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FDI in Figures

According to UNCTAD's World Investment Report 2023, FDI flows to Myanmar stood at USD 1.2 billion, down by 40.1% compared to the USD 2 billion recorded one year earlier. At the end of the same period, the total stock of FDI was estimated at USD 38.4 billion, representing around 67.7% of GDP. Historically, oil, gas, and wood were the sectors attracting the most investments; however, in recent years, FDI inflows have been directed mainly towards the transportation and communication, manufacturing, real estate, and tourism sectors. The Directorate of Investment and Company Administration (DICA) reported that in the fiscal year 2023-24, there were 63 foreign investments totaling USD 651.9 million, with a focus on industries and the electricity sector. China and Thailand were the primary sources of these investments.

Burma's military staged a coup d'état on February 1, 2021, undoing the economic progress achieved in recent years. The regime's ongoing violence, repression, and economic mismanagement have led to a significant decline in commercial activity in the country. Strict foreign exchange restrictions imposed by the central bank and limited access to U.S. dollars by the regime have further hindered commercial operations. Additionally, burdensome import licensing procedures and stringent foreign currency conversion regulations, coupled with frequent power outages and reliance on generators, have substantially increased business costs. These factors have hampered companies' ability to import materials, manufacture goods, pay employee wages, and repatriate profits from sales and asset liquidations in Burma. Numerous foreign companies have halted operations, utilized force majeure clauses to terminate investments, and evacuated their foreign staff. The 2016 Myanmar Investment Law (MIL) and the 2018 Companies Law remain in effect to regulate foreign investment. The MIL incorporates a "negative list" outlining sectors where foreign investment is either prohibited or restricted. Implemented on August 1, 2018, the Companies Law allows foreign investment of up to 35% in domestic companies, thereby enabling limited foreign participation in the stock exchange. Enacted in March 1989, the State-Owned Economic Enterprises Law specifies that State-Owned Enterprises hold exclusive rights to conduct various economic activities in specific sectors. These sectors include teak extraction, oil and gas, banking and insurance, as well as electricity generation. Myanmar’s poor business climate is confirmed by its low standing in international rankings: it stands at the 162nd position among the 180 economies on the 2023 Corruption Perception Index.


Country Comparison For the Protection of Investors

  Myanmar East Asia & Pacific Estados Unidos Alemanha
Index of Transaction Transparency* 4.0 5.9 7.0 5.0
Index of Manager’s Responsibility** 4.0 5.2 9.0 5.0
Index of Shareholders’ Power*** 3.0 6.7 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 1,9072,0671,239
FDI Stock (million USD) 35,122.437,189.038,427.5
Number of Greenfield Investments*
Value of Greenfield Investments (million USD) 4,26814989

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.


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Tax Rates

Commercial Tax
No VAT is levied in Myanmar, however a commercial tax is levied as a turnover tax on goods and services (rates between 0% and 8%, generally at 5%).
Furthermore, a specific goods tax (SGT) is imposed on certain goods that are imported, produced in Myanmar or exported (rates between 5% and 80%).
Company Tax
Withholding Taxes
Dividends: 0%; Interests: 0% (residents)/15% (non-residents); Royalties: 10% (residents)/15% (non-residents).
Social Security Contributions Paid By Employers
3% (capped at MMK 9,000)
Other Domestic Resources
Internal Revenue Department
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Individual Taxes

Income tax Progressive rate from 0% to 25%
Up to MMK 2,000,000 0%
MMK 2,000,001–5,000,000 5%
MKK 5,000,001–10,000,000 10%
MMK 10,000,001–20,000,000 15%
MMK 20,000,001–30,000,000 20%
Over MMK 30,000,000 25%

Country Comparison For Corporate Taxation

  Myanmar East Asia & Pacific Estados Unidos Alemanha
Number of Payments of Taxes per Year 31.0 23.4 10.6 9.0
Time Taken For Administrative Formalities (Hours) 282.0 195.1 175.0 218.0
Total Share of Taxes (% of Profit) 31.2 33.8 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Asian Developement Bank, Proposed Projects in Asia
DgMarket, Tenders Worldwide

Business Setup Procedures

Setting Up a Company Myanmar East Asia & Pacific
Procedures (number) 6.00 7.25
Time (days) 7.00 29.73

Source: Doing Business.


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Latest Update: May 2024