115 foreign companies from 19 countries have pumped US$ 1.92 billion into Thilawa Special Economic Zone as of early February this year, according to the Myanmar Special Economic Zones Central Working Body. A total of 81 factories have started commercial operations in Thilawa SEZ with an investment amount of US$ 1.92 billion, said an official from the Directorate of Investment and Company Administration under the Ministry of Investment and Foreign Economic Relations.

“The investment proposals were approved and permitted in accordance with the Special Economic Zone Law,” he added. A total of 115 foreign enterprises have been permitted to operate their businesses in Thilawa SEZ, with around 40 businesses came from Japan and 27 firms from Singapore. Most of the investment came to industrial, transport, real estate and hotels and tourism sectors.As part of efforts to expand Thilawa SEZ, approximately 200 hectors of land are being reclaimed, said an official from Myanmar-Japan Thilawa Development Ltd. Sales of land plots in Zone A and Zone B of Thilawa SEZ are expected to be finalized by 2021. So far 99 % of land plots in Zone A and about 50 % in Zone B have already been sold out, according to the Japan International Cooperation Agency (JICA).

Japan’s auto giant Toyota Motor Corp has set up an automotive assembly plant on 21 hectors of land in Thilawa SEZ in the suburbs of Yangon and the new factory is expected to produce 2,500 Hilux pick-up trucks per year starting from 2021.More than half of the foreign companies operating in Thilawa SEZ came from Japan. Japan topped the list of foreign investors in Thilawa SEZ, accounting for around 37 per cent of the overall investment, followed by Singapore and Thailand. Majority of foreign firms inThilawa SEZ are from South Korea, Hong Kong, UK, Australia, Malaysia, and China.A new four-lane tarred road from Thanlyan to Thilawa SEZ was built with Ks. 50 billion and the upgrade works of the tarred road has been completed 100 per cent.

The Thanlyan-Thilawa SEZ tarred road is 5 miles and 4 furlongs long, 46 ft wide and has drainage system on each side of the road.TheBago River crossing bridge (Thanlyan Bridge No-3) isunder construction with the Official Development Assistance (ODA) loans from Japan. The new bridge measuring 1,982 meters in lengthisbeing built in three phases by spending some US$ 300 million of Japanese ODA loans. Once completed, the new facility will facilitate better flows of goods to Thilawa SEZ. In addition, commodities produced in Thilawa SEZ can be transported to different townships in Yangon Region in a rapid manner. Given its strategic location, Thilawa SEZ offers great opportunities for foreign investors and is regarded as the most successful economic zone in Myanmar.

Located on outskirts of Yangon, Thilawa SEZ is Myanmar’s first special economic zone and had become fully operational since September 2015. The governments of Myanmar and Japan have agreed to jointly create the special economic zone covering an area of approximately 2400 hectares of land.Investment businesses in Thilawa SEZ include producing textile, construction materials, cement, foodstuff, fertilizers, agricultural equipment and vehicles.

By Kyaw Htike Soe