The number of FDI (foreign direct investment) enterprises that have entered Thilawa Special Economic Zone (Thilawa SEZ) reached 85 up to the third week of November, according to the Thilawa SEZ Management Committee. Among the 85 FDI enterprises, Japanese companies take the biggest share with 50.58 per cent after a total of 43 Japanese firms have secured permits from the Myanmar Investment Commission (MIC) to do business in the SEZ. ASEAN countries apart from Myanmar come in at second with 19 firms to share 22.35 per cent.
Firms from East Asian countries excluding Japan totalled at 13, sharing 15.29 per cent of the foreign companies that have been allowed to operate there by the MIC, a government-appointed appraisal body for domestic and foreign investment proposals. Including the rest are five firms from the United States and Europe.
Out of those, 36 firms have started operating in Zone A of the SEZ, with another 34 companies being expected to start operation in the near future as they are currently on their way of construction and equipment installation.
Earlier expectation has it that the number of business firms operating in Thilawa SEZ to amount to 70 at the end of this year, according to Win Aung, Chairman of Myanmar Thilawa SEZ Holdings Public Limited.
51 out of the 85 international enterprises have established their business with a focus on the domestic market while another 25 companies target the export market, with a smaller number of remaining firms being distribution businesses.
Construction is already completed in the entire Zone A of the SEZ, which held the opening ceremony in September 2015. The commencement ceremony of Zone B was held in February 2017, scheduled to be completed in mid-2018. Zone A international firms upon completion, according to the Ministry of Commerce. Thilawa SEZ attracted total investment inflow of $1.14 billion starting from November of the 2014-2015 financial year until July of the ongoing 2017- 2018 budget year, according to the Directorate of Investment and Company Administration (DICA). The figure is in accordance with the number of domestic and foreign enterprises that the MIC has permitted under the Special Economic Zone Law.
Industrial sector fetched the most investment value of $842.96 million, more than 73 per cent of total investment volume with 62 enterprises, according to the Thilawa SEZ Management Committee. Investment influx into goods trading sector amounted to more than $101 million while service sector collected over $81 million. Transport and logistics sector attracted $77 million, followed by real estate development sector with $30 million and hospitality sector with over $12 million.
Located approximately twenty five kilometers south of Yangon between lies on a 405-hectare land and the area of Zone B is 101-hectare.
The construction of Zone B was launched consequently to the success of Zone A, which attracted much interest from investors partly because of tax exemptions and commitment of quality infrastructure. Thilawa SEZ is currently standing as the most successful SEZ in Myanmar, and is greatly contributing to the economic growth of the country. Investors in Thilawa SEZ benefit from its ideal location, superior infrastructure and friendly tax advantages. More than 90 per cent of Zone A has been sold, and 25 per cent in Zone B. The SEZ is projected to receive around 150 international firms upon completion, according to the Ministry of Commerce. Thilawa SEZ attracted total investment inflow of $1.14 billion starting from November of the 2014-2015 financial year until July of the ongoing 2017- 2018 budget year, according to the Directorate of Investment and Company Administration (DICA). The figure is in accordance with the number of domestic and foreign enterprises that the MIC has permitted under the Special Economic Zone Law. Industrial sector fetched the most investment value of $842.96 million, more than 73 per cent of total investment volume with 62 enterprises, according to the Thilawa SEZ Management Committee. Investment influx into goods trading sector amounted to more than $101 million while service sector collected over $81 million. Transport and logistics sector attracted $77 million, followed by real estate development sector with $30 million and hospitality sector with over $12 million. Located approximately twenty five kilometers south of Yangon between Thanlyin and Kyauktan townships, Thilawa SEZ is the country’s first special economic zone. It had become fully (commercially) operational since September 2015. Myanmar government and Japanese government have agreed to cooperate to jointly develop the special economic zone, which covers an area of approximately 2400 hectares. Investment businesses in Thilawa SEZ include manufacturing of garments, construction materials, cement, foodstuff, chemical fertilizers, agricultural equipment, vehicle spare parts, drugs and medical instruments, and vehicle installation.
