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"It's way too early for Myanmar. We think there will be some activity for things like oil, gas and infrastructure, but it's just so far behind....

"It's way too early for Myanmar. We think there will be some activity for things like oil, gas and infrastructure, but it's just so far behind. There are no laws that facilitate foreign investment," warns a practitioner. "There's a lot of noise, but it's a long way off."

The view expressed above is common among international lawyers in the region who view Myanmar as a land of opportunity but severely lacking in the structures needed to exploit them. Another lawyer adds, "Although people are dying to see what's in Myanmar, once they dig beneath the surface, they realise how far behind it is and that it's going to be a long and patient road," another lawyer adds.

Counsel frequently cite the jurisdiction's use of the Companies Act of 1910 as a key example of the lack of development in Myanmar's legal market. The lack of Western-trained Burmese lawyers is an issue for many firms, and counsel that speak fluent English are in demand. Though the military junta has been removed, corruption is rampant and compliance with FCPA and the UK Bribery Act may be difficult.

There are a few local outfits, but firms are racing to tie down Myanmar partnerships for reliable on-the-ground service. Most of the best-known Myanmar firms are affiliated with regional firms able to justify investment in an emerging market, such as DFDL, Kelvin Chia Partnership and Chandler & Thong-ek. These firms' Myanmar affiliates are experienced in the energy and natural resources areas, as well as infrastructure and foreign direct investment.

CONTEXT AND TRENDS Myanmar has undergone fundamental shifts this year both economically and politically. President Thein Sein has implemented several landmark changes, including allowing Daw Aung San Suu Kyi to leave house arrest, allowing her and her party to run for parliamentary elections and beginning an overhaul of the country's financial system....

Myanmar has undergone fundamental shifts this year both economically and politically. President Thein Sein has implemented several landmark changes, including allowing Daw Aung San Suu Kyi to leave house arrest, allowing her and her party to run for parliamentary elections and beginning an overhaul of the country's financial system.

It is difficult to overstate the changes in Myanmar since it began opening up early this year. The country has attracted huge amounts of press following the beginning of economic liberalisation and the suspension of sanctions. An example is the fact that conglomerates like General Electric and Coca-Cola have announced their intention to enter the market; aside from North Korea, Myanmar was the only global market in which Coca-Cola did not have a presence. The currency's dual float has eliminated the vast gulf between official and unofficial exchange rates from the kyat to the US dollar, and currency is far more available in Yangon due to the installation of ATMs.

Opportunistic emerging-market investors have filled flights and hotel rooms in Yangon, and hotel projects are already underway. Legislators are contemplating new telecommunications laws, new foreign investment laws and a new companies act to encourage foreign direct investment.

However, investors may find that legislation has not caught up to their expectations. Foreign investors cannot technically own land in Myanmar, so land acquisitions require careful structuring. Corruption is rampant, and commentators warn investors about crony capitalism; Myanmar is still one of the least transparent and most corrupt countries on the globe. Political issues, most notably human rights challenges, remain controversial and may hinder Myanmar's acceptance in the international community.

Counsel advise that the best way to enter the market is via foreign direct investment and to expect activity in oil, gas, natural resources and infrastructure. The market still needs to be built for fast-moving consumer goods and practitioners point out that retail is still a long way away.