The zone, which is 2,400 hectares ha in total, is being developed in phases under myanmar japan thilawa development ltd. Mohak mangal and matthieu teachout,amit khandelwal 30 sep 2016. New myanmarchina economic zone in the works the myanmar. One objective of these reforms is to bring about structural change that makes myanmar more reliant on the manufacturing sector. The ilo guide to myanmar labour law is funded by european union, norway, switzerland, united states department of labor project mmr10usa and the ilo. Free economic zone colon free zone, panama domestic, re. Foreign investor operating a business in a special economic zone in a foreign currency can open a bank account and make. This publication does not necessarily reflect the views or policies of the united. 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. Progress, emerging challenges, and future directions thomas farole, gokhan akinci editors directions in development. Sezs gained greater prominence when china began using them as part of its modernisation agenda.
The special economic zone sez law was enacted on 23 january 2014. Under this law, a special economic zone is defined as the zone notified and established by the. Since 2010, the myanmar government has implemented political and eco. General information of 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. The myanmar special economic zone law chapter i title and.
General information on myanmar special economic zones. Khandelwaly matthieu teachoutz february 2016 1introduction myanmar is a developing country that ranks among the most dif. Dear investors or locators, myanmar, being a developing country in transition, is still faced. The myanmar special economic zone law mekong migration. Progress, emerging challenges, and future directions. 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. Myanmar special economic zones law the pyidaungsu hluttaw law no. Myanmar, with the crossborder trade value between thailand and myanmar ranking first excluding sang khla buri district, which imports natural gas competencies and opportunities located on the eastwest economic corridor ewec western tak can serve as a connecting corridor to yangon, which is the economic centre of myanmar. Thilawa special economic zone management committee. The law has paved the way for special economic zones sezs in myanmar. Special economic zone what is a sez indian economy. In order words, sez is a geographical region that has economic laws different from a countrys typical economic laws. Myanmars 2014 special economic zones sez law does not conform to the states international law obligations to protect human rights. Usually the goal is flourishment in foreign investment.
General information of myanmar special economic zones. Independent of the myanmar investment commission and the 2016 myanmar investment law, these special government bodies are tasked to supervise and coordinate investment and development in the zones. Special economic zone sez is a specifically delineated dutyfree enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. Apr 07, 2017 an opinion editorial by sean bain, icj legal consultant in myanmar. Trends in zone development while special economic zones are often treated as an innovative topic in development economics, citywide free zones with goals and methods not too different from those employed in modern zones were in place in gibraltar and singapore as early as 1704 and 1819, respectively. Special economic zones in myanmar and the state duty to. Land confiscations and collective action in myanmars dawei special economic zone area. 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. Special economic zones sezs in myanmar international growth. The law has a number of notable tax breaks for investors and developers, in order to spur investment in the region.
Since the first sod was turned in 2008, the dawei special economic zone has been mired in controversy. Myanmar has taken steps to ensure that the sezs benefit the broader economy. The tax benefits of the myanmar special economic zones. Myanmar special economic zone law, 2014 2014, the pyidaungsu hluttaw law no. Decree on special economic zone and specific economic zone in. Itl income tax law meb myanmar economic bank mfil myanmar foreign investment law mftb myanmar foreign trade bank mic myanmar investment commission mmk myanmar kyat ofac office of foreign assets control scb state commercial bank see stateowned economic enterprise sez special economic zone spdc state peace and development council. The law has paved the way for special economic zones in myanmar. Pursuant to the law on promotion of investment no 02na, dated 08 july 2009. About 20,000 residents of kyaukphyu township in rakhine state are at risk of losing their land and livelihoods because of land acquisition for developing a special economic zone sez.
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. One thing was abundantly clear, 2014 is going to be a busy year. The special economic zone law was enacted in 2014, and its implementing rules were published in 2015. It aims to transform dawei into myanmars and southeast asias largest industrial and trade zone.
The myanmar special economic zone law the state peace and development council law no. Apr 18, 2016 the special economic zone law, enacted in 2014, and its implementing rules was published in 2015. 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. A special economic zone sez is a geographical region that has economic laws more liberal than a countrys typical economic laws. Article 24 the shenzhen special zone shall be under the direct management and administration of the guangdong provincial committee for the administration of special economic zones. Public disclosure of draft environmental impact assessment eia report for thilawa special economic zone zone b.
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. Special economic zone or sez refers to a totally commercial area specially established for the promotion foreign trade. A central component of this strategy is the creation of special economic zones sezs, enclaves that are designed to facilitate imports, exports and foreign direct investment. Myanmar s 2014 special economic zones sez law does not conform to the states international law obligations to protect human rights. 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. Sep 30, 2016 myanmars economic zones can be special they generate jobs, attract foreign investment and improve local businesses. E 23rd january 2014 the pyidaungsu hluttaw hereby enacts this law. Legal frame for the special economic zone sez scheme. Thilawa special economic zone sez, myanmar overview the thilawa sez, located 23 km southeast of yangon, is the first largescale sez in myanmar. Myanmars economic zones can be special the myanmar times. Regulations on special economic zones in guangdong province. Apr 19, 2018 negotiations are underway between myanmar and china for the construction of a chinese economic zone to promote myanmar manufacturing and tourism, u yan naing tun, director general of the department of trade under the ministry of commerce told the myanmar times last week. Workers ride past a steel factory in thilawa special economic zone. This law shall apply to all special economic zones.
Kyaukphyu special economic zone shows need for law reform. These special economic zones are expected to be operational by 2016. It will offer a wider scope for bilateral trade cooperation including schemes to invest in factories and mills as well as develop a more robust tourism sector. This law shall be called the myanmar special economic zone. Kyaukphyu special economic zone shows need for law reform in myanmar. Myanmars 2014 special economic zones sez law does not conform to the.
Decree on special economic zone and specific economic zone in the lao pdr pursuant to the law on the government no 02na, dated 6 may 2003. This law shall be called the myanmar special economic zone law. The zone is being developed in cooperation with the japanese government in two phases. Funding for this ilo publication was provided by the united states department of labor project mmr10usa. Myanmar special economic zones law burmese myanmar law.
Kyaukphyu special economic zone shows need for law reform in. Special economic zone law in myanmar brief background the special economic zone sez law was enacted on 23 january 2014. The development of special economic zones sez in myanmar is governed by the myanmar. Special economic zones myanmar trade office taipei. Jan 21, 2016 according to the countrys special economic zone law s act 7, section 36, homes and farming properties located on a proposed sez must be duly relocated and reimbursed. Myanmar special economic zones law the pyidaungsu hluttaw. This represents an important step forward in developing export oriented industries as. Plans to resume construction were announced in august 2015. Special economic zones and cross border economic zones open. Composed of 60 eminent judges and lawyers from all regions of the world, the. Kyauk phyu in rakhine state, dawei in the thanintharyi region and the thilawa in yangon region. Land confiscations and collective action in myanmars dawei. This law shall be called the myanmar special economic zone law, 2014.
It is in dawei, the capital of the tanintharyi region. Special economic zones in myanmar and the state duty to protect. Special economic zones directorate of investment and. Special economic zone law, enacted in 2014, which stipulates that the developer or investor may lease the land for up to 50 years upon payment of a lease fee, a period which can be. The dawei special economic zone law, officially known as the state peace and development council law no. Reports of corruption, land grabs and environmental degradation have turned public opinion against the scheme, and, since the withdrawal of the italian thai development company in 2012, financial. The new economic zone will differ from the muse border trade gate in myanmar. This law is relevant to all the special economic zones. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country. Special economic zones and cross border economic zones. The dawei deepsea port and special economic zone is an infrastructure project in burma. This law shall be called the myanmar special economic zones law.
Background 101 introduction to suzhou industrial park 102 the strategy of the chinese and singaporean governments 104 partnership structure 105 the knowledgesharing process 107 challenges to the partnership 110 overcoming partnership challenges and implementing innovations 1. 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. Special economic zones and human rights violations in myanmar cristina donateo. Referring to the resolution of the national assembly standing committee on the. Special economic zones in myanmar and the state duty to protect human rights. However, the authorities have already adopted in 2014 a law fixing tax benefits and other incentives to be awarded to foreigners forming a company in a myanmar special economic zone. Mjtd, a publicprivate partnership joint venture initiated by. Implications for rural democratization yukari sekine abstract the recent political and economic liberalization in burmamyanmar, while indicative of some positive steps toward democratization after decades of authoritarian rule, has simultaneously increased. In january 2014, myanmars parliament passed the special economic zone law that provides a legal framework for the three sezs. New myanmarchina economic zone in the works the myanmar times. Myanmar sez law myanmar version thilawa sez management. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration.
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