The Ministry of Commerce under the Government of the Republic of the Union of Myanmar issued Notification no. 56/2016 on 7 July 2016, announcing that permits for the trading of construction materials may be granted to joint-venture companies with a foreign partner. This means that foreign companies can now form a joint-venture company and import constructions materials – they could not do this in the past. Key points include:
- The new regulation takes into consideration international trading procedures, World Trade Organization regulations, the significant influx of foreign investment and business operations owing to the reformed economic system, and aims to ensure that the local construction industry has access to better-quality construction materials.
- The notification expressively states certain conditions to be abided by joint-venture companies that wish to conduct trade in construction materials.
- The list of materials permissible for trading by joint-venture companies with a foreign partner shall be amended, as may be necessary, subject to the local needs, market conditions, and local economic situation.
*The information provided is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.