MYANMAR BUSINESS SURVEY: DATA ANALYSIS AND POLICY IMPLICATIONS
Figure 1.1. Structure of the business sector in Myanmar
Source: Compilation of the authors. Note: JV – joint ventures. The visual size of each enterprise category in this figure does not reflect its exact share in the Myanmar business sector. Myanmar enterprises are by far the largest firm category in Myanmar.
1. Regulatory framework
During the first phase of reforms (1988-1996), the Government focused on the development of local firms that were at the nascent stage after the three decades under the socialist regime, and encouraged both domestic and foreign investment in the private sector while opening up the economy and privatizing a number of SOEs7 (OECD, 2015). During that phase, the Government also tried to achieve balanced industrial development among the major provinces of Myanmar by developing a number of industrial zones at the regional level, except in those areas affected by security uncertainties (Abe, 2014). Figure 1.2 presents the locations of the industrial zones.
Since Myanmar moved away from its socialist regime in 1988, the Government has initiated economic reforms and fostered private sector development in Myanmar by developing several key legal and regulatory frameworks. These reforms can be broadly divided into two phases: (a) the first phase from 1988 to 1996; and (b) the second phase from 2011 to the present. The detailed laws passed since the reform process was initiated are listed in table 1.1.
Table 1.1. The two phases of economic reforms in the post-socialist era
Second phase (2011 to the present)
First phase (1988 to 1996)
Phases
Laws and regulations
Years enacted
Responsible authorities
Foreign Investment Law
1988
DICA, MNPED
State-owned Economic Enterprises Law
1989
DICA, MNPED
Private Industrial Enterprise Law
1990
Ministry of Industry
Promotion of Cottage Industries Law
1991
Ministry of Cooperatives
Cooperative Society Law
1992
Ministry of Cooperatives
Myanmar Citizens Investment Law
1994
DICA, MNPED
Law Amending the Promotion of Cottage Industries Law
2011
Ministry of Cooperatives
SEZ Law and Dawei SEZ Law
2011
MNPED
New Foreign Investment Law
2012
DICA, MNPED
Revised SEZ Law
2013
MNPED
New Myanmar Citizens Investment Law
2013
DICA, MNPED
Expected in 2015
Ministry of Industry
SME Law
Source: Modified from OECD, 2015.
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