Myanmar Jade Production & Trade

Jade has always been one of the most precious gemstones in Myanmar. It is considered as a lucky charm, and it is full of virtues. Modern research has shown that Jade has several benefits to health as it is composed of different mineral elements such as zinc, magnesium, iron, and copper. The Jade has remained the most popular gemstone and a major export from Myanmar.

There are two types of Jade, which include the nephrite jade and a Jadeite Jade. The difference between the two is that the Nephrite Jade is tougher than the jadeite type, but a little softer. The Nephrite Jade is also more expensive than the Jadeite.

The jade business in Myanmar consists of the mining, distributions, and manufacture. Individuals have rights to private ownership and trading of jade. The export industry of the business has expanded substantially in response for the demand of the gemstone in the international market. Jade export accounts for a high percentage of the total Myanmar’s exports revenue.

For decades, Myanmar has had an independent Jade market which means that the Jade price in Myanmar is not necessarily determined by the international jade prices. For those who are looking to take advantage of these prices, you must understand the Jade business trends in Myanmar.

First you must be able to find out the purity of Myanmar Jade. Strict standardization has never been implemented in Myanmar which means purities can vary widely depending on the source. The second thing to know is that it is illegal to export jade, meaning buying cheap jade in Myanmar and then exporting it to other nations is not an option for legal jade businesses. The jade business in Myanmar is very liquid, the shop you are going to buy from will always buy your gold back.

Myanmar Tax Basics

Myanmar business are as a subject to corporate, personal income, commercial, and property taxes. Under the Myanmar Companies Act and Foreign Investment Law, a 25% corporate tax per year is applied to all companies in Myanmar. There are no taxes that are collected from companies’ shareholders.

Currently, there is a 10 % capital gains tax for resident companies and a 40% for nonresident companies, levied for capital gains. The law tax exemptions for the production of goods and services and reinvested profits is given for foreign companies under the Foreign Investment Law Act. There is also a 50% tax relief on export profits, and you can enjoy the option to accelerate depreciation.

How easy it easy to do business in Myanmar?

The easiness of doing business in Myanmar depends on several factors. One of the major factors is the sector you are interested in. Those who have invested in sectors like manufacturing say the most challenging part about doing business in Myanmar is the underdeveloped infrastructure, mostly electricity. Frequent power outages and other infrastructure issues can be frustrating when you set up an efficient factory.

Apart from the poor infrastructure, other foreign entrepreneurs often cite cultural differences in the work environment as being one of the most difficult parts of running a business in Myanmar. A lot of investors arrive in the city with high expectations about work output of their employees, but many discover that there are competency issues among them, and they find problems in motivating people to perform well.

Dealing with bureaucracy and red tape also stands as one of the major problems of doing business in Myanmar.Myanmar business that requires you to have a permits and approvals from particular authorities can seriously frustrate you. People wait days, weeks or months to receive a business permit that would take hours in other countries.

The rule of law in Myanmar is also what make business not easy. Some businesspeople cite the lack of the rule of law. This makes it difficult to deal with some legal issues in the city. Some sectors in Myanmar have very ambiguous laws, and even where there are laws, application of these set laws vary widely. For sure it can’t be easy doing business in such an area.

With all these difficulties, there are a lot of positives for those doing business in Myanmar.Many of the business people who have run businesses in Myanmar for a long time cite the camaraderie they have built with a core group of employees as a major reason they are stuck in the country. Most foreign entrepreneurs are often delighted to find that Myanmar employees are respectful in general and always follow company protocols as per the law.

For those who are looking to invest in this country, it is of great importance to spend some time on the ground checking on particular sectors you are interested in. Know who is running which sector in Myanmar before you make a noble decision of putting an investment there. Those who are going to be patient enough in the running process will excel in this country.