Japan reconfirmed Thursday that it will help develop the Dawei Special Economic Zone in Myanmar, giving a kick-start to the stalled multi-billion-dollar project.
Prime Minister Prayut Chan-o-cha, right, with Japanese Vice Minister of Foreign Affairs Minoru Kiuchi at Government House on Thursday (photo by Pattanapong Hirunard)
At a meeting with Prime Minister Prayut Chan-o-cha, Minoru Kiuchi, Japan's vice foreign minister, urged the two countries hold talks with Myanmar to revive the project, which has seen years of delays. Gen Prayut pledged Thailand would step up its involvement.
Dawei is arguably Southeast Asia's most-ambitious industrial zone - a 250-sq-kilometre deep-sea port, petrochemical and heavy-industry hub located along the slim Thai-Myanmar peninsula.
"The prime minister said we will push to develop the Dawei zone with Myanmar and Thailand and all sides are prepared to move forward with trilateral talks so that the Dawei project can materialize as quickly as possible," government spokesman Yongyuth Mayalarp told Reuters.
In his meeting with Gen Prayut - the first between a high-ranking foreign-government official and Thailand's junta leader - Mr Kiuchi expressed Japan's interest in investing in infrastructure development in Thailand including satellite and water management projects. He also asked the Thai government to protect the interests of Japanese investors.
Dr Yongyuth said Gen Prayut promised to do so, but urged the Japanese to expand technological transfers to Thailand and give better employment opportunities to Thai employees of Japanese companies. He also encouraged Japan to invest in five special economic zones in border areas and 18 provinces outside industrial estates.
The Dawei economic zone, however, remains the one the Japanese are most interested in. The project could be a significant boost to swelling Japanese industrial interests in the region, though its talks with Thailand and Myanmar have stalled.
"We would like to see the Dawei project advance in cooperation with Thailand and Myanmar after a long suspension," Kiuchi said to Reuters, giving no further details.
Thailand and Myanmar seized control of the strategically located complex, billed as a gateway for trade in Southeast Asia, from ITD, Thailand's largest construction firm, in Nov. 2013. The project had seen years of delays that were largely blamed on Italian Thai Development Pcl, the project's leader, which had failed to secure private investment and agree on a power source for the complex.
Located in southeastern Myanmar with highway links to Bangkok and Thailand's eastern seaboard, Dawei is slated to be Southeast Asia's largest industrial complex, if ever completed. The industrial zone would be a potential boon for firms relying on the transport of goods around the cumbersome Malacca Strait, the world's busiest shipping lane.
Discussing a range of trade issues Thursday, Mr Kiuchi also asked Thailand to relax its controls on Japanese food imports. In turn, Thailand urged Japan to realise cooperation under the Japan-Thailand Economic Partnership Agreement, Dr Yongyuth said.