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Vast Teak and Rare Hardwood Resources
Myanmar's vast untapped forest resources include over 80 percent of the world's remaining teak trees and a variety of rare hardwoods.
The Myanmar government began to prepare for increased interest in developing this vital national resource in 1992, when it enacted the Forest Law and repealed the previous forest act, which dated back to 1902.
The Forest Law is aimed at harmonizing economic realities and environmental needs in the development of this vital national resource. It has two fundamental objectives:
(a) maintaining biodiversity, conserving natural forests, and establishing forest plantations; and
(b) avoiding overlogging and other threats to the forest, including files, insect infestation, and plant diseases.
To implement the provisions of the Forest Law, the Forest Rules were promulgated by the Ministry of Forestry in 1995.
Framework for Foreign Participation
The Forest Rules deal with reserved forest (forest areas reserved for the state and off-limits to development), the declaration of areas as protected public forest, the management of forest land, the establishment of forest plantations, and the procedures for obtaining permission to extract forest produce. They also cover procedures for:
- Harvesting forest produce.
- Establishing and operating timber depots.
- Establishment of wood-based industries.
- Investigation of violations.
- Administrative actions, such as imposing fines and confiscating the timber, to penalize violations.
- Offenses and penalties.
Restrictions under the Myanmar State Owned Economic Enterprises Law (MSOEL), enacted March 31, 1989, reserve to the state quite a number of commercial activities relating to forest products, including their extraction and sale. The same law, however, provides that the government may waive such restrictions if it deems such waiver to be in the state's best interest. The nature of the state's waiver in connection with the forest sector was announced in a May 1989 notification issued by the Myanmar Investment Commission (MIC). Under this notification, the private sector, including foreign private companies, is allowed to participate in the following activities:
- production and marketing of basic construction materials, furniture and parquet using teak extracted and sold by the state-owned economic organizations; these activities must be carried out jointly with the stateowned economic organizations;
- production and marketing of carvings and handicrafts made of teak that has been extracted and...