Study mission explores business opportunities in the country

HKGCC, in cooperation with the Hong Kong Trade Development Council, organised a study mission to Myanmar from March 12-16 to explore business opportunities in the country.

Then HKGCC Deputy Chairman Christopher Cheng and HKGCC Director Dr Eden Woon led the 21-member delegation, which met with senior officials from the Ministry of Commerce, Myanmar Investment Commission and the Ministry of Industry, as well as toured factories in the capital.

As a member of the World Trade Organisation, Myanmar is obliged to operate a transparent trading system. Enterprises interested in conducting foreign trade must register as an exporter or importer with the Export Import Registration Office under the Ministry of Commerce, the officials said.

The most developed industrial sectors in the country are agriculture, marine, mining, tourism and hydro-energy. The telecommunication sector is under development and companies from Malaysia, Israel and Germany are now looking into investment possibilities in building a telecommunications infrastructure in Myanmar, officials told the delegation.

Investment
According to the Union of Myanmar Foreign Investment Law, promulgated in November 1988, almost all sectors, except 12 sensitive areas, are open for foreign investment.

Foreign investors are allowed to set up wholly-owned or joint-venture businesses, and must pay a flat tax rate of 30 per cent under Myanmar law. However, officials told delegates that foreign investors can qualify for tax breaks, including tax holidays for three consecutive years, in addition to a possible continuation of tax exemption or relief in certain circumstances. Singapore leads investment in Myanmar, followed by Malaysia and the United States, while Hong Kong ranks as the 12th largest investor in the country.

According to officials, the minimum foreign capital investment in the country under the Foreign Investment Law for industrial projects is US$500,000 and for services US$ 300,000. B

For more information on investing in Myanmar, contact Mabel Yao at 2823-1232, or email, mabel@chamber.org.hk