Burma Common numberMyanmar Common Number
An Investigation of Civil, Regional and... - Jeffrey S. Dixon, Meredith Reid Sarkees
It has written essays on the causes of civilian war, the end of civilian war and the length of it. Sarkees' other field of research concentrates on the management of woman and the position of woman both in science and in the field of interna tion. Mr. Sarkees is currently Chairwoman of Global Women's Leaderership in Int'l Security (GWLIS).
I' m doing a deal in Burma: Myanmar trading and exports leader
Myanmar has recently reappeared on the world scene after 50 years of insulation. In 2014, the economy grew by 8.5%, making Burma the fastestgrowing nation in Southeast Asia. If you are interested in importing to Burma, please consult an exporter advisor of the Department for International Trade (DIT) Burma for free advice.
Contacting UK Export Finance (UKEF) for UK businesses on commercial financing and underwriting. They can also review the UKEF's coverage for Burma. Myanmar is making up for decade-long development, and this offers UK businesses in a wide variety of industries. UK businesses should be conscious of the risk of doing operations in Burma and should draw up a long-term operating plan including them.
There are a number of UK businesses that have already successfully settled in Burma: Some of the advantages for UK businesses that export to Burma include: Possible strength of the Burmese market: Burma, like all emerging economies, poses a number of issues to the UK economy. UK businesses should not disregard the policy risk associated with Burma.
Burma's 2015 election will be an important landmark in its reforms. In April 2013, the European Union (EU) repealed the trading sanction against Burma. Some US penalties still exist that can have an impact on UK businesses. Burma's sanction page of the US Treasury Department contains all the necessary information. If you have any doubts, you should consult a solicitor.
Myanmar ranks #156 in Transparency International's Corruption Perceptions Index. It is advisable to conduct comprehensive due diligences with your Burmese partner and distributor when doing small businesses in Burma. Burma's undeveloped bank system means that: You can take action to meet this challenge: Burma's government and industry have a shortage of capacities due to decade-long periods of economic isolation. However, there is a shortage of resources in Burma's population.
That means that when it comes to doing businesses, government bodies are often sluggish and red tape. They should be ready for this and include the necessary amount of extra training in your company's work. Burma's judicial system is founded on common laws. Burma's Companies Act is currently enacted under the 1914 Companies Act.
However, Burma's judicial system is lacking in clarification and capability. They should take measures to safeguard your business: A major challenge for UK businesses operating in Burma is how much power they have locally. Locating skilled personnel is costly and challenging due to high levels of interest and scarce supplies. More and more people return to Burma with training and foreign experiences, but they are in high demand and are expecting to be remunerated according to internationally accepted practice.
UK businesses must spend more and more effort and resources on employee education. Burma's bodily and technological infrastructures are not yet fully in place, which poses a number of challenges: Burma's ongoing over three years of progress in implementing reforms is beginning to show results. Burma's current gross domestic product (GDP) is $59 billion and has a per head GNP of $869, making it the impoverishedest in Southeast Asia.
McKinsey's Myanmar Moment shows that Burma has the capacity to quadruplicate gross domestic product by 2030. Myanmar has free trades agreements with: The United Kingdom's and Burma's trade has been very restricted in recent years due to penalties. British merchandise imports to Burma rose from 13 million to 44 million between 2012 and 2013, an rise of 239%.
This figure does not cover service export such as legislative, accounting and advisory activities, which are an essential part of the United Kingdom's trade with Burma. Also excluded are those exported through third parties such as Singapore. Most important British exports to Burma: Looking for ways to expand.
Burma's economic diversity and the need for widespread economic growth offer an opportunity for UK companies in a wide variety of industries. Many of these possibilities, however, will only be possible after some while. Burma DIT has selected four key sector priorities for UK companies, which are expected to have immediate and accessible prospects.
But there are also chances in other areas such as infrastructures, farming, aerospace and trade. Myanmar is facing a huge political challenges in the field of energy: In 2013, a number of UK corporations have obtained on- and off-shore prospecting licenses, among them Shell, BG Group and Ophir Group. There is a fragile internal industry delivery network. It offers chances for UK businesses, especially those with depth expertise.
UK businesses are already active in the areas of logistic, safety and education. Myanmar is the tenth biggest global producers of compressed air. See our article on the opportunity for UK businesses in Burma's petroleum and petroleum sectors. Myanmar faces huge electricity production issues. Things are happening for UK businesses in: Hydroelectricity currently generates 70% of indigenous electricity, which can be a problem due to its seasonality.
The US based privately owned group ACO recently made an investment in Burma and built 2,150 MW of photovoltaic power stations near Mandalay. It will be possible for UK businesses in this industry, but they will need a little bit of extra patience to do so, firstly on a small scale. The UK company is engaged in Burma's finance and service sectors.
It has helped to attract large amounts of external investment in the fields of power, telecommunications, production and training and to improve the capacities of municipal enterprises. Britishment-based businesses have a comparative advantage: A number of well-known UK service providers have set up a representation in Rangoon. Most of the time, they need to work with them.
Exactly how this relation works depends on the industry. Some of the possibilities for British businesses are: Burma has traditionally earmarked less than 2% of its budgets for health care. However, Burma's percapita health expenditure is still the lowliest in the area. Myanmar's health care system is becoming more diverse and of better standard.
Some of the possibilities for UK businesses are: See DIT Burma's article on the possibilities for UK businesses in Burma's healthcare. Burma's economy has recognized the skill shortfall as the second biggest obstacle to the country's economy. As a result, there are chances for: DIT Burma's article on the possibilities for UK businesses in Burma's jurisdiction.
UK businesses in this industry have a comparative advantage: In 2012, a comprehensive review of the education system was carried out. It is currently being used to provide information to the National Education Roadmap and to design the legislative framework for overseas investment in the area. Every UK based firm that wants to do operations in Burma must establish a field office or hire a Burmese salesman.
People in Burma attach great importance to a close working relation with their counterparts. When you choose to hire a point-of-sale representative or reseller, you should be sure you have a clear arrangement in both of those countries. Contacting the DIT Burma office to find accountants and lawyers before signing a contract.
Up to now, most UK businesses have set up their operations in Burma as a subsidiary under the Myanmar companies act. While this does not offer the fiscal relief for MFIL investments, the whole procedure is much faster and simpler. 50 percent of this amount must be transferred to a municipal banking accout before approval is granted, the other 50 percent within 12-month.
It takes 6 month and allows you to do deals. Directorate of Companies Administration (DICA), located in Rangoon at the Ministry of National Planning, is responsible for the registry proces. The acquisition of an MFIL approval is another way of marketing. As soon as the approval is granted, a number of bonuses are available to the investor:
Burma's regulatory framework is complex and ambiguous, and the judicial system is red tape and corruption. Myanmar has recently acceded to the New York Convention of arbitration. UK businesses should therefore try to incorporate outside arbitrations into any legislative arrangement. Contacting the DIT Burmese staff to find accountants and lawyers before signing a contract.
There is no special IP registry and enforcing laws in Burma. It is possible for UK businesses to have a trademark registered under the 1908 Reg. A warning should be published in a gazette after registering. They must comply with Burma labor laws if they are planning to hire people.
British businesses established through the MCA are not restricted in the number of foreign nationals they can hire. Enterprises that invest through the MIC must, however, comply with their own labour force participation rates. British businesses operating in Burma must comply with Burma's domestic taxation laws. It is advisable to consult a professional advisor.
Please consult the DIT staff in Burma for information about your accounting staff. United Kingdom and Burma have concluded a bilateral agreement on dual taxes. The MFIL has exemption for enterprises listed under the MFIL. The corporation income is 25% for enterprises established in Burma under the MFIL or MCA. Burma has no value added taxes (VAT).
Myanmar nationals and residents are subject to taxation and must submit a declaration. Every alien who spends more than 183 nights in Burma is deemed to be residen. Exports and imports can only be conducted by Myanmar-based or MFIL licensed MICs. Non-German enterprises listed under the MCA are not allowed to either sell or buy goods.
To sell your item in Burma, you must hire a locally based firm with an import/export certification from the Ministry of Commerce. Ask your distributor or agents for the necessary documents to ensure the safe and secure transportation of your goods to Burma. There are over 100 different languages, but the country's main target is Burma.
English is widely used in large enterprises, but knowledge is restricted in smaller enterprises. They should conform to Burma's code of conduct: They need to make frequent trips to establish relations in Burma because e-mail communications do not work well in this area. UK nationals who wish to travel to Burma require a current travel document and appropriate visas.
If you are traveling to Burma on official business, please ask the Foreign and Commonwealth Office (FCO) in advance. For more information and guidance on doing good in Burma, please consult the DIT Burma office.