The contracts signed between the two countries in the past for Kyaukpyu Special Economic Zone should be made into a win-win situation by keeping in mind the political sensitivities and mutual negotiations, according to Vice-Senior General Soe Win, Deputy Prime Minister, Vice Chairman of the State Administration Council and Chairman of the Central Committee on Myanmar Special Economic Zone.
On October 12, Vice-Senior General Soe Win spoke at the meeting of the Central Committee on Myanmar Special Economic Zone (1/2022) held at the meeting hall of the Ministry of Commerce in Nay Pyi Taw.
Three Special Economic Zones are being implemented in Myanmar: Thilawa Special Economic Zone with Japan and Kyaukpyu Special Economic Zone with China and Dawei Special Economic Zone with Thailand. When the two countries cooperate, they must focus only on the interests of their own countries, as well as on the friendship between the two countries, said the Vice Chairman of SAC.
In addition, among the three special economic zones, Thilawa Special Economic Zone is a zone that is successfully conducting business and is also a model zone. In order for foreign investors to continue investing properly in Thilawa Special Economic Zone, relevant ministries must cooperate to promote new business companies and investments, and for existing investors to operate smoothly. He said that he wants the management committee to provide necessary support for the ability of companies investing in Thilawa Special Economic Zone to keep pace, further expansion of investments and the entry of new investments.
Also, regarding the Kyaukpyu Special Economic Zone, the framework agreement of the deep sea port project was signed on November 8, 2018, and the shareholder agreement was signed in January, 2020 and the concession agreement in November. Regarding the contracts signed between the two countries in the past, the Vice Chairman of SAC said that they must be aware of the political sensitivity and make a win-win situation through mutual negotiations with each other.
As the deep sea port project in Kyaukpyu Special Economic Zone is important, it can produce many benefits for the residents and the state, and it must be successfully implemented. With the successful implementation of the deep sea port project, we will also be able to participate in the Myanmar-China Economic Corridor project. Cooperation between the two countries will be promoted. As the Kyaukpyu Special Economic Zone project is closely related to China's Belt & Road project, it will benefit both countries and achieve regional development. In relation to providing expert training to locals for the development of Rakhine State, the SAC Vice Chairman said that the training should meet the needs of factories at the time of project implementation.
Similarly, Dawei Special Economic Zone has been implemented since 2008, but there has been no significant progress. Vice-Senior General Soe Win said that the contract with the Italian-Thai company, which was previously selected as a partnership builder, has already been terminated and it is needed to be conducted in accordance with international procedures to invite new partnership builders.
Among the three economic directives set by the State Administration Council, stabilizing the market economic system and promoting the economic development of the entire ethnic people by inviting international investments is an important directive. In order to achieve this goal, it is necessary to provide good services in the zones in accordance with international procedures in order to practically work with the procedural SOPs of the relevant ministries. Only then will we be able to invite more foreign investment and economic development. In order to properly lead the special economic zones, the chairmen and members of the management committee have been reconstituted, so that the one stop service centers in the economic zones can be organized and provide efficient services in order to improve the export more than the current situation, said the SAC Vice Chairman.
International special economic zones, including those in our country, are able to attract investments, create employment opportunities, to increase exports, to be able to connect the economy to a wider extent, to contribute the global value chain and to develop industrial production activities for the development of the country's economy. According to the statistics of 2019, there are about 5,400 special economic zones in 147 countries, and more than 500 new zones are being built and implemented. Special economic zones are a new development of industrial policies and can attract more international investment, he said.
In addition, special economic zones of developed and developing countries are mainly focused on facilitating trade activities. Through that, small and medium-sized manufacturing enterprises are increasing into more modern and innovative industries. After that, it will be seen that businesses will be transformed into an integrated zone that includes manufacturing activities as well as services. The situation, which promotes and encourages by the SAC, will also contribute a lot to the development of small and medium enterprises, according to the SAC Vice Chairman.
