The successful establishment of Special Economic Zones (SEZs) is a high priority target for Myanmar, as SEZs will attract foreign investment, promote the export of goods and services and create much needed employment opportunities. Myanmar ́s geographically strategic position between India, China and Thailand provides it with an opportunity to become a new manufacturing base and logistic hub in Southeast Asia. At Present, there are three major SEZs in Myanmar – the Thilawa SEZ, Kyaukphyu SEZ and Dawei SEZ.

These SEZs are linked to major infrastructure development projects, including the construction of deep sea ports, power grids and pipelines to neighboring countries, and improved connectivity following the construction of major highways. Myanmar ́s SEZs offer a variety of investment opportunities for foreign investors – both during the development phase as well as post-completion. In brief, there exist an abundance of opportunities in infrastructure development, production-based industries and service industries across Myanmar’s industrial infrastructure.

The Thilawa SEZ covers an area of 2,400 hectares and is located 23 km southeast of Yangon. At present, Thilawa is the most advanced SEZ project: construction began in November 2013 and the first phase of the Thilawa SEZ commenced in September 2015.

Meanwhile, the Kyauk Phyu SEZ is located in the western region of Rakhine State. The first phase comprises the development of 100 hectares of industrial park and a deep-sea port.

Lastly, Dawei is located in Myanmar’s southern Tanintharyi Region. The initial phase of the Dawei SEZ includes construction of a two-lane 138 km road, a wharf to accommodate 15,000-40,000 ton vessels, an industrial zone for labor intensive industries, a power plant, residential buildings and a water supply system. Future plans include a motorway linking the Dawei SEZ with Thailand’s Kanchaburi province, as well as a railway and links to oil and gas pipelines.

It bears mentioning that the Myanmar Special Economic Zones Law passed in January 2014 comprises several tax incentives for investors in Myanmar’s SEZs. For starters, there is income tax exemption for the first seven years from the date commercial operations commence within an exempted zone or an exempted business, as well as income tax exemption for the first five years from the date commercial operations commence for businesses located within a promoted zone or an SEZ.

In sum, the growth and networking of Myanmar’s SEZs stands at the heart of the country’s drive to be an industrial center at the crossroads of the evolving South-Southeast-East Asian corridor.