Myanmar and Japanese firms on Saturday signed a memorandum of understanding (MoU) on development of Thilawa Special Economic Zone (SEZ), in Myanmar's Yangon.

The MoU on significant cooperation between nine Myanmar public companies and a Japanese consortium including -- Mitsubishi Corp., Marubeni Corp. and Sumitomo Corp which are engaging in the zone development, was signed between U Win Aung, chairman of UMFCCI and an official of Mitsubishi Corp, witnessed by Japanese Prime Minister Shinzo Abe.

Abe is on his three-day official goodwill visit to the Southeast Asian nation as a Japanese prime minister in 36 years.

U Hset Aung, chairman of Thilawa SEZ Management Committee and deputy minister of National Planning and Economic Development of Myanmar, said that this is a milestone of bilateral relationship between Myanmar and Japan, creating job opportunities and providing high technologies for locals in developing the SEZ project.

"Environmental impact assessment which is currently being carried out in proposed site of Thilawa SEZ would be completed by August this year," U Hset Aung said.

The SEZ project includes factories, high-tech industry, textile, labor intensive industry and manufacturing industry.

Thilawa will be jointly developed by Myanmar with 51 percent shares and Japan with 49 percent.

The Thilawa project covers an area of over 2,000 hectares between Thanlyin and Kyauktan townships in Yangon region, which is next to the Dawei SEZ project in southern Taninthayi region.

According to official statistics, bilateral trade between Myanmar and Japan totaled 1.414 billion US dollars in 2012, of which Myanmar's import from Japan reached 1.053 billion dollars, while its export to the East Asian nation stood at 360.79 million dollars.

Japan's investment in Myanmar amounted to 270.283 million US dollars as of March 2013 since Myanmar opened to such investment in late 1988, standing the 11th in Myanmar's foreign investment line-up.