The Republic of the Union of Myanmar has adopted the market oriented economic system since 1988. The initial step taken towards a more liberalized economy is to allow foreign direct investment and to encourage the private sector development. In the area of legal framework one of the first laws on investment promulgated by the State Law and Order Restoration Council is the Republic of the Union of Myanmar Foreign Investment Law, promulgated on 30th November 1988 to induce foreign investment and to boost investment particularly in the private sector. In April 2011, the New Government assumed the responsibilities of the State aiming to achieve smooth transition to democracy, reforms steps have been taken towards democratization by the Government. Since then, substantial stabilization and reform measures had been undertaken to be in line with the new economic system. The enactment of the new foreign investment law is one of the most important milestones as it is one of the key steps towards inviting more responsible foreign investments into our country to facilitate our economic development in a sustainable and responsible manner.
Myanmar has revised its old Foreign Investment Law and came up with the new Foreign Investment Law in November 2012. The new foreign investment law is aimed at creating a more investment friendly climate and encouraging greater cooperation between local and foreign businesses operating in Myanmar.
In creating a favorable climate towards attracting responsible, sustainable and mutually beneficial investments from abroad, rules to implement FIL and economic activities were passed in 31 January 2013 offering clear guidelines and advantages for potential investors to Myanmar.
- To increase investments (local investment & foreign investment)
- To encourage private entrepreneurship
- To take part in regional and international economic cooperation
The Republic of the Union of Myanmar adopted the market oriented economic system in the year 1988 after adopting the centralised planning economic system for more than two decades. Substantial stabilization and reform measures had been undertaken to be in line with the new economic system. The initial step taken towards a more liberalized economy is to allow foreign direct investment and to encourage the private sector development. In the area of legal framework one of the first laws on investment promulgated by the State Law and Order Restoration Council is the Republic of the Union of Myanmar Foreign Investment Law (FIL), promulgated on 30th November 1988 to induce foreign investment and to boost investment particularly in the private sector.
In 1993 under the Ministry of National Planning and Economic Development, Directorate of Investment and Company Administration was formed. Major functions of Directorate of Investment and Company Administration, Ministry of National Planning and Economic Development are scrutinizing and appraisal of projects that are proposed for investment in the Republic of the Union of Myanmar, monitoring and reporting the implementation of permitted enterprises, registration and administration of Limited Companies, Joint Ventures, Partnerships and Association and Association and taking part in regional cooperation relating to investment matters.
