Japanese Giants Exit Myanmar Port Amid Rights Concerns

Three major Japanese firms are pulling out of a Myanmar port project linked to the country’s military, sparking calls for a transparent and responsible exit that prioritises human rights.

Kamigumi, Sumitomo Corporation and Toyota Tsusho confirmed this week they have begun the liquidation process and are preparing to withdraw from the Thilawa Multipurpose International Terminal, located in Thanlyin Township, Yangon. The terminal is operated in partnership with the Ever Flow River Group — a company tied to the military-owned conglomerate Myanma Economic Holdings Limited, which is under international sanctions.

The move follows pressure from civil society organisations in both Myanmar and Japan, who sent letters in March asking whether human rights due diligence had been conducted since Myanmar’s 2021 military coup. They also raised concerns about the port’s future after the junta-appointed Myanma Port Authority selected a new long-term operator.

While the companies promised to support employees during the transition, they have offered no clear explanation of how they will prevent project revenues or assets from benefiting the junta. Activists warn that an opaque exit could inadvertently fund further abuses by the military regime, which has intensified airstrikes since a deadly earthquake struck the country on 28 March.

Critics also took aim at Japan’s government-backed agencies involved in the project. NGOs accused the Japan Overseas Infrastructure Investment Corporation (Join) of lacking public accountability and said Nippon Export and Investment Insurance (Nexi) failed to address human rights risks, focusing instead on environmental impact.

“The military has continued to commit atrocities,” said Yadanar Maung of Justice for Myanmar. “Opaque exits that don’t respect human rights risk fuelling those atrocities.”

Campaigners are now urging all stakeholders — including Join, Nexi and the three departing companies — to disclose how they intend to prevent complicity in Myanmar’s ongoing crisis. Without full transparency, critics argue, Japan’s business disengagement risks falling far short of international human rights standards.

-2025-05-16