Abstract: "Foreign direct investment (FDI) may be one of key elements for the development of Myanmar in the future, considering that advanced ASEAN countries like Malaysia, Thailand and China that have shown good economic performances have received a lot of FDI. This paper provides good lessons to the government and business community for attracting FDI based on the experiences of ASEAN countries and China. This paper starts by looking at the positive and negative effects of FDI. While there often is a fear that the domestic market for a specific product can be dominated by foreign companies, the history of the advanced ASEAN countries, demonstrates that nationalistic or protective FDI policies before the middle of 1980s did not borne fruit. On the other hand, countries that deregulated policies have shown outstanding performances in attracting FDI. Assuming the positive effects of the FDI, lessons on key elements of FDI policy on corporate income tax incentives, negative lists and decentralization are also provided. Finally, policy recommendations are enumerated as conclusions..."