Dawei Special Economic Zone is located in south-eastern Myanmar town of Dawei in the Tanitharyi Region.
The Republic of the Union of Myanmar, formerly known as Burma is located in Southeast Asia bordering major economies in the region. With a sizable population of more than 54 million, the country is focusing on developing the infrastructure that has been neglected for an extended period. The reforms have made the Myanmar economy more open to international investors and companies by allowing them to set up their operations in the country.
By understanding the importance of foreign direct investment and international trade, the government of Myanmar has implemented the “Special Economic Zone Laws” that has initiated the setting up of special economic zones to accelerate growth in the region, bring in the latest technology, industry expertise, and international investments to Myanmar while providing substantial employment opportunities to its citizens.
As Myanmar continues to navigate the routes for accelerating economic growth, the development of SEZ forms a key element of the country's industrialisation plan as the zones are intended to create fertile grounds for international investment, boost manufacturing, and stimulate trade driving an export-oriented approach.
Business Laws in Myanmar
As the ongoing efforts to create a transparent and effective business environment in the country is full-fledged, the government has actively worked towards updating the archaic laws to allow foreign businesses to operate in the country. By enacting the effective updated laws focused on easing the traditional restrictions, attracting foreign investors and designing supporting laws that sustain several business-related activities. The people of Myanmar have been positive of these transformational efforts to open up the economy, attracting investments and creating efficient laws for businesses to operate in the country.
- Myanmar Company Laws
- Myanmar Investment Laws
- Myanmar Trademarks Laws
- Myanmar Special Economic Zone Laws
- Myanmar Taxation Laws
- Myanmar Labour Law
Myanmar Special Economic Zones Law
The Special Economic Zone Laws were enacted in 2014; this signifies a significant step forward in developing SEZ for driving growth in export-oriented industries in Myanmar. The SEZ Laws are actively seeking international organisations to start their operations in the special zones by providing them incentives for export-oriented industrial activities, and assistance for operating the much-needed supply chains that are essential to sustain the industry operations. It is widely expected that the tax benefits accorded to companies under the SEZ laws for export-oriented operations are more generous than the incentives given by the Foreign Investment Law (FIL). Contact us to know more
Your Guide to SEZ’s in Myanmar
A Special Economic Zone is a clearly demarcated geographical area with a special legal and regulatory regime supporting business, trade and industrial activity. The SEZ aims to increase foreign investment and boost economic growth by offering special incentives, services and regulations
- SEZ’s are usually intended to create an environment that will boost manufacturing, stimulate trade and foreign direct investment (FDI), and act as a testing ground for new governance reforms and incentives
- The SEZ offers numerous benefits and guarantees for investors, such as tax breaks and long land leases, vary depending on the type of business activity and the zone in which it is conducted. With the heightened government commitments to infrastructure development, SEZ's provide an additional incentive for potential international investors
- Excellent infrastructure and streamlined approvals processes can be attractive for investors servicing the domestic market, even if they do not require or intend to access customs benefits. The SEZ Law guarantees against nationalization of businesses during the agreed period
Aligning to the plans of the government the free zones in Myanmar are designed for export-oriented business activities and attracts the most generous benefits for investors, while a promotion zone is intended to target the domestic market as well as to provide products and services to the free zone.
Many Southeast Asian countries have adopted SEZs, which typically involve major investments in infrastructure and demand large amounts of land. Proponents say that SEZs facilitate rapid economic development by creating investment incentives, while others say their economic success has been mixed.
Special Economic Zones in Myanmar
Advantages of Setting Up Your Business in Dawei SEZ
- Strategic location in Southeastern Myanmar close to Thailand border it is easier for cross-border trade and commerce
- Proximity to seaport facilities
- A long-term lease for industrial areas up to 75 years
- Expansive tracts of land allocated for industrial areas, residential complexes, and commercial spaces
- Complete repatriation of profits obtained from offshore sales
- Exemption from customs duties and other levies for export
Why Setup Your Business in Dawei SEZ?
Initiated in 2008, the Dawei Special Economic Zone lies in the Tanitharyi region covering nearly 27 square kilometers in landmass for the first phase and total demarcated area of 197 square kilometers which is yet to be developed based upon the future needs and growth. The zone is designed to comprise of an integrated port facility that buttresses the export-oriented business activities.
Unique Features of Dawei SEZ
- Huge area for industrial development
- Strategic location near Thailand border
- Deep-sea port facility
- Presence of oil-refinery, steel mill, fertilizer and petrochemical plants
- Exclusive zones for industrial factories with residential dwellings
- Reservoir facility
- Excellent road facility connecting Dawei with Kanjanaburi, Thailand
Zones within the Dawei Special Economic Zone
- High tech industrial zones
- Information and telecommunications technology zones
- Export processing zones
- Port area zones
- Logistics and transportation zones
- Scientific and technological research and development zones
- Service business zones
- Sub-Trading zones
- Other zones prescribed by the Government, from time to time
Business Areas Earmarked for Investment in Dawei SEZ
- Port business
- Industrial operations
- Electrical power and related service business
- Logistics, transportation, and warehousing
- Construction of motor roads, highways, and railroads
- Exporting petroleum and natural gas
- High-tech production and assembly
- Materials and goods processing
- Infrastructural development
- Chemical processing
- General import & export
- General manufacturing
- Agro-products processing and packaging
- Industries such as agriculture, livestock breeding and fishery, mineral produce business and forestry produce business
- Services businesses such as trading, logistics and transportation, storage, hotel and tourism, education and health, residential quarters, infrastructure supply and support centres, green areas which conserve and protect the natural environment, recreation and resort centres
Priority Sectors in Dawei SEZ
- Hi-tech industries
- Companies which will further promote the economic development of the State
- Businesses which will develop or promote trade and service
- Companies which will promote the infrastructures
- Companies which will create more employment opportunities for citizens
- Businesses which include citizen's investment in foreign-invested companies
- Business activities for conservation and protection of the natural environment
- Other businesses prescribed by the Central Body, from time to time, to carry out in priority
As an investor in Dawei you have numerous possibilities are entitled to special business privileges, customs exemptions and tax benefits.
What are you Entitled to do in Dawei SEZ as an Investor?
The Investor in Dawei SEZ can
- Manufacturing finished products from raw materials, process production by machinery, carrying out warehousing, transport, service providing
- Transporting and importing raw materials, packaging materials, machinery and equipment, and fuel oils to be used in investment business from local or overseas to the Dawei Special Economic Zone
- Commerce, import and export
- Selling at the local market, in accordance with the stipulation of the Management Committee, other goods produced by investment business, which are sub-standard but consumable except medicines and foodstuff
- Establishing and operating offices for investment business and overseas service works in the Dawei Special Economic Zone, with the permission of the Management Committee
- Constructing deep sea port
- Building the industries such as steel plant, chemical fertiliser plant, oil refinery, petrol chemical factory, coal or power stations running on natural gas
- Carrying out service businesses within the Dawei Special Economic Zone
- Constructing roads, railroads from the prescribed region to the border area for the project and extending electricity distribution lines, petroleum pipelines and gas pipelines
- Establishing the infrastructures for residential and economic development, tourism, places which contain resort centres
- Carrying out other businesses not prohibited under the existing laws, with the permission of the Management Committee.
The investor who invests and operates the business in the Dawei Special Economic Zone can
- May apply for income tax exemption on the proceeds of overseas sale for the first five years from the day of commencement of the production or service
- May apply for fifty percent relief on the income tax rate stipulated under existing law for the second five years on the overseas sale proceeds
- For the third five years, if the profit obtained from export sale is reinvested, may apply for fifty percent relief on the income tax rate stipulated under existing law on such invested profit
- After the expiry of exemption and relief period contained in subsections (a) and (b), if exemption and relief is not allowed again under this law, shall pay at the income tax rate stipulated under existing law
Documents Required for Business Incorporation in Myanmar
- Application cover letter for Investment Permit
- Declaration of Company registration (Form 1)
- Statement of the Company’s objectives
- Director’s details (Form 26)
- Memorandum of Association
- Articles of Association
- Copies of Passport of directors and investors if the individuals are non-Myanmar citizens
- Valid visa for operating the company in Myanmar or details of the Nominee director who is a citizen of Myanmar
- Details of the deal or project and the partners if the company is formed as a Joint Venture (JV)
Take the first-mover advantage by setting up your business in the Dawei Special Economic Zone. Even though the location of Dawei is slightly of the limits, the region allows you to expand and run your business at significantly lower costs. However, the initial starting periods of business activity might be difficult as understanding the advantages offered by this zone needs time and patience to understand. Once you've known the potential of the Dawei SEZ, then it provides you with a competitive edge over other businesses in the region.
Contact us for more information on the process of registering your company in Myanmar. We are a team of professionals who are experienced in helping foreign investors understand local Myanmar markets, and successfully navigating the business ecosystem by leveraging the benefits it offers. We assist your business in handling legal, professional and accounting matters according to Myanmar laws.