RANGOON—The Burmese government plans to establish a jade and gemstone
center in the capital Naypyidaw, where it hopes traders and investors
will open stores and processing industries for the precious stones, a
government official said on Monday.
Thein Swe, managing director of Myanmar Gems Enterprise of the
Ministry of Mines, said it would invite businessmen to settle at the
planned “Jade stores, Jade Industry and Gem Market” in order to create a
business hub for Burma’s gem industry in Naypyidaw.
Thein Swe said new center would offer business benefits to the
gemstone merchants, adding that businessmen would benefit from being
located at the new capital, which was developed in secrecy under the
previous military regime.
“After government moved the capital to Naypyidaw in 2005, jade and
gem auctions were held mostly in Naypyidaw. Now we try to establish the
Jade Stores, Jade Industry and Gem market [here] because we want it to
be more convenient for traders and investors to do business,” he told The Irrawaddy.
“Some investors and traders want to open jade stores and some want to
have a gem market in the new capital. So, that is the main reason” for
the creating the center, he said.
The government has prepared 91 plots for jade stories and jade
industries which would be offered for sale at US $375,000. At the gem
market 19 smaller plots would go on sale for $263,000 each, according to
Thein Swe.
Myanmar Investment Commission would have to approve foreign
investment in the business center, Thein Swe said, adding that foreign
investors were welcome, but only if they set up gemstone processing
industries
“We never allow foreign investment in the jade and gem excavation
sector, but we will allow market and value-added production of jade and
gems. Foreign investors who want to invest in those kinds of sectors
need government permission,” he explained.
Some gem dealers doubted if the plan to establish a gem trade and
processing hub would work, as similar projects by the government have
previously been unsuccessful.
“General Khin Nyunt, the former spy chief, also tried to establish a
jade and gem industry and market, but failed,” said Hla Win, a local gem
dealer.
He said Burma lacked the sophisticated technology required to process
gemstones and create value-added products with the precious stones. “If
we really want to develop that sector, we should try to get
high-quality technology,” Hla Win said.
Burma produces 90 percent of the world’s rubies, sapphires and
fine-quality jade. It holds several sales fairs per year called “Gems
Emporiums,” with sales valued at billions of dollars.
In March last year the government held the 49th emporium in
Naypyidaw. The previous fair in 2011 saw record sales worth $2.8
billion, while a 2010 event generated $1.4 billion. About 9,000 visitors
came to the 2011 event, Reuters reported. Most major buyers are from
China, while Taiwanese and Thai traders also attend in large numbers.
However, gem sales have since slumped after China’s economic growth
slowed down and the Chinese government increased import taxes on Burmese
products, doubling the taxes on jade and gems from 15 percent to 33
percent.
Minister of Commerce Win Myint said the tax hikes had been a major
blow for Burma’s gem trade. “Usually, we got billions of dollars in
income from [gemstone] auctions, but after Chinese authority increased
taxes on jade and gem buyers to 33 percent, our income dropped
tremendously,” he said.
The trade in Burma’s rich gemstone resources—most of which are
located in northern Burma, including in Kachin State—has long been
surrounded by controversy, as it has serves as a major source of revenue
for Burma’s military and ruling elite, and their business cronies.
Kachin rebels have funded their ongoing insurgency against the
government by controlling jade mines and the control over these
resources has been a point of contention between the warring parties.
US sanctions have sought to restrict trade in Burmese gemstones but
the measures have had little effect on the trade, as most jade and gems
are sold to China and other Asian countries, from where the stones can
also find their way to western markets.
source: Mizzima
http://www.irrawaddy.org/archives/23489
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