Investing In Myanmar - Any Real-Life Advice?

[simon43]

As the rules and regulations for foreign investment in Myanmar start to ease, I'm seriously considering building a small hotel in south Myanmar, across from Ranong. This would compliment my existing small guesthouse businesses at Phuket Airport.

I'm also concerned that as Myanmar 'opens up', the Thai tourism sector will suffer, (especially the beach resorts). My visits to Myanmar over the past couple of years (both as a tourist and for an unrelated business) suggest that corruption is no worse than Phuket...

Has anyone on this forum invested in a small business in Myanmar? I'm looking for real advice, not hearsay.

Thanks

Simon

[tombkk]

I haven't invested yet, but am looking at it and have collected some information both here through the foreign chambers of commerce, as well as in Myanmar.

I understand that the current Foreign Investment Law states that you can enter a Joint Venture with a local, but then the minimum stake for the foreigner is 35%. You can open a 100% foreign owned company, and the minimum investment is (I got two different figures): US$ 300,000 or US$ 100,000.

Hotel and tourism is one of the industries that the Myanmar government wants to promote right now, which is good for you.

Note that due to the US sanctions, money transfers are not allowed. This means that you cannot accept credit card payments straight away at the moment.

[simon43]

This means that you cannot accept credit card payments straight away at the moment.

Suits me fine! I like cash

[tombkk]

This means that you cannot accept credit card payments straight away at the moment.

Suits me fine! I like cash

Let me know your progress. PM is fine.

[Ijustwannateach]

I'd be very careful- it's certainly one of those countries where the rule of law gets weaker as you leave the larger cities, and becomes 'whatever is usually done' locally. Various rebel groups active in different areas. Terrorism sponsored by the government and the rebels and various local mafias. You need to check out the logistics of transferring large amounts of money both IN and OUT very carefully, as official money exchange rates are laughably poor- the only way to get the 'real' rate is on the black market.

[tombkk]

Just participated in an AmCham meeting with the US Charge d'Affairs in Myanmar. Americans are not allowed to invest in Myanmar yet, and since this can only be changed by Congress, everybody else has an advantage (my interpretation, the Charge d'Affair was actually very positive for American business).

High risk - high return, is what I say. Try to minimize the risk as much as possible, and get informed. Now is the time to go in, if you want to get high returns - but do be aware of the risk.

Once everybody goes in, the return will be low. Look at Vietnam: Everybody has their branch office there now, and it's a red-ocean market. Too late to go in now.

[Sunny1803]

You can open a 100% foreign owned company, and the minimum investment is (I got two different figures): US$ 300,000 or US$ 100,000.

The info I got was USD 500,000 and 300,000. The first being for industrial sector and the later for service industry.I did check for opening up a trading company but it seems that they do not permit yet.

[Fletcher]

Hi, I have lived and done business in Myanmar for 13 years, the newest business being an investment consultancy. I know the pit-falls, and how best to structure things to avoid them. I have an excellent legal team, and we can provide due diligence on any type of transaction.

PM me and I'll send you my contact details.