participation in the said development from interested local firms and foreign firms in joint venture or consortium under the Myanmar Foreign Investment Law.

2.       The DCA intends to prequalify firms for private sector participation in the Development/ Expansion/ Operation/ Management and Maintenance of following service/ work sectors of Yangon International Airport.
a) Development of an airport master plan
b) Expansion of the Terminal Buildings ( International and Domestic), Apron and Car parking
c) International / Domestic Terminal Operations
d) Airside and Landside Operations (Excluding the Air Navigation Services)
e) Other airport related services
f) Maintenance Services for pavement (Runaway/ Taxiway/ Apron including the shoulders) drainage system, visual aids, electrical system and airfield lighting system
g) Upgrading the airport and related facilities according to the master plan
h) Upgrading the airport security system

3. The DCA will implement the above development arrangements with a farm of public-private partnership with private sector financing.

4. The successful prequalified firms may expect that the invitation for bids will be made in January 2013.

5. The prequalification documents may be obtained by interested firms upon submission of evidence of payment of a non-refundable fee of US$ 1000 to DCA. The method of payment shall be to Current Account No.MD 010019, Myanmar Economic Bank by means of bank transfer through Myanmar Foreign Trade Bank.

6. To obtain futher information, interested firms should contact the address indicated below;
    Deputy Director General
    Department of Civil Aviation, Myanmar
    Telephone       :       951 533001, 951 533013  Fax: 951 533016
    Email              :       dydg@dca.gov.mm, ddassd@dca.gov.mm

7. Place and deadline for submission of Prequalification documents;
    Dead line for application submission: -   5th December, 2012 at 1500
                                                             Hrs Myanmar Standard Time.

Director General,
Department of Civil Aviation, Myanmar
Telephone  :   951 533015, Fax: 951 533016
Email         : dgdca@dca.gov.mm

(Remark-This invitation do not concern with me. I am only sharing the information from New Light of Myanmar)

Wednesday, October 24, 2012

Foreign telecom firms to operate in Myanmar

Myanmar’s Ministry of Communications, Posts and Telegraphs has allowed three foreign companies to provide services for overseas calls.
The ministry’s Post & Telecommunications Department granted a licence and a one-year contract for providing “inbound voice traffic services” to Hong Kong-based companies, PCCW Global Limited and Hutchison Global Communication Limited, and Singapore-based firm NTT Singapore Pte Ltd.
The companies were tasked to cooperate with MPT officials in providing voice and data services.
The ministry has approved Myanmar Telecom and Yatanarpon Telecom to be the local service providers.

Source elevenmyanmar

Lower tariffs for Myanmar exports to EU

Myanmar exports to Europe and the US will enjoy lower tariffs by next year through the Generalized System of Preferences (GSP), Commerce deputy minister Pwint San said.
EU decided to grant GSP to Myanmar on September 17. The proposal—yet to be adopted by EU leaders—will open up EU markets to Myanmar products.
The International Labour Organization (ILO) has eased restrictions on Myanmar in June after the country made significant progress on forced labour.
"In discussing about GSP with responsible persons of American embassy, we will officially export goods to the United States only if sanctions have been eased. In this situation, I expect that we can export our goods to the US at least during 2013," said the deputy minister.

Source  elevenmyanmar

Myanmar New Minimum Wages Law for labor

Myanmar had minimum wages law for a long time. But it only include how to form the commission, the rights and responsibilities of the commission. The rate of the wages did not implement in the old minimum wages law. In accordance with the old law, the commission will order the rate of minimum wages.

The new is not coming out yet.  In the draft of new minimum wages law, it do not involve the rate of minimum wages. It will also form the commission of the minimum wages. The commission will make the rate of minimum wages in accordance with the field of the worker.

Yesterday, the parliament (Pyi Thu Hluttaw) implement the amendment of minimum wages law.



Tuesday, October 23, 2012

Myanmar natural gas income hits US$ 1.7B

Myanmar natural gas export income during the previous six months hit almost $1.7 billion and is likely to reach more than US$3.5 billion this fiscal year, according to Ministry of Commerce.
The year Myanmar received the highest income ($3.46 billion) from natural gas export was 2011-12 fiscal year, according to figures from the ministry.
From April 1 till the end of September this fiscal year, Myanmar received nearly $1.7 billion from natural gas export.
“Last year the country received more than $3.46 billion from natural gas export. It was the highest throughout the history. Every year, the export income in the first half of a year was less than that of the second half. We expect more in the second half of this year.” said an official from Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
World Energy Review 2011 revealed that Myanmar was No.14 highest exporter for natural gas in the world.


Source elevenmyanmar

Kyauk Phyu Special Economic Zone to be invited open tender

Kyauk Phyu Special Economic Zone projected with oil port and airport in Rakhine State will be implemented with the desire and wishes of the local people according to Myint Thein, the Deputy Minister for Labour, who is also the chairman of the special economic zone management committee.
He said, “The special economic zone will invite open tenders for the development of the project.” The zone has mapped out a wharf for exporting oil, airport, highway bus terminal, relaxation zone and housing.
The zone will plan to implement its first priority in kinmyauk areas of Kyauk Phyu Township covering 1,500 to 2,000 acres. Second priority is in kyaukchaung of Kyauk Phyu District earmarking for 3,000 to 5,000 acres. When the zonal areas are chosen and confirmed, the necessary notification will be issued.
“We sought the opinion of local residents from Kyauk Phyu in September for the construction of Kyauk Phyu Special Economic Zone. Do are doing with full transparency for the success of the project, ” Myint Thein added.

Source elevenmyanmar

Monday, October 22, 2012

Myanmar, India entrepreneurs to meet in Yangon for business cooperation

Myanmar and Indian entrepreneurs will meet at the Union of Myanmar Federation of Chambers and Commerce Industry (UMFCCI) in Yangon for business cooperation matters on next Monday, according to UMFCCI Tuesday.

Aimed at promoting bilateral trade and investment of the two countries, Indian business delegation of Indo-Myanmar Chamber of Commerce and Industry will make discussion with its Myanmar counterpart on such business sectors as pulses and beans, timbers, sesame, pharmaceuticals, metal, tourism, construction, textile, automobile, clothing, livestock and agriculture, the sources said.

According to official statistics, Myanmar-India bilateral trade reached 426.37 million US dollars in the first four months (April- July)of the fiscal year 2012-13. Of the total, Myanmar's export to India amounted to 329.49 million U.S.dollars, while its import from India was valued at 96.89 million dollars.

Source: Xinhua

Myanmar trade volume near US$9B

Myanmar trade volume hit almost US$9 billion in the first half of the fiscal year, according to official figures from the Ministry of Commerce.
Myanmar exports from April-October reached $4.64 billion while imports hit $4.32 billion, or a total trade of $8.96 billion.
Exports for the same period last year amounted to $5 billion while imports reached $4.6 billion, or a total trade of $9.10 billion.
Jade exports decreased, and fuel, cooking oil and machineries imports similarly declined.  However, beans exports increased helping slow down the trade reduction.

Source elevenmyanmar

New Foreign Investment law set for Nov: MIC

The long-delayed and heavily amended foreign investment law will likely be enacted in November, Myanmar Investment Commission officials said last week.
The comments were made on the first day of an investment summit held at Parkroyal Hotel on October 17 and 18.
Even though the Pyidaungsu Hluttaw approved the amended law, which will replace one enacted in 1988, on September 7, it needed to be signed into law by President U Thein Sein. However, the president made comments on the draft and returned it to the parliament.
MIC officials said investors can operate using the existing law but are pushing lawmakers to approve the amended version, which was written to increase transparency and accountability, as soon as possible.
The amended law was expected to be enacted in April this year but was later pushed back to July and November, said Alessio Polastri, managing partner of P&A Asia legal and tax firm.
“This law has been taking so long because Myanmar has to prioritise political stability and many Myanmar bureaucrats are not friendly with investors yet,” he said.

U Tin Ko Win, deputy director general of the Directorate of Investment and Company Administration (DICA), said foreign investors can enter resource sectors such as agriculture, forestry, mining, oil and gas, as well as labour-intensive industries such as garments and electronic parts assembly, and service sectors such as hotels and tourism, logistics and real estate.
He added that the government encouraged manufacturing and had established 30 industrial zones, with another seven to be developed soon.

Source mmtimes

First private football academy to be opened in Myanmar

The first ever private football academy will be opened at Super Star Professional Football Academy in Myanmar's Yangon.

The academy is expected to become the cradle of outstanding footballers in the future, according to official daily New Light of Myanmar Monday.

The foreign coaches from the academy will give intensive training to the would-be professionals, teaching football techniques and tactics.

The academy will provide linkage for the trainees to football clubs.

Source: Xinhua

Myanmar int'l airliner to launch Mandalay - Gaya route in November

Myanmar's national carrier, the Myanmar Airways International (MAI), will launch a direct flight between central Myanmar's Mandalay and northeastern India's Gaya city on Nov. 1 to facilitate passengers traveling, according to airline sources Monday.

"Travelers who want to visit Gaya can directly go there without coming to Yangon International Airport," said an official of MAI.

At present, MAI is flying to five countries with six Airbus A320s, transporting 500,000 passengers annually.

MAI will launch the direct flight from Yangon to China's Hong Kong before the end of this year.

MAI is known as a joint venture between the state-owned Myanmar Airways and the private Royal Myanmar Transport Co.

In addition to the 64-year-old state-operated domestic Myanma Airways (MA), there are also five other private-run domestic airliners in Myanmar, namely Air Mandalay, Yangon Airways, Air Bagan, Asian Wings and Air Kanbawza.

Source: Xinhua

Sunday, October 21, 2012

Discussion of Directorate of Investment and Company Administration (3)

Dr. Paul Rogers, College of Innovation, Thammasat University from Australia and delegates paid a call at Directorate of Investment and Company Administration at (12:20) pm on 18th October, 2012.
          At the meeting, they cordially discussed about investment opportunities of New Foreign Investment Law and potentials of hotel business in Myanmar.

Source DICA

How Japan Inc stole a march on competitiors to enter Myanmar

Tokyo – Japan Inc is charging into Myanmar. The rush began one night last October, when Myanmar’s new president rolled out a map after dinner to show an aging Japanese power broker a prize that could be Tokyo’s to develop - a swathe of land nearly as big as Macau.

The new president, U Thein Sein offered a deal: Japan could develop a special economic zone at Thilawa, a spot near both Myanmar’s largest city and a port on the Indian Ocean – if it came up with the money.

“I told him I would figure something out,” recalled Watanabe, a former cabinet minister and top aide to ex-Japanese Prime Minister Yasuhiro Nakasone.
Watanabe was as good as his word. A fast-track deal negotiated in less than a year has paved the way for Japan to provide at least US$18 billion in aid, investment and debt forgiveness from government and private sources.

In addition to this deal, Reuters has learned that Japan will provide up to $3.2 billion in new lending to build another special economic zone and deepsea port in Dawei, in southern Myanmar, which would be developed into Southeast Asia’s largest industrial complex.
The deals have made Japan a major player overnight in the opening of Myanmar. The part of the Thilawa package that includes debt forgiveness and refinancing adds up to nearly $5 billion, dwarfing the $76 million in aid from the United States in 2011 and 2012 and a two-year package of $200 million the European Union has pledged.

“We are lucky because the US was kind enough to introduce economic sanctions – that’s why Western financial firms have so far no presence in Myanmar,” said Shigeto Inami, who manages Myanmar operations for Daiwa Institute of Research. The think tank runs Myanmar’s tiny stock exchange and has plans to transform it into a thriving bourse by 2015.

A handful of US giants – including GE and Coca-Cola – already have returned. In Thilawa, Western power firms such as GE and Siemens and construction giants such as Bechtel and Balfour Beatty could win subcontracts from the Japanese, business analysts say.

“Many of our competitors have been in that market for many years, so we’re already late to the game,” said John Goyer, senior director of Southeast Asia for the US Chamber of Commerce. But “there’s clear interest and desire on Myanmar’s part to have US companies there”.

Myanmar has long been seen as a prize. A land mass as large as Britain and France combined, it shares borders with 40 percent of the world’s population in India, China, Bangladesh and Thailand. Its ports on the Indian Ocean and Andaman Sea sit just north of the Malacca Strait, one of the world’s busiest shipping lanes.

China remains Myanmar’s biggest patron. Led by investments in energy, China and its companies pledged more than $14 billion for Myanmar in the fiscal year ended March 2011, nearly 70pc of total foreign investment. Japanese companies invested just $212 million in Myanmar between 1988 and 2011.

Source mmtimes




Japan group gives $3M aid to Myanmar minorities

A philanthropic organization working with the Japanese government will give $3 million in humanitarian aid to Myanmar's armed ethnic minorities, saying it's the first such aid approved by Myanmar's government.

Japan has been competing with other countries, especially China, to win access to investment opportunities in Myanmar, its markets and resources.

The Nippon Foundation said the food and medical aid was announced in a Tokyo conference Thursday with 20 representatives from the Myanmar groups' umbrella organization, the United Nationalities Federal Council.

The participants represented 10 of the 11 ethnic minority groups belonging to the UNFC, including the Kachin Independence Organization that is still engaged in combat with the government, and they discussed how to transport relief goods to their mountain camps.

Foreign Ministry spokesman Masaru Sato told the Associated Press on Friday that the deal reflects the government's efforts to support Myanmar's democratic and economic reforms. The latest humanitarian aid is a three-way effort by the two governments and the foundation. Humanitarian aid via a non-governmental organization can reach needy people more quickly than official development aid that often requires layers of bureaucratic procedures.

Sato said the government in June appointed the foundation's chairman Yohei Sasakawa as a special envoy to improve the welfare of Myanmar's ethnic minorities because "their peace process is vital to Myanmar's democratization."

Nippon Foundation official Hideo Fukuda said Myanmar's government doesn't recognize the UNFC but authorized the aid, apparently in hopes of speeding up the peace process. Some ethnic groups have peace deals with Myanmar, but many minorities still live in exile in the jungles.

Fukuda said the minorities should not be left out from recent democratic reforms in Myanmar that have prompted the lifting of some international sanctions.

Since Myanmar's military junta last year handed power to a nominally civilian government, Japan has taken steps to support Myanmar's reforms, including forgiving billions of dollars of Myanmar's debt and promising to resume aid. Japanese companies have also stepped up trade and investment, as have their foreign competitors.

Source: AP

Myanmar introduces int'l bank card service for the first time

Myanmar has allowed introducing services for four international bank cards -- Visa, Master, CUP ( China Union Payment) and JCB (Japan Credit Bureau) for the first time to facilitate foreign travelers in domestic payment as a follow-up program of MPU (Myanmar Payment Union) card for local citizens in September, official media reported Friday.

It is the latest reform of Myanmar's monetary sector made in coordination with the member banks of MPU, the Central Bank of Myanmar, Internal Revenue Department, Myanmar Posts and Telecommunications (MPT) and Myanmar Information Technology (MIT) Co..

The MPT and the MIT will work for technology and communication services required for launching the international card services at each member bank of MPU and their Automatic Teller machines (ATMs) and for usage of international payment cards at hotels and restaurants, the report said, adding that the Central Bank will supervise the card usage.

The move is timely made in preparation for the upcoming Myanmar- hosted 27th Southeast Asian (SEA) Games in late 2013.

Allowing international bank cards to operate in the country would be another step forward for Myanmar's banking sector and would have positive improvement in tourist industry of the nation that could attract more foreign investors, bankers said.

At present, 17 private banks have participated in the MPU program and all private banks would join soon.

Initially, ATM has begun service in November 2011 with six private banks.

There is a total of 19 private banks and four state-owned banks in Myanmar.

The move-in of the international bank cards came after the United States eased some financial sanctions on the country, before which foreign visitors were unable to use international credit cards on account of such sanctions on money transactions since 2003.

After President U Thein Sein's civilian government initiated political and economic reforms, the U.S. has begun easing such restrictions since early this year.

Source: Xinhua

Thursday, October 18, 2012

New Zealand FM says to push trade as Myanmar opens up

New Zealand Minister of Foreign Affairs Murray McCully is to hold official talks with his Myanmar counterpart with an aim to boost trade amid political reforms in the Southeast Asian nation.

Myanmar Foreign Minister Wunna Maung Lwin would be in New Zealand on Monday as part of his country's increasing international engagement since embarking on fundamental political and economic reforms a year ago, McCully said in a statement Thursday.

"New Zealand is greatly encouraged by the nature and scale of the reforms and wants to support them both symbolically and practically. Our discussions over the long weekend are part of that process," McCully said.

"Several New Zealand businesses already export to Burma, so we are also keen to support further commercial opportunities as the Burmese economy opens up."

McCully has previously met Lwin at international meetings and while visiting Naypyitaw and Yangon in March when he also met President Thein Sein and National League for Democracy leader Aung San Suu Kyi.

Source: Xinhua

LVT eyes Myanmar for cement venture

The MAI-listed LV Technology (LVT) will issue 396.69 million new shares to raise funds to invest in a cement business in Myanmar through a unit of the Max Myanmar Group of Companies.

LVT is an engineering consulting firm that mainly provides equipment and expertise to the cement market.

Hans-Jorgen Nielsen, LVT's founder and managing director, said setting up the new entity will give the company a 15% stake in Max Manufacturing Co.

"This investment is an important turning point that will put the company on a more solid footing and provide stable revenue in the long term," he said.

Mr Nielsen said the company will renovate two present cement factories located close to Myanmar's new capital of Nay Pyi Taw.

Max Manufacturing's daily cement production capacity will increase from 500 tonnes now to 2,600 tonnes by the end of next year and 4,200 tonnes in 2014.

The Myanmar investment is expected to generate annual revenue to the company of 100-150 million baht starting in 2014 or a 28% return.

A stable revenue stream from this project may allow the company to pay dividends to shareholders, said Mr Nielsen.

At present, Myanmar consumes 4.5 billion tonnes of cement per year including 2.5 billion tonnes imported.

"The cement business in Myanmar is expected to see rapid growth such as that seen in Thailand 30 year ago. Thailand's cement business has grown six-fold since that time, and Myanmar's is expected to grow by 10-12% per year, based on an assumption of 5% GDP growth."

The investment will be funded by the capital increase, selling part of the company's Indian investment and internal cash flow.

Of the 396.69 million new shares, 51 million will be earmarked for private placement and 345.69 million for a rights offering to existing shareholders in a ratio of three old shares for one new share at 1.25 baht apiece.

The capital increased is subject to shareholders' approval at an extraordinary shareholders' meeting scheduled for Nov 19.

Mr Nielsen said LVT will divest some of its stake in LVNT, its Indian subsidiary, by selling a 25% shareholding to Chinese investors for 180 million baht.

This extraordinary revenue item will be booked in the fourth quarter.

Chief executive Worayuth Termsricharoenporn said the extraordinary revenue will help the company return to profit, with retained losses of 200 million baht eliminated by 2014.

In the first half of this year, LVT posted a net loss of 93.4 million baht compared with a net loss of 17.1 million baht in the same period last year.

Shares of LVT closed yesterday on the MAI at 1.40 baht, up six satang, in trade worth 58.3 million baht.

Source: Myanmar Business.org

Wednesday, October 17, 2012

Discussion of the Directorate of Investment and Company Registration (2)

Directorate of Investment and Company Registration (Myanmar) discuss the following organization;

(a) Mr. Yoshikaki Benino, General Manager of Sumitomo Corporation From Japan
     
" At the meeting, they discussed about business activities registered as branch office of 

Sumitomo Corporation in business activities which are suitable for current situation and ICT 

technologies related activities in Myanmar."

(b) Mr. Adachi Masahide, Director of The Japan Council of Local Authorities for 

International Relations, Singapore and delegates  

"  At the meeting, they cordially discussed on opportunities for small and middle 

enterprises  in Myanmar and the current situation of New Foreign Investment  

 Law (draft) of Myanmar."

(c) ADB EXPERT Meets with DICA Officials

"During the meeting, he presented about “ Company Registries : International Approaches.”

(d) Mr. Koichi Ishihara, President and CEO, Ray Line Co., Ltd., Japan

"At the meeting, official concerned answered and responded the matters related to 

manufacturing of pharmaceutical products, real estate development, vocational training for 

Myanmar employees and potential for tourism services in Myanmar." 



Source DICA 

 

Yangon airport sees over 350,000 tourists in Jan-Sep period

The number of tourist arrival reached 357,159 in the first nine months of 2012, local media reported Monday.


The number of Japanese travelers stood second at 310,000, followed by China, South Korea, United States, Malaysia, France, Singapore and Germany, said the Biweekly Eleven News.


Most of the tourists mainly came for both sightseeing and business opportunity.


All Nippon Airways(ANA) resumed regular direct flight between Tokyo and Yangon after 12 years' suspension on Monday.


According to official statistics of Ministry of Hotels and Tourism, the number of tourist arrival amounted to over 800,000 in 2011, up more than 24,000 or 3 percent from the same period of 2010.


The figures also show that up to February 2012, there were a total of 739 hotels in Myanmar including 22 foreign invested hotels, four joint-venture hotels, six government hotels and 707 private-owned ones.


Myanmar earned 319 million U.S. dollars in 2011 from the hotel and tourism sector, up 26 percent from 254 million U.S. dollars in 2010.

Source: Xinhua

NTT Com enter Myanmar market with Branch Office

NTT Communications Corporation (NTT Com) announced on October 17 that its subsidiary NTT Communications (Thailand) Co., Ltd. has begun operating a branch office in Yangon, Myanmar. Working in collaboration with local carriers, the branch will provide ICT solutions that enable multinational companies to expand their operations reliably, flexibly and securely in Myanmar.

The branch is the first to be launched in Myanmar by a foreign telecommunications company. It is headed by Tsuyoshi Kawashima, who is concurrently president of NTT Communications (Thailand) and manager of its Phnom Penh and Vientiane branches. The branch office is located at # 1504, 15th Floor, Sakura Tower, 339, Bogyoke Aung San Road, Kyauktada Township, Yangon (tel. 951-255-032).

NTT Com currently provides ICT solutions, including cloud, international and local networks, data centers, system integration and security, to multinational companies in the Greater Mekong Subregion, including Myanmar.

Myanmar has excellent growth potential due to its abundant workforce and natural resources. It has been emerging as a new market, especially since returning to civilian rule in March 2011.

A growing number of multinational companies are expanding their operations in the Greater Mekong Subregion, supported by ongoing improvement of infrastructure in the East-West Economic Corridor linking Vietnam, Laos, Thailand and Myanmar; the Kunming-Bangkok Expressway linking Thailand, Laos, Myanmar and Mainland China's Yunnan Province; and the Southern Economic Corridor linking Vietnam, Cambodia and Thailand.

Multinational companies in the Greater Mekong Subregion are rapidly establishing production, distribution and sales systems, as well as working to secure business continuity resistant to natural disasters and political uncertainties, all of which are raising the demand for high-quality ICT services available throughout the region and beyond.

With the addition of the Myanmar Branch, NTT Com's network of subsidiaries and offices has expanded to seven cities in five countries of the Greater Mekong Subregion, and 87 cities in 31 countries/regions of the world.

Source: The Sacramento Bee

Monday, October 15, 2012

All Nippon Airways restarts Myanmar flight

Japan's All Nippon Airways (ANA) on Monday restarted direct flights to Myanmar's commercial capital Yangon after a 12-year hiatus, underscoring renewed interest in the fast-reforming nation.

The carrier pointed to the rising number of business travellers and tourists headed to Myanmar, a one-time international pariah state that has recently introduced a raft of democratic reforms as it opens up to the world.

ANA, which suspended flights in 2000 due to political instability in the country, said it would have fly three flights a week between Tokyo's Narita aiport and Yangon, Myanmar's largest city and former capital.

"Myanmar has high potential for economic growth. A lot of Japanese firms have already decided to make inroads into Myanmar and many others are planning to do so," ANA President Shinichiro Ito said Monday, according to Kyodo News.

Other airlines including Hong Kong's Dragonair and Singapore Airlines have announced plans for regular flights to Yangon.

Myanmar, also known as Burma, has seen a number of dramatic changes since last year such as the release of hundreds of political prisoners and the election of opposition leader Aung San Suu Kyi to parliament.

Myanmar officials said in July that the authorities are planning a new airport near Yangon, expected to become operational in 2016, due to the influx of visitors.

Source: AFP

Myanmar's Monywa copper project comply with national law: official

The Monywa copper mine project in Myanmar's northwestern Sagaing region, is being carried out strictly and scientifically in accordance with Myanmar's law, international standard and religious procedure, responsible project officials of investing companies of Myanmar and China told a press conference here Monday.

The copper extraction project has been jointly undertaken by the Myanmar Economic Holding Ltd (ECL) and China's Wanbao Mining Ltd and Yang Tze Copper Ltd legally registered in Myanmar after a Canadian company, the Ivanhoe, pulled out two years ago.

The officials from both sides refuted the allegations of the Democratic Voice of Burma (DVB) airing from outside Myanmar on Oct. 9 that the companies intentionally carried out mine explosion work at the worksite near a local Buddhist pagoda which was destroyed.

U Maung Maung Tin, Director of Project Planning Department of the Myanmar EHL denied the allegation, clarifying that the information was not true but was a fabricated one.

He added that the so-called destroyed Buddhist pagoda is still in existence and the mine explosion work was conducted about 500 meters away from the object without hurting it.

U Myint Aung, another responsible official of the project also said, in addition to the still existence of the old pagodas in the old places, new pagodas were also built in area where the local villagers were relocated to make way for the project.

Recently, a report was filed to the parliament's Mineral Resources Commission and the Human Rights Commission who visited the site successively. The report clarified that the copper mine project was implemented strictly in accordance with the standard of the international environmental demand, having obtained three certificates of International Standard ISO 14001, ISO 9001 and OHSAS 18001 since 2003.

The project is supervised by the third party of Singaporean experts who inspected the project once six months, he said.

Upon regular check, the water safety level in the area conformed to the required standard, he added.

When asked about the compensation given to the local farmers for moving their house for the implementation of project, the Myanmar officials said through negotiation, they have done so in accordance with the new highest standard in order not to let them suffer.

Geng Yi, general manager of China's Wan Bao company and Yang Tze Copper Ltd , reiterated that the Chinese companies are legally registered foreign invested ones in Myanmar and all its projects are carried out under the country's law, while respecting the nation's culture, customs and religious practices.

However, since the start of the implementation of the project early this year after taking over from Canada's Ivanhoe, few local villagers were first dissatisfied with the project generating some problems with the project which is merely an economic issue. Later, with political instigation, it has been misguided and developed into a series of political protests by local villagers since the past two months, complicating the issue, some analysts here viewed.

Source: Xinhua

Sunday, October 14, 2012

Central Bank of Myanmar(CBM) hasn't granted permits to any foreign banking services yet

Some journals reported recently that an investment bank is firstly established in Myanmar. At present, the Central Bank of Myanmar hasn't grant permits to any foreign banking services yet. And the Directorate of Investment and Companies Administration had yet to allow company registration, announced the Ministry of Finance and Revenue.

The press release and internet news states that those wishing to run the monetary service as well as banking is to have permission from the Central Bank of Myanmar in line with the existing laws.

Section 80 of monetary organization law says that nobody can run any monetary organization without the central bank's license. Section 82, of that law also states that if he/she is guilty of breaking the prescriptions of Section 80, he/she will face the fines of Kyats 50000 (or) five year prison term (or) both.

Source New Light of Myanmar

Discussion of Directorate of Investment & Company Administration(1)

Discussion with Mr. Carl Christian Hasselbalch and Mr. Lasse Moller, Senior Adviser of the Ministry of Foreign Affairs of Denmark
             Director General of Directorate of Investment and Company Administration met with Mr. Carl Christian Hasselbalch and Mr. Lasse Moller, Senior Advisers of the Ministry of Foreign Affairs of Denmark and his team in the Office Building No (32), Nay Pyi Taw at 10:00 am on 11th October 2012.
             In the meeting, they discussed on investment opportunities in Myanmar and investment rules and regulations in a cordial manner.


Discussion with  Mr. Chiaki Fujino, Senior Executive Vice President, AUCNET INC. from Japan
          Mr. Chiaki Fujino, Senior Executive Vice President, AUCNET INC.from Japan and delegates paid a call at office Building No.(32), Directorate of Investment and Company Administration   at (10:00) am on 11st  October, 2012.
          During the call, they discussed on matters relating to make inspection services for the reconditioned vehicles import into Myanmar in a cordial and frank manner.


Discussion with Mr. Sing-Hwa Hu,  Deputy Minister , Council of Agriculture  and Mr. Fu-Hsing Lee, Chairman, Taiwan Fertilizer Co., Ltd. from Taiwan
          Mr. Sing-Hwa Hu,  Deputy Minister , Council of Agriculture  and Mr. Fu-Hsing Lee, Chairman, Taiwan Fertilizer Co., Ltd. from Taiwan and delegates paid a call at office Building No.(32), Directorate of Investment and Company Administration   at (2:00) pm on 11st  October, 2012.
          During the call, they discussed on matters relating to set up fertilizer factory , investment procedures and opportunities in Myanmar in a cordial and frank manner.


Source DICA

Myanma braces for KFC

The monsoon rainstorm has exhausted itself, which is handy, because like most food outlets in Myanmar, Maung Aye’s teashop is open to the elements. The samosas are still steaming, freshly plucked from a vat of hot oil, and the condensed milk tea is so sweet and thick that Coca-Cola seems almost healthy in comparison.

Yet one patron, Sandar Win, is thinking about treats that are decidedly less exotic, at least in most parts of the world: Western fast food.

“Whenever I fly back from Bangkok to Yangon, I see a lot of people who quickly go to buy KFC and snack food to bring back with them,” says Ms. Sandar Win, who recalls smuggling her own stash of chicken nuggets for her former boss’s son. “Burmese people are really dreaming about snack food.”

Fast food is blamed for expanding waistlines and worsening health around the world, including in places like Thailand, where many youths now prefer a McDonald’s burger over a bowl of noodles. But Myanmar, which is also known as Burma, has remained largely free of fast-food chains, thanks to economic sanctions that prevented Western companies from setting up shop there.

Now this looks likely to change. Western governments are lifting investment restrictions after a new government took power in Myanmar last year and began rolling out economic and political reforms, including the release of many well-known political prisoners.

PepsiCo Inc. recently said it had reached a deal with a local Myanmar company to begin distributing several key brands there, including Pepsi-Cola, after a 15-year absence. Coca-Cola Co. said in June that it also is planning to re-enter Myanmar after 60 years of waiting. Multinational fast food chains are expected to follow.
“They see 60 million people, and they see a country that doesn’t have a lot of Western food available,” says Jared Bissinger, a Myanmar expert who is working on a Ph.D.

He predicts Western fast-food joints could be there in less than a year. A spokeswoman for McDonald’s Corp. said the chain doesn’t comment on future expansion plans, while a spokeswoman for Yum Brands Inc., which owns KFC, said it has no current plans in Myanmar.

For now, Myanmar’s own fast-food joints, known as teashops, will continue selling their own versions of the Happy Meal, with contents such as deep-fried insects (pa yiq), freshly squeezed sugarcane juice (changyeh), coconut noodles (oh no khaoswe), red bean and coconut pancakes (kauk mote) and pig head salad (weqgaunthoq).

These Myanmar versions of fast food can be shockingly unhealthy. The curries sometimes swim in an oil that makes Big Macs look saintly. Locals often say the real secret to Myanmar cuisine is its overuse of monosodium glutamate, or MSG.

But Myanmar’s food has its fans. A favorite of opposition leader Aung San Suu Kyi’s father, General Aung San, was hot naan bread with salted beans. And with the Himalayas in the north, tropical beaches in the south and borders with China, Thailand, Bangladesh, Laos and India, Myanmar has absorbed numerous influences, including the cuisines of the 135 different ethnic groups that live in the country.
Some of the flavors can be sampled at Monsoon Restaurant on Yangon’s Thein Phyu Road. The manager, Tin Aung, says he also likes snacks from the roadside, such as fermented tea leaf salad from a nearby teashop, where the tables and chairs are squeezed together along the street.

Men dressed in traditional Burmese longyi wraps smoke locally rolled cigars and spit fountains of red betel nut onto the pavement, while nearby kitchens serve different styles of snack food from Shan-style noodles to Chinese dim sum and fresh fruit juice.

The lapheq, or tea leaf salad, is served up at any excuse. The tea leaves must be steamed and buried for a few months, where they ferment. They are then pounded with fried garlic, sesame oil and ground peanuts, and topped with fried beans, green chilies and dried shrimp.

It’s this unusual collection of flavors that makes Myanmar food stand out, says one local foodie, Ye Htut Win. He has made a name for himself with Sharkys, a restaurant and grocery store showcasing a range of locally produced cheeses, meats and breads.
Although he caters to the elite of Yangon, he says he’s partial to the national local dish, mohingya, a fish noodle soup that is simmered with lemongrass and banana stems. It also should have a lot of fish sauce, which he says gives it “that umami taste” that makes people want to eat more.

Ye Htut Win worries umami will be no match for Krispy Kreme or Dunkin’ Donuts when they arrive. “You’ll go to the street in Yangon, and it will be the same as Bangkok,” he says. “Starbucks, H&M, McDonald’s, KFC, Starbucks. There won’t be any more uniqueness.”

Mr. Bissinger sees their arrival more positively. “It’s about giving local people choice about what they want to do and what they want to eat,” he says, “and I think that’s a good thing.”

Back at the roadside teashop, Tin Aung, the Monsoon manager, says he’s not worried about a fast-food invasion. “This kind of tea shop is for all of the levels of people,” he says. “For the fast food like McDonald’s and KFC, only the middle and upper class will eat there.”

Indeed, economics may prove to be a powerful disincentive to abandoning Myanmar’s traditional foods: The bill for four large plates of food and three cups of tea at this teashop is just under $4—less than the cost of a Happy Meal in many countries.

Source: WSJ

Thursday, October 11, 2012

ROK's STX shows interests to invest in Myanmar

President of Union of Myanmar, U Thein Sein, visited STX Shipyard in Busan yesterday morning. Accompaned by delegation members, the President left Seoul for Busan by train at 9am local time.

On their arrival at the shipyard of STX Shipbuilding, Chairman of STX Group Company,
 Mr. Kang  Duk Soo explained functions of the company and expressed his interest in shipbuilding and electricity sector of Myanmar.

The president invited him to invest in three special economic zones which are underway in Myanmar and to make a mutual cooperation in solar power generation for supply of electricity to rural areas, infrastructural development and dockyards.

The STX Group chairman responded that he would like to make detailed studies in Myanmar.

Source - New Light of Myanmar

Japan to provide Myanmar loans to pay off ADB, World Bank Debt

Japan will provide loans to Myanmar to help it repay debt to the Asian Development Bank and World Bank starting early next year.

“Japan welcomes that the World Bank and Asian Development Bank will be in a position to clear” their loans, Jojima said today at a meeting between Myanmar and its creditors in Tokyo as part of the International Monetary Fund and World Bank’s annual meeting. The bridge loans will come from the Japan Bank for International Cooperation, a state-backed lender.

The settlement deal follows an April debt forgiveness plan as Japan, Myanmar’s biggest creditor, re-engages with the Southeast Asian nation that is shifting toward democracy after five decades of military dictatorship. Japan will start implementing the plan in January, paving the way to provide infrastructure loans to the country next year.

The ADB and the World Bank are in talks with the Myanmar government about debt settlement, a move that would bring them closer to resuming lending, ADB President Haruhiko Kuroda said in a group interview this week. Myanmar owes about $500 million to the ADB and $400 million to the World Bank.

Source gulfnews.com



 

International community agrees on helping Myanmar

The international community has agreed to help Myanmar at a meeting held in Tokyo on Thursday, one day before the annual meeting of the International Monetary Fund ( IMF) and World Bank.

Many of the leaders from 26 countries and five international organizations, including the IMF, World Bank and Asian Development Bank (ADB), welcomed Myanmar's national reconciliation and economic reforms, and expressed willingness to support Myanmar in stepping up infrastructure construction and cleaning debt arrears.

Myanmar's Finance and Revenue Minister U Win Shein gave a brief account of the country's mid-term development strategy, saying Myanmar is committed to working closely with the World Bank, IMF and ADB.

World Bank President Dr. Jim Yong Kim said the World Bank hopes the international community would move forward very soon to help the people in Myanmar in the fields of health, education and infrastructure, apart from aiding the country in boosting its private sector.

Source - Xinhua

Wednesday, October 10, 2012

Whisky deal with Chelsea FC a milestone for branch in Myanmar, but challenges remain

The International Beverage Trading Company, which dominates the spirits market in Myanmar, has inked a deal with English Premier League club Chelsea FC for its flagship brand, Grand Royal Whisky, to become the club’s official whisky.

The tie-up, brokered by Sports Revolution, is important not only for the brands involved but also because it marks the first such advertising partnership between a Myanmar-based company and a prominent Western brand following the country's liberalisation reforms.

The deal will allow the homegrown libation to co-brand its own merchandise with the football club's logo. IBTC already claims to have 80 per cent of the market in the whisky segment.

“Grand Royal Whisky is a long-standing supporter of local football, and is now able to exploit the popularity of the English Premier League in Asia and increase its own exposure directly to these local markets,” said Stephen Marsh, managing director, Sports Revolution Asia.

Several other Southeast Asian brands have been showing strong interest in the English Premier League recently, as more and more Asians acquire a taste for the sport. Myanmar is no exception. Last month, Jamaican telecommunications company Digicel, which is expanding operations in Myanmar, signed an MOU with the Myanmar Football Federation (MFF) for sports development in the country.

Sports Revolution said the IBTC deal supports Chelsea’s strategy of raising its profile within Myanmar and Asia as a whole. Chelsea is set to visit Myanmar during its 2013 pre-season tour.

In an interview with Campaign Asia-Pacific for an earlier story, Sports Revolution’s head of strategy, Kenny Ager, said the EPL’s interest in Southeast Asia has been fuelled by a combination of increased TV spends for the region and increased audience numbers in Asia.

Where an estimated Global TV audience of 650 million watched the finals last season, Asians accounted for nearly 40 per cent of the international audience. According to the Barclays Premier League Global Fan Survey, Asia’s fan stands at 864 million, versus 31 million in the UK.

Since the economy opened up, diplomats in Myanmar have been urging multinational companies to invest in the country. WPP’s Oglivy moved into the region, acquiring a stake in Yangon-based agency Today Advertising. Last month, Coca-Cola made its first delivery in the market after 60 years.

However, challenges remain in the market, according to a recent mid-year report from market research company Euromonitor. The country is one of the Southeast Asia’s most impoverished with income levels in the region well below those of neighbouring countries like Cambodia, Laos and Bangladesh.

“A more aggressive programme of privatisation is needed to foster private sector-led growth,” the report said, attributing it to distortions in the economy and corruption. “Higher standards of Governance and transparency are required if the business climate is to improve."

Source: Campaign Asia-Pacific

Chinese Taiwan airlines launches direct flight to Yangon

EVA Airways Corp. (EVA), Chinese Taiwan's second largest carrier, launched direct flight between Taipei and Yangon on Tuesday, according to airline sources.

EVA is another foreign airline that has extended wing to Yangon in two months after Korean Air and Qatar Airways.

Using MD-90 jets, EVA Air will operate the Taipei-Yangon route three times a week.

The introduction of the direct flight from the region is expected to bring more than 30 percent of EVA's future clients, who will be North American passengers, to Myanmar via Taiwan.

Taiwan's largest carrier China Airlines currently operates five flights per week between Taipei and Yangon and it will increase the number of flights to seven per week starting Oct. 28.

Meanwhile, Myanmar's national carrier, the Myanmar Airways International (MAI), will also launch direct flights between Yangon and China's Hong Kong before the end of this year.

There are five more foreign airlines -- Dragon Air, All Nippon Airways, Singapore Airlines, Germany-based Condor Airlines and Trans Asia Airways -- preparing to fly Myanmar.

Up to now, there has been a total of 16 foreign airlines that have stretched wings to Yangon.

In addition to the 64-year-old state-operated domestic Myanma Airways (MA), there are also five private-run domestic airlines in Myanmar, namely Air Mandalay, Yangon Airways, Air Bagan, Asian Wings and Air Kanbawza.

Source: Xinhua

India-Myanmar bilateral trade likely to double

The bilateral trade between India and Myanmar is expected to more than double by 2015. According to U Kyaw Swe Tint, Consul General of the Republic of the Union of Myanmar, the trade is likely to grow from 1.28 billion U.S. dollars in 2010-11 to 3 billion U.S. dollars in 2014- 15.

Agriculture, health, education, mineral resources and pharmaceuticals could be key areas of co-operation to enhance trade between the two nations.

India and Myanmar have signed 12 MoUs for extending co- operation in areas like border area development, in the field of defence and analysis and the establishment of joint trade and investment fora among others.

India was one of the major export markets for the pulses and beans produced in Myanmar. However, the export of pulses and beans to India has decreased in recent years. There is a need for co-operation to shore up the exports of pulses and beans to previous levels.

Despite being neighbors and sharing a common border, Myanmar and India have not been able to make optimal use of border trade.

Even while the bilateral trade stood at 1.28 billion U.S. dollars, the border trade was just about 13 million U.S. dollars. Border trade volume is just a little over one percent of total trade. We have to seek ways and means to co-operate for the promotion of border trade.

Source: Xinhua 

Tuesday, October 9, 2012

Myanmar will hold a Hospitality and Tourism Conference from Feb

Myanmar will hold a Hospitality and Tourism Conference from Feb. 26-28 in 2013 aimed at promoting the tourism industry of the country.

The conference, jointly organized by the Myanmar Tourism Federation (MTF) and Sphere Conferences of Singapore, will mainly focus on investment opportunities in the hotel and tourism services sector.

Mizzima reported last week that a Burmese tourism industry master plan is being drafted with the technical assistance of the German-based Hanns Seidal Foundation, with support from the Norwegian government and the Asian Development Bank.

Myanmar sees the tourism sector as a quick means to earn badly needed capital from international travelers eager to experience the country's cultural and natural heritage.

A main focus of the plan will be to expand tourism infrastructure and quality of services as quickly as possible. The Ministry of Hotels and Tourism has organized tourism development workshops in key tourist destination areas to discuss current and future challenges.

Recently, Vice President Sai Mauk Kham said that sector needs everything from experienced tour guides to more hotel rooms.

The arrivals for the last eight months of 2012 was 340,458 by air, up 40 per cent compared with the same period of 2011.

Myanmar rejoined the UN World Tourism Organization in June this year, which promised to support Myanmar in taking full advantage of its tourist potential.

On August 22, Mizzima reported that Myanmar would build 19 hotels in Naypyitaw, the capital, in anticipation of the upcoming 27th Southeast Asian Games set for the end of 2013.

Vietnan and France are set to become major hotel investors in Rangoon, according to reports. Indian companies are also looking at hotel investments.

(Source Mizzima)

Suzuki Motor plans return to Myanmar with assembly plant

Japanese automaker Suzuki Motor Corp. plans to build a factory in Myanmar that will produce 20,000 to 30,000 cars a year and push development of one of the world’s largest industrial complexes, sources said.

Suzuki is expected to invest several billion yen in the assembly plant, which is tentatively scheduled for completion by 2015, the sources said on Oct. 8.

Companies around the world are looking to invest in Myanmar to cash in on the country’s expected high economic growth in the coming years. Suzuki’s plant will become one of the largest production centers in Myanmar among foreign manufacturers.
According to the sources, Suzuki plans to build the plant on 40 hectares in the suburban Thilawa district of Yangon, Myanmar’s largest city, and will establish a wholly-owned subsidiary in the country. In the initial years, the plant will manufacture several thousand cars a year.

“From now, we will check the land to see whether the ground conditions have no problems. Then we will make the final decision (on the new plant),” a Suzuki executive said.

Myanmar wants to develop the Thilawa district, located about 25 kilometers from central Yangon, into a huge industrial complex. The government plans to designate the area as a special economic zone that will offer eased regulations and tax breaks for foreign companies.




( Source THE ASAHI SHIMBUN)

Foreign Direct Investment

Now, the new Foreign Investment Law has been discussed in Parliament. But the old Foreign Investment Law was already enforced in Myanmar. Under such Foreign Investment Law, the following facts & conditions were concerned;

- Investment may be made by Sole Proprietor, Partnership, Corporation (Joint Venture & 100% Foreign Capital). If the joint-venture form, foreign capital shall be at least 35% of the total capital.
But 100% foreign capital is not allowed in practice.

- Minimum amount of capital is USD 300,000 for Service and USD 500,000 for Industry. But it do not need to fully paid. It can be paid by partly.

- Foreigners or Foreign Companies cannot own land. They can only lease.

- Process for incorporation of a company
          - Obtain permit to trade for a company( It called permit to trade but it is not for trade only as permit to invest. Now, Trading do not allow to foreigner or foreign company). Apply to the Directorate of Investment & Company Registration. List supporting documents for application.
          - Registration of the Company with the CRO. List supporting documents for application. Upon completion of registration, the CRO will issue a certificate of incorporation of a company.

- The branch is also the same.
       
          

Monday, October 8, 2012

Address

1) No.214, First Floor, Seikkanthar Street,
    Kyauktada Township, Yangon, Myanmar.

2) No.83/14, Second Floor, Pansodan Street,
    Kyauktada Township, Yangon, Myanmar.

 
 

Practice Area of Laws



- Commercial Legal Advisory & Litigation
- Tax Consulting
- Investment project
- Company, Partnership, & JV Formation
- Registration of Trademark 
- Legal consultancy & preparation for contracts
- Liquidation of the company
- Legal advisory for labour & preparation for labour contract