Saturday 12 January 2013

Myanmar to upgrade old industrial zones

The Myanmar government will be prioritising the development of existing industrial zones before building new ones.

“If it becomes necessary for us to establish new industrial zones when foreign investments arrive, we'll establish new zones in areas like Mingalardon and Htaukkyant," said Aye Aye Myint, the deputy director of the Directorate of Investment and Company Administration.


There are 24 industrial zones in Yangon Region covering about 20,000 acres. Only a total of 3,562 industries are currently operating in these zones, while about 80 per cent of the industrial land has fallen into the hands of property speculators, sources said.

An industrialist from Dagon Seikkan Industrial Zone said only 82 factories have been occupying the zone over the past decade although it actually covers 450 acres of land. He said over 370 acres of land have fallen in the hands of real estate businessmen who manipulate land prices.

The Yangon Southern District Industrial Zone has only 76 factories, making it the least developed industrial zone in the country and many of its lands are in the hands of real estate manipulators.

Although the Directorate of Investment and Company Administration has announced several times that it will take actions against industrial firms who do not build factories on their land plots, authorities have not actually taken any actions against them.

"Regarding the issue about lands being bought to manipulate land prices, if one looks at it from the positive side, these people have money so they can cooperate with those who really want to establish businesses," said Win Aung, chairman of Traders and Industrialists Association.

He also said that such kind of land manipulation issues will stop once more businessmen, direct foreign investments, and industrial zones will be established.

Myanmar plans to set up seven new industrial zones in Tatkon in Nay Pyi Taw, Yadanarbon in Mandalay, Hpa-an, Myawaddy and Phayathonzu in Kayin State, Ponnagyun in Rakhine state and Namoum in Shan State. Among the seven new industrial zones, four of them are located near the border areas in Thailand and China.
 
source: Eleven Myanmar

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