On 9 July 2020, the Central Bank of Myanmar (“CBM”) published Instruction no. 3/2020 (the “Instruction”), introducing new principles for regulating the non-bank financial institution (“NBFI”) sector. The Instruction has also been circulated to all NBFIs. The new rules seem to align the NBFI sector with the banking sector, including obligations for NBFIs to: Specify […]

On 20 May 2020, Cambodia’s State Secretariat of Civil Aviation issued new rules for international travelers arriving in Cambodia. The new regulation addresses the problem of Cambodian and overseas nationals coming (back) to the country during the pandemic. A Cambodian national who returned from the Philippines that very same day was discovered to have COVID-19. […]

The evolving pandemic has substantial implications on all sectors and forms of business. In this report VDB Loi banking and finance experts are looking in particular detail into possible impact on lending transactions taking into account the local practices and regulatory regime in several jurisdictions in Southeast Asia. There has been quite a surge in […]

With the recent drastic measures taken by the government of the Lao PDR to control the spread of COVID-19 in the community, the economy is in a precarious position as trade, investment, tourism, and growth have come to an indeterminate halt. As per the World Bank, the global economy could shrink by 1 per cent […]

In response to the current economic situation caused by the COVID-19 pandemic, and to relieve the burden on borrowers facing financial hardship, the National Bank of Cambodia (“NBC”) has issued Circular No. T7.020.001 directing banking and financial institutions (including microfinance institutions) in Cambodia (“Institutions”) to be flexible with regard to debt repayment by offering loan […]

On 29 March 2020, the Prime Minister of the Lao PDR issued Order No. 06/PM (“Order 06”) calling for suspension of all nonessential businesses effective from 30 March 2020 until 19 April 2020. The order prohibits all nonessential in-person communications and travel, and requires everyone, including government employees, business owners, and foreign workers, to stay […]

With new travel documentation requirements, flight cancelations, and closed borders, many have found themselves stranded in Myanmar. From tourists forced to extend their holidays, residents with stay permit to business visitors running close to expiry of their 70-day business visas, they all faced the same issue – how does one stay in Myanmar legally and […]

On 23 March 2020, in response to the spreading of COVID-19, the Ministry of Labor and Vocational Training (“MLVT”) issued notification 009/20 requiring all employers to provide an updated list of the contact telephone numbers of all employees to the Department of Labor Inspection of the MLVT by 26 March 2020. Lists are to be emailed to [email protected]. […]

Sickness is a paid leave permitted by the Labor Law (Article 169). Therefore, during sickness, employer needs to pay the salary of his employee. Highlights of this note If an employee falls sick, who pay the salary? What if an employee wants to stay home to take care of children or school closed or child […]

With the emergence and spread of COVID-19, the sale of protective masks and antiseptic disinfectant have greatly increased to the extent that it has become difficult to buy them at a reasonable price.

On 12 March 2020, the Central Bank of Myanmar (“CBM”) issued Directive 1/2020 (the “Directive”) and reduced the maximum interest rates on secured and unsecured loans to 12.5% and 15.5% respectively.This marks a small deviation from Directive 1/2019, issued by CBM last year, when it announced maximum interest rates on secured and unsecured loans of […]

The spread of the novel coronavirus is creating a global emergency situation and negatively impacting almost every country in the world, including Cambodia. In response to this viral pandemic, the Royal Government of Cambodia, as well as the National Bank of Cambodia (“NBC”) is taking immediate action to steer the economy through this very difficult […]

After decades of highly controversial land acquisitions for public purposes, Myanmar turns a new page by passing the Land Acquisition, Resettlement, and Rehabilitation Law 2019 (Law no. 24/2019, referred to herein as the “LARR 2019”). Highlights of this note How does the new process work? The proposal required for starting the land acquisition process has […]

MIC has announced on 30 December 2019 (“Announcement”) on the new format for its quarterly report, the Myanmar Investment Commission (“MIC”). The new MIC quarterly report a uniform format for all investment sectors. This new format must be used starting from the January to March 2020 period. In addition to other usual items to be […]

Related party transactions are a frequent occurrence in Myanmar corporate life. When one company transacts with another company with which it has some sort of connection through shareholders, directors, family etc… Highlights of this note Board approval procedure under s. 187: Member approval procedure under s. 188: Different interpretations possible Clarification

On 15 November 2019, the Central Bank of Myanmar (“CBM”) issued Directive 18/2019 on 15 November 2019 on customer due diligence. The directive sets out guidelines for customer due diligence, and mandates that banks develop an effective framework and practices in order to conduct risk assessments and manage money laundering and terrorism financing risks. Highlights […]

On 7 November 2019 the Central Bank of Myanmar issued announcement confirming that a third round of foreign bank licensing will be initiated and opened to foreign banks with representative offices in Myanmar (the “Announcement”). Pursuant to the Announcement, foreign banks will be able to apply either for a branch or for a subsidiary license, […]

Please note that a Statement by the Internal Revenue Department, Yangon Region (“IRD”) has been issued regarding enforcing monthly Personal Income Tax (“PIT”) return filings and payments. This statement by the IRD states that as per the newly enforced Tax Administration Law (“TAL”) Section 40 (a) and Section 49(a), if the party responsible for deducting […]

On 19 August 2019, the Union Parliament of Myanmar, Pyidaungsu Hluttaw, enacted Land Acquisition, Resettlement and Rehabilitation Law (Pyidaungsu Hluttaw Law No. 24/2019) to replace the colonial-era Land Acquisition Act (1894) as well as to provide a legal framework for resettlement and rehabilitation for the first time in Myanmar. Highlights of this note Overview What’s […]

On 12 June 2019, the Division of Industry and Commerce, Vientiane (“DIC-Vte”) issued Instruction No. 0651 (the “Instruction”) regarding measures to be taken against the illegal operation of businesses by foreigners. The Instruction’s scope covers foreigners who operate unapproved businesses, defined as those who: Operate a business without an enterprise registration certificate (“ERC”) or business […]