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Myanmar: Development of Kayin industrial zones delayed by speculative investors
Development o f Hpa-An Industrial Zone, Kayin State, has been slow to take off because some developers have failed to make progress on developing the zones, said U Soe Hlaing, Kayin State Electricity and Industrial Minister.
“There are some buyers who have purchased land within the industrial zone for speculation purposes and not for development. Consequently, genuine investors have not been able to buy certain plots of land which may be more strategic for their business,” said U Soe Hlaing.
He added that the necessary infrastructure needed to conduct operations within the zone have already been set up. “Roads, electricity and land space are already provided at the industrial zone but development has not started because the current land owners are holding the land to speculate on price and not for development,” he said.
Kayin State is among the states in which industrial zones enjoy benefits such as tax waivers for up to seven years.
Hpa-an Industrial Zone was established since 2014 across 969 acres of land. So far, investors from Hong Kong and Thailand have opened factories manufacturing plywood and bamboo goods at the zone. Many garment firms also operate factories in the area.
“There are local and foreign investors and investments have increased steadily over the past few years but more investments are still needed,” said U Sein Lwin, Joint Secretary of the Hpa-an Industrial Zone Supervisory Committee.
“We will now sell land to genuine investors. If these investors do not develop the project within a specified timeframe, we will take back the land,” he added.
The Kayin regional government will also up efforts to raise water and electricity supplies to meet the needs of firms operating within the industrial zones. “Investors will come if we are able to sufficiently meet their needs,” said U Soe Hlaing.
Hpa-an isn’t the only industrial zone facing delays due to land speculation issues. A second industrial zone in Myawaddy, Kayin State, is also facing similar problems. There are currently just four factories operating at the Myawaddy zone.
Similar concerns have also been raised by Yangon MPs over the management of the region’s industrial zones.
Source: https://www.mmtimes.com/news/development-kayin-industrial-zones-delayed-speculative-investors.html