Myanmar Government likely to allow 35 percent of foreign investment in local wholesale and retail businesses

In order to make shopping centers stronger, the Myanmar Retailers Association announced that Myanmar is planning to allow foreign investments to comprise up to 35 percent of the total investment in local wholesale and retail businesses.

This move will nearly double the current proportion of foreign investment allowed in locally-owned wholesale or retail businesses, which now stands at 20 percent. Naturally, up to a full 100 percent of foreign investment is allowed in any wholesale or retail business that is owned by foreigners.

U Thurain Nyein, the President of the Myanmar Retailers Association, said: “Even with foreign investments of up to 35 percent, wholesale and retail companies will be regarded as locally-owned, and will still be able to enjoy the benefits available to local companies.”

Retail and wholesale companies that are fully owned by foreigners must have a minimum space of 100 feet x 100 feet in order to open a shop. The sad fact is, however, that local shopping centers still are not strong enough to offer real competition to foreign-owned companies.

“The government does not allow foreign companies to open a shop if they do not have 100 feet x 100 feet of space,”the president of the association added. “We are preparing for that, however. In the future, franchising in small-scale retail shops will become popular.”

The local retailers believe that this changing trend in franchising will help develop their retail business.

According to the Ministry of Commerce, Myanmar has allowed four local companies, four foreign-owned companies, and three joint-venture companies to do retail and wholesale business in the country on a license with a term of four years.

Myanmar began allowing foreign investors to invest their money in wholesale and retail businesses back in May 2018. Furthermore, it began allowing foreign companies and joint-ventures to export rice, meat, fish, value-added crops, seeds, purified metals, and finished wood products by purchasing the from local producers.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/myanmar-likely-allow-35-percent-foreign-investment-local-wholesale-and-retail-businesses )

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