Sunday 9 December 2012

Industrial land price hike causes barrier to investment

Businessmen from home and abroad who are willing to industrial enterprises on the basis of cutting, making, and packing (CMP) system are facing a barrier to investment in soaring price of industrial lands, joint-secretary Aung Min of Myanmar Industries Association said.

The move came after a workshop on CMP development was held on December 2.


Those wishing to invest in industrial sector are to spend about 80 percent of total investment capital on the purchase of land. Scarcity leads to soaring price in land and a barrier to the investment.

So as to overcome the scarcity of indistrial land, the workshop pointed out that  small-and-medium enterprises should be established in the large compounds far from dwellings. Those present placed emphasis on requirment for approval from neighbours, fire harzards, environmental conservation, systematic removal of rubbish and disposal of sewage water at the workshop.

The government should reclaim industrial land plots and sell them to only those really wanting to run. Rules and regulations should be prescribed not to re-sell or hand over industrial land plots.

There are 24 industrial zones running in Yangon. The estimated acres of all industrial zone are about 20,000. Only 3,562 indistries are currently operating. An eighty percentage of all industrial land have fallen into the hand of property speculator, sources said.

The industrial zones running in Yangon are Mingaladon, Shwelinban, Dagon, Dagon (East), Hlinethaya-1,2,3,4,5,6 and 7, North Dagon, North Okkalapa, Shwepyitha-1,2,3,4 and 5, Thadukan, South Dagon-1,2, and 3, South Okkalapa and Thakayta.

According to the data released by the Ministry of Industry, there are 3,179 acres and 3,319 industries in Yangon East District, and 2,436 acres and 625 industries in Yangon North District.

The current price for one acre in industrial zone of Yangon ranges from US$588,235 (Ks 1,00 million) to US$2.9 million ( Ks 5,00 million). However, the price for one acre land in other townships is above average US$588,235 (Ks 100 million).

“The industrial lands are growing in price and so are condominium. The committee is formed to control price in Bangkok, Thailand. The committee decides the value. Also in our country, the committee including governmental officials will have to be constituted soon,” Minister Soe Thein of the President’s Office said at Myanmar embassy’s family gathering to the United States in September. 
 
source: Eleven Myanmar

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