Weekly Business News from Myanmar

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  Private businesses are vital for developing countries, which is why priority is given to the participation of businesses in economic development

  State Counsellor Daw Aung San Suu Kyi said private businesses are vital for developing countries and thus priority is given toward the participation of businesses in this important matter. However, all need to be duty conscious in this matter. It is important for every citizen to do their duty for the development of the country. In the economy, some say the government didn’t do this or that. We’ll accept such criticism. But at the same time, businesses also need to bear in mind that they also have duties and responsibilities. Our democratic system will succeed only when the people themselves believe that they have duties and are capable of performing them. If everything is to be done by the government, then, this is no longer a democracy. If there is no understanding about an economic system that is appropriate for democracy, there wouldn’t be success. When we attempt to work together, we all need to think what we can do and what our duties are. Corruption is most liable to occur in business/economy. A country’s economic dignity depends on how corruption free that country is.
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  Myanmar Investment Commission (MIC) allowed Korea-based Daewoo Company to manufacture and sell buses in Yangon under a joint venture investment

  YANGON-Myanmar Investment Commission (MIC) has allowed Korea-based Daewoo Company manufacturing, assembling and maintenance services for passenger buses in Mingladon Township, Yangon Region, under a Joint Venture Investment. The information came from the MIC’s meeting held in Yangon on August 25th. The meeting aimed to securitize the suggestion that was submitted in accordance with the MIC laws and it approved three orders of investments. The Daewoo Bus Myanmar Company Limited Korea was given green light to manufacture Daewoo buses in Mingladon Township, Yangon Region, Yangon Golden Paragon Investment Co;LTD was allowed for Construction, Operation and Leasing of Residence and Commercial Area in Tharkayta Township, Yangon and Science and Tech International Myanmar University Co;LTD was also allowed to provide education services in the Mandalay Region.
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  Yangon Industrial Gas (Thilawa) Co., Ltd, a joint venture company between Bangkok Industrial Gas Co.,Ltd. and Yangon Industrial Gas Trading Co.,Ltd., will develop the largest industrial gas plant in Thilawa SEZ together with JFE Meranti Myanmar Co.,Ltd

  Yangon, 22 August 2018 - Mr. Khin Maung Nyunt, Mr. Aung Kyaw, and Mr. Piyabut Charuphen, Director of Yangon Industrial Gas (Thilawa) Co., Ltd.(YIG), the affiliated company in Bangkok Industrial Gas Co., Ltd. (BIG),presided over the contract signing ceremony for the long-term supply agreement for sustainable development project in Myanmar between Yangon Industrial Gas (Thilawa) Co., Ltd. (YIG) and JFE Meranti Myanmar Co., Ltd. (JMM). YIG, the joint venture company between BIG, Thailand’s leading innovative industrial gas solution provider, and Yangon Industrial Gas Trading Co., Ltd., who is building the largest industrial gas plant in Thilawa SEZ, Zone B, will supply the gaseous Nitrogen and Hydrogen toJMM, and other products, liquid Nitrogen, Oxygen, Argon and gaseous Hydrogen throughout Myanmar. The contract was signedfor JMM’s the newest zinc and zinc aluminum coating technologies facility at Thilawa SEZ, Zone B by Mr. Peerapat Piboonlarpudom, General Manager of YIG and Dr. Sebastian Langendorf, CEO of JMM.
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  Yangon Regional Government plans to implement a new Yangon Vehicle Quota Certificate (YVQC) system for car importers in October 2018

  The much-touted Yangon Vehicle Quota Certificate (YVQC) system for car importers will start in Yangon in October, said U Phyo Min Thein, the region’s chief minister, during a press conference on August 24. Under the new vehicle registration system, buyers will be allowed to bid for a YVQC, which gives them the right to apply for a license to import and own a vehicle in Yangon for a fixed period. Bidders can bid between K3 million and K9 million for the certificate. The system was originally supposed to commence in April. ‘’We are now preparing to issue Yangon licences for individual car importing under the YVQC system in October, after which we will be able to control the quota for cars imported into Yangon,” U Phyo Min Thein remarked. The decision is significant as it could spur more demand for imported vehicles and generate growth in the industry. It also comes after months of deliberating the practicality of implementing YVQC over the existing system of using parking recommendation letters to purchase a vehicle.
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  Agricultural produce can be exported to China through Myanmar- China border zones after the construction of economic zones in Myitkyina and Kan Paik Tee

  After construction of economic zones in Myanmar-China border areas, agricultural produce from domestic market can be processed and exported to China through these zones, according to Minister for Commerce Dr. Than Myint. At present, Myitkyina economic development zone and Kan Paik Tee development zone are confirmed to be constructed. Myitkyina economic development zone will give priority on agricultural and livestock breeding sector, processing finished goods products from industrial sector, production of agricultural produce, production of advance construction material and small scale industrial materials, and transportation of goods. By undertaking the aforementioned, market resources from two regions can beneficially merge according to Minister for Commerce Dr. Than Myint. From Myanmar-China trade route, promotion of bilateral trade has been carried out through activities such as holding workshops on trade and trade exhibitions. After construction of border trade, agricultural produce from domestic markets can be re-packaging and export to China. By doing so, it will create job opportunities for local people and create more income said Dr. Than Myint.
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  There is increasing demand for low cost, safe, and regulated lodging in Yangon for migrant workers from other states and regions in Myanmar

  Demand for safe and regulated hostels in Yangon to house migrant workers from other states and regions in Myanmar is rising fast, according to U Nay Min Thu, managing director of iMyanmarHouse.com, which is the first website in the country to incorporate a search service for such lodgings. “About 60 percent of all migrants in Yangon live in rented hostels. In fact, the hostel sector accounts for 30pc of the whole rental market,” said U Nay Min Thu. Since the property portal first launched its hostel search service on August 6 up until August 20, some 300 hostel owners have placed rental advertisements on the website. These include home and apartment owners who have partitioned their properties into hostels or dormitories for rent. During the same period, the owners received more than 10,000 enquiries about the rooms available for rent. In Yangon, it is common for such rooms to consist of a small space just enough for a single mattress. These are rented out for as little as K20,000 per month. Bigger quarters can go for up to K60,000 per month.
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  For trade balance to be achieved, Vice President, U Myint Swe called for joint efforts with local entrepreneurs to implement effective export promotion and import regulation

  For trade balance to be achieved, Vice President, U Myint Swe called for joint efforts with local entrepreneurs to implement effective export promotion and import regulation
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  Amata Holding Public Company prepares to list on the Yangon Stock Exchange (YSX) to strengthen its investment in the tourism industry which has great potential for growth

  U Win Aung, CEO of Amata Holding Public Company, is preparing to list his company on the Yangon Stock Exchange (YSX) to take full advantage of the upcoming opportunities he believes lie ahead for the Myanmar tourism industry. “There are actually many multi-national companies looking to invest in tourism as the industry holds great potential for growth. But it is still a very immature industry so foreign investors are all monitoring the progress on the sidelines until they are ready to enter,” U Win Aung told The Myanmar Times in an interview. U Win Aung, CEO of Amata Holding Public Company, is preparing to list his company on the Yangon Stock Exchange (YSX) to take full advantage of the upcoming opportunities he believes lie ahead for the Myanmar tourism industry. “There are actually many multi-national companies looking to invest in tourism as the industry holds great potential for growth. But it is still a very immature industry so foreign investors are all monitoring the progress on the sidelines until they are ready to enter,” U Win Aung told The Myanmar Times in an interview.
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  The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) submitted the twelve point suggestion to the private sector development committee in order to control the unstable currency exchange rate

  Ye Min Aung, Vice President of the Union of Myanmar Federation of Chambers of Commerce and Industry submitted a 12-point suggestion to the private sector development committee led by Vice-President Myint Swe. The move aims to deal with the instability of currency exchange rates systematically by the Union government and the Central Bank of Myanmar. He suggested the government should control quota, tariff rate quota, minimum access, standard, specifications, tax and customs system for imported goods. His suggestion also includes the expansion of trade financing for overseas banks, the implementation of bilateral currency swap schemes with major trading partners such as the use of Chinese Yuan and Thai Baht for trading with those countries, the development of interbank currency market under the supervision of the central bank and the formation of working groups for the rapid establishment of import-export public bank with the inclusion of local and foreign shareholders.
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  Internal Revenue Department (IRD) will negotiate with the Customs Department for imported medical devices to be exempt from commercial tax

  Import of medical devices would be exempted from commercial tax collected by the Custom Department at ports, according to the Internal Revenue Department. At the meeting over tax issues between Myanmar Pharmaceutical and Medical Equipment Entrepreneurs’ Association (MPMEEA) at the Union of Myanmar Federation of Chambers of Commerce and Industry in Yangon recently, U Min Htut, Director-General of the Internal Revenue Department, said his department will negotiate with the Custom Department to give the commercial tax exemption to import medical devices. The Director-General also explained that medical devises described in the 2018 Union Tax Law’s Section 14 (a) Table 64 and 65 are exempted from paying commercial tax. “If MPAMEEA has paid the commercial tax for those medical devices beginning from 1st April 2018, you can apply for a tax refund,” said U Min Htut.