Over 100 companies submit expressions of interest in relation to securities licenses in Myanmar

According to the Myanmar Securities Exchange Centre, over 100 firms have submitted expressions of interest in relation to the provision of services to the Yangon Stock Exchange (YSE). The Securities and Exchange Commission of Myanmar will issue securities licenses in Myanmar to underwriters, dealers, brokers and consultants. Pursuant to the conditions attached to the respective categories of licenses, underwriters are required to invest Kyat 15 billion (approximately US$14.5 million), dealers Kyat 10 billion (approximately US$9.6million), brokers Kyat 7 billion (approximately US$7 million) and consultants Kyat 30 million (approximately US$300,000). The deadline for submissions of expressions of interest is 27 February 2015. The YSE is expected to commence trading before the end of October 2015. The YSE is a joint venture, between the state-owned Myanmar Economic Bank Ltd, the Daiwa Research Institute and the Japan Exchange Group.

(Source:http://www.mmtimes.com/index.php/business/13261-over-100-firms-interested-in-servicing-stock-market.html, 26 February 2015)

Myanmar Shipyards and Vietnam’s Dong A Co. establish shipbuilding joint venture in Myanmar

The Myanmar Ministry for Transport has announced that the state-owned Myanmar Shipyards has entered into a joint venture agreement with Vietnam’s Dong A Shipbuilding Joint Stock Company (Dong A Co.). Pursuant to the joint venture agreement, the joint venture partners will invest approximately US$175.4 million in a new Myanmar ship building company. Myanmar Shipyards will hold a majority 51% share in the new joint venture company with Dong A Co. taking the minority share in exchange for an initial investment of approximately US$85.9 million. According to Directorate of Investment and Company Administration, Vietnamese companies invested a total of US$688 million in Myanmar in January 2015, making Vietnam the eighth largest investor in Myanmar during the same period.
(Source: http://www.mmbiztoday.com/articles/vietnam-build-vessels-175-m-deal-myanmar-shipyards, 24 February 2015)

Draft tax bill sets to introduce tax credits for value-added production

Manufacturing companies will be able to deduct taxes for material imports and manufacturing operations from their export tariffs if a bill to update the Tariff Law becomes law. The tax credit for exports is aimed at promoting value-added production in Myanmar and increasing export production capacity. The bill sets tariffs on exports for the fiscal year ending 31 March 2016 at 5% on sales of crude oil, 8% on natural gas, 50% on raw and lightly-processed timber, 15% on raw gems and 5% on finished jewellery, while 0% tariffs have been set on certain other goods and products. Tax credits will be deducted at the time of export. If the amount of the permitted tax credit is higher than the value of the tariff due, an exporter can request a refund equivalent to the excess amount of the tax credit from the Internal Revenue Department (IRD). Tax credits will not be available for the IRD’s list of “special items” which are subject to high tax rates and include cigarettes, tobacco and tobacco products, cheroots, cigars, betel nut, alcohol, beer and wine.
(Source: http://www.mmbiztoday.com/articles/tariff-bill-expected-create-export-exemptions, 25 February 2015)

Myanmar Rice Mill Co. Ltd to construct new mill facility in the Ayeyarwaddy delta

Myanmar Rice Mill Co Ltd (MRMC), a joint venture company established by Beijing-based China CAMC Engineering Co Ltd and the Myanmar Millers Association, has announced that it will commence construction on a new mill facility before the end of 2015. MRMC estimates the new mill, to be built over 7 acres in the Ayeyarwaddy delta region, will cost between UD$5 – US$7 million to construct and will be operational by early 2017. The mill, when finished, is expected to produce 200 tonnes of high-quality rice per day which will be exported to China, Japan and Europe, among other countries.
(Source: http://www.mmbiztoday.com/articles/new-jv-set-5-m-rice-mill-delta, 25 February 2015)

Myanmar Investment Commission approves Sky Asia’s proposal to operate cable car at Mount Kyaiktiyo

Sky Asia Co. Ltd (Sky Asia), a joint venture established by Seoul-based Sky International Ltd (Sky International) and Myanmar’s Asia International Fisheries Ltd, has announced that it will commence operation of a cable car at Mount Kyaiktiyo in Mon State in 2016. Mount Kyaiktiyo is one of Myanmar’s most famous Buddhist pilgrimage sites. Sky Asia has agreed to invest approximately Kyat 20 billion (or approximately US$2 million) in the project which will be undertaken on a 50-year build-operate-transfer basis. The project was approved by the Myanmar Investment Commission in December 2015. Sky International holds 80% share in Sky Asia.
(Source:http://www.mizzima.com/business/investment/item/18096-korean-company-plans-for-myanmar-cable-car, 24 February 2015)

Dusit International announces details of proposed new Yangon development

Dusit International (Dusit) has announced that it will develop a ‘dusitD2 Residence’ (D2 Hotels) in Yangon. Dusit will partner with local property development company Myanmar JP Asset Co. The building has been designed by the Japanese Iida Architect Studio. Construction will be managed by the Vietnam’s Kokusai Land & Development Co., Ltd. The residence will include 300 units, a specialty dining outlet, a bar, a business lounge and recreational facilities including a gym and a swimming pool. The project is due to be completed by 2017. Dusit has developed D2 Hotels in Nairobi, Chiang Mai, Phuket, California and Changzhou. It is also planning to launch the brand in Tianjin in China, Delhi and Gurgaon in India, and Khao Yai in Thailand.
(Source: http://www.dealstreetasia.com/stories/thai-hotelier-launch-dusit-d2-brand-myanmar-3075/, 16 February 2015)

This newsletter is for information purposes only. Its contents do not constitute legal advice and it should not be regarded as a substitute for detailed advice in individual cases.
Transmission of this information is not intended to create and receipt does not constitute a lawyer-client relationship between Charltons and the user or browser.
Charltons is not responsible for any third party content which can be accessed through the website.
If you do not wish to receive this newsletter please let us know by emailing us at unsubscribe@charltonslaw.com