ABSTRACT This paper is a study on localization of human resources in Japanese firms in Myanmar. Five Japanese companies are interviewed to consider localization of human resources in Japanese firms in Myanmar. According to the previous studies, localization of human resources in Japanese firms is considered gradually progressing from the lower to the top management class; however, this study confirms that local Japanese firms in Myanmar have appoint local human resources as managers immediately after they started the operations. The reason why Japanese firms in Myanmar hire the local human resources positively is conjectured that the local firms do not require high technology and administration knowledge; therefore, the transition cost of those skills and knowledge of the company's headquarter is low. On the other hand, it is confirmed that all interviewed firms appoint Japanese employee as the managing directors. Those Japanese expatriates are in charge of issues that require administration approval such as the human resources and finance. Also, Japanese expatriates in Myanmar's local companies help communications between the headquarters and the locals, and carry on business activities with Japanese managing directors of other local Japanese companies. The interviews support the idea that localization of human resources in Japanese firms should apply also to the middle management class in order to increase benefits. Finally, promoting localization of human resources in Japanese firms in Myanmar is also helpful to decrease human costs in comparison with China and other ASEAN countries.