Myanmar Opens Japanese-Backed Economic Zone

[Jonathan Fairfield]

Myanmar Opens Japanese-Backed Economic Zone

By SHIBANI MAHTANI

A major Japanese-backed investment zone officially started operations in Myanmar on Wednesday with more than 40 companies, lending a boost to the economic reform credentials of President Thein Sein ahead of crucial elections this November.

The Thilawa special economic zone, a joint project of the Japanese and Myanmar governments lying 20 kilometers south of Yangon, has for years been billed as an example of what would be possible in Myanmar since decades of military rule ended in 2011 and the economy became unconstrained by sanctions. The government hoped that the zone, the country’s first, could quickly grow from years of under-development to help Myanmar join other Asian economies that evolved to manufacturing centers.

But despite grand ambitions, Thilawa’s success is unlikely to be replicated elsewhere, analysts say. Another economic zone at Dawei, close to the Thai border but 600 kilometers further south, has ambled along in fits and starts for the past eight years will little actual development. Japan has pledged support and a new concession agreement at Dawei has been signed with a consortium of private developers, but no specific timeline has been set for progress and investors remain doubtful it will take off.

Source: http://blogs.wsj.com/frontiers/2015/09/23/myanmar-opens-japanese-backed-economic-zone/

[empireboy]

Good luck!