The industrial sector's contribution to the gross domestic product (GDP) of Myanmar is predicted to attain 18.9 percent in the current fiscal year of 2006-07 ending this month, up from 17.5 percent in 2005-06, according to the state industrial sources Thursday.

Over the next 15 years, the sector's share in the GDP will be targeted at as high as 37 percent.

Myanmar started implementing an industrial development plan in 1992 based on agriculture, the mainstay of the country's economy, and encouragement for private sector to participate in the industrial sector has been made, gaining a percentage of 92.36 percent.

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.

Myanmar is also planning to develop the country's central part through extensively setting up more industrial zones in cities along the Ayeyawaddy River.

Meanwhile, the establishment of three other Thai-proposed special industrial zones, located in Myawaddy and Hpa-an in southeastern Kayin state and Mawlamyine in southern Mon state is also underway. The project constitutes part of an economic cooperation strategy program agreed by Cambodia, Laos, Myanmar and Thailand in November 2003.

Under the Ayeyawaddy-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) agreed by the four countries, the three Thai- proposed industrial zone projects are estimated to start later this year.

Meanwhile, Myanmar is expected to enact a special economic zone (SEZ) law also later this year, aiming to absorb inflow of more foreign investment into the country to promote its economic development, according to industrial officials.

It is assumed that granting of special privileges to foreign investors setting up SEZ will be contained in the law which mainly directs at the emergence of the exceptional Thilawa SEZ in Yangon's Thanlyin township, the prospective first full foreign investment SEZ in Myanmar.

Under the expected new special economic zone law, Myanmar will designate six main commercial cities as free trade zones, according to an earlier local report which said that the six free trade zones will be Thilawa Port in Yangon, Mawlamyine in Mon state, Myawaddy and Hpa-an in Kayin state, Kyaukphyu in Rakhine state and Pyin Oo Lwin in Mandalay division.

It is also predicted that once the new special economic zone law is promulgated, 200,000 job opportunities will be created.

According to the latest official statistics, contracted foreign investment in Myanmar has reached 13.917 billion U.S. dollars in 402 projects up to now since the country opened to such investment in late 1988.

Source: Xinhua