3. Summary
Zenith Asia provides professional services in Consultation, Government liaison, Administration and resource management with promoting client's
products and services.
We provide and promote market expansion services of Product and services. We help companies who are looking for a reliable outsourcing partner to
grow their businesses in new or existing markets.
Under the win‐win policy, Zenith Asia also acts as a distributor, or agent in some case, to shake hands with its worldwide business partners with a
view to better promotion in Myanmar (Burma). If you are having any problem or question on where to start your business in this country, please feel
free to contact us for support.
We are looking forward to cooperate with the clients, companies, importers from every part of the world.
We can be your local partner or Service Provider for the Oil & Gas Projects, Mining Projects, Construction Projects, Manpower and Training Services,
Marine Services (Logistics & Shipyard), Pharmaceutical, Cement Plant, Agriculture Business (Teak Wood, Rubber and Palm Oil) and Real Estate,
Construction, Port & Terminal and other opportunities for your business requirement. It is our pleasure to serve you and honor to cooperate with
you.
SERVIVES
Zenith Asia provides following services in Myanmar:
Data Management and Consulting Services
Oil field coating products and pipeline field services
Material Supply (Drill Pipe, Steel Pipe, Crushing Machines, Container & Trailer)
Consultation and Government liaison for market entry into Myanmar
Business Development for New Ventures and Projects
Export and Import Trading

4. SALIENT POINTS OF THE REPUBLIC OF THE UNION OF MYANMAR FOREIGN INVESTMENT LAW
According to the Myanmar’s Foreign Investment in Myanmar can take one of the following three forms:
•Partnerships Limited Companies or wholly foreign-owned subsidiaries. A partnership firm or a Limited Company incorporated outside Myanmar can conduct
business as a foreign branch by bringing in the total capital required by such a branch ( 100% Foreign owned)
•Production sharing contracts with one of the State-owned Economic Enterprises (SEEs) for Exploration, extraction and sale of petroleum and mining
operations.
•Joint ventures, either as Partnerships or Limited Companies with any Myanmar partner individual, firm, cooperative ,or state-owned enterprise of Myanmar.
(If the joint venture is formed , at least 35% of total equity shall be owned by the foreigner.)
HOW DIFFICULT IS DOING BUSINESS IN MYANMAR
The difficulty of doing business in Myanmar really depends on the sector you’re interested in. Foreign investors involved in the
manufacturing sector say the hardest part about doing business in Myanmar is the poor infrastructure, especially electricity. It can be
frustratingly difficult to manage an efficient factory with frequent power cuts and other infrastructure issues.
Entrepreneurs involved in other industries often cite cultural differences in work ethic as being a difficult part of doing business in
Myanmar. Many foreign investors arrive with high expectations about the work output of their staff, but many find that there are
competency issues, and it can be difficult to motivate people to excel.

5. Another difficult part about doing business in Myanmar, is dealing with bureaucracy and red tape. For businesses that need to get
permits and approval from particular ministries, it can be frustrating to wait weeks or months in order to receive a permit that would
take hours and other countries.
Other entrepreneurs cite the lack of rule of law in Myanmar as a major difficulty. In many different sectors in Myanmar the law can be
very ambiguous, and even where there are laws, the practical application of those laws can vary widely.
But this isn’t to say that there are no positives in Myanmar. Many entrepreneurs who have been in the country for 10 years or more
cite the camaraderie they’ve built with a core group of employees as a major factor for staying in the country.
Foreign business owners are often delighted to find that Myanmar employees are very respectful in general and follow company
protocols well.
Before making the decision to invest in the country it’s essential to spend some time on the ground looking at a particular sector.
Some industries (for example oil and gas) are accustomed to dealing with foreign investors, so things tend to be standardized and
relatively easy to understand. Other sectors are just starting to open up, and will require large reserves of patience from foreign
investors. However, those willing to exercise this patience will find industries with low competition that could make for excellent
investment opportunities.

6. IMPORT & EXPORT SECTORS
Many foreign manufactures interested in the Myanmar market are curious as to what Myanmar already imports.
I’ve profiled a few of Myanmar’s important import sectors below:
Machinery
Due to the rapid pace of new construction projects and the continual changeover from manual to mechanized labor in agriculture,
Myanmar has a huge need for light and heavy machinery.
Government factories and private enterprises do not have the capital or expertise to manufacture quality machinery in Myanmar.
Much of the machinery that is imported into
Myanmar comes from China, with secondary suppliers being Japan and Thailand. There is still a lot of construction work that needs
to be done to upgrade Myanmar’s infrastructure, so I
expect these machinery imports to remain high for the foreseeable future.
Oil and Fuel
Although Myanmar does have its own oil resources, production is not able to meet demand, and Myanmar is a net importer of oil and
fuel. The Myanmar government has offered subsidies
on gasoline for a long time, making it cheaper in Myanmar than in other Asian countries. As the government’s budget has recently
been made public, many are starting to question this
subsidy, as obviously the treasury loses a lot of money with this system. The retail side of this market (i.e. petrol stations) has
recently been opened up to private enterprises; however there
are still no international oil companies in this market.

7. Textiles
Any visitor to Myanmar will notice the abundance of brightly colored fabric worn by both women and men. Myanmar is one of the few
remaining countries with a lively tailoring industry, and many people prefer to buy raw fabric and then have it tailored, rather than
buying ready-made clothing. This has created a lot of demand for fabric which is only produced in Myanmar in small quantities. A
large import market has opened up with China, India, and Thailand to fill this need. Fabric is usually imported in large rolls by traders
who then sell these rolls to retail shops -which in turn sell the fabric by the yard to individual customers.
Consumer Products
An economy that cannot produce its own consumer goods will necessarily have to import them. Over the last decade, as incomes
have been rising for middle-class and wealthy Myanmar, a large market has opened up for branded consumer products. Because of
sanctions, not all international brands are available in Myanmar at the moment, but investors should understand that Myanmar
people are just as brand conscious as consumers anywhere else in the world. Walking into pricier restaurants and cafés, you will
certainly see young Myanmar with their iPods and brand-name jeans. Besides these branded goods, Myanmar also imports
necessities like shampoo, beverages and light bulbs.
In general Myanmar remains an export-based economy. The government has a structure in place where trading companies need to
export before they are allowed to import, which allows Myanmar to establish a positive trade deficit.
Although other industries have the potential to become big export earners, currently the biggest foreign income earners are:
1. Natural gas
2. Gems and Jewelry
3. Beans and pulses
4. Hardwood (especially teak)

8. You will notice that three of the four exports listed above are based on natural resource extraction. Ultimately, in order for Myanmar’s
economy to grow, it needs to branch out of pure extraction based businesses and into services and manufacturing. But the transition
into a more manufacturing-based economy has been so far limited by the lack of infrastructure. Because of its long term isolation,
there are many domestic industries operating in Myanmar where one would expect to find international firms – for example in soft
drinks and fashion.
Since 2010, the government has further privatized many industries that were formerly under State control, and has sold off many of
the government’s assets. The privatization process continues today– with the telecoms industry seen by many as next on the
chopping block.
NATURAL GAS
The biggest foreign income earner for the Myanmar economy is its natural gas exports. Natural gas is extracted offshore by
international companies (Total, PTT, Daewoo, etc.) who are in joint venture agreements with the State run oil and gas company
Myanmar Oil and Gas Enterprise (MOGE). Most of the extracted natural gas is exported to Thailand, which is reliant on Myanmar
natural gas for 30% of its energy needs. The Chinese are also constructing a pipeline which will pump natural gas from the Bay of
Bengal to China’s Yunnan province, and other exploration efforts are currently in progress in other offshore blocks.
Natural gas is also quickly becoming a political issue in Myanmar as many citizens have started to wonder why Myanmar doesn’t
utilize its natural gas resources for domestic consumption – especially given its unreliable electricity supply.

9. Gems
Gems and jewelry is another huge export earner for Myanmar, particularly the jade sold to China. Myanmar has also long been world-famous for
its rubies and sapphires which are primarily mined in the Mogok valley – which remains closed off to foreigners. There is so much illegal activity
in this sector that it is almost impossible to calculate statistics accurately, but many believe this to be Myanmar’s second largest export earner
behind natural gas. We expect that in the future this industry will see much more regulation, causing illegal black market trading to decrease. The
current government realizes the potential tax revenue to be gained from a fully legal gems trade and has already taken steps to further legalize
and consolidate the industry. One of these steps was the opening of biannual gem fairs in Naypyidaw which allow international traders to buy
Myanmar gems legally at good prices. Like in most Myanmar industries, the majority of gems are sold are raw and uncut – they are cut and
polished in other countries that have better technology. Gems cut in Myanmar are generally for the local market only.
Beans and Pulses
The beans and pulses sector has recently become big business in Myanmar. Currently Myanmar is the second largest exporter of beans and
pulses in the world behind Canada. Over 70% of bean exports go to India, which has huge market demand that cannot be met by domestic
production. The remainder of bean exports goes to Singapore, Pakistan and other countries. The beans and pulses market can be highly volatile,
with market prices dependent on global production. Currently Myanmar faces competition from African nations who have seen their market
share increase in recent years.
The beans and pulses market usually operates on futures contracts, where Myanmar traders agree to sell at a certain price on a fixed date. The
supply chain for beans and pulses usually works like this: farmers cultivate 1-2 bean crops per year and sell them at farm gate prices to local
traders. These traders collect the beans from individual farms and then sell them on to large wholesalers who store them in large warehouses.
These large wholesalers are exporters who then negotiate contracts with foreign buyers and export the beans. Almost every major bean
wholesaler in the country is based out of the Bayinnaung Wholesale Market in Yangon. Foreign investors looking to get into this market will find
relatively few options, as currently all beans and pulses trading companies in Myanmar are locally owned.

10. Teak and Hardwood
Myanmar is one of the world’s largest exporters of wood, and Myanmar teak is world renowned for its quality. While most other countries in
the region have gone to farming teak in plantations, Myanmar still exports ancient teak trees grown in the wild. Obviously there is a finite
supply of this teak, which makes it very valuable on the world market. Teak is mostly used in the construction of outdoor furniture because it
is very resistant to moisture and rotting. Historically teak has also been used in shipbuilding and it is still used for this purpose today – albeit
in smaller quantities – for the decks of yachts and smaller boats.
Limited Liability Company
Limited liability companies can be either private or public in Myanmar. Private limited liability companies must have a minimum of
two shareholders, and public limited liability companies must have a minimum of seven shareholders. There are currently no
foreign public limited liability companies present in the country. Limited liability companies can be 100% foreign-invested.
There are basically two types of companies in Myanmar: A company who has received approval from the Myanmar Investment
Commission (often called an MIC company) or a standard company which is registered under the Myanmar Companies Act
(often called an MCA company or a DICA company because it is registered with the Directorate of Investment and Company
Administration.) The difference between these two types of companies is that MIC companies have higher minimum capital
requirements and are usually large companies working on large projects. MIC companies are eligible to receive investment
incentives under the foreign investment law, whereas MCA companies are not.

11. Registered Branch
Companies opening a registered branch in Myanmar do not need to obtain permission from MIC if registered under the MCA,
so establishing a presence in Myanmar is less time consuming and difficult. Companies under this structure can also be
registered as manufacturing or service companies. Foreign branches are taxed at a higher corporate tax rate than a normal
company—35 percent in comparison to 25 percent per annum for companies incorporated under the CA or MFIL.
Representative Office
Representative offices are not allowed to perform direct commercial or revenue generating activities within Myanmar so are
limited in their functions. Nevertheless, they are relatively easy to set up. The representative office is able to act as a liaison
between its overseas head office and is able to perform market research on ground and establish a presence without profit-
earning ventures through that specific representative office.
Joint venture
Joint ventures can be formed as partnerships or limited companies with a Myanmar individual, private company, cooperative
society or state owned enterprise.
There are two camps in the current government: those who want to encourage investment and open up the country, and those
who want to protect local businesses against foreign dominance. The main driver of the former camp is the President’s office,
while the main driver of the latter is the parliament. The risk for foreign investors is that the protectionist camp eventually wins
out and foreign investors are put at a disadvantage.

12. Nationalization
This was a major concern in the past, and indeed foreign businesses have been nationalized in Myanmar before. Understanding that
this is a key risk to foreign investors, the government has taken a few key steps to make sure that nationalization won’t happen again
in the country. The first of these is that Article 36 of the Constitution guarantees that the government will not nationalize businesses in
Myanmar. The second is that the text of the Foreign Investment Law also includes such language. The chance of a small business
being nationalized in today’s investment climate is virtually zero, but it is always useful to think of this as a possibility if political winds
change.
Rule of Law
While there has been some improvement in this area recently, it must still lags behind its neighbors in terms of rule of law and law
enforcement. Foreign investors should be aware that in case of a dispute in Myanmar, their rights are not guaranteed to be
respected. A key step that the new government has taken in this area is to sign the New York convention, which means that
international arbitration decisions must be upheld in Myanmar. Foreign investors in industries that may result in lawsuits or litigation
should be careful.
Over Zealousness
Since 2012 there has been a huge wave of investor interest in Myanmar and all sorts of shady characters have washed up. We are
there is no doubt that the country holds a lot of potential, it can be a sobering experience to actually visit and see how far behind its
neighbors Myanmar is. Investors looking at Myanmar should be optimistic but understand that there are still many infrastructure
problems and other issues, and it is not a place to make quick money.
Stepping on the Wrong Foot
Many foreign investors barge into the country and attempt to implement their agenda. In doing so they unwittingly step on the foot of the wrong
person, which then makes life very difficult for them. Don’t do this. Make sure you know who you’re dealing with before you offend somebody and
be cautious when dealing with government officials and others in positions