This includes the construction of new industrial zones. “Presently, management at the various industrial zones in Yangon are not standardised and conducted on an ad-hoc basis. A proper law is needed to hold the industrial zones accountable,” said U Win Maung, MP from Hlaing Thar Yar township.

The lack of official legislation governing Yangon’s 29 industrial zones, which were established over the past 30 years, is deterring much needed FDI.

“Even though we have been implementing the zones for the past 30 years, we cannot produce Made in Myanmar brands because we have no law,” said one businessman from Shwe Lin Pan industrial zone of Hlaing Thar Yar Township.

Because there is no law protecting foreign investors such providing recourse in the event of a dispute, it is hard to attract international corporations to invest in Yangon’s industrial zones, he added.

‘A proper law is needed to hold the industrial zones accountable” U Win Maung, MP, Hlaing Thar Yar township

Despite the lack of legislation, the Yangon Region Government is still planning to construct new industrial zones in 11 townships outside Yangon, The Myanmar Times reported earlier this year.

The Ministry of Industry has said it is aware of the challenges and that discussions to prescribe an industrial zone law are currently in place.

SME focus

The government must also focus more on supporting small and medium enterprises (SMEs) and not neglect the roles these businesses play along the supply chain in the sector, some MPs said.

“According to the Yangon Regional Plan, the government has said it will improve opportunities and create jobs for the SMEs when implementing new projects. More details should be provided on how this will be done,” said Daw Thandar Moe from MP from Mingaladon township.

By prioritising key sectors such as industry in its plan, the Yangon region government hopes to raise Yangon’s GDP rate to 8.6 percent in 2018-19.

Source: https://www.mmtimes.com/news/legislation-needed-govern-industrial-zone-development.html