Quarterly Business Magazine

Government to Reclaim Non-operating Industrial Zone Lots

Posted :
Saturday, July 19, 2014

The Yangon Division Government will repossess vacant lots at the Industrial Zones scattered in and around the Yangon Metropolitan area, compensating the owners at the buying price paid at the time of initial development.

A chairperson of one of the Industry Management Committees was quoted as saying that the Vice President himself is spearheading the effort and compensation will be equal to the buying price as set by the government upon the Industrial Zone development period.

There was a meeting held at Hlaing Thar Yar Industrial Zone on the 18th of July with the main agenda being Small and Medium Enterprise development. The aforementioned chairperson was one of the attendees and the major area of discussion was the repossession.

After repossession, the land plots will be sold at government prices to those industrialists who wish to genuinely build and operate factories. Even those buyers will face repossession should they fail to implement their stated strategy and run their factories within the stipulated time-frame. The current land prices figure in thousands of kakhs (100,000's) per acre today even though the government prices, mostly in those zones sold before the year 2000 was in the region of tens of Lakhs per acre. Most industrial zone land is dealt in terms of acre.

There are over 3,000 plots in various industrial zones which are vacant, presumably bought as an investment, and most of them are in smaller zones.

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