Myanmar 2017 Country Commercial Guide

Myanmar Table of Contents Doing Business in Myanmar __________________________ 6 Market Overview ___________________________________ 6 Market Challenges __________________________________ 7 Market Opportunities ________________________________ 8 Market Entry Strategy ________________________________ 8 Political and Economic Environment ____________________ 10 Political Environment ________________________________ 10 Selling U.S. Products & Services _______________________ 11 Using an Agent to Sell U.S. Products and Services ________________ 11 Establishing an Office ________________________________ 11 Franchising ______________________________________ 11 Direct Marketing ___________________________________ 11 Joint Ventures/Licensing ______________________________ 12 Selling to the Government ______________________________ 12 Distribution & Sales Channels____________________________ 12 Express Delivery ___________________________________ 13 Selling Factors and Techniques ___________________________ 13 eCommerce ______________________________________ 13 Trade Promotion and Advertising _________________________ 13 Pricing _________________________________________ 14 Sales Service/Customer Support __________________________ 14 Protecting Intellectual Property __________________________ 14 Due Diligence _____________________________________ 16 Local Professional Services _____________________________ 16 Principle Business Associations __________________________ 16 Limitations on Selling U.S. Products and Services ________________ 16 Web Resources ____________________________________ 16 Leading Sectors for U.S. Exports & Investments ______________ 18 Aerospace and Defense ________________________________ 18 Agricultural Sector __________________________________ 21 Automotive_______________________________________ 24 Construction and Design _______________________________ 27 2 Consumer Goods ___________________________________ 31 Education _______________________________________ 34 Energy _________________________________________ 38 Environmental Technology _____________________________ 43 Franchising ______________________________________46 Health Care ______________________________________ 48 Mining and Minerals _________________________________ 52 Oil and Gas _______________________________________ 55 Telecommunications and Broadcasting ______________________ 59 Travel and Tourism __________________________________ 61 Customs, Regulations & Standards ______________________ 64 Trade Barriers _____________________________________64 Import Tariffs _____________________________________64 Import Requirements and Documentation ____________________ 65 U.S. Export Controls _________________________________ 65 Temporary Entry ___________________________________ 65 Labeling/Marking Requirements __________________________ 65 Prohibited & Restricted Imports _________________________ 66 Customs Regulations ________________________________ 66 Standards for Trade ________________________________ 66 Trade Agreements __________________________________ 68 Licensing Requirements for Professional Services ________________69 Web Resources ____________________________________69 Investment Climate Statement ________________________ 70 Executive Summary __________________________________ 70 Openness To, and Restrictions Upon, Foreign Investment ___________ 72 Policies Toward Foreign Direct Investment _______________________ 72 Limits on Foreign Control and Right to Private Ownership and Establishment ___ 73 Other Investment Policy Reviews _____________________________ 74 Business Facilitation _____________________________________ 74 Outward Investment _____________________________________ 75 Bilateral Investment Agreements and Taxation Treaties ____________ 75 Legal Regime _____________________________________ 76 Transparency of the Regulatory System _________________________ 76 International Regulatory Considerations _________________________ 76 Legal System and Judicial Independence _________________________ 77 3 Laws and Regulations on Foreign Direct Investment __________________ 77 Competition and Anti-Trust Laws _____________________________ 78 Expropriation and Compensation _____________________________ 79 Dispute Settlement ______________________________________ 79 Bankruptcy Regulations ___________________________________ 80 Industrial Policies___________________________________ 80 Investment Incentives ____________________________________ 80 Foreign Trade Zones/Free Ports/Trade Facilitation ___________________ 81 Performance and Data Localization Requirements ___________________ 81 Protection of Property Rights ____________________________ 81 Real Property _________________________________________ 81 Intellectual Property Rights ________________________________ 82 Financial Sector ____________________________________ 83 Capital Markets and Portfolio Investment ________________________ 83 Money and Banking System ________________________________ 84 Foreign Exchange and Remittances ____________________________ 84 Sovereign Wealth Funds ___________________________________ 86 State-Owned Enterprises ______________________________ 86 Privatization Program ____________________________________ 86 Responsible Business Conduct ___________________________ 87 Corruption _______________________________________ 87 Political and Security Environment ________________________ 88 Labor Policies and Practices _____________________________ 89 OPIC and Other Investment Insurance Programs ________________ 91 Foreign Direct Investment and Foreign Portfolio Investment Statistics ___ 91 Contact for More Information on the Investment Climate Statement _____ 93 Trade and Project Financing _________________________ 94 Methods of Payment _________________________________94 Banking Systems ___________________________________94 Foreign Exchange Controls _____________________________ 95 U.S. Banks and Local Correspondent Banks ____________________ 95 Project Financing ___________________________________ 95 Financing Web Resources ______________________________ 97 Business Travel _________________________________ 98 Business Customs ___________________________________ 98 Travel Advisory ____________________________________ 98 Visa Requirements __________________________________ 98 Currency ________________________________________ 99 4 Telecommunications/Electric ____________________________ 99 Transportation ____________________________________ 99 Language ________________________________________ 99 Health _________________________________________ 99 Local Time, Business Hours, & Holidays ____________________ 100 Temporary Entry of Materials and Personal Belongings ___________ 101 Travel Related Web Resources __________________________ 101 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2017. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. 5 Doing Business in Myanmar Market Overview Myanmar is an exciting emerging market located in a critical and rapidly changing part of the world. The National League for Democracy (NLD)’s landslide victory in November 2015 election was a major step forward for Myanmar’s political and economic future. As a recently opened market, there are opportunities in various sectors. At the same time, the market currently presents multiple and complex challenges for U.S. companies. With the opening of the Commercial Service office in Yangon in August of 2014, there is a team on the ground that can help companies understand the market and succeed. Myanmar or Burma – Which Name to Use? Aung San Suu Kyi spoke to foreign diplomatic corps in April 2016 where she told diplomats that they could use either name to refer to the country, as the constitution does not mandate either name. However, she said the goverment will continue to use Myanmar and that name continues on all their official letters and documentation. Since 2011, the Government of Myanmar has adopted, among other changes, budgetary and tax reforms, and financial sector regulatory changes with limited liberalization of trade and investment in order to integrate the country into the international economy. There are five main reasons why American companies should consider exporting to Myanmar. Right Time, Right Place With a rich natural resources base, an estimated population of 51 million, a young labor force and prime geographic location – between India and China, and linked with the countries that make up the Association of South East Asian Nations (ASEAN) – Myanmar is the subject of great interest from the international business community. The enactment of a new Foreign Investment Law along with other economic reforms, the termination of U.S. economic sanctions, along with the previous lifting of EU and Australian sanctions (except for a ban on the sale of non-civil use military goods and services), have encouraged foreign companies to view Myanmar as a potential market. Growing Economy Means More Opportunity for U.S. Products Economic growth in Myanmar is expected to be 6.5 percent in 2016-2017 according to the World Bank. The pace of recovery in agriculture from the floods of 2015 was hampered by longstanding productivity constraints in the sector. 6 However, medium-term growth is currently projected to average 7.1 percent per year. Investment is an important factor to sustain economic growth. Thus, Myanmar has encouraged domestic and foreign investors to invest in various economic sectors through selective liberalization and incentives. Further

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