Korea-Myanmar Industrial Complex to Begin Construction This Year
Korean President Moon Jae-in (right) walks alongside Yangon Region U Phyo Min Thein while visiting Myanmar in the first week of September 2019. / Htet Wai / The Irrawaddy
ByÂ MYO PA PA SANÂ 9 September 2019
YANGONâ€”The Korea-Myanmar joint industrial complex, the first of its kind in economic cooperation between the Korean and Myanmar governments, will begin construction this year in Hlegu Township, Yangon Region, according to Myanmar Investment Commission (MIC) Director U Thant Sin Lwin.
â€œThis is the first cooperation between the Korean and Myanmar governments,â€ he said during a press conference at the Directorate of Investment and Company Administration in Yangon on Thursday.
The industrial zone will be implemented in two phases with the first running from 2019 to 2021 and the second from 2022 to 2024.
The Korea-Myanmar Industrial Complex Development Co, a 40-40-20 joint venture between Myanmarâ€™s Ministry of Construction, the Korea Land and Housing Corporation and Global Sae-A Co Ltd, will implement the project.
The project is valued at US$110 million (167.9 billion kyats), with the first phase alone worth $48.5 million, according to a proposal submitted to the MIC.
â€œThe MIC approved phase one in February,â€ said U Thant Sin Lwin, adding that the MIC has not yet received a proposal for the second phase.
Korean President Moon Jae-inÂ during his recent visit to MyanmarÂ said the industrial complex will include garment, textile, construction, telecommunications and other manufacturing factories.
Aside from local companies, around 200 Korean companies are expected to invest in the complex, which will focus on the production of export goods.
The idea for the complex came about after the Joint Committee on Economic Cooperation of Myanmar and South Korea agreed to boost trade between the two countries in June 2013.
Korea has made $3.9 billion worth of investments in 177 businesses in the manufacturing, infrastructure, service and construction sectors in Myanmar.
â€œKorea is a crucial investment and trading partner for us. It is the sixth largest investor out of 50 countries that have invested in Myanmar,â€ said President of the Union of Myanmar Federation of Chambers of Commerce and Industry U Zaw Min Win.
â€œThe bilateral trade value is $1 billion, so we support Korean projects, including the Yangon-Dala Bridge project and the industrial complex project,â€ he said.
Topics:Â Foreign Investment, Investment, Korea, Korea-Myanmar Complex, Myanmar