Rangoon to develop special industrial zones

Burma is planning to develop the country's central region by setting up more industrial zones in cities along the Ayeyawaddy River, the weekly Yangon Times reported yesterday.
The report quoted Industry Minister Aung Thaung as saying more vessels could use the Ayeyawaddy River and that cities along the river could be developed as ports. Already there have been 19 local industrial zones established across the country in the early stage of Burma's plan for industrial development, with a total of 9,574 industrial enterprises in operation, including small, medium and heavy industries, according to industry sources. With Nay Pyi Taw being developed as a new administrative capital, Burma has also designated a 210,060-square-metre area there to establish a similar industrial zone, which is likely to include a cattle-breeding zone to be aided by the United Nations Food and Agriculture Organisation. Meanwhile, the ruling junta will enact a special economic zone (SEZ) law this year, aiming to absorb the inflow of more foreign investment into the country to promote its economic development, official sources were cited as saying. It is expected that special privileges for foreign investors setting up in the SEZ will be contained in the law, which is mainly directed at the emergence of the Thilawa SEZ in Rangoon's Thanlyin township, the prospective first full foreign investment SEZ in the country. Under the expected new special economic zone law, Burma will designate six main commercial cities as free-trade zones, local media quoted Forestry Ministry sources as saying. The zones will be Thilawa Port in Rangoon, Mawlamyine in Mon state, Myawaddy and Hpa-an in Kayin state, Kyaukphyu in Rakhine state and Pyin Oo Lwin in Mandalay division. Once the new special economic zone law is promulgated, 200,000 job opportunities will be created, the reports claimed. Besides, the establishment of three other Thai-proposed special industrial zones - in Myawaddy and Hpa-an in southeastern Kayin state and Mawlamyine in southern Mon state - is also under way. The project constitutes part of an economic cooperation strategy programme agreed upon at a summit of Cambodia, Laos, Burma and Thailand held in Burma's Bagan in November 2003. Under the Ayeyawaddy-Chao Phraya-Mekong Economic Cooperation Strategy agreed by the four countries, the three Thai-proposed industrial-zone projects are expected to start later this year. Official statistics indicate that Burma's industrial sector contributed 17.5 per cent to the gross domestic product of the nation in fiscal 2005, which ended last March. A 19-per-cent contribution is targeted for fiscal 2006, which ends next month. The private sector's contribution to the industrial sector stands at 92.36 per cent, statistics show.
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