Myanmar needs to prepare the implementation of multimodal transport for SEZs similar to developed countries.
Vice-Senior General Soe Win instructed relevant ministries to cooperate with each other in smoothly operating businesses of companies in the Thilawa Special Economic Zone to increase the number of new companies for foreign investors to systematically put their investments and raise the investment volume.
The Myanmar SEZ Central Committee held the meeting 1/2023 at the Ministry of Commerce in Nay Pyi Taw yesterday afternoon, with an address by Chairman of the Central Committee Vice-Chairman of the State Administration Council Deputy Prime Minister Vice-Senior General Soe Win.
He recounted that during the four months from April to July of the 2023-24 financial year, Thilawa SEZ managed export volume worth US$54.945 million and import volume valued at $162.653 million, totalling $217.598 million with K22 billion as revenues.
The Vice-Senior General noted that the management committees need to manage the continuous use of US dollar investment of new companies and current companies in addition to other existing foreign currencies of investment allowed by the Myanmar Foreign Trade Bank and the Central Bank of Myanmar.
He explained that the Kyaukpyu SEZ framework agreement was signed by Myanmar and China on 8 November 2018, the shareholders’ agreement in January 2020 and the concession agreement in November. Led by the Chairman of the Central Work Committee, both sides need to hold bilateral coordination to have a win-win situation for the project, he added.
The Vice-Senior General stressed that thanks to the Kyaukpyu Deep Sea Port project, the Myanmar-China economic corridor cooperation project can be implemented to enhance cooperation between the two countries. Arrangements are being made to implement the Kyaukpyu-Mandalay-Muse railway project to contribute to Kyaukpyu SEZ project, and upon completion, it will help improve better commodity flow between Myanmar and China, he added.
Likewise, he added that Dawei SEZ selected the investors in 2008 but Italian-Thai Company halted its implementation due to various reasons. He underscored that a takeover process must be undertaken systematically and new investors must be invited under the international procedures. He stressed that the Myanmar SEZ Central Committee and work committee have to strive to receive new foreign investments.
Thilawa SEZ is located on 667.275 hectares comprising a free zone and a promotion zone to manage export and import-substitute manufacturing processes. A total of 114 companies from 21 countries are operating businesses with US$2,190.79 million of foreign investment. The zone occupied 3.6 per cent of GDP in the 2022-23 financial year, one per cent of the nationwide export volume in 2022 and three per cent of private export volume.
Currently, three SEZs have been implemented since 2013, and the year-wise implementation is being carried out in Kyaukpyu and Dawei zones. — MNA/TTA