Major Japanese motor companies are planning to establish special economic zone in Myanmar to produce motor vehicle spare parts, the leading local weekly Yangon Times reported Thursday.

The project will be implemented with the cooperation of domestic industrial enterprises probably in the form of joint venture, the report said.

At present, such Japanese motor companies as Suzuki and Isuzu are cooperating with Myanmar companies in producing motor vehicles, while Toyota and Honda are running motor car service industry in the country.

Myanmar is planning to establish six special economic zones ( SEZ) to attract direct foreign investment into the country in a bid to promote its economic development.

The six SEZs are outlined as Thilawa Port in Yangon, Mawlamyine in Mon state, Myawaddy and Hpa-an in Kayin state, Kyaukphyu in Rakhine state and Pyin Oo Lwin in Mandalay division.

Prospective sectors for foreign investment are outlined as production, high-tech, agriculture, livestock breeding, forestry, transport and communications, and banking services.

Foreign investors making direct investment in the SEZs will be categorically exempted from taxation ranging from two to eight years, earlier reports said, adding that investment in high-tech will be exempted from income tax for the first eight years, while that in production for the first five years and that in agriculture, livestock breeding, forestry and banking services for the first two years.