(1) Background and Justification ofthe Project
1) Project Background
a) พม่า
While Myanmar attracts the world’s attention to its rapid economic development. liberalization. and
democratization as Asia’s “last frontier," the effects of the country hating suffered through 50 years of economic
sanctions and numerous internal ethnic group conflicts have become equally pronounced The West‘s economic
sanctions prevented not only the development of the country but also any Foreign Direct Investment (FDI)~
Chronic unemployment and national impecuniousness plague the society. in addition due to the government’s
neglect in providing basic infrastructure to the nation. Myanmar has a great shortage of power supply-arguably the most important component of the industrial development. The issue of power supply is one of the most pressing to the country.
b) Thailand
The domestic industry in Thailand had shown dramatic growth which resulted in is national economic growth in
recent years As a consequence, the laborintensive industry. requiring only modest upfront investment. has been
forced to operate in a low—cost area away. distant From the Thai capital. Furthermore. due to a 300 bath per day
minimum wage, introduced in 2013, labor-intensive industries began to plan low~cost operations by relocating
manufacturing facilities in the neighboring countries outside of Thailand to take advantage of those countries
cheap labor. Currently the Thailand Board of Investment (BOI) is considering a policy that would encourage the
transfer of labonintensive industries to neighboring countries through a new BOI to be enacted in 2015
2) Project Necessities
a) Construction of Industrial Zone on the border with Thailand
Understanding the movement of political decision-making on the Thai side, the Kayin State, sharing a border with
Thailand, has decided to construct the Industrial zone in the border town, Myawaddy, in order to create local employment and
comply with the demand of its neighbor Thailand.
b) Adopting the international standard to receive Japanese investment
Kayin State's original development plan for an industrial zone is not sufficiently attractive to attracr FDI,due to its deficient
infrastructure facilities » i,e. power supply, water supply, and drainage management system and solid waste
disposal system. This project aims to establish to the industrial zone to international standards for both in Myawaddy and Hpa-an. For the development of Myawaddy Industrial zone, developers also Seek to participate in the Operation of the Industrial Zone
c) Solution through a PPP scheme for finance
The business operation of an Industrial Zone requires consideration of selling the plot of land to private companies. it enables
the development of an economically efficient Industrial Zone by establishing Special Purpose Companies (SPC),which will
work particularly well in the financial aspect under a PPP scheme.