Phase 1 of the $1.5bn Thilawa Special Economic Zone (SEZ) was officially opened on September 23. This is 23 kms South East of Yangon, South of Thanlyin Township and is a flagship joint venture with the Japan International Co-operation Agency (JICA), the Myanmar Government and Japanese and Myanmar companies.
Three-quarters of the 400 hectares available in this phase is already allocated to companies, of which approximately 50 percent are Japanese. The entire site extends to 2,400 hectares. This initiative is also aiming to create jobs. Government forecasts predict 40,000 new jobs, thanks to this special economic zone. It is expected that the site will be highlighted in publicity as a prime example of development in Myanmar, prior to the General Election on 8 November. The Central Body is the main authority of all the Special Economic Zones in Myanmar and is chaired by the President of the Republic of the Union of Myanmar.
Alongside the Japanese companies who have invested, there are other international companies including those from the USA, China, Sweden, Australia, and South Korea as well as local companies from Myanmar.
FocusCore blogs and our investment guides have been explaining, forecasting and indeed stressing the importance of this developing pace in Myanmar, triggered by legal and financial changes. Now, Public – Private Partnerships are fuelling further rapid growth. This is the first SEZ development in Myanmar.
Our blogs also reported other joint ventures. For example, earlier this year a major development was announced for new port facilities at Thilawa harbour. Further news followed with other participants providing improved facilities for the export and import of fuels. Earlier this month it was confirmed that Daizen Myanmar, a Japanese company is to create a logistics hub. They have selected a local company, Modair Engineering to complete the project, which will be known as the Thilawa Logistics Centre. This is another important boost for the country, with provision of warehouses and associated transport services that will be operational in Spring 2016.
Such is the assured pace of development in the special economic zone plans were announced at the official opening for Phase 2 on the adjoining land, which will open in 2016 with a budget of $300m,
We understand two more SEZs will be started, one in Dawei in South East Myanmar, capital of Tanintharyi Region formerly Tenasserim Division. This is 614 kms South of Yangon and reports indicate it will have a budget of $8.6bn. The other is for a site of 4,000 hectares at Kyauk Pyu on the North West coast, 250 miles North West of Yangon.
However, as clearly evident with the size of the confirmed budget of $1.5bn, Thilawa is the flagship that many are focussing upon now. For this and other developments in Myanmar contact FocusCore to learn more about the rapidly expanding economy and also receive the corporate support services you need to harness these once in a lifetime opportunities.
