Thilawa FDI to hit US$1.7bn

Thilawa SEZ (Photo-EMG)

Foreign investors are set to channel more than US$1.7 billion into Thilawa Special Economic Zone with US$773 million going to the manufacturing sector, according to Myanmar-Japan Thilawa Development Limited.

Trading came second with more than US$126 million of foreign investment and logistics third with over US$77 million. Services followed with over US$56 million, real estate more than US$30 million and hotels around US$12 million, sources said.

Japan was the largest investor with more than US$468 million and Thailand followed with around US$134 million.

“About 150 international companies are expected to make investment of up to US$1.7 billion at Thilawa SEZ after the economic zone opens,” said deputy minister Aung Htoo from the Ministry of Commerce.

The government is expected to export about US$600 worth of products from Zone A of Thilawa SEZ annually, about 5 per cent of total exports.

At the present, 82 companies from 17 countries have invested at Zone A. There are factories producing clothing, shoes, toys, car parts and electronic products.

Most of the goods produced are for import substitution, such as construction materials, food, aluminium supplies, fuel, farming machinery, medicines and fertilisers.