Foreign investor operating a business in a special economic zone in a foreign currency can open a bank account and make. E 23rd january 2014 the pyidaungsu hluttaw hereby enacts this law. Sez and cbez including attributes name, type, country and code. The myanmar special economic zone law the state peace and development council law no. Special economic zones scheme in 2000 and later by special economic zones act, 2005. The ministry of national planning and economic development. Special economic zones sezs in myanmar international growth. Sezs gained greater prominence when china began using them as part of its modernisation agenda. Only 8 percent of the total production is used within myanmar, with the rest exported to china. The unit may opt out of special economic zone with the approval of the development commissioner and such exit shall be subject to payment of applicable duties on the imported or indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock. This law shall be called the myanmar special economic zone. In myanmar, political and economic ideological struggles have affected living standards. Special economic zones in myanmar and the state duty to protect human rights.
Charltons advises on the legal aspects of investing in myanmar, including, but not limited to investments under the myanmar investment law 2016, the myanmar companies law 2017 and the special economic zone law 2014. As a result, analysts and businessmen have recommended that the government take steps to improve economic policies, in order to sustain investors confidence. This study examines the role of special economic zones sezs in cambodia, and finds that the sezs have attracted significant levels of foreign investment that would not have been present otherwise. The unit may opt out of special economic zone with the approval of the development commissioner and such exit shall be subject to payment of applicable duties on the imported or indigenous capital goods. The development of four special economic zones in indonesian. The new law aims to change the way companies are regulated in the country. The ribbon is cut for the first part of the thilawa special economic zone in myanmar, as the private sector project developed jointly with japan becomes the site of nearly 50 factories. Myanmar special economic zones law the pyidaungsu hluttaw law no. The alleged theft of vital financial and statistics data of myanmar thilawa sez holdings company was a case of. Special economic zones are defined as designated areas where natural resources mined in or around the zone are processed. Special economic zones directorate of investment and. Foreign direct investment law amended revised foreign investment law and it will create more economic opportunities and business friendly environment. Thilawa special economic zone management committee. Myanmarthilawa 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.
Trat special economic development zone comprises 3 subdistricts in khlong yai district of trat province, including khlong yai, hat lek, and mai rut. Section 74 in the special economic zones rules, 2006. Odmm makes no representation or warranty, either expressed or implied, in fact or in law, with respect to. Dica coordination meeting of myanmar special economic. Special economic zones rules lincoln legal services myanmar. Khandelwaly matthieu teachoutz february 2016 1introduction myanmar is a developing country that ranks among the most dif. Jan 28, 2014 big year for myanmar economic reforms. Kyauk phyu in rakhine state, dawei in the thanintharyi region and the thilawa in yangon region. 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 extended a further 25 years. Myanmars new companies law myanmar business network. Therefore, sez palu is a very strategic integrated logistics zone. 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. 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.
Apr 04, 2016 publication working paper special economic zones sezs in myanmar. Myanmar is bordered by bangladesh and india to its northwest, china to its northeast, laos and thailand to its east and southeast, and the andaman sea and the bay of bengal to its south and southwest. Checkley consultants for the freedom of association and social dialogue project, ilo office for myanmar and coordinated by christopher land. Foreign investor operating a business in a special economic zone in a foreign currency can open a bank account and make payment in a foreign currency. Dear investors or locators, myanmar, being a developing country in transition, is still faced.
The development of special economic zones sez in myanmar is governed by the myanmar. Odmm makes no representation or warranty, either expressed or implied, in fact or in law, with respect to the accuracy, completeness or appropriateness of the data, materials or documents contained or referenced herein. Myanmars 2014 special economic zones sez law does not conform to the states international law obligations to protect human rights. These investments have created around 68,000 jobs, with equal or better pay and better prospects than the alternatives.
Since 2010, the myanmar government has implemented political and eco. 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. They generate jobs, attract foreign investment and improve local businesses. After that, the coordination meeting on myanmar special economic zone rules was held at the meeting room of office no. One thing was abundantly clear, 2014 is going to be a busy year. General information on myanmar special economic zones. Special economic zone palu sez palu is the first special economic zone in indonesia which is located in the strategic trading channel in sulawesi. In january 2014, myanmars parliament passed the special economic zone law that provides. Development four special economic zones show slow progress. 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. Investment promotion and facilitation in myanmar chapter 5. Ilo guide to myanmar labour law 2017 eurocham myanmar. This law shall be called the myanmar special economic zone law. Other aspects of the policy framework for investment in myanmar chapter 9.
Special economic zones in myanmar and the state duty to. Subsequently, the new myanmar investment law mil came into force at the beginning of april 2017 this fiscal year. Myanmar special economic zones law the pyidaungsu hluttaw. This law shall be called the myanmar special economic zones law. Provided that if the unit has not achieved positive net foreign exchange, the exit shall be subject to penalty that. This represents an important step forward in developing export oriented industries as. On 5 january 2017, the new myanmar companies law mcl was approved by the myanmar government. If there is no particular provision of law for carrying out conciliation of disputes in the special economic zone established within the republic of the union of myanmar, the relevant region or state government shall form the special conciliation bodies according to section 10. Acknowledgements the guide was elaborated by jason judd and janet c.
Intergovernmental negotiations on the post 2015 development. The following expressions contained in this law shall have the meanings given hereunder. General information of myanmar special economic zones. Myanmar has launched measures to improve the investment climate2 need for a private sector development strategy 8 investment promotion and facilitation 140 active sme promotion in myanmar is in its infancy 144 special economic zones are central to myanmars investment. Below is a list with tagged columns and company profiles. Songkhla special economic development zone comprises 4 subdistricts in sadao district of songkhla province including sadao, samnak kham, samnak taeo and padang besar. The law has paved the way for special economic zones sezs in myanmar. The grand opening ceremony of the phase one of thilawa special economic zone was held wednesday at the zone which is 20 kilometers from the commercial city yangon.
Coordination meeting of myanmar special economic zone rules. Myanmar special economic zones law burmese myanmar law. The ilo guide to myanmar labour law is funded by european union, norway, switzerland united states and the ilo. Since the 1980s, special economic zones sezs have been considered an important part of a developing countrys policy apparatus. 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. Shenzhen the poster child of sezs previously a small fishing village, is. The opening ceremony was attended by vice president u nyan tun and the deputy prime minister of japan taro aso and other officials from. Sep 30, 2016 myanmars economic zones can be special mohak mangal and matthieu teachout,amit khandelwal 30 sep 2016 workers ride past a steel factory in thilawa special economic zone. These rules shall be called the myanmar special economic zone rules. This latest package involves tax incentives for investment in indonesias special economic zones. Public disclosure of draft environmental impact assessment eia report for thilawa special economic zone zone b.
The special economic zone sez law was enacted on 23 january 2014. Special economic zone law, dawei sez law necessary law such as competition law, consumers protection law are also under process. The special economic zone law was enacted in 2014, and its implementing rules were published in 2015. Myanmar special economic zone rules, 2016 the myanmar. Myanmar investment law, 2016 with the registration under the special economic zone law, 2014 for businesses located in a special economic zone as third option. New government inherits problems and promise of special economic zones vani sathisan international legal advisor, international commission of jurists and bobbie sta. The myanmar special economic zone law chapter i title and.
Decades of civil war and unrest have contributed to myanmar s current levels of poverty and lack of economic progress. This law shall apply to all special economic zones. Special economic zones and cross border economic zones. Myanmar sez law myanmar version thilawa sez management. Special economic zones and cross border economic zones open. Myanmars economic zones can be special the myanmar times.
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. Promoting sustainable investment in myanmars agriculture. Thilawa special economic zone management committee room no. Cambodias special economic zones asian development bank.
Big year for myanmar economic reforms the diplomat. Investment opportunities in sez palu investment opportunities in sez palu industrial zone commercial zone supporting facilities zone. Further, it is strategically located between bangkok and saigon at the center of the eastwest economic corridor that links vietnam, cambodia, thailand and myanmar. The expressions contained in these rules shall have the same meaning as. This law is relevant to all the special economic zones. Page 4 of 10 the law contains several positive references to the important role of media in society, and expands legal protection for media freedoms and the rights of media workers. Before the enactment of the new myanmar investment law, 2016, the additional registration under the foreign investment law, 2012 was generally optional for foreign investors. Myanmar special economic zone law was enacted on 23rd january, 2014. 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. The zone is being developed in cooperation with the japanese government in two phases.
Apr 09, 2020 charltons advises on the legal aspects of investing in myanmar, including, but not limited to investments under the myanmar investment law 2016, the myanmar companies law 2017 and the special economic zone law 2014. Publication working paper special economic zones sezs in myanmar. Dec 11, 2017 myanmars new companies law on december 6, 2017, myanmars president u htin kyaw approved the new myanmar companies act, 2017, replacing the countrys centuryold companies act of 1914. Composed of 60 eminent judges and lawyers from all regions of the world, the. The mcl was drafted by the department of investment and company administration dica of the ministry of national planning and economic development with the assistance of the asian development bank. Myanmar s 2014 special economic zones sez law does not conform to the states international law obligations to protect human rights.
The indonesian government unveiled its sixth economic stimulus package on thursday 0511. 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. Developer and investor can exchange and transfer their own foreign currency within the. The phnom penh special economic zone ppsez was established in 2006 and is located near the phnom penh airport and in close proximity to the largest population cluster of the country. Under this law, a special economic zone is defined as the zone notified and established by the. The special economic zones act, 2005 was enacted in order to give long term and stable policy framework with minimum regulatory regime and to provide expeditious and single window clearance mechanism. Many southeast asian countries have adopted sezs, which typically involve major investments in infrastructure and demand large amounts of land.