Aug 26, 2014

Foreign investors permitted full ownership of more businesses

The Myanmar Investment Commission (MIC) has expanded the list of businesses that can be owned 100 per cent by foreign investors, as the country aims to attract more foreign investment.

In an August 14 directive, the MIC – which oversees foreign investment in the country – said that foreign investors with joint ventures in 30 industries, including beverage and small and medium-sized power generating, can boost their ownership to 100 per cent.

Full foreign ownership can be granted to 43 joint venture businesses with endorsement from relevant ministries.

Aside, it defines 21 industries that must be operated under special terms and conditions. For instance, cigarette production is permitted on the condition that the investors must use at least 50 per cent of local content and 90 per cent of the output must be exported. The Industry Ministry will supervise the industry.

Full ownership is now granted in several areas, including mining, construction, construction material production, jewellery products, coal exports, hydropower and coal-fired power generating.

The oil and gas sector will remain a restricted area: all foreign investors must operate the business in Myanmar only through joint ventures with the Energy Ministry.

Under the Foreign Investment Law, the ministry must hold partial control on the construction of containers, ports, pipelines and related developments to facilitate the export/import, transportation, warehousing, and distribution of oil and gas. Oil exploration also falls into this category, requiring the ministry to hold a stake in offshore oilrigs and chemical factories.

The August 14 directive replaces one issued on January 31, 2013.

Source: Eleven Weekly Media

Aug 25, 2014

Ministry of Energy: Request for Letter of Expression of Interest (LOEI) fo JV in Coastal Oil Tankers, River Crafts and Barges

for more information, please contact evi@myanmar-business.org

JFE Engineering’s Myanmar Steel Plant Makes First Shipment

JFE Engineering’s Myanmar joint venture has launched its new plant in the country by shipping its first bridge block fabricated there, the Japanese steel giant said.

JFE Engineering and the Ministry of Construction established J&M Steel Solutions Co Ltd, a JV company for infrastructure construction, in November last year, and began construction of a plant in December that fabricates steel structures such as bridges in Thaketa township in Yangon.

The main facilities of the new 16-acre plant started operating in April and J&M announced construction of all facilities has been completed.

The bridge block of this first shipment is part of a 200-tonne truss bridge for one of Myanmar’s neighbouring countries, Laos. The plant is going to continue fabricating more blocks and is due to complete shipping them by August, JFE said.

The steelmaker said since the establishment of the company, J&M Steel has received orders from the ministry for steel bridge design, fabrication and construction-planning regarding bridges such as the Than Lwin Bridge to be constructed in Kayah state in eastern Myanmar and the Htee Gyaint Bridge across the Ayearwaddy river in Sagaing region.

In addition to these orders, JFE Engineering subcontracts the fabrication work which it receives from countries other than Myanmar to J&M Steel Solutions. The company’s order backlog now amounts to as much as 7,000 tonnes, it said.

Development of transportation infrastructure, such as roads and railways, as well as logistics infrastructure, including port terminals are seen as vital to sustain Myanmar’s recent economic growth.

J&M Steel Solutions said it is committed to contributing to the country’s domestic fabrication ratio which the country strives to increase, while developing itself by introducing Japanese advanced technological skills from JFE Engineering in such fields as harbour and coastal piers and container cranes.

JFE said it aims to leverage J&M Steel Solutions as the mother plant for infrastructure projects in regions including Southeast Asian countries, the Middle East and Africa in its effort to expand its overseas business.

The firm said it is also interested in offering its engineering expertise to the environmental and energy fields of Myanmar.

In addition to the Japanese supervisors dispatched from JFE Engineering, those who have been accepted at its Tsu Works as trainees to learn welding skills since 2002 (about 30) will join J&M Steel to introduce Japanese technology, the firm said.

JFE Holdings, the parent company of JFE Engineering, was formed in 2002 by the merger of NKK and Kawasaki Steel Corp. At the time, NKK Corporation was Japan’s second largest steelmaker and Kawasaki Steel was the third largest steelmaker.

JFE Holding’s main business is steel production. It also engages in engineering, ship building, and real estate redevelopment. JFE Holdings is the fifth largest steel maker in the world with revenue in excess of $30 billion.

Source: Myanmar Business Today

Myanmar to build two dry ports

Myanmar has invited local and foreign investors to build the country's first two dry ports to facilitate shipment of cargo inland, state media reported Sunday.

The state-run Myanmar Railways announced plans to develop the projects in the largest city of Yangon, and in the central region of Mandalay, the New Light of Myanmar said.

To read the full article, please click HERE

Aug 23, 2014

Rice exports up 25% on demand from Russia

Rice exports have risen more than 25 per cent in value so far this fiscal year, according to the latest figures from the commerce ministry which show that US$196 million worth of rice has been exported between April 1 and August 15.

The figure shows a rise of $57 million from the same period in the last fiscal year, the ministry said, attributing the rise to increased demand for steamed rice from Russia.

"Many shipments of steamed rice are going to Russia. There are also shipments to Europe as the GSP [generalized scheme of preferences] duty and quota free access has been offered,” a ministry official said. The official said exports by volume this fiscal year reached 530,000 tonnes as of August 15.
“Rice exports are rising in terms of revenue and value,” the official said.

Rice exports rose to 1.33 million tonnes worth $528 million in fiscal year 2012-13, but dropped to 1 million tonnes last fiscal with a value of only $380 million.

On August 1, China started seizing rice imported from Myanmar in Ruili Township, causing a freeze in official exports through the Muse border checkpoint in Shan State.

Officials from both countries are discussing a new trade agreement that will allow China to import rice from Myanmar. Myanmar exports rice to Russia, Europe, Japan and the Middle East.

Source: Eleven Weekly Media

Aug 22, 2014

Myanma Railways: Invitation to submit Expression of Interest from Developers for Dry Ports project

for more information, please contact evi@myanmar-business.org

Aug 19, 2014

Containerized Data Centers by AST Modular (part of Schneider Electric) are now available to Myanmar clients

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AST Modular Containerized Datacenters are capable of accommodating up to 19 conventional racks in a 40’ container with densities starting at 3 kW/rack up to 30 kW/rack or higher upon request.

Our Containerized Datacenters are designed according to Datacenter industry best practices and available in standard models of 10´, 20´, 40´ and 53'.

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