Vice Chairman of State Administration Council Deputy Prime Minister Vice-Senior General Soe Win addresses work coordination meeting 1/2024 of Myanmar Special Economic Zone Central Committee
Nay Pyi Taw January 10
Myanmar Special Economic Zone Central Committee held work coordination meeting 1/2024 at Ministry of Commerce here this afternoon addressed by Chairman of the committee Vice Chairman of State Administration Council Deputy Prime Minister Vice-Senior General Soe Win.
Also present were member union minsters of the central committee, deputy ministers, management committee chairs of Thilawa, Kyaukphyu and Dawei SEZs, directors general and officials. Chief ministers of Yangon and Taninthayi regions and Rakhine State took part in the meeting through video conferencing.
The Vice-Senior General said in accord with one of the three economic objectives “To develop a stable market economy and promote international investment in order to enhance the economic development of the entire National people” adopted by SAC, SEZ-wise SOPs were systematically laid down and Myanmar SEZ Law 2014 was enacted in accord with the international procedures to practically carry out the functions through One Stop Services. Indoing so, the current amount of investment at the zones must be maintained, and new investments must be invited through various means to provide support for national economic development in a way. Development of zones will also help MSMEs to achieve progress.
Management committees were set up for further development of SEZs and they are responsible for the success of the relevant zones.
Thilawa SEZ must maintain its existing investments and inflow of new investments through multiple means and apply systematic and precise means based on One Stop Service. Of the three SEZs, Thilawa is gaining success. If compared with other countries, the number of SEZs in Myanmar is still low. Hence, committee members should strive for setting up new zones. Collective efforts are required to implement Kyaukphyu and Dwei SEZs. Thilawa SEZs is gaining ground to a certain degree in terms of local standard. Thanks to the systematic functions and quality of One Stop Service, it is a SEZ that is renowned in Southeast Asia.
The zone must maintain its current investments and invite new ones. The flow of investments depends on success of the zone as a promising zone will attract more investments.
A total of 114 companies from 21 countries invested US$-2.1 billion in Thilawa SEZ till November 2013. The companies created 37,000 jobs for workers and 887 jobs for foreign technicians and workers in the first year. But the figures were still low. Based on the increase in investment more job opportunities will appear.
Looking at the export and import items from Thilawa SEZ, export items in November included garments, salmon, refined metal products, finished plastic products and five kinds of vehicle parts and import items included tractor parts for domestic use, other raw materials, goods for garments, aluminum raw materials and vehicle parts.
In exporting products by integrated MSMEs in the SEZ under the guidance of the central committee in November, MSMEs were able to export raw materials, local products and other items worth MMK 1.3 billion. This was the initial step and it is necessary to export more local raw materials and other products, to earn foreign currencies instead of MMK and to improve the quality of products.
Looking at the zones, there were 25 companies in the free zone as of November and 38 companies in the promotion zone. They imported goods worth Ks-89 billion and more than Ks-606 million customs duties, Ks-1.8 billion commercials tax and Ks-757 million advance tax were collected from them. As export volume stood at US$-12.95 million and import volume amounted to US$-42.567 million in November, trade volume totaled US$-55.517 million. It can be seen that there was a gap between the export value and import value. Companies in the promotion zone are especially required to reduce foreign exchange spending as much as possible in accordance with the Myanmar Special Economic Zone Law (2014).
For electricity supply, it was learnt that discussions were held with three companies to utilize solar energy and they held talks with the Ministry of Electric Power. When electricity is generated from the solar energy and solar plants, electricity currently used in the zone can be supplied to other places in need. Therefore, concerted efforts must be made to generate electricity from solar energy in the SEZ.
Moreover, a new management committee for Kyaukphyu SEZ was formed in 2021, when the government took office.
After forming the committee, necessary measures were taken with the aim of encouraging what should be, preventing what should not be and losses for the country. However, there were challenges during the two years due to the need for the committee to take a long time to hold negotiations thoroughly by placing emphasis on the interests of the country and other difficulties. Therefore, the central committee joined the negotiations later to get the Win-Win solution for both sides.
After reporting to the head of state, the work committee was able to negotiate a deal and the addendum of the concession agreement for Kyaukphyu SEZ and deep seaport was signed on 26 December, 2023. After signing the addendum, the long stop date was extended for 18 months as of 26 December and if condition precedents can be made during the period step by step urgently, the project can be implemented as soon as possible.
When the project can be implemented, local residents will be able to enjoy job opportunities, which will nurture skilled workers, who will contribute to other SEZs. I would like to urge all to implement SEZ tasks successfully during the designated periods and appreciate the efforts of the central work committee chairman and experts who negotiated the deal in advance. The successful negotiations are the achievement of the central committee.
Concerted efforts must be made to operate the SEZ as soon as possible and this amounts to implementing a project that will contribute a lot to economic development and friendship of the two countries.
The third project is Dawei SEZ Project. Although the project has been implemented since 2008, Italian-Thai Company cannot carry on its process due to various reasons. It faces more issued to be solved.
But, due to political changes of Thailand, it was reported that the Dawei SEZ will be connected with the Thai government.
At present, the Thai government is interested in Dawei SEZ project and managed reconnection. So, Myanmar needs to cooperate with them if necessary.
As policy of the current Thai government, the special economic zone is being established in eastern province of Thailand, and it may be connected with Dawei SEZ. On the other hand, Dawei SEZ Management Committee faces costs in selecting the new investors and needs to finish the Special Purpose Vehicle (SPV) measures without incomes as quickly as possible.
This meeting, members of relevant management committees ned to openly submit the zonal processes to be implemented within six months and central committee members need to give suggestions.
Joint Secretary of the Central Committee Deputy Minister for Commerce U Min Min reported on accomplishments of the decisions of meeting 1/2023.
Secretary-1 of the central committee Union Minister at the State Administration Council Chairmen Office U Aung Naing Oo and Secretary-2 Union Minister for Commerce U Tun Ohn reported on process of successfully implementing the Myanmar SEZs.
Union Minister for Investment and Foreign Economic Relations Secretary of the central committee and management committees of Thilawa, Kyaukpyu and Dawei SEZs sought the approvals for the letters to the central committee meeting.
Union ministers discussed suggestions and progress of SEZs in their respective sectors.
The Secretary of the central work committee sought the approval of the draft decisions of the meeting 1/2024.
The Vice-Senior General coordinated necessary measures for discussions and reports and the meeting concluded.