Meta Data

Draft:

Revision of previous policy?:

Yes

Effective Start Year:

2016

Scope:

National

Document Type:

Other

Economic Sector:

Power, Multi-Sector, Other

Energy Types:

Power

Issued by:

Myanmar Investment Commission

Source:

Department of Investment and Company Administration (DICA)

File:

Myanmar Investment Commission Notification No. 26/2016

Overall Summary:

The Myanmar Investment Commission Notification No. 26/2016 of 2016 amending the List of Restricted and Prohibited Activities for Foreign Investment aims at amending the classification of activities in which foreign investment is prohibited or restricted.

Governance

Energy management principles:

List of Economic Activities under Prohibition. Type of Economic Activities: 6. Administration of electric power system. 7. Inspection of Electrical Works. --- List of Economic Activities to be allowed only in the form of Joint Venture with Myanmar Citizens. Type of Economic Activities: 20. Small and medium scales production of electricity. --- List of Economic Activities Permitted with Other Conditions and required Joint Venture. Type of Economic Activities: 21. Generation of Electric Power to be used for Train Operation and Railway Workshops. Condition: It is allowed to joint venture or rental or BOT system with Myanma Railways. Require recommendation of Ministry of Electric Power and need permission of Ministry of Rail Transportation.

Full Document Text

The Republic of the Union of Myanmar

Myanmar Investment Commission

Notification No. 26/2016

Nay Pyi Taw

(21^st March 2016)

Classification of Types of Economic Activities

1. The Republic of the Union of Myanmar, Myanmar Investment Commission in exercise of the powers conferred under section 56 sub-section (b) of the Foreign Investment Law, with the approval of the Union Government, issued the List of Economic Activities under Prohibited, List of Economic Activities only allowed in the form of Joint Venture with Myanmar Citizens and List of Economic Activities which shall be allowed under the specific circumstances, which are stipulated in Chapter 2 of ForeignInvestment Law are as follow:

List of Economic Activities under Prohibition

Sr.No

Type of Economic Activities

10.

11.

12.

Manufacturing and related services of Arms and ammunition for the national defence.

Activities which are deemed to deteriorate the watershed forests, sites for religious and spirited affairs , pasture land , cultivated farm land and water sources,)

Management of natural forests

Prospecting, exploration and production of jade/gem stones

Production of minerals by medium scale and small scale

Administration of electric power system

Inspection of Electrical Works

Air Navigation Services

Exploitation of minerals including gold in the rivering and water way

Pilotage Services

Cross ownership between Print Media and Broadcasting Media Service without approval of the Union Government

Periodicals in languages of national races including Myanmar

List of Economic Activities to be allowed only in the form of Joint Venture with Myanmar Citizens

Sr.No

Type of Economic Activities

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

Manufacturing and domestic marketing of cereal products such as biscuits, wafers, all kinds of noodles, vermicelli and other cereal related food products

Manufacturing and domestic marketing of all kind of confectionery including those of sweet, cocoa and chocolate

Processing, manufacturing and marketing of food products except milk and dairy products

Manufacturing and marketing of malt and malt liquors and non-aerated products

Distilling, blending, rectifying, bottling and marketing of all kinds of spirits, alcohol, alcoholic beverages and non-alcoholic beverages

Manufacturing and marketing of all kinds of purified ice

Manufacturing of purified drinking water

Manufacturing and marketing of all kinds of rope

Manufacturing and domestic marketing of enamelware, cutlery, crockery of all kinds

Manufacturing and domestic marketing of plastic wares

Packaging

Processing of hides, skins and leathers of all kinds, except synthetic leather, and manufacturing and marketing of lather products including foot wears, handbags, etc. to domentic market

Manufacturing and marketing of all kinds of paper, raw materials for paper, all kinds of products made by paper, paper board including carbon paper, waxed paper, toilet paper, etc

Manufacturing and marketing of chemicals based on natural resources available domestically, (excluding products of petroleum and gas)

Manufacturing and marketing of flammable solid, liquid, gaseous fuels and aerosol( Acetylene, Gasoline, Propane, Hair Sprays, Perfume, Deodorant, Insect spray) (excluding products of petroleum and gas)

Manufacturing and marketing of oxidants( Oxygen, Hydrogen Peroxide), compressed

(Acetone, Argon, Hydrogen, Nitrogen, Acetylene) (excluding products of petroleum and gas)

Manufacturing and marketing of corrosive chemicals( Sulphuric Acid, Nitric Acid)

Manufacturing and marketing of industrial chemical gases including compressed, liquefied and solid forms

Manufacturing of pharmaceutical raw materials

20.

21.

22.

23.

24.

25.

26.

27.

Small and medium scales production of electricity

Development of international standard golf courses and resorts

Development, sales and lease of residential apartments/ condominiums

Development and sales of office/ commercial buildings

Development, sales and lease of residential apartments in areas related to industrial zones

Development of affordable housing

Domestic air transport service

International air transport service

List of Economic Activities Permitted with the Specific Condition

1. List of Economic Activities Permitted with therecommendations of the Relevant Ministry and Required Joint Venture with the Citizen

	Sr.No		Type of Economic Activity
	(1)		(2)
1. 2.		1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 4. 5. 6. 7.	Permitted with the Recommendation of Ministry of Livestock,Fisheries and Rural Development Production of bee and bee products Manufacturing of fishing net Construction and establishment of Fishing jetty and fish auction market Research activities related with aquatic animals (Department of Fisheries) and terrestrial (Livestock Breeding and Vetinerary Department) Marine Fishing Processing and Manufacturing of fisheries products Export / Import of animals and fishery products including live fish species Marine and Freshwater Aquaculture Permitted with the Recommendation of Ministry of Environmental Conservation and Forestry National park and gardens Business in relation with low carbon emission Logging and timber concession in forest land (reserved forests and protected public forest) Reproduction and distribution of importing Genetically Modified Organism (GMO) and Living Modified Organism (LMO) for commercial purposes Advanced technical research and commercial activities in production of improved valuable and rare tree species , conservation, and tissue culture production Developing advanced technology , researches and human resource in forest sector Extraction of natural resources in forest land and forested area at the disposal of the government

Importing of plants and wildlife animals for breeding and production, distribution through importation and exportation

Permitted with the Recommendation of Ministry of Industry

Manufacturing and marketing of soft beverages, aerated and non-aerated products

Production of seasoning powder

Production of medicinal drugs by using the controlled chemical.

Permitted with the Recommendation of Ministry of Transport

Domestic Maritime Transport Services for Passengers and Cargo)

To establish Maritime Training School

Dockyard services

Water transport related services on land plots owned by Inland Water Transport

Permitted with the Recommendation of Ministry of Communications andInformation Technology

Domestic and International PostalServices

Permitted with the Recommendation of Ministry of Health

Private hospital services

Private clinic services

Private diagnostic services

Private pharmaceuticals and medical devices production

Research on vaccine anddiagnostic test kit production

Private medical institutue and health related Institute and training school

Trading of traditionalpharmaceutical raw materials

Traditional Herbal cultivation and Production

Traditional medicine research and Laboratory

Manufacturing of traditional drugs

Traditional hospitals

Permitted with the Recommendation of Ministry of Information

Publishing of periodical newspapers in foreign languages (or) Publishing newspaper in foreign languages

FM radio programmes

Business on broadcasting industry Direct to Home (DTH) system

Business on broadcasting industry using DVB-T2 system

Business on broadcasting industry using Cable TV system

Business on movies production

Business on movies showing

2. List of Economic Activities Permitted with Other Conditions and required Joint Venture

Sr.No.		Type of Economic Activities	Condition
(1)		(2)	(3)
	1. 2. 3. 4. 5. 6. 7. 8.	Construction and implementation of storage tank, loading port, pipe line, related machineries and equipment and construction of building for importing, transporting, storage, distribution and selling of oil, gas and petroleum products. Importing, producing, constructing and installing of equipment, accessories and part of installations as for exploring and interpreting of oil and gas by geologically, geophysically and geochemically methods. Importing, producing, constructing and installing of equipment, accessories and part of installations as for exploiting, producing and researching ofoil and gas . Importing, producing, constructing and installing of equipment, accessories and part of installations as for transporting and constructing the pipe line network for oil and gas Importing, producing, constructing and installing of equipment, accessories and part of installations as for construction of the various kind of offshore drilling Construction of the various type of refinery, maintaing and upgrading the old refinery and implementation of the work Manufacturing of Cigarette Production and marketing of explosive chemicals.(TNT, Nitro-glycerin, Ammonium Nitrite)	Permitted only under the condition of the Joint Venture with the Ministry of Energy Permitted only under the condition of the Joint Venture with the Ministry of Energy Permitted only under the condition of the Joint Venture with the Ministry of Energy Permitted only under the condition of the Joint Venture with the Ministry of Energy Permitted only under the condition of the Joint Venture with the Ministry of Energy Permitted only under the condition of the Joint Venture with the Ministry of Energy The local Virginia must be used 50% within the first (3) years or At least 50% of Raw materials bought from the export earnings of local Virginia shall be used in the production. The export shall be 90%. The list of local raw materials to be used and planned exportation must be attached in the investment proposal. Required the recommendation of the Ministry of Industry. Permitted only for joint venture with the StateGovernment.

10.

11.

12.

13.

14.

15.

16.

17.

18.

Production and marketing of

flammable liquid and solid.(Titanium Powder), self reactive substance (Potassium Sulfide), substance which is contact with water, emit flammable gases

(Calcium Phosphide)

Distribution in local market and exporting crops after cultivating and producing using imported necessary input materials

E-Lottery

Development of new Satellite Town

Urban Redevelopment

Construction of new rail-road , new station and new building

Train operation and Maintenance

Manufacture and Maintenance of Locomotives, Carriages , Wagons and Spare parts

Laying Fibre Optic Cable, construction of Tower, machine room on the land owned by Ministry of Rail Transportation.

Comprehensive Utilization of land and Building owned by Ministry of Transport and Communications. For Commercial Purpose.

Permitted only for joint venture with the State Government.

Permittedonly for production of valueadded products. Allow foreigner shareholding up to 49 percent. Allow trading locally /export sales, depending on the production of such JV. Strictly prohibited for exporting paddy by sea or through Border Trade.

Required to obtain recommendation of Ministry of Finance.

Only permitted for joint venture with the Government.

Need recommendation of Ministry of Construction. Only permitted for joint venture with the Government.

Need recommendation of Ministry of Construction. It is only allowed for joint venture with the Government.

Need permission of Union Government. It is allowed to joint venture or BOT system with Myanma Railways. Require recommendation of Ministry of Rail Transportation.

It is allowed to joint venture or rental or BOT system with Myanma Railways. Require recommendation of Ministry of Rail Transportation.

19.

20.

21.

22.

Passenger and Freight Transport Services by

Trains and Automobiles

Vehicle inspection , driving training centre,

repair and maintenance workshop

Generation of Electric Power to be used for Train Operation and Railway Workshops.

Manufacturing and distribution of Vaccines

Need permission of Union Government. It is allowed to joint venture with relevant enterprise/ department/organization (department and private). Require recommendation of Ministry of Rail Transportation.

It is allowed to joint venture with citizen 50% and foreigner 50%. Require recommendation of Ministry of Rail Transportation.

It is allowed to joint venture or rental or BOT system with Myanma Railways.

Require recommendation of Ministry of Electric Power and need permission of Ministry of Rail Transportation.

Permitted only under the condition of the Joint Venture with the

Government. To comply with at least WHO GMP Standard.

2. The economic activities excluded from this notification, unless the MIC considers that the enterprises need to take the comment of relevant ministries according to their business nature, can be carried out 100% foreign investment.

3. The service businesses not related to invesments can be carried out with the permission or approval of relevant ministries.

4. The Notification No.49/2014 issued by the Myanmar Investment Commission on 14^th August 2014 was repealed by this Notification.

By Zeyar Aung

Chairman