Sep 18, 2011

9 state-owned factories privatized in Myanmar

Myanmar government has handed over nine state-owned factories to private enterprises under long-term lease system, aiming to producing more marketable and profitable products in the country, a local weekly reported Wednesday.

The factories under the Ministries of Industry-1 and -2 include two soft-drink factories, two sugar mills, two garment factories, packing factory, paper factory and umbrella factory, said the Phi Myanmar.

According to official figures, there were 106 factories and 57 branch factories totaling 163 under the Ministry of Industry-1. Among them, 22 factories and 30 branch factories deal with foodstuff.

In a bid to turn the state-owned enterprises into more effective ones under its market-oriented economic policy, Myanmar introduced the privatization plan in 1995 which has been implemented through auctioning and leasing or establishing joint ventures with local and foreign investors.

The privatization plan covering those enterprises nationalized in the 1960s was introduced in a bid to systematically turn them into more effective enterprises, according to the government- formed Privatization Commission.

In June 2007, the government formed another committee for auctioning some state-owned buildings remained in the former capital of Yangon after the administration was moved to the new capital of Nay Phi Taw in 2005.
Source: Xinhua