• Purpose: Researching how to solve social problems about between Japanese companies and Myanmar from view of international development Between October 2014 and July 2015

• Method: Studying documents and listening in Myanmar

• Leader: Norihiro Mizumura (Associate professor in Saitama University)

Number of Grant-in-Aid for Scientific Researcher in Ministry of Education, Culture, Sports, Science and Technology::50375581

• List of interviewed companies

Problem consciousness and research

Myanmar is called “Last frontier in Asia” and how do Japanese companies make the bases of enterprises?

What problems happened? How do they solve that?

From various views, our seminar is going to verify Thilawa Special Economic Zone (SEZ), to make frame of business in developed countries and to analyze how to solve problems.

Index

1 Myanmar attract Japanese companies

2 Problem in Myanmar and Japanese corporation

3Japan expects THILAWA Special economic zone

4Relationships in THILAWA SEZ

5The problem of forced eviction at thilawa SEZ

■From a geographic point of view

• There are abundant natural resources, wide landmasses, and a lot

of harvest in Myanmar

• Myanmar has important roles in Asia

• There are preferential duties for Japan

■From Consumption market• IMF estimated that there are 5142 million people in Myanmar

• The number of rich people is increasing steadily

• New markets happen

• Myanmar needs infrastructures

Myanmar attracts Japanese companies

■From the labor market

• Many people (3253million) can work there

• The wages in Myanmar are reasonable

In China and Thailand, Japanese companies just built their office and hired people

who live in there.

Japanese companies think that next market is Myanmar because the wages in

Myanmar are very reasonable

Worker in Myanmar struck in order to raise their wages. But compared with other

country’s wages, the wages in Myanmar are very reasonable

• 95％ of Myanmar people can write and read their language.

• Myanmar people have good impressions about Japan

You can see a lot of cars made by Japanese automobile manufacturer in Myanmar

• Myanmar people are believers in Buddhism.

• Thought in Buddhism makes Myanmar people work seriouslyThey try to be polite and kind to other people because Buddha told them to behave

like that. They try to accumulate good deeds

Japanese may have good impressions of Myanmar people because ethical value of

Japan is very similar to that of Myanmar.

39973351

31581851

17281433

1054429

375366

248234217

1621541371301018671

0 1000 2000 3000 4000 5000

AustraliaNew Zealand

JapanKorea

Hong KongSingapore

TaiwanMalaysia

ChinaThailand

PhilippineIndonesia

IndiaVitnam

PakistanLaos

Sri LankaCambodia

BangladeshMyanmar

The manufaccturing・woker basic wage・mounthly pay

（unit：dollar）

Oct.2013 © 2013 JETRO

China

India

Japan

ASEAN

Australia

Myanmar has good geographic positions in Asia, and it enables Myanmar to make a lot of trades in the world. The number of rich people is increasing .People in Myanmar have good impressions

about Japan and they are polite.

■Electricity・・・shortage70% of electricity are created by water power. Planned power outage does between April and May Factories can’t use electricity all days, so they work by self-electricity

■Traffic ・・・immature Road: it needs to be organized in order to trade effectivelyPort: it needs to be organized in order to make Myanmar be channel of route in the worldTrain: it needs to be organized in order to make progress in Myanmar’s rural areaAirport: it needed to be organized in order to correspond to travelers

Myanmar’s problem and Japanese corporation

Makeup of Item / FinancePlan / Supply / Construction

Management

• Analyzing Myanmar, and proposing appropriate strategy

• Making frame by corporate with bank in Myanmar and public sector

• Accounting managing ,and creating profit

• Choosing famous company in Myanmar which is competitive

• Making value chain appropriately and negotiating Myanmar’s government

Japanese corporation’s role

Main activity of Japanese corporation in Myanmar: Making infrastructureHuman resources management: collecting workers

Technological development: cooperating making infrastructure↓

Japanese company is going to come to Myanmar after corporation establishes factories

The Japanese company is going to do production, marketing, and so on.

Myanmar

Corporation

abroad manufac

turing industry

lack o

f infra

structu

re

Obstacle of advance into Myanmar

infrastructure business

Firm infrastructure

Procurement

Human resource management

Technology development

Inboundlogistics

OperationsOutbound logistics

Marketing and sales

Services

M

a

r

g

i

n

support

Primary actives

M. Porter’s Value chain

Many Japanese companies hesitate to start on an enterprise in Myanmar Main reason is that there are lacks of industrial area But you can change the view, there are supplies of infrastructures. Japan corporations use this opportunities to make new enterprises. They are good at organizing infrastructures, so they try to organize to invite Japan companies in order to create ”Value Chain ”

There are short of electricity and industrial estate. In order to solve that problem, Japan and Myanmar cooperate to develop Thilawa SEZ.Basic infrastructures are based by BOT (Build, Operate and Transfer) and PPP (Public Private Partnership)

【Main purpose 】Making good environment for foreign company to invest and establish market.Hiring people in Myanmar and developing Myanmar’s economic

【Why Thilawa ?】The distance from capital to Thilawa is 23kilomaters One-stop shop will be established There are no regulated industries in Thilawa SEZIt is close to Thilawa port

【The total area of Thilawa SEZ】2400 hectares

【Class A area】Developing rapidly and marketing Establishing high-grade infrastructureMaking competitive industrial factories (ex: car, electronic device, and office machine)

Japan Expects Thilawa Special Economic ZoneJapanese private sectors, Japanese government, Myanmar private sectors and Myanmar government try to develop Thilawa SEZ. The purpose of that area is not only making employees and investment climate, but also solving weakness of industrial in Myanmar

Completed image of Thilawa SEZ

◼ Manufacturing industry︎ : 69%◼︎ House : 9%◼︎ Educational & Medical institution : 9%

◼︎ Management : 3%◼︎ Open space : 3%◼︎ Business : 2%◼︎ Others : 5%

Relationships in thilawa SEZMJTD (Myanmar-Japan Thilawa Development Ltd, which is established by Japan and Myanmar) plays good roles in management, selling and developmentThe Development seems to be well done, but there are problems about human right.Many Agencies criticize that situation all over world

Thilawa SEZ Mekong Watch

Foreign R&D institutions

Foreign companies

Japan's manufacturing

industry

MMSTMyanmar

companies

MJTD

Infrastructure investment

Research object

Vocational education

Parts and materials

Products

Investigation

Criticism

Preferential tariff Funds

Funds Funds

Dividend

Dividend Dividend Dividend

Rewords

informationTechnologies

PartsRaw

materials

interest

Myanmar Government

Business license in Myanmar

Funds

Peripheral infrastructure

support Legal Assistance,

etc.

Yen loan Technical

cooperation

Indirect support

Myanmar sides 51% Japan sides 49%

The flow of goods

The flow of money

The flow of human and information

Japanese banks

loan

SumitomoMitsubishiMarubeni

① Myanmar government compelled inhabitant to leave (12/12/2012)“if you don’t leave in 14 days or intend to move, you would be arrested ”

② Japanese government and JICA required Myanmar government to explain inhabitants and develop by referring “international standard of development” (11/02/2013)⇒ Moving were put off, but 300 habitats in Thilawa were moved forcibly

③ People in Thilawa want Japanese government to help themselves and aid ”Although Japanese government invades human right, why does Japanese government support Myanmar government?”

④Japanese government didn’t reply to the letter from habitats and decided to invest

Mekong Watch

Japan GovernmentJICA

Myanmar Government

Subject residents eviction

①

②③

④

• Loss of work due to eviction

• Inadequate financial assistance

• The destination is undecided

Residents are “squatters”So they don’t have right of residence

Undesirable impact on the environment is not critical. Some of sacrifice for the sake of economic development are unavoidable. JICA is not required environmental impact report, the submission of such resettlement plan for the Myanmar government side.

We have claimed rights by Myanmar Agricultural Land Act

Criticism

Criticism

The problem of forced eviction at thilawa SEZ

Nicomachean Ethics was written by Aristoteles, who is a famous philosopher Aristotle discussed “justice” and explained aboutthat this book is used to teach many politicians ↓We can use this book to solve problems or international development ethically

『 Nicomachean Ethics 』

Ethical approach

Inhabitants in THILAWA were forced to move out.Inhabitants and non-governmental organizations complained to Japan companies and JICA. Especially, MekongWatch (NGO) suggested that Japanese companies stop development because many people in THILAWA suffered.Our seminar is going to do field work and listen to opinion of people in Myanmar in order to solve these problem ethically

参考文献（日本語）

アリストテレス著、朴一功訳『ニコマコス倫理学』京都大学学術出版会、2002年。

鷲見一夫著「ODA援助の現実」岩波書店、1989年。

参考資料（日本語）

株式会社三菱東京UFJ銀行「ミャンマー：ティラワ経済特別区（Special Economic Zone）」

（http://www.bk.mufg.jp/report/insasean/ARS20140313.pdf）AERA REPORT 363、

Global Business Insight臨時増刊号、2014年3月13日、2014年10月30日確認。

国連難民高等弁務官事務所・日本委員会「募金・寄付で国連の難民援助活動に協力を｜国連

UNHCR協会－japan for UNHCR－」http://www.japanforunhcr.org（2014年10月30日

確認）

住友商事株式会社「（ニュースリリース）ミャンマー連邦共和国における通信事業へ参入につ

いて」http://www.sumitomocorp.co.jp/news/detail/id=27942、2014年7月16日、

（2014年10月30日確認）

日本経済新聞「ミャンマー、日本のメガ３行に営業免許を交付」2014年10月1日付朝刊。

日本経済新聞「三井商事、ミャンマーの水道民営化にらみ布石」2014年4月29日付電子版、

http://www.nikkei.com/article/DGXNASGM2504Q_Y4A420C1000000（2014年10月

30日確認）。

日経BP社「（日経ビジネスONLINE）何をやっているの？「総合商社」～三井物産の挑戦と創

造～」

http://special.nikkeibp.co.jp/as/mitsuibussan/prolog（2014年10月30日確認）

日本貿易振興機構「外国投資法を上回る優遇処置を付与―整備進む経済特区(2)－(ミャン

マー)」2014年4月10日、2014年10月30日確認。

丸紅株式会社「世界で活躍する丸紅：アジア」

http://www.marubeni.co.jp/business/global/asia（2014年10月30日確認）

三菱商事株式会社企画業務部・交通インフラ事業部「ミャンマーにおける三菱商事のインフラ

事業について」「日本貿易会月報」2013年11月号、No.719、29-30頁。

三菱商事株式会社「（ニュースリリース）ミャンマー、イェタグン・ガス田プロジェクト事業

会社への資本参画」

http://www.mitsubishicorp.com/jp/ja/pr/archive/2013/html/0000023186.html、

2013年12月17日、2014年10月30日確認。

三菱自動車工業株式会社・ 三菱商事株式会社「（ニュースリリース）ミャンマーにおいて三菱

自動車サービスショップ１号店を開設」

http://www.mitsubishicorp.com/jp/ja/pr/archive/2013/html/0000021542.html、

2013年5月27日、2014年10月30日確認。

メコンウォッチ「ティラワ経済特別区（SEZ）開発事業」

http://www.mekongwatch.org/report/burma/thilawa.html, （2014年10月30日確

認）。

参考資料（英語）

Business News「Foreign money flows into Myanmar」（2014年10月1日付）

http://www.thestar.com.my/Business/Business-News/2014/10/02/Foreign-money-

flows-into-Myanmar/?style=biz（2014年10月30日確認）

U.S. Campaign for Burma, "（PRESS RELEASES）Japan Must Postpone Thilawa SEZ

Financing Until Forced Displacement Reviewed", April. 1, 2014, October. 30, 2014

access.

Mitsubishi Corporation, Marubeni Corporation and Sumitomo Corporation,

"Commencement of Sales of Thilawa Industrial Park Development in Myanmar",

May. 19, 2014, October. 30, 2014 access.

Myanmar Japan Thilawa Development Limited「WELCOME: Myanmar Japan Thilawa

Development Limited」http://mjtd.com.mm/jp, October. 30, 2014 access.

References