In a move seen to open up the economy, the Myanmar ministry of commerce has approved the setting up of joint ventures by overseas firms with local partners in the agricultural and medical products trading space, according to an official announcement.
The decision follows the rising interest of foreign companies to participate in the economy as also the need to adopt international trade and rules of the World Trade Organisation to develop trade and economy, according to the announcement of the Ministry of Commerce.
The products that are included in the approval list are fertilisers, seedlings, and insecticides and hospital and clinical materials.
However, the statement said, the list could be altered depending on the need of the country.
According to the notification, only foreign companies that set up joint ventures with local firms will be allowed to trade equivalent to the capital they bring to the country.
The rules and regulations of the trading will be the same as for the local companies doing the trade.
This issue has been talked about for a couple of years now with overseas players arguing that restriction on trading means not having a level playing field with the local businesses. However, local companies feel that they do not enjoy the access to capital and market that the larger overseas players enjoy.Local businesses also feel the country needed investments more in manufacturing and not in trading.