Korean Investment Seminar

24th May, 2016

Kandawgyi Palace Hotel,Yangon

Myanmar Major Industrial zones

and
Development Plan

Moe Moe Hlaing Myint

Deputy Director
Urban and Regional Development Division
Department of Urban and Housing Development
Ministry of Construction
CONTENTS
• HISTORY OF INDUSTRIALIZATION in MYANMAR

• INDUSTRIAL ZONEs in MYANMAR

• ROLE OF DUHD in INDUSTRIAL ZONE DEVELOPMENT

• CHALLENGES in LOCAL INDUSTRIAL ZONES

• INDUSTRIAL DEVELOPMENT PLAN

• MCDV STRATIGIC TRIANGLE

• OPPORTUNITIEs in INDUSTRIAL SECTOR

 History of Industrialization in Myanmar
1886-1948 Colonialism, Foreign-dominated in industrial sector
1948-1962 Parliamentary democracy, Raw material-oriented and import
substitution industrialization, Foreign-dominated in industrial sector
1962-1988 Socialism, Centralized economy, Import substitution industrialization,
Self-reliance, Private sector was not allowed to participate in business sector
1988-1997 Military rule, Transition toward market-oriented economy,
Agricultural-based export-oriented industrialization,
1988, Myanmar Foreign Investment Law was promulgated to attract the
Inflow of FDI, private sector participation in industry,
1996, MIDC formed Myanmar Industrial Development Bank to assist the
financing of SMEs development
1998- 2011 Introduce CMP (Cut, Make & Package) to attract FDI,
Foreign Garment Factories by giving the exemption of export taxes
2011- New Government, multi-party democracy system
SEZ law was promulgated in 2011
Industrial Zones in Myanmar

Existing Industrial Zones – 20

Planned Industrial Zones – 5

Special Economic Zones – 3

Nay Pyi Taw

Phaan

Source: UNESCAP, A policy framework for Myanmar’s SME, No.142, February, 2014
1. East Yangon Industrial Zon Existing 20 Major Industrial Zones in Myanmar
2. West Yangon Industrial Zone
3. South Yangon Industrial Zone
4. North Yangon Industrial Zone
5. Taunggyi Industrial Zone
6. Mandalay Industrial Zone
7
7. Kalay Industrial Zone
8. Monywa Industrial Zone
9 10 5
9. Pakokku Industrial Zone
8 6
10. Meikhtila Industrial Zone 10
12
11. Myingyan Industrial Zone 20
13
12. Yaynanchaung Industrial Zone
13. Pyay Industrial Zone 17 16 4
14
14. Mawlamyine Industrial Zone 15 2 1
3 19
15. Myaung Mya Industiral Zone
16. Hinthada Industrial Zone
17. Pathein Industrial Zone
18. Myeik Industrial Zone 18
19. Pha-an Industrial Zone
20. Datkhina Thiri Industrial Zone
 Special Economic Zones in Myanmar

 Thilawa SEZ
Area 2342 ha (5788 acre)
23km South of Yangon
Myanmar-Japan Thilawa Dev. (MJTD)
Commercial Operation in 2015
 Dawei SEZ
Area 19600 ha (48432 acre)
30km North of Dawei Kyauk Phyu
Italian-Thai Company Limited
Project initial stage Thilawa

 Kyauk Phyu SEZ

Dawei
Area 1736 ha (4289 acre)
12km South of Kyauk Phyu
CITIC Group
Not yet implemented
 Number of industries in States and Regions(2013-2014)
8000
7359

7000
6029 6095
6000

5000 4566
4116
4000 3567

3000 2559
2155
2012
2000
1180 1276
907
1000 629
497
285

Large Medium Small Total

 Growth of Per Capita GDP
Year Total GDP Growth Rate Per Capita
(in Billion of GDP(%) GDP
Kyat) (in Kyat)
1990-1991 151.94 2.8
1995-1996 604.73 6.9 13515
2000-2001 2552.73 13.7 50927
2001-2002 3548.47 11.3 69390
2002-2003 5625.25 12.0 107823
2003-2004 7716.61 13.8 144984
2004-2005 9078.93 13.6 167202
2005-2006 12286.77 13.6 221799
2006-2007 16852.76 13.1 298200
2007-2008 23336.11 12.0 405817
2008-2009 29233.29 10.3 500767
2009-2010 33894.04 10.6 573212
2010-2011 39846.69 10.2 666556
Source: Central Statistical Organization, CSO, 2011
Sectoral Distribution of Industries by Commodity Group
Number of industry
Sr. No. Sector/Industries
Large Medium Small Total

1. Food & beverage 2361 4111 20967 27439

2. Clothing & wearing apparel 354 397 979 1730

3. Construction material 558 667 2137 3362

4. Personal goods 417 375 357 1149

5. Household goods 144 79 97 320

6. Printing and publishing 47 117 169 333

7. Industrial raw material 202 255 266 723

8. Mineral & petroleum product 278 374 1209 1861

9. Agricultural equipment 11 29 31 71

10. Machinery & equipment 15 44 55 114

11. Transport vehicles 177 48 35 260

12. Electrical goods 37 13 11 61

13. Miscellaneous 243 795 4771 5809

Total 4844 7304 31084 43232

Source: Ministry of Industry (2013-2014)

 Sectoral Shares in GDP (1990 to 2014)
70

60
57.3
52.89
50
43.3
41.2
40 37.8 38.8 39.4
36.7 37.1 36.2
35.3
33.6
32.2 31.8
30 28.8
27.6
26
21.7
20 19.9

12.75
10 10.5

0
1990/91 2002/2003 2007/2008 2008/2009 2011/2012 2012/2013 2013/2014
Agriculture Industry Services
Source: Ministry of Industry

Employment sharing
Agriculture - 65%
Services - 23%
Industry - 12%
 Role of DUHD in Industrial Development

• Cooperate and coordinate with other departmental agencies in

provision of basic infrastructure in industrial zones development

• Play the role of coordinator as well as facilitator by establishing

industrial zones, new towns development and urban development

projects in and around Myanmar

 Objectives of establishment of Industrial estate
in New towns

• To persuade the development of industrial sector especially for local

investors
• To create job opportunity and income generation for the people in
new towns
Industrial Zones in Yangon Region
1. Dagon Seikkan
2. East Dagon
3. North Dagon
4. South Dagon(1+2+3)
5. Shwe Paukkan
6. North Okkalapa Wartayar
7. South Okkalapa
Thadukan
8. Thaketa Shwepaukkan
Mingalardon
9. Shwe Pyithar(1+2+3+4) Shwepyithar-1
East Dagon

10. Thadukan Shwepyithar-2,3

North Okkalapa East Dagon
(Extn.)

11. Wartayar Shwe Linban

Shwepyithar-4

12. Hlaing Thayar(1 to 7) South Dagon (1,2,3)

13. Shwe Linban Mya Sein Yaung Shwe Than Lwin
Hlaingthayar-7

14. Thanlyin-Kyauktan Hlaingthayar-4,5 South Okkalapa

15. Thilawa Hlaingthayar-2,3

Hlaingthayar-1
16. Myaungdakar Dagon Seikkan
Hlaingthayar-6
17. Mingalardon Industrial Park
18. Anawyahtar Thaketa

19. Shwe Than Lwin

20. Pyinmabin
21. Yangon Industrial Zone
22. Ngwe Pin Lel
23. Mya Sein Yaung
24. December Source: Ministry of Industry website
 Integration of new town and Industrial zone in
urban development Plan in Yangon Region

1958-1960
3 Industrial wards in New Satellite Towns
(South Okkalapa, North Okkalapa, Thaketa)

1990- 2006
16 Industrial zones in Yangon Regions

Local Industrial Zones - 19

Private Developer (Local) - 6
JV with Foreign company - 1 (MIP)
 Industrial Zones in Yangon Region by established year
Sr. Establishe Name of Industrial Area Remark
No. d year Zone (Acre)
1. 1958-60 South Okkalapa 35.000 Socialist
2. 1959 North Okkalapa 109.790
3. 1959 Thaketa 200.000

4. 1990 Shwe Paukkan 94.650 Market Oriented Policy

5. 1990 Shwe Pyitha-1 310.401
6. 1992 South Dagon-1 475.374
7. 1992 South Dagon-2 214.534
8. 1995 Hlaing 1401.440
Thayar(1+2+3+4+6+7)
9. 1996 Hlaing Thayar-5 222.933
10. 1996 Mingalardon 220.668
11. 1997 Dagon Seikkan 1208.695
12. 1998-2000 Shwe Pyitha(2+3+4) 987.000
 Industrial Zones in Yangon Region by established year
Sr. Established Name of Industrial Zone Area Remark
No. year (Acre)
13. 2000 Thanlyin-Kyauktan 432.600
14. 2000 South Dagon-3 53.316
15. 2000-2010 East Dagon (1+2) 1200.300
16. 2000 Yangon 1331.562 Public-Private
17. 2001 Thadukan (Shwe Pyitha) 509.646 Partnership for Land
development
18. 2001 Shwe Than Lwin (Hlaing 412.973
Thayar)
19. 2002 Anaw Yahtar (Hlaing Thayar) 952.460
20. 2002 May Sein Yaung (Hlaing Thayar) 331.280
21. 2002 Shwe Lin Ban (Hlaing Thayar) 1100.000
22. 2003 Ngwe Pin Lel (Hlaing Thayar) 204.230
23. 2004 War Tayar 1099.640
24. 2006 Myaung Dagar 1034.870
25. December (South Dagon) 201.990 PPP
26. 1998 Mingalardon Industrial Park 220.000 JV with foreign
Company
 Mingalardon Industrial Park

Location
On No. 3 Highway Road
7 km from Yangon International Airport
23 km from Central Area of Yangon
24 km from Yangon Port
50 km from Thilawa Container Terminal

lands of MIP
No. of Plots : 41plots
Size of Plots : 1 ha ~ 4 ha
Construction : Mitsui Construction
Co., Ltd.
Official Opening: February 1998
Lease Period : Up to February 7, 2048
19
 Capital Structure of Joint Venture Company
MINGALADON INDUSTRIAL PARK CO., LTD.
(MIPCL)
February 1996
Japan Myanmar
60％ 40％
Mitsui & Co., Ltd. Department of Urban& Housing
Development
Ministry of Construction

MIPCL
November 2006

Singapore Myanmar
11.11％ 88.89％
Department of Urban & Housing
Kepventure Pte. Ltd.,
Development
Ministry of Construction
20
 LAND USE PREMIUM

Land Use Premium : US$ 68/m2 (for 32 years)

Land Lease Period : Until 7th February 2048
Annual Land Rent (Land Tax) : US$0.345/m2/year

Terms of Payment
Payment of LAND USE PREMIUM shall be with three installments.
 1st Payment 10% Upon reservation of the Land and Signing
of Provisional Allotment.
 2nd Payment 50% Upon receipt of Investment Permit from MIC
and Signing of Sub-Lease Agreement.
 3rd Payment 40% Upon issuing of Physical Delivery Receipt
(Certificate of Transfer of Land Use Right).
21
 LAYOUT OF MIP

Total Area = 90 Hectares

73
.43
9M
1M
20
B-1(1)
A = 14,499.8 M²
K
EE
CR

12
M
03

9.8
7.3
18

85
.4M
B-1(2)

M
13

Infrastructures

14
A = 25,000 M²

72 14M
9.0
.98
3M
18.95M
1M
20
5M 118 M 111 M
132 M 13 M 66 M

43
A4

.5M
A8 13 M

81 M

83 M
B2

161 M

76 M
A = 10052 M²

Electricity
A = 10127 M²
A1 122 M
A = 29995 M²

176.59 M
159 M
122 M
A = 22095 M²
A5 A12

82 M
A9 1M

82 M
82 M
A = 10004 M² A = 24984 M² 20

Communication
138 M A = 10004 M²
122 M
122 M
B3

104 M

104 M
A2 196.94 M

82 M
A6

82 M
A = 29995 M²
A10

82 M
A = 14467 M² A = 10004 M² A = 10004 M²

Water Supply
122 M 1M
20

PO
122 M
142 M

174.13 M
A7-2 A13

65 M

65 M

W
ER
A3 A = 7993 M² A11 A = 41579 M²

87 M
102 M
122 M
B4

LIN
113 M
46 M
Waste Water Treatment
A = 14573 M² A7-1 A = 15349 M² A = 29950 M²

E
62 M
21 M 16 M

21
129 M A = 7500 M² 21 M 265 M

20
M
107 M 107 M 1M

M
30 M 20
41 M 128 M 142 M 25 M
107 M
21 M 107 M 142 M
C5
Plant
26M
D4
21 M B5

91 M
143 M

68 M
D8 C1 A = 15473 M²

83 M

68 M

76 M
A = 30105 M²
HIGH WAY NO.3

83 M

D1

83 M
A = 10014 M²
A = 10014 M² A = 15031 M²
188 M
A = 11728 M² 122 M 122 M
181 M 1M
C6
82 M
Retention Pond
139 M
D5 D9 20

111 M
82 M

82 M
A = 23106 M²
A = 10004 M²
C2

111 M
A = 10004 M²
D2
84 M

B6
84 M

122 M
A = 11515 M² 122 M A = 21591 M² 216 M
A = 29950 M²
D6
82 M

135 M 217 M
D10
Roads & Drainages 82 M

119.5 M
211 M

119.5 M
A = 9895 M²
C7
74 M

111 M
1M
D3 C3 A = 25804 M² 20

111 M
122 M A = 14469 M²
131 M

A = 13572 M² A = 24872 M²
B7
103 M

D7 122 M

Fire Hydrants etc.,

14 262 M
3M
157 M

A = 15868 M² 241 M A = 28804 M²

D11
C8
119.5 M

108 M
140.5 M
13
3M
A = 16931 M² C4 A = 30193 M²
221 M

109 M
A = 27530 M²
299 M

73 270 M
M
55 M
 EXISTING TENANTS IN MIP

MAOI FAMOSO TAH HSIN TI GARMENT

A1,A2,A3 and D3 A7-1 and A-11 D1、D2 D4

As of April .2016
Foreign Expatriates 181
Local Employees 18,475

GGI AJINOMOTO Total 18,656 POSTARION

A6 A9 D8

HTET PYAE PHYO ROHTO TOKYO IN MYANMAR DYC

C1、C2 D5 A 10 C 5 , C6

4 Factories are under construction.

 Challenges in Local Industrial Zones
Inadequate provision of Infrastructure and Utility Services
- Lack of proper drainage system, Power and water supply system
- Lack of waste water treatment system

Land Issue
- Very high land price and land speculation
- Unused industrial land
- Slum and squatter in industrial area

Environmental Issue
- Lack of pollution control, without monitoring system and enforcement
- Water, Air, Noise, Soil and Visual Pollution
- Ground water contamination especially from brewery factory
 Average Sales Price (21.3.2016)

Sale Price
Rental Cost
Yangon Region (million
(million MMK)
MMK/1sft)
South Dagon Industrial zone 0.625 7 (1 acre)
Hlaingtharyar Industrial zone 0.555 4.5 (80’x200’)
Shwepyithar Industrial zone 0.068 6 (100’x200’)
Mingalardon Industrial zone 0.115 7.5 (80’x200’)

Sale Price
Rental Cost
Bago Region (million
(million MMK)
MMK/1sft)
Bago Industrial zone 0.034
Pyay Industrial zone 0.417
Source: www.shweproperty.com & www.imyanmarhouse.com
 Weakness in integration of industrial process
and market access

• High production cost and low available on raw material

• Weakness in quality and innovated technology
• Less competitiveness to International market
(weakness in market access,..)
• Lack of prioritize in consumer-based products
• Lack of information and support services
Industrial Development Plan
National Spatial Development Framework Plan
• Adopted Yangon and Mandalay Bi-Polar Development
Concept
• Practice Concentrated Decentralization and Balanced
Development Strategy

National Yangon, Mandalay and

Growth Special Economic Zone (SEZs)
Center (Thilawa, Dawei, Kyawkphyu)

Regional Capital and Major Cities of States and Regions

Growth (Sittwe, Pathein, Bago, Mawlamyine, Dawei, Monywa,
Center Myitkyina)
• Border Trading and SME
Special (Thai-Myawaddy, Tarchilake, China- Muse, India-Tamu,
Function Bangladesh -Maungtaw)
Growth • Tourism and Services Based Zone
Center (Bagan, Inlay, Coastal area)
• Resource Based Industrial Zone
(water, mineral, agriculture, ..)
Myanmar Comprehensive Development Vision(MCDV) Strategic Triangle

Globally linked &  Value‐added products for
Agriculture Plus Plus
Private sector‐Led  Rural Development and 
Industrial  poverty reduction
Development People‐
centered 
Development
High & globally linked
Inclusive & balanced,  Two‐Polar 
FDI Driven Green and sustainable Development 
Strategy Strategy 
SME Development

Economic 
Reducing Gap

Corridor
Enhancing 
‐improving 
connectivity
infrastructure, 
Human resource,  ‐job creation, technology 
labour laws,  transfer, participation in  Border Area 
business cost,  international production  Development
financial sector  networks, investment , 
development Export‐oriented ind. Dev.
Source: MCDV report (final draft) 2013
 Industrial Zones in Strategic Locations
Main Economic Corridors Main Transportation Network

SOURCE: MCDV, 2013 SOURCE: MCDV, 2013

Priority Corridor Development

Source: MNPED
OPPORTUNITIES in Industrial Sector

Transportation network and SEZ development
‐ 4 Economic corridors
‐ 4 deep seaports
‐ Airports
‐ 3 SEZs
Natural resource
‐ natural gas, petroleum, precious gem, land

Labor
‐ comparatively low labor charges in ASEAN
‐ available of skilled and un‐skilled labor
‐ Economically productive population group
(15 – 64 years) = 65.6% 
 The Ongoing Projects Collaboration with Korea

 2015 January-July Knowledge Sharing Program (KSP)

 KMECIC (Korea-Myanmar Economic Cooperative Industrial
Complex)
 2016 March, Record of Discussion between Korea Land and Housing
Corporation (LH) and Ministry of Construction (DUHD)
 Korea-Myanmar Industrial Complex ( On ground survey)

 Establishment of the Master Plan for Yangon-Hanthawaddy-Bago

Corridor and Yangon South-western Region Development Project
(KOICA)

 Project period (2015-2017)

Thank you