Myanmar Industrial Zone Rules in force

30 July 2024

On 28 June 2024, it was reported in the Myanmar Gazette that the Ministry of Industry had issued the Industrial Zone Rules (“Rules”) on 2 April 2024. The Rules implement the Industrial Zone Law 2020 (“Law”) which has several goals, including to sustainably develop industrial zones in order to attract more investment, improve connectivity, and boost Myanmar’s economy. 

The body responsible for overseeing the approval, management, and operation of the industrial zones is designated as the Industrial Enterprises and Industrial Zone Development Central Committee (“Central Committee”). Regional committees will also be established and it will be their responsibility to evaluate proposals for new industrial zones and submit recommendations for review by the Central Committee. The review will be undertaken based on criteria specified in the Law, including regional development potential, land availability, infrastructure, proximity to international gateways, and workforce availability. 

Investors in industrial zones must obtain an investment enterprise license from the relevant Regional Committee and register as needed in accordance with existing laws, which may imply the necessity for separate permits and licences such as an investment permit from the Myanmar Investment Commission. Both the Law and the Rules do not elaborate on this point. 

The provisions in the Rules relating to land use rights in relation to industrial land align with the land use rights available to foreign investors under the Myanmar Investment Law. 

Investors must obtain approval as set out in the Rules prior to employing foreign professionals in their operations in relation to industrial land.