Myanmar sets economic activities for investors in Thilawa SEZ

Myanmar has offered 20 sectors of economic activities to local and foreign investors in the country' s first biggest Thilawa Special Economic Zone (SEZ) project being implemented on the outskirts of Yangon by a Myanmar-Japan joint venture, according to the Ministry of National Planning and Economic Development Tuesday.

The business activities, announced by the ministry, include trade, basic infrastructure development such as housing complexes and hotels, technology and design firms, services for warehouses, transportation, computer softwares, information on economy, insurance and law, retail and wholesale, finance, rental, consultancy, construction, education, and environmental conservation.

Successful applicants are to be announced within 30 days after the applicants submitted their bids which will be followed by land lease procedure within six months for the investment, according to the Thilawa SEZ Management Committee.

"If a business in the free zone of Thilawa SEZ exports at least 75 percent of its products, its minimum investment must be equivalent to 750,000 U.S. dollars, whereas if a business in the free zone produces at least 80 percent of its products for the manufacturing of the export products by other factories in the same zone, its minimum investment must be equivalent to 500,000 U. S. dollars," the announcement said.

The minimum investment in the international trade exhibition building must be equivalent to 10 million U.S. dollars, that in manufacturing be 300,000 U.S. dollars, that in housing estate, condominium and supermarkets be 5 million U.S. dollars and that in training schools 2 million U.S. dollars, the announcement added.

The hotel in the promotion zone is set for 3-star.

According to earlier reports, along with one local company, a total of 21 bid-winning firms from Japan, China, China's Hong Kong and China's Taiwan, Thailand, Sweden, the United States and Australia have respectively signed contracts with Myanmar to develop the Thilawa SEZ at the 400-hectare Class A Area of the zone in Thanlyin, 20 km southeast of Yangon.

The Myanmar-Japan joint venture, formed by two Myanmar companies and two Japanese companies, shares under a ratio of 51 to 49.

Myanmar has started the land lease procedure for Phase 1 of the Thilawa SEZ project Class A Area which has about 400 hectares divided into two phases out of nearly 2,400 hectares in total.

The project began implementation in November 2013 and the commercial run of the Thilawa SEZ is expected to start in mid-2015.