General Aspects

Investments in the local market should keep in mind certain conditioning factors by Myanmar towards Western countries mainly due to the EU Common Position (and of course economic sanctions imposed by the US) on the Burmese regime. Such limitations should therefore be considered, as should difficulties to access SACE, the lack of development projects financed by our cooperation department and the impossibility to gain funds from IFI. The junta is moving towards some kind of democratic reform at an extremely slow pace. A constructive opening to democracy and substantial change in the political situation would give us interesting opportunities to actively participate to the modernization and development of the country. Of particular interest are oil and other hydrocarbons, telecommunication, basic infrastructure, transportation, tourism, etc…

Conditioning Factors

Despite certain laws passed in 1990 seem to encourage foreign trade and investment, in actual fact, the foreign investor undergoes many restrictions ranging from difficulties in obtaining a licence to carry out commercial enterprise and import-export, to the enforcement of unwritten practices that give enormous possibilities to the Public Administration. Therefore, commercial relations are undermined by the lack of a clear and reliable legal system. Another factor that shouldn’t be underestimated is the poor quality of infrastructure that also limits the distribution on goods and services. An easy access to this market is, as above-mentioned, only possible through political reform. Myanmar is also lacking legislation regarding intellectual property, patents and trademarks. A bill of 1994 is still waiting to be passed, while Indian laws of 1911, dating back to British colonial rule over Myanmar, still regulate registration of patents and trademarks in the country.  

Initiatives

For the time being, the present political situation in Myanmar doesn’t permit an internationalisation of the production system. For the same reason, no projects or promotional initiatives have been possible either with the concerned institutions or on behalf of the Embassy.

 

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