YANGON—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.
“This is the first cooperation between the Korean and Myanmar governments,” 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 Myanmar’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.
“The MIC approved phase one in February,” said U Thant Sin Lwin, adding that the MIC has not yet received a proposal for the second phase.
Korean President Moon Jae-in during his recent visit to Myanmar 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.
“Korea is a crucial investment and trading partner for us. It is the sixth largest investor out of 50 countries that have invested in Myanmar,” said President of the Union of Myanmar Federation of Chambers of Commerce and Industry U Zaw Min Win.
“The bilateral trade value is $1 billion, so we support Korean projects, including the Yangon-Dala Bridge project and the industrial complex project,” he said.
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