[4 December 2017] - The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH became involved in private sector development in 2012 with its project “Strengthening Private Sector Development in Myanmar” (PSD) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and since 2015 with additional co-financing from the EU. The first phase lasted until the end of 2016 and aimed at improving the abilities of public and private sector institutions to support the promotion of micro, small and medium-sized enterprises (MSME) in Myanmar. Since late 2016 the second phase is implemented taking advantage of the achievements of the predecessor phase. Its aims at improving the framework conditions and service offer for a sustainable economic growth of MSMEs and small-scale producers in selected sectors. Besides the work on the national level, the project is engaged in the Shan State as a focus area for piloting project activities related to regional and sector development.
The lead executing agency is the Ministry of National Planning and Finance. Main implementing partners include the Department for SME Development (DSMED), the Directorate of Investment and Company Administration (DICA), the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and business associations, as well as civil society organisations and thinks tanks active in private sector promotion. Under the EU co-financing the project also works among others with the Ministry of Commerce (MOC) and other stakeholders relevant for trade development.
GIZ supports the Directorate for Investment and Company Administration (DICA) with a range of capacity building measures to strengthen the technical and organizational capacities of DICA staff, to improve the regulatory framework in this field and to reduce administrative burden for the private sector in Myanmar.
In October 2016, the Myanmar Government announced the Myanmar Investment Law (2016) which merges the Foreign Investment Law (2012) and the Myanmar Citizen Investment Law (2013). In August 2015, DICA and GIZ entrusted Economica Vietnam to develop the guidebook for “How to obtain the Myanmar Investment Commission’s (MIC) permit in manufacturing sector” which was published on DICA’s website to inform companies in the manufacturing sector about the investment procedures. However, due to the new Investment Law many procedures have changed for the head office in Yangon and new procedures have to be introduced to the branches in the regions. Therefore, GIZ seeks to support DICA to create transparency on the new investment procedures for the head office and the branches by updating the former guidebook to be applicable to all sectors as well as to update the investment application procedures. The guidebook for obtaining investment permit/endorsement and visualized investment application procedures will be helpful for both DICA staff and investors to deal with the new procedures.
Economica Vietnam has been asked to support DICA and GIZ to work on the development of a new guidebook on investment procedures in Myanmar. The objective of the assignment is to support DICA in explaining and displaying the new Investment Law to customers and internal staff in a transparent manner by (1) updating the existing application process map, (2) updating the chapters of the guidebook “How to obtain the Myanmar Investment Commission’s (MIC) permit in manufacturing sector”, (3) developing new content for obtaining investment permit/endorsement in general.
The guidebook is expected to be published by DICA in early 2018, and will be available at DICA’s website at http://www.dica.gov.mm/