FRIDAY, March 29, 2024
nationthailand

Twelve Thai firms among 79 setting up facilities in Thilawa SEZ

Twelve Thai firms among 79 setting up facilities in Thilawa SEZ

SOME 79 companies from 17 countries, including 12 from Thailand, have signed agreements to set up facilities in Thilawa, Myanmar’s first special economic zone.

 
Yanai Takashi, president and chief executive of Myanmar-Japan Thilawa Development Ltd (MJTD), said those were the figures of Thursday. 
Japan topped the investors’ list with 39 firms, followed by Thailand (12 firms). Among them, 13 firms have been granted commencement certificates by Thilawa SEZ Management Committee and they have already started commercial operations.
“Both Myanmar and the Japanese government have been supporting the project well. We have been struggling to make the project successful and will conti-nue to make the best efforts to contribute to the economic growth of Myanmar,” said Takashi, who said the SEZ was showing faster-than-expected progress.
MJTD is a special purpose company founded in October 2013 to build, sell and operate the lots of the SEZ.
Takashi said that developments of both phases in Zone A were already completed. Myanmar and Japan entered into an agreement on October 29, 2013 to implement the SEZ, and Zone A was brought into operation on September 23 last year.
Investors were scrutinised based on nine priority factors – the number of employees, investment amount, level of exports, if they bring in new technologies, investor reputa-tion and if they are a transparent entity, investment per hectare, number of em-ployees per hectare, level of water consump-tion, and level of electricity consumption.
Many investors were granted licences within a short time through simplified and practical procedures of the One Stop Service Centre. They range from export-oriented investors to others focused on the domestic market, manufacturers, assemblers, packaging, service providers, traders, and services that could facilitate investments. Most of the investors focus on manufacturing.
Myanmar Special Economic Zones Central Body chairman Vice President Henry Van Thio went on an inspection tour of the Thilawa SEZ on September 17. Officials told him that construction of the first phase of Zone B is expected to start in November this year, and Zones A and B, when completed, will be able to house up to 150 factories and employ 40,000 workers.
“Zone B is still at the planning stage. Once we get ready, we will start the development,” Takashi said. Labour-intensive industries and export-oriented companies would be given priority, he said.
The two main zones on offer are free zone and promotion zone. An investor needs to export at least 75 per cent of the production in value to be registered as a free-zone investor eligible to enjoy a seven-year tax holiday. The companies such as logistics that support export-oriented manufactures can also be free zone companies.
Manufacturers focused on the domestic market are regarded as promotion-zone firms and eligible for a five-year tax holiday.Both free zone and non-free zone investors will get 50 per cent exemption on corporate tax for the following 10 years, if the profit is reserved and reinvested
The tax exemptions are a key magnet drawing investors to the SEZ, aside from commitment for 24-hour electricity.
 
nationthailand