Bank Fees Now Included in Interest Cap (VDB Loi Insights)


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Highlight of This Month / In This Issue / Recent VDB Loi Works / New Myanmar Laws and Regualtions / Upcoming Events / Recent Publications

Financing a Myanmar-based Internet Service Provider
[From our Telecom, Media and Technology Team]
The market for Internet Service Providers (“ISP”) in Myanmar is stabilizing. Refinancing strategies, retooling and opportunities for expansion are fueling the need for new cash. Foreign financing remains one of the most obvious ways for ISPs to attract new funding.


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Bank Fees Now Included in Interest Cap
[From our Banking & Finance Team]
Following the recent directive of the Central Bank of Myanmar (the “CBM”), , interest rate caps of 13% and 16% shall apply for secured loans and unsecured loans,. The Directive provides that “the maximum interest rate … includes all other fees collectible in lump sum or in partial payments such as guarantee fees, management fees…
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Insurance Update: Request for Proposal and Invitation Letters for Expression of Interest issued by Financial Regulatory Department
[From our Banking & Finance Team]
RfP for licenses to carry on life insurance business in Myanmar as 100% foreign company As reported earlier by VDB Loi, when a foreign life insurer wishes to obtain an individual license in Myanmar, it is required to submit a proposal in response to a Request for Proposal (the “RfP”), issued on …
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More Detailed Procedures for Annual Returns of Companies and Overseas Corporation in Myanmar
[From our Corporate Commercial & M& Team]
The new Myanmar Companies Law (“MCL”) introduced refreshed procedures and timing in terms of holding your Annual General Meeting (“AGM”) and filing an annual return in the Myanmar Companies Online (“MyCo”) system.
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Myanmar Opens Up Insurance Sector to Foreign Investors
[From our Banking & Finance Team]
In another exciting development in the Myanmar financial regulatory landscape, foreign life and non-life insurers can form joint ventures with local life and non-life insurers respectively. In addition, up to 3 (three) licenses will be granted to foreign life insurers to operate as wholly-owned subsidiaries.
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What Happened in Naypyitaw While You Weren’t Looking
[From our Banking & Finance Team]
Looking back, it is evident that 2018 has seen a lot of changes in the Myanmar legal framework. There is also a number of developments that can be expected in the near future.
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What Happened in Cambodia While You Weren’t Looking
[From our Cambodia Office]
2018 saw several changes to the tax regulations. The application of transfer pricing rules in Cambodia is now a reality. Starting from 2018, companies have to comply with the regulations issued in October 2017, which adopt the arm’s length principle in accordance with the OECD’s guidelines.


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VDB Loi working hard to expand Myanmar businesses globally: Our Corporate Commercial and M&A Team assisted a 100% Myanmar owned company obtain the first of its kind Central Bank of Myanmar approval for investment offshore.

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VDB Loi helps public finance institution better understand local LNG-to-power projects: The Energy and Infrastructure Team has drafted a report on the LNG-to-power projects in Myanmar for a major public financial institution. This highlights the importance of getting financial support for groundbreaking power projects.

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Referral to arbitration: As the courts are getting more and more familiar with the Arbitration Law 2016, practice appears to be consolidating. VDB Loi is advising a foreign investor in a dispute with a local contractor. The regional High Court overruled the plaintiff’s objections which were largely based on the practice under the former law and equity, and referred the dispute to arbitration abroad. The consequent and reliable application of the Arbitration Law is an important step towards the rule of law in Myanmar, and a crucial condition for foreign direct investment.

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New road BOT agreement: VDB Loi’s Energy and Infrastructure Team is advising a group of toll road operators on a new template BOT agreement with the Ministry of Construction. The aim is to provide a reliable and bankable legal framework for investment in new and existing projects.

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Expansion in the IT sector: The Telecoms, Media and Technology team has been providing legal advice to an international software company in relation to market entry, review of documentation, negotiations, incorporation and corporate services in Myanmar.


  • Myanmar Traditional Medicine Council Law 2019 (Law no: 1/2019)
    Upgrading the terms and conditions of the old law and repealed the old one of 2000
  • Bill on Rural regions development Law 2019
    Newly drafted for the implementation of the rural regions development


Sixth International Conference on Lao Studies

Vishrut Jain, Senior Associate in the Banking and Finance Team at VDB Loi, has been invited to participate in the capacity of a speaker at the Sixth International Conference on Lao Studies. The Conference, co-hosted by the Southeast Asia Program at Cornell University and the Center for Lao Studies, will be held from June 13-15, 2019 on the campus of Cornell University in Ithaca, NY, USA.

The main objective of the Conference, (which convenes once every three years), is to promote Lao studies by providing an international forum for scholars to present and discuss various aspects of Lao PDR.

The prestigious Cornell University, founded in 1865, is a private and statutory Ivy League research university in Ithaca, New York.

The Southeast Asia Program (SEAP) at Cornell University was founded in 1950 to promote the acquisition and dissemination of knowledge about countries, cultures and languages of the region.
The Center for Lao Studies (CLS), San Francisco, CA USA, is a unique organization that serves both as an academic and a resource center for scholars, the general public, and persons of Lao heritage around the world.

Vishrut’s paper title is “Offshore Lending in Laos” and his presentation will focus on the laws and legal aspects of Lao PDR, including doing business in Lao and special focus on foreign investment issues. VDB Loi’s experience in the region will provide valuable intel to the Conference and key insights into the economic climate in Lao PDR.




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