Myanmar to auction off more state-owned factories

Myanmar will auction off eight more state-owned factories as part of its privatization program of the state-run industrial enterprises, a local newspaper reported Thursday.

In a notification issued by the government's Privatization Commission carried in the New Light of Myanmar, the industries in Yangon to be auctioned off include five garment factories, two towel factories and one thread factory.

The floor prices range from less than 100 million Kyats (100,000 US dollars) to over 700 million Kyats (700,000 dollars), said the notification, adding that priority will be given to the original owner who must be a Myanmar national and be included in the highest bidders.

The commission set the deadline date for auction on Aug. 15.

In the last batch of state-owned enterprises announced for privatization in December 2004, there covered a dozen such factories under the Ministry of Industry-1 including wheat mill, towel, thread, garment, soya bean sauce and vinegar, biscuit, ice and tile factories, most of which lie in Yangon and some in Mon and Shan states.

Myanmar has since January 1995 been implementing the privatization plan for its state-owned economic enterprises including those nationalized in the 1960s in an effort to systematically turn them into more effective enterprises.

The plan, which has been implemented by the commission, is carried out by auctioning and leasing or establishing joint ventures with local and foreign investors.

These enterprises also include rice mills, saw mills, cinemas and hotels.

It is estimated that since the privatization program started, over 100 such state-owned enterprises have been reportedly privatized.

According to reports, there are over 55,000 factories in Myanmar, of which over 53,000 are private-run. In Yangon, more than 5,500 factories are in operation in 10 industrial zones out of 19 across the country.

Source: Xinhua