Myanmar, Hong Kong plan investment and protection pact

Myanmar, Hong Kong plan investment and protection pact

By Vincent MacIsaac   |   Friday, 28 June 2013

The governments of Myanmar and Hong Kong have agreed to negotiate a bilateral investment promotion and protection agreement, with another on double taxation to follow, the financial secretary of the special administrative region of China said on June 26.

John Tsang said the deal "will provide certainty and clarity" to businesses in both jurisdictions and that negotiations "should be fairly straightforward".

He made the comments following a luncheon in Yangon for a delegation of officials and executives from Hong Kong.

The luncheon was organised by the Hong Kong Economic and Trade Office in Singapore and the Union of Myanmar Federation of Chambers of Commerce and Newly re-elected UMFCCI president U Win Aung urged Hong Kong manufacturers to "concentrate on businesses that can create better jobs for our people". 

"We know how strong you are in the garment industry," he said, adding that Myanmar's recent readmission to the European Union's generalised scheme of preferences will create opportunities for companies seeking duty-free exports to that market.

The labour force in Myanmar is competitive in terms of wages and easy to train, U Win Aung Mr Tsang said there is an upsurge in interest in Myanmar among Hong Kong businesses, describing them as "very excited" about the opportunities available here.

"These are extraordinary times for Myanmar's development," he said, adding that Hong Kong can link "possibilities in Myanmar with opportunities globally".

He also encouraged executives in Myanmar to consider the city as a platform for accessing mainland China and other international markets, saying that companies incorporated in Hong Kong have tariff-free access to mainland China.

Hong Kong banks and financial service providers also offer renminbi trade settlement, allowing companies to reduce volatility and currency risk by conducting trade in China's currency, Hong Kong companies accounted for about 15 percent of cumulative foreign direct investment in Myanmar as of the end of the last fiscal year, in March. Hong Kong is the third largest foreign investor in Myanmar, with 49 of its companies investing a combined US$6.39 billion.

Source: http://www.news.myanmaronlinecentre.com/2013/06/29/myanmar-hong-kong-plan-investment-and-protection-pact-2/