Press Release

What are the keys to success; generating 110 investment projects as well as the planned employments for over 37,000 peoples just in less than 5 years?

In building engines for the Myanmar economic development, Myanmar and Japan, both public and private sector, have worked together for Thilawa Special Economic Zone (SEZ) development. After opening officially in 2015, Thilawa SEZ has achieved approval of 113 investment projects, whilst 76 companies have started commercial operation (as of 1 September 2019). Accordingly, it has generated over 37,000 planned employment; decent job opportunities. It is quite remarkable records even comparing to SEZs in other countries. What are the keys to such success?

In order to attract potential foreign investors to Thilawa SEZ, Government of Japan (GOJ) and JICA had assisted in building the legal frame of SEZ scheme, namely Myanmar SEZ Law, which was enacted in January 2014, and Myanmar SEZ Rules, which was adopted by the cabinet in August 2015. In addition, GOJ and JICA put high priority to the capacity development of Thilawa SEZ Management Committee (TSMC) and One-Stop Service Center (OSSC). JICA Expert Team has been providing TSMC and OSSC with various guidance and assistance in their works; namely, assessing investment proposals, issuing various administrative approvals necessary for carrying out the businesses, preparing Instructions, Notice and Standard Operation Procedures and providing the consultation services to the Investors on the day-to-day base. Such works of TSMC and OSSC are the keys for realizing transparent, accountable and predictable business environment in Thilawa SEZ. OSSC of Thilawa SEZ is nowadays deemed as real "OSSC" which cannot be found in any other countries.

The existence of comprehensive internal infrastructures, such as industrial water supply system, sewerage system, wastewater, and solid waste treatment facilities, etc., which were arranged by the private developer, Myanmar Japan Thilawa Development Ltd. (MJTD), is one of the big incentives for quality investment. In parallel with such various inputs from MJTD, JICA has supported the improvement of access roads, construction of power station, substation, distribution and transmission lines, gas pipeline, water supply system and multi-purpose port as external infrastructure. In addition, new bridge construction was started beside the existing Thanlyin Bridge for smooth traffic and logistic network.

Furthermore, Thilawa connects not only with Yangon, which directly connected with Mandalay and any other parts of Myanmar. Thilawa is also the gateway of East-West corridor of South East Asia, which derives of Vietnam through Thailand. Such factors may call for quality investments in the broad supply chain.

Although the construction of SEZ and infrastructure projects support the development of a county, it is essential to implement appropriate land relocation, resettlement and income restoration program for the implementation. For Thilawa SEZ, Yangon Region Government strongly supports TSMC to tackle with such challenges with the technical support by JICA Expert Team.

Meanwhile, what is the feature for "quality" investment in Thilawa? In Thilawa SEZ, there are two types of industry –the domestic market-oriented industry, which supports further expansion of domestic industries and contribute to the upgrading of economy, as well as the export-oriented industry, which will help improving the trade balance for the country. By hosting both domestic-oriented and export-oriented industries, the Thilawa SEZ contributes to the supply of day-to-day commodities and durables such as foods, medicines, and vehicles, for domestic market. Accordingly, people can use quality products with much cheaper price. At the same, the SEZ contributes to the export of garments, automobile and other machinery parts, and semi-processed materials, which improve the international trade position of Myanmar economy, and brings a room for the more value-added industry in the supply chain.

Besides, each company adopts unique efforts for collaborating with Myanmar peoples. Many companies bring internationally qualified working environments in terms of hygiene, safety, working condition, and social welfare. Such situation signifies that they will attract more Myanmar employees in Thilawa SEZs. GOJ and JICA hope Thilawa keeps playing its vital role in upgrading and improving business and employment environment in Myanmar economy.