A five-hundred acre textile factory zone, which will reportedly create 60,000 employment opportunities for Myanmar workers, is reportedly to come to fruition through the concerted efforts of Myanmar and Korean business groups.
The Myanmar Olympus Asia Developer Group and the Korean PANKO Corporation will be responsible for implementing the project which will see the production of canvas, cotton and spindles.
“It’s a joint project by both our countries. They [the Koreans] show keen interest [in the project]. Yangon has been the area earmarked [for project implementation], but we’ll release more detailed and concise information in due course. Talks are currently also being held with the Yangon regional government concerning electricity. Upon completion, the industrial zone will offer about 60,000 jobs,” said U Okkar Zaw Naing, CEO of the Olympus Asia Developer Group.
The project will break ground in 2017 and take three years to complete, incurring a reported expense of between US$30-50 million. The textile zone will also require 100MW of electricity to run and operate.
“We believe building such a garment zone in Myanmar shows promise for success. We anticipate the [Myanmar] government will provide support. There is already a market for us to sell too, with textiles produced by the zone to be exported to China, America and Europe,” said Choi Yong Joo, president of the PANKO Corporation.
A ceremony to mark the signing of a Memorandum of Understanding (MoU) between both companies was held at Yangon’s Novotel Hotel on August 19, and was attended by Yangon Region Minister U Phyo Min Thein and a delegation from the South Korean embassy.
“Projects are good for the development of a country; it will create employment opportunities. A higher capacity of production is also beneficial for workers. I can accept the types of entrepreneurs who can offer nondiscriminatory employment opportunities in order to develop our country’s labor force. They will need to implement their project in compliance with existing laws and regulations,” said U Phyo Min Thein.
The textile factory will undoubtedly develop Myanmar’s garment sector, but entrepreneurs already involved in the domestic sector forewarn that problems with land and a non-replete electricity supply could arise as the project is rolled out.
Source: The Global New Light Of Myanmar
