Myanmar is expected to establish one more special industrial zone (SIZ) in Rakhine state, western part of the country, and invite foreign investment mainly from Bangladesh for its development, a local news journal reported Tuesday.

The planned SIZ was proposed by Bangladesh at a time when Bangladeshi businessmen were deliberating to invest in Myanmar in crops plantation under contract farming system, the Weekly Eleven News reported.

If approved, the SIZ in the Rakhine state will become the fifth of its kind after Thilawa in Yangon's Thanlyin-Kyauktan, Myawaddy and Pha-an in southeastern Kayin state and Mawlayine in southern Mon state.

Of the prior four SIZ planned earlier, a master plan for the establishment of Thilawa SIZ, which is an exceptional and prospective first full foreign investment zone, has been designed for Myanmar by Chinese experts for feasibility study with the cooperation of the Myanmar side.

A law is soon to be introduced to govern the running of such SIZs, experts predicted.

The three other Thai-proposed industrial zones, located in Myawaddy and Hpa-an in southeastern Kayin state and Mawlamyine in southern Mon state, constitute part of an economic cooperation strategy (ECS) program agreed upon at a summit of Cambodia, Laos, Myanmar and Thailand held in Myanmar's ancient city of Bagan in November 2003.

Under the Ayeyawaddy-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) agreed by the four countries, the three Thai- proposed SIZ projects are estimated to start in 2007.

The Myawaddy zone covers an area of 173 hectares, while the Mawlamyine zone 124 hectares and Pha-an zone 178 hectares, according to official sources.

As part of its plan of industrial development, Myanmar has established in the early stage 19 local industrial zones across the country with a total of 9,574 industrial enterprises in operation which include small, medium and heavy industries.

Of them, the small industrial enterprises are dominating with 57.48 percent, while the medium ones 25.24 percent and heavy ones 17.28 percent, according to the Industrial authorities.

According to official statistics, Myanmar's industrial sector contributed 17.5 percent to the gross domestic product of the nation in the fiscal year 2005-06 which ended in March and a 19- percent contribution is targeted for 2006-07.

Private sector's contribution to the industrial sector stands at 92.36 percent, according to statistics.

Source: Xinhua