Study on Legal System and Procedures for Promoting Enabling Business Environment Final Report March 2014 Japan International Cooperation Agency Mitsubishi UFJ Research and Consulting Co. Ltd. KRI International Corp. Study on Legal System and Procedures for Promoting Enabling Business Environment Final Report Study on Legal System and Procedures for Promoting Enabling Business Environment Final Report Table of Contents CHAPTER 1 Outline of the Study ................................................................................................... 1-1 1.1. Background of the Study ......................................................................................................... 1-1 1.2. Purpose of the Study ............................................................................................................... 1-1 1.3. Implementation Structure of the Study ................................................................................... 1-2 1.4. Study Schedule ........................................................................................................................ 1-3 CHAPTER 2 Overview of the Current Economic Situations in Myanmar, Cambodia and Bangladesh 2-1 2.1. Overview of the Economy, Investment and Trade in Myanmar .............................................. 2-1 2.1.1. Economic Trends ............................................................................................................. 2-1 2.1.2. Investment Trends ........................................................................................................... 2-3 2.1.3. Trade Trends .................................................................................................................... 2-6 2.2. Overview of Economy, Investment and Trade in Cambodia ................................................. 2-10 2.2.1. Economic Trends ........................................................................................................... 2-10 2.2.2. Investment Trends ......................................................................................................... 2-13 2.2.3. Trade Trends .................................................................................................................. 2-19 2.3. Overview of the Economy, Investment and Trade in Bangladesh ........................................ 2-25 2.3.1. Economic Trends ........................................................................................................... 2-25 2.3.2. Investment Trends ......................................................................................................... 2-27 2.3.3. Trade Trends .................................................................................................................. 2-32 CHAPTER 3 Overview of the Current Legal and Regulatory System in Myanmar, Cambodia and Bangladesh 3-1 3.1. Overview of the Current Legal and Regulatory System in Myanmar ..................................... 3-1 3.1.1. Overall Legal System ...................................................................................................... 3-1 3.1.2. Business Related Rules and Regulations ......................................................................... 3-3 3.1.3. Donors‟ Cooperation Programs for Regulatory Reform/Private Sector Development .. 3-20 3.2. Overview of the Current Legal and Regulatory System in Cambodia .................................. 3-22 3.2.1. Overall Legal System .................................................................................................... 3-22 3.2.2. Business Related Rules and Regulations ....................................................................... 3-26 3.2.3. Donors‟ Cooperation Programs for Regulatory Reform ................................................ 3-40 3.3. Overview of the Current Legal and Regulatory System in Bangladesh ................................ 3-43 3.3.1. Overall Legal System .................................................................................................... 3-43 3.3.2. Business Related Rules and Regulations ....................................................................... 3-46 3.3.3. Donors‟ Cooperation Programs for Regulatory Reform/Private Sector Development .. 3-66 CHAPTER 4 Current Issues in Business Related Rules and Regulations in Myanmar, Cambodia and Bangladesh 4-1 Study on Legal System and Procedures for Promoting Enabling Business Environment Final Report 4.1. Overview of Business Related Issues in Myanmar, Cambodia, and Bangladesh ................... 4-1 4.2. Current Issues in Business Related Rules and Regulations in Myanmar ................................ 4-3 4.2.1. Method and Source of Issues Identification .................................................................... 4-3 4.2.2. Current Major Issues in Business Environment .............................................................. 4-4 4.3. Current Issues in Business Related Rules and Regulations in Cambodia (in relation to regulatory development and enforcement) ....................................................................................... 4-27 4.3.1. Method and Source of Issues Identification .................................................................. 4-27 4.3.2. Current Major Issues in Business Environment ............................................................ 4-28 4.4. Current Issues in Business Related Rules and Regulations in Bangladesh (in relation to regulatory development and enforcement) ....................................................................................... 4-48 4.4.1. Method and Source of Issues Identification .................................................................. 4-48 4.4.2. Current Major Issues in Business Environment ............................................................ 4-48 CHAPTER 5 Selections of Prioritized Rules and Regulations for Enabling Business Environment 5-1 5.1. Overview and Evaluation Method .......................................................................................... 5-1 5.2. Selections of Prioritized Rules and Regulations in Myanmar (Short list) .............................. 5-1 5.2.1. Overview of Short Listed Issues ...................................................................................... 5-1 5.2.2. Description of Prioritized Issues...................................................................................... 5-2 5.3. Selections of Prioritized Rules and Regulations in Cambodia (Short list) ............................ 5-51 5.3.1. Overview of Short Listed Issues .................................................................................... 5-51 5.3.2. Description of Prioritized Issues.................................................................................... 5-52 5.4. Prioritized Rules and Regulations in Bangladesh (Short list) ............................................... 5-75 5.4.1. Overview of Short Listed Issues .................................................................................... 5-75 5.4.2. Description of Prioritized Issues.................................................................................... 5-76 CHAPTER 6 Conclusion and Recommendations: From the Perspective of Each Legal System and Enforcement 6-1 6.1. Conclusion: Comparison of the Legal Systems in Each of the Target Countries and Implications for their Future Legislative Development ..................................................................... 6-1 6.1.1. Comparison of the Legal System in each of the Target Countries .................................. 6-1 6.1.2. Implications for Future Legislative Development ........................................................... 6-2 6.2 Recommendations for Enabling Business Environment in Myanmar ....................................... 6-3 6.2.1. Overview ........................................................................................................................... 6-3 6.2.2. Recommendations for Regulatory Improvement Measures .............................................. 6-4 6.2.3. Recommendations for Regulatory Enforcement Improvement Measures ......................... 6-6 6.3 Recommendations for Enabling the Business Environment in Cambodia ................................ 6-7 6.3.1. Overview ........................................................................................................................... 6-7 6.3.2. Recommendations for Regulatory Improvement Measures .............................................. 6-9 Study on Legal System and Procedures for Promoting Enabling Business Environment Final Report 6.3.3. Recommendations for Regulatory Enforcement Improvement Measures ....................... 6-10 6.4 Recommendations for Enabling Business Environment in Bangladesh .................................. 6-13 6.4.1. Overview ......................................................................................................................... 6-13 6.4.2. Recommendations for Regulatory Improvement Measures ............................................ 6-15 6.4.3. Recommendations for Regulatory Enforcement Improvement Measures ....................... 6-16 Appendices .......................................................................................................................................... A-1 1. Outline of Seminar in Myanmar .....................................................................................................A-1 2. Outline of Seminar in Cambodia ....................................................................................................A-3