In a resilient move, Toyota Motor Corp restarts its Myanmar plant after a 19-month hiatus caused by a military coup and the ongoing pandemic.
Plant Restart
Toyota officially resumes production at its new Myanmar plant, focusing on assembling one or two Hilux trucks daily, marking a significant milestone amidst the challenges posed by political unrest and the pandemic.
Challenges and Delay
The plant, originally scheduled to open in February 2021, faced an extended delay due to the military coup in the same month. Under pressure, other companies withdrew from Myanmar, but Toyota persevered through the challenging environment.
Human Rights Concerns
While entering Myanmar, Toyota faces scrutiny over human rights concerns. Human Rights Watch emphasizes the need for companies, including Toyota, to conduct thorough human rights due diligence and refrain from doing business with military-affiliated entities.
Toyota's Stance and Compliance
Toyota is committed to contributing to Myanmar's industrial development and supporting local communities. The company affirms its compliance with relevant laws and regulations, highlighting efforts to ensure that its business in Myanmar does not directly involve state-owned or military-affiliated companies.
Industry Dynamics in Myanmar
The move by Toyota contrasts with decisions by other companies, such as Japanese drinks company Kirin Holdings, which decided to sell its stake in a Myanmar joint venture due to concerns about military links. Toyota's decision to resume production signals a strategic perspective on Myanmar's economic potential.
Conclusion
Toyota's revival of its Myanmar plant showcases resilience in the face of adversity. As the company recommences production, it navigates the complex landscape of human rights concerns and political instability, emphasizing its commitment to contributing positively to Myanmar's industrial growth.
