Consulting

2014 KSP III Policy Consultation - Policy Consulting for Korea-Myanmar Economic Cooperation Industrial Complex

  • 2014-12-31
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Background

The open-door policy of the government of Myanmar in 2011 facilitated industrialization and urbanization which resulted in increased demand for industrial complex and exclusive economic zone to promote manufacturing industry and foreign investment.

Currently there are 25 industrial complex that are completed or still on construction, however there is no systematic development and management system for industrial complex. Moreover the National Comprehensive Development Plan (NCDP) is in process of establishment and the National Spatial Development Plan which is an executive plan for NCDP is also in process of amendment.

Korea has experience in developing industrial complex, which was a pivotal factor for the rapid growth of manufacture industry in 1960s. Sharing the knowledge and know-how of Korea can provide implication for development of industrial complex in Myanmar.


Period of Research

2014.12-2015.12


Project Description

Policy consulting 1: Introducing Korean experiences on development and growth through industrial complex

- Introduction to Korea’s industrial complex

·Portion of manufacture industrial complex

·Industrial zone, exclusive economic zone, difference between ‘Korean industrial complex’ and manufacturing area

- Main contents of Korea’s economic development plan after 1960s

·Main contents of the 1st and 2nd Five Year Economic Development Plan

·Connecting the Five Year Economic Development Plan and the Comprehensive National Territorial Plans

- Review growth pole development strategy by industrial complex development in 1960s and 1970s

·The development process of Guro Industrial Complex, the first national industrial complex

·The development background and process of Ulsan and Pohang Industrial Complex to nurture heavy chemical industry and basic industries


Policy consulting 2: History of Korea’s industrial complex policy

- Review institution for Korea’s initial industrial complex development (1960s ~ 1970s)

·Review on Export Industry Manufacture Complex Development Law, Manufacture Complex Management Law, and Industry Arrangement Law

·Evaluation on the process of Korea’s initial industrial complex development (implementation of land expropriation system, Comprehensive National Territorial Development Plan, connection with Five Year Economic Development Plan, the role of central government)

- Review current institutions for Korea’s industrial complex development

·The MENR initiated capacity building of local governments and stakeholder regarding Integrated Sustainable Waste Management (ISWM).

·The MENR implemented Pilisaru (meaning ‘regaining the usefulness’ in Sinhala language)’ Program in 2009.

- Sri Lanka’s law and institutions regarding solid waste

·Review on Industrial Sites and Development Act, Comprehensive Guideline for Industrial Sites and Development, and Special Act on Simplifying Licensing Procedure for Industrial Complex (types of industrial complex, developer, development procedure, support schemes)

·Review on Industrial Cluster Development and Factory Registration Act, which is an act for management of industrial complex

·Evaluation and implication of Korean institutions for industrial complex development that is dualized to development and management


Policy consulting 3: Implementing policy for industrial complex development and management in Myanmar

- Review Myanmar’s economic and territorial development strategy

·Review on Myanmar National Urban Policy and Urban Development Strategy that has been completed last January

·Analyze Myanmar’s spatial planning system and national development strategy (Additional consulting for planning system was agreed to be skipped in this KSP: only process and strategy for industrial complex development is included)

- Improvement strategy for Myanmar’s industrial complex development

·Analyze current status and issues of existing and developing special economic zone (SEZ) and industrial complex

·Implemente Korea’s industrial complex development policy in Myanmar

·Provide comprehensive guideline for Myanmar’s industrial complex development


Policy consulting 4: Regional economic development strategy utilizing industrial complex (Han-A Urban Research Institute)

- Myanmar Long-term development plan by developing industrial complex

- Analyzing development condition in major growth pole region in Myanmar (Yangon, Hpa-An, Pathein), considering Myanmar’s long-term economic development strategy (at 3rd negotiation meeting, Myanmar requested to focus the research on Southern region such as Rakhine State rather than northwest regions)

- Provide which industries to attract by growth pole, strategy for connecting the industrial complex with infrastructure such as road and railroad network

- Provide development strategy and priority by growth pole


Policy consulting 5: Establishment of master plan for Korea-Myanmar Economic Cooperation Industrial Complex (KMECIC) development (LH·Kyeongdong)

- Establish master plan for KMECIC

- Establish land use plan

- Analyze attracting industry and investment demand

- Characteristics of pilot project by industrial complex development policy

- Include interview with central and local government’s high-level officials for practical project implementation


Policy consulting 6: KMECIC development and financial support strategy for attracting businesses in the complex (Export-Import Bank of Korea (KEXIM))

- Financial support for development of industrial complex

·Provide financial support scheme for Korea Land and Housing Corporation (LH)’s industrial complex development in the future

·Review strategy of utilizing Economic Development Cooperation Fund (EDCF) of KEXIM and grant of the Ministry of Foreign Affairs of Korea (e.g. the Korean government provide entry road, environmental facilities such as waste water disposal free of charge and project implementor pays the development expenses)

·Other funding scheme (ODA of the Ministry of Foreign Affair of Korea and private REITs)

- Financial support scheme for Korean manufacturing businesses who are willing to move in to KMECIC

·Attract businesses that can compete with Thilawa SEZ (implemented by Japan) and provide support scheme


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