THE primary objective of attracting investments in Myanmar’s special economic zones (SEZs) is to align with the national strategy set by the government, which focuses on increasing exports. When inviting investments into these SEZs, priority is given to businesses that produce export-oriented goods.
Currently, Myanmar has three SEZs: the operational Thilawa SEZ, the future Kyaukpyu SEZ and the Dawei SEZ. Given the country’s geopolitical and economic landscape, the implementation of these SEZs must consider not only economic factors but also political aspects. The development of SEZs is based on the Myanmar Special Economic Zone Law enacted in 2014, along with its related rules, ensuring compliance with legal frameworks while adapting to the current economic situation.
The government’s economic strategy includes fostering a “thriving and robust economy” by supporting Micro-, Small-, and Medium-sized Enterprises (MSMEs) and boosting exports. SEZs must align with this strategy and operate accordingly. Globally, many countries have established SEZs with distinct laws and regulations to attract foreign investments. They offer incentives such as tax benefits, policy advantages, and business facilitation. Similarly, Myanmar’s 2014 SEZ Law also includes these provisions.
In Thilawa SEZ, businesses operate under two categories: the Free Zone and the Promotion Zone. While companies in the Free Zone face no foreign exchange restrictions, those in the Promotion Zone encounter some challenges of foreign exchange, which the relevant authorities are addressing. To reduce reliance on foreign currency, import-substituting MSMEs should be encouraged to minimize import expenditures.
The government is implementing SEZs with the overarching goal of economic growth, and MSMEs are expected to play a significant role in this initiative. To ensure SEZs contribute effectively to national development, efforts must be made to enhance their success. Economic growth is essential for every country, and Myanmar is actively striving for progress in this area.
Currently, Myanmar is advancing the development of the Kyaukphyu and Dawei SEZs. In the 2024-2025 financial year, the project is crucial from both economic and geopolitical perspectives and would greatly benefit local communities and the nation. It is necessary for efficient implementation and the successful execution of the deep-sea port project, which will contribute to the Myanmar-China Economic Corridor under the Belt and Road Initiative (BRI).
Regarding the Dawei SEZ, senior officials from Myanmar’s government have engaged with Russia and Belarus to explore investment opportunities. Authorities must now take proactive measures to facilitate investments and streamline business operations. As Myanmar’s SEZs play a vital role in national economic development, all stakeholders must work towards their smooth and successful implementation.
