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http://asia.nikkei.com/Politics-Economy/International-Relations/Once-isolated-nation-becomes-neighborhood-s-center-of-attention

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Myanmar and Israel sign an agreement to cement bilateral trade


Det judiska Burma.


Israel’s Trade Minister to Tour Japan, Burma, Thailand, Ceylon

Once-isolated nation becomes neighborhood's center of attention

MOTOKAZU MATSUI, Nikkei staff writer

Monks walk in downtown Yangon. Photo by Ken Kobayashi

MUSE, Myanmar -- Myanmar, often called Asia's last frontier, is reforming its way to growth. Multinationals are rushing to gain a first-mover advantage in what is emerging as a hub of a colossal market that -- spanning China, India and the Association of Southeast Asian Nations -- is home to 3 billion consumers.

     Meanwhile, Myanmar's geopolitical importance has neighboring powers jostling to forge stronger ties with the once-isolated nation as it transforms into a democracy, hoping to boost their own economies.

     For the leaders in Naypyitaw, all of this gives them some serious diplomatic clout.   

     Much has been made of Myanmar's improved relations with Japan and the West, brought about by the end of military rule. But the nation's ties with China, India and Thailand are also evolving and deepening. As Myanmar's potential makes it one of Asia's hottest investment destinations, its immediate neighbors are not about to miss out. 

     Exhibit A is Muse, a border town in the northeastern state of Shan. Chinese cash is driving the community's transformation into a trade hub.

     Muse is just across the border from Ruili, in China's Yunnan Province. The Shan state government is leading a project to create a special economic zone there by 2017. This will include the development of high-end housing and terminals for long-distance bus services. 

     Myanmar already plays a key role in China's energy security. In 2013, a 2,500km natural gas pipeline opened, running from the Kyaukphyu port on Myanmar's western coast, past Muse and deep into China.

     The leaders of the two countries, Thein Sein and Xi Jinping, confirmed their commitment to strengthening cooperation when they met in November in Beijing.

Visible presence

China's economic presence is felt in Muse in other ways.

     Although used Japanese cars abound on Myanmar's roads -- one estimate gives them a 90% market share -- Chinese marques such as BYD Auto and Chery Automobile are common in Muse. When it comes to wireless services, China Mobile has more customers there than MPT, Myanmar's largest telecom company. Quite a few local stores accept the Chinese yuan. 

     Myanmar's relationship with India has reached a new stage as well. 

A special economic zone is being developed in Muse, which borders the Chinese city of Ruili.

   Last March, Naypyitaw hosted the third summit -- the first in six years -- of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. The leaders of the seven South and Southeast Asian nations involved discussed energy partnerships and the construction of roads linking India, Myanmar and Thailand.  

     Flows of people and goods between Myanmar and India shrank during the former's decades under military rule, but they have started expanding anew. Myanmar's government aims to triple the value of bilateral trade in the three years through March 2016. Myanmar also recently decided to resume rice exports to India after a four-year suspension.

     In the western state of Rakhine, an under-construction river port will provide a base for transport between Myanmar and northeastern India. The project is being implemented by an Indian public-private partnership.

     The northeast is the poorest part of India. Prime Minister Narendra Modi wants increased cooperation with Myanmar to be a catalyst for the region's development.

Naypyitaw's growing clout

Myanmar's ties with Thailand are emerging from a lull that followed the coup in Bangkok in May.

     Thai Prime Minister Prayuth Chan-ocha in October chose Myanmar as his first foreign destination since taking office. Prayuth and Myanmar officials discussed development in Dawei, a city in southeastern Myanmar, close to the Thai border.

     The plan is to develop a 20,000-hectare economic zone in Dawei. The gargantuan project, which is to include a power plant and an industrial park with a deep-sea port, is expected to take 75 years to complete. That may be time well-spent: The city is only about 400km from Bangkok and could become a manufacturing center for Thai companies facing rising labor costs. 

     The two countries in 2013 set up a 50-50 joint venture to handle the project and select contractors.

†Burma †Myanmar †Israel . . . . . ......