A joint venture between South Korea and Myanmar is set to be established in the coming months after receiving approval from the Myanmar Investment Commission.
A new joint venture between Myanmar and South Korea has been approved by the Myanmar Investment Commission.
Another chapter in the bilateral diplomatic partnership between South Korea and Myanmar was written last month as the Myanmar Investment Commission approved plans for a joint venture between the two countries.
TheÂ Myanmar TimesÂ reports that theÂ South Korea – Myanmar Industrial Complex is expected toÂ be completed across five years, with Phase One taking place on land in Hlegu Township, Yangon Region.
According to theÂ Times, $US100 million has been allocated to theÂ KMIC, which is a 60/40 partnership between South Koreaâ€™s Land and Housing Cooperation and Myanmarâ€™s Department of Urban Housing and Development under the Ministry of Construction.
It is not the firstÂ time South Korea has shown interest in Myanmar, with the countryÂ investingÂ $98 million to construct an international-standard logistics hub at Shwe Lin Ban Industrial Zone in Hlaing Thar Yar Township, and alsoÂ openingÂ factories at theÂ Thilawa Special Economic ZoneÂ (SEZ).
Colliers International said the government neededÂ to work closely with the municipalities in laying out clear rules and regulations that would helpÂ investors to set up their businesses smoothly in the country.
“As many Korean manufacturing companies are now interested to expand further, the government should ensure the deployment of fully operational one-stop service centers for SEZs in the country,” it said.
“Meanwhile, given the robust potential for investments in SEZs, the government should be prepared for the challenges faced in setting up factories in the country.”
Sources: Myanmar Times, Colliers International