The revised law allows companies in the special zones to export goods -- such as electronics and cars -- built within the zones and import necessary parts. Until now, Myanmar has not allowed trade by foreign businesses, and the original law on the special economic zones was unclear on this point. The new law will a
The revised law allows companies in the special zones to export goods -- such as electronics and cars -- built within the zones and import necessary parts. Until now, Myanmar has not allowed trade by foreign businesses, and the original law on the special economic zones was unclear on this point.
The new law will also require foreign businesses in the zones to lift the proportion of Myanmar citizens to 75% of each company's skilled workers within three years, a significantly shorter time frame than the current 15-year deadline. Yet many firms looking to make inroads there plan to hire the bulk of employees locally, aside from some supervisors. "For us, the tighter restriction is outweighed by the benefits of the longer tax exemption," a major Japanese manufacturer said.
The amended law will apply to areas selected by the government as special economic zones, such as Thilawa, near Yangon; Dawei, close to the Thai border; and Kyaukpyu, where China-led development is underway.
In Thilawa, three big Japanese trading houses -- Mitsubishi, Marubeni and Sumitomo -- have set up a joint venture with major Myanmar firms to build a 400-hectare industrial park. The complex is slated to open in 2015.