Special economic zone as per central sales tax, 1956 a special economic zone sez is a geographically bound zone where the economic laws relating to export and import are more liberal as compared to other parts of the country. It is in dawei, the capital of the tanintharyi region. Lawplus 1 special economic zone law 2014 enacted on 23rd january 2014 to promote development of special economic zones for. The ministry of national planning and economic development. Since the beginning, the project has fueled massive concerns by many local communities as well as myanmar and thai civil society groups, who have documented the social and environmental impacts and implications of the megaproject in. Open development mekong this is the overarching legislation in myanmar regarding sezs. This law shall be called the myanmar special economic zone law.
Special economic zones and human rights violations in myanmar cristina donateo february 2017 a salient aspect in analyzing land grabbing in myanmar is the proliferation of special economic zones, which overall in southeast asia caused a competitive regionalized economic landscape. Myanmar special economic zone law, 2014 ecommerce laws. Among the special economic zones sezs in the country there are two. Nov 04, 2016 lawplus 7 employment requirements and foreign currency investor must employ skilled myanmar employees at least 25% within 2 years 50% within 4 years 75% within 6 years investor must employ 100% unskilled myanmar employees. Myanmar sez law myanmar version thilawa sez management. Reports definition of special economic zone 11 structure of the report chapter 2. Many of the communities in these sezs are speaking out against what they see. This will further accelerate economic growth and help myanmar achieve its goal of becoming a modern and developed nation. This law is relevant to all the special economic zones. Procedure details and application forms dawei special economic zone management. This represents an important step forward in developing export oriented industries as the sez law looks to not only provide incentives for export oriented industries but.
Thilawa special economic zone summary of impacts, company responses and updates this page will be updated as developments occur. General information of myanmar special economic zones. Inside thilawa sez, where both the hard and soft infrastructure from roads and utilities to supporting services such as maintenance are. Special economic zone law in myanmar brief background the special economic zone sez law was enacted on 23 january 2014. Myanmar special economic zones law the pyidaungsu hluttaw. In order to set up a business in a special or specific economic zone companies need to apply for a license with the secretariat to national committee for special economic zones ncsez.
The new myanmar investment law is also positive for the overall business environment, foreign investment and. Enterprise licence corporate entity carrying out business in a special economic zone. The following expressions contained in this law shall. The expressions contained in these rules shall have the same meaning as.
Special economic zones in myanmar and the state duty to protect. Myanmar special economic zone law, 2014 2014, the pyidaungsu hluttaw law no. Thilawa special economic zone sez, myanmar the thilawa sez, 23 km southeast of yangon, is the first sez to be established by the myanmar government. Laws and regulations related to the establishment and. Their concentration is explained by the convenient access to port infrastructures and the presence of many industrial zones.
Sep 30, 2016 myanmars economic zones can be special they generate jobs, attract foreign investment and improve local businesses. Special economic zones sezs in myanmar international growth. Many southeast asian countries have adopted sezs, which typically involve major investments in infrastructure and demand large amounts of land. In addition, the law on the special economic zones has been drafted by the cdc in 2008 and is now under examination of the rgc. Aims and objectives 69 chinas overseas zones in africa. Since 2010, the myanmar government has implemented political and eco. In 2016, myanmar recorded the fastest economic growth in the world1, following political progress and a successful national election in 2015 which led to the easing of most sanctions against the country. The sea customs act can be downloaded from the following link. Mechanisms 80 progress, challenges, and potential 91. The law has a number of notable tax breaks for investors and developers, in order to spur investment in the region. Myanmars 2014 special economic zones sez law does not conform to the states international law obligations to protect human rights. In january 2014, myanmars parliament passed the special economic zone law that provides.
Edited by thomas farole gokhan akinci international trade department investment climate department. The role of special economic zones in improving effectiveness of greater mekong subregion economic corridors although this risks identifying each special zone as different and obscuring the common features of successful sezsabonyi et al. The zone is being developed in cooperation with the japanese government in two phases. The zone, which is 2,400 hectares ha in total, is being developed in phases under myanmar. The dawei special economic zone law, officially known as the state peace and development council law no. The special economic zone law was enacted in 2014, and its implementing rules were published in 2015.
They generate jobs, attract foreign investment and improve local businesses. Special economic zones in myanmar setting up a business in the sezs. The myanmar special economic zone law the state peace and development council law no. Under this law, a special economic zone is defined as the zone notified and established by the. Thailands special economic zones in border provinces 8 d. The state peace and development council the dawei special economic zone law the state peace and development council law no. The remaining locations, by order of importance, are predominantly found respectively. Myanmar market growth sez legal framework import duty exemptions gsp resources. The development of special economic zones sez in myanmar is governed by the myanmar. Myanmars parliament reconvened on january with some 30 crucial proposed bills on the table, among them the establishment of a special economic zone law, mining regulations and the revamping of the foreign investment law.
The first sez in myanmar, the thilawa special economic zone, began operation in late 2015. This law shall be called the dawei special economic zone law. Myanmars economic zones can be special the myanmar times. Special economic zones rules lincoln legal services myanmar. Thilawa special economic zone management committee. Each special economic zone shall have a production area which may have a free trade area, service area, residential area and tourist area. Special economic zones myanmar trade office taipei. Chapter 4 chinas investment in special economic zones in africa 69. These rules shall be called the myanmar special economic zone rules. Public disclosure of draft environmental impact assessment eia report for thilawa special economic zone zone b. The country is building a series of new special economic zones sez, areas that are designed attract businesses by weakening regulations, offering tax breaks, and waving minimum wage requirements. The dawei special economic zone law the state peace and development council law no. The law has paved the way for special economic zones sezs in myanmar.
Under this law, a special economic zone is defined as the zone notified and established by the central body as the special economic zone by demarcating the boundary and issuing the. The main customs procedures including export and import procedures practiced in the sezs are contained in both myanmar special economic zone law 2014 and myanmar special economic zone rules 2015. Khandelwaly matthieu teachoutz february 2016 1introduction myanmar is a developing country that ranks among the most dif. Special economic zones sezs geographically delimited areas within which governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support are widely used across most developing and many developed economies. Yangon, xinhua myanmar is negotiating with a chinese consortium to carry out a strategic deepsea port in kyaukphyu, western rakhine state, as part of the planned special economic zone sez in the region, according to a report of the official global new light of myanmar sunday. This law shall be called the myanmar special economic zone. Myanmar special economic zone law, 2014 2014, the pyidaungsu. Special economic zones in myanmar and the state duty to. These are like a separate island within the territory of india.
Special economic zones in greater mekong subregion corridors 9 f. General information on myanmar special economic zones. Progress, emerging challenges, and future directions. According to the countrys special economic zone laws act 7, section 36, homes and farming properties located on a proposed sez must be duly relocated and reimbursed. Sezs gained greater prominence when china began using them as part of its modernisation agenda. General information on myanmar special economic zones i the quantity of sezs the development of special economic zones sez in myanmar is governed by the myanmar special economic zone law of 2014. Myanmar special economic zones law burmese myanmar law. Foreign investor operating a business in a special economic zone in a foreign currency can open a bank account and make. One thing was abundantly clear, 2014 is going to be a busy year.
It aims to transform dawei into myanmars and southeast asias largest industrial and trade zone. It is the flagship project of the japan international cooperation agency jica in cooperation with the myanmar government and japanese and myanmar companies. After the royal government of cambodia approved the establishment of special economic zone sez on december 29, 2005, subdecree no. The legal framework for sezs in myanmar does not establish clear procedures and lines of responsibility and accountability.
This law shall be called the myanmar special economic zones law. This website will help traders find all the information they require to import goods into myanmar and export goods from myanmar. Kyauk phyu in rakhine state, dawei in the thanintharyi region and the thilawa in yangon region. This has contributed to human rights violations and abuses at myanmars. The dawei special economic zone sez and deepsea port, if realized, would be one of the largest of its kind in southeast asia. Union election commission lawmyanmar special economic zone lawlaw amending the amyotha hluttaw election lawdawei special economic zone law. Although the performance of many zones remains below expectations, failing either to. Areas declared as a special economic zones may be designated. Myanmar opted early on in its reform process to develop sezs to attract foreign investment. This represents an important step forward in developing export oriented industries as the sez law looks to not.
Myanmars economic policy as myanmar recognized the importance of attracting foreign investment to achieve economic development, on january 27, 2011, myanmars special economic zone law came into effect. The dawei special economic zone is the largest in myanmar, located in a populated agricultural area about 20 km north of dawei, the capital of tanintharyi region in southern myanmar, and approximately 350 km to the west of bangkok, thailand. Thilawa special economic zone sez 2014 phnom penh special economic zone amata nakorn industrial estate amata city industrial estate suryacipta city of industry mahindra industrial park chennai 2017 thang long industrial park ii 2006 thang long industrial park 1997 thang long industrial park iii 2017 east jakarta industrial park 1990. The development of special economic zones sez in myanmar is governed by the myanmar special economic zone law of 2014. Since the beginning, the project has fueled massive concerns by many local communities as well as myanmar and thai civil society groups, who have documented the social and environmental impacts and implications of the megaproject in several reports see voices. Law sez law foreign investment law approval thilawa sez management committee tsmc myanmar investment commission mic tax exemption reduction commercial tax free zone export companies tax exemption no descriptions on tax exemption, etc. As myanmar is opening up to democracy, it is also opening its borders to foreign investment. The special economic zone law, enacted in 2014, and its implementing rules was published in 2015. The dawei deepsea port and special economic zone is an infrastructure project in burma. Special economic zones sezs in myanmar share this publication since 2010, the myanmar government has implemented a broad platform of political and economic reforms aimed at spurring growth and increasing the countrys participation in the global economy. The myanmar special economic zone law mekong migration. A special economic zone is an area notified and established by the government under this law. Procedure details and application forms dawei special economic zone management committee. E 23rd january 2014 the pyidaungsu hluttaw hereby enacts this law.
Myanmar special economic zones law the pyidaungsu hluttaw law no. Jan 21, 2016 myanmar thilawa special economic zone, kyaukphyu special economic zone and dawei special economic zone special economic zones which offer tax exemptions for different sectors 5 years for production, 8 years for hightech, 2 years for agriculture, livestock breeding and forestry, and 1 year for banking are undergoing preliminary construction. Myanmar special economic zone law, 2014 ecommerce laws and. Since the 1980s, special economic zones sezs have been considered an important part of a developing countrys policy apparatus. The law has paved the way for special economic zones in myanmar. The thilawa special economic zone located on the outskirts of yangon is the first special economic zone sez built in myanmar, and had become fully commercially operational in september 2015. Promotion zone other than export companies tax exemption during the corporate tax. Dear investors or locators, myanmar, being a developing country in transition, is still faced. The thilawa special economic zone is an industrial complex being developed 23 km southeast of yangon city center in myanmar. Plans to resume construction were announced in august 2015. The following expressions contained in this law shall have the meanings given hereunder. Industrial zone characteristics a total of 19 industrial zones exist across myanmar with an additional 8 zones either planned or currently under construction. Special economic zones directorate of investment and. Myanmars 2014 special economic zones sez law does not conform to the.
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