His Excellency U Thaung Tun

Only six years sets this 2nd OECD Investment Policy Reviewof Myanmar apart from the first review published in 2014, but much progress has occurred in investment policies and related areas in Myanmar in the interim. The first review was in many ways instrumental in shaping these past reforms. It took place at a time when very little policy work had been undertaken with the Government of Myanmar, and donors were just beginning to turn their attention to private sector development in Myanmar.

Myanmar has undergone a tremendous economic and political transformation since 2011. Following decades of economic and political isolation, democracy has been restored. Formerly a virtually closed economy with a regulatory framework for business based on a century-old colonial model, Myanmar is now an open economy with modern business regulations. Consecutive governments since 2011 have been able to give continuity to reforms oriented at further opening the economy and building a sustainable, private sector-led growth trajectory, fuelled in part by foreign investment, with the ultimate objective of improving the lives of Myanmar citizens. This aspiration and vision have been consolidated in the Myanmar’s Sustainable Development Plan (MSDP) 2018–2030. But despite improvements, a peaceful Myanmar, open to the world and on a sustainable and inclusive development path, is still a work in progress.

Myanmar’s economic and political reform path is now approaching its first decade. Following decades of economic and political isolation, Myanmar returned to civilian rule in 2011 and installed its first democratically elected government in 2016. This political transformation has been accompanied by substantial economic reforms to open the economy and to build a growth trajectory based on export-led development fuelled in part by foreign investment. But despite substantial improvements, a peaceful Myanmar, open to the world and on a sustainable and inclusive path of development, is still a work in progress.

This chapter assesses the regulatory regime for foreign investors in terms of barriers to entry and operations, as well as the legal frameworks for investment protection and dispute settlement. It compares Myanmar’s FDI regime against regional peers and a global sample of countries, and identifies a number of policy options for consideration by the authorities for improving Myanmar’s attractiveness to foreign direct investment. It also reviews several core investment policy issues – the non-discrimination principle, protections for investors’ property rights and mechanisms for settling investment disputes – under Myanmar law and Myanmar’s investment treaties. It takes stock of recent achievements, identifies key remaining challenges and proposes recommendations to address them.

This chapter examines investment promotion and facilitation policies in place in Myanmar. It analyses the institutional framework for investment promotion and facilitation, with a particular emphasis on the role and activities of DICA, Myanmar’s investment promotion agency. It highlights key reforms and measures implemented by the government to improve the business environment and facilitate the process for incoming investors as well as to attract foreign investment. The chapter identifies continuing challenges and proposes recommendations to address them.

This chapter focuses on how promoting and enabling responsible business conduct in Myanmar could lead to far-reaching and strategic successes for promoting a more sound and sustainable investment climate, upgrading in global supply chains, encouraging the private sector contribution to the Sustainable Development Goals, while also protecting Myanmar’s resources for the future. This chapter is part of a broader project on Responsible Supply Chains in Asia funded by the European Union.

This chapter provides an overview of transport connectivity in Myanmar. It takes stock of recent reforms, identifies key remaining hard and soft transport infrastructure connectivity challenges, and proposes recommendations for improving the mobilisation and efficiency of investments in transport infrastructure connectivity.

This chapter describes Myanmar’s policy framework to support investment for green growth, providing an overview of the state of play and progress made in supporting green investment. It revises the current policy framework in place to promote green growth and climate change, including policies that help to improve the environmental quality of investments in general, and examines existing efforts and the potential to engage the private sector to scale up investment in renewable energy. It also highlights issues related to financing green projects in the country.

This chapter provides an overview of the regulatory and institutional framework for special economic zones and industrial zones in Myanmar, and then examines the implementation and performance of the most advanced zones in the country, Thilawa SEZ and Mingaladon Industrial Park. It concludes with an assessment of the potential for linkages between zone investors and the local economy, and offers directions for the way forward in terms of addressing skills shortages, developing a supplier base, and actively promoting business linkages.

This chapter provides an overview of Myanmar’s regulatory framework on land rights and administration. It reviews recent policy developments and reforms, identifies key remaining obstacles contributing to land tenure insecurity and administration deficiencies and recommends a number of policy reforms for addressing these challenges.