Myanmar’s new law to draw foreign investment

In an effort to draw more foreign interest in Myanmar's future Special Economic Zones (SEZ), the promulgation of a new SEZ law was announced.

“The new law seems to decentralize decision-making to the SEZ committee, so that central government is no longer involved,” said advocate U Than Maung, adding that the new law provides for a management committee responsible for administration, management and supervision of the zone.

The law allows 7 years' income tax exemption for local and foreign investors and 8 years for construction companies in designated areas, while those involved have promised further incentives this year.
The Advisory Board is currently seeking a prominent international consultant to work on inviting tenders for developers.

“We want a fair competition for a developer,” said U Maung Aung, adding that the government plans to implement the three SEZs next year.

In the 2400-hectare Thilawa SEZ 20km south of Yangon, the government and nine domestic enterprises are providing 51%, while a Japanese consortium contributes 49%. Japanese investors are also being courted to get involved in the Dawei project in southern Myanmar, as the lead developer, Italian-Thailand Development Company, suspended work several months ago.