At Samsung Electronics factory in Thai Nguyen Province, Vietnam. (Photo: VNA)Republic of Korea-based Samsung Electronics is considering building a home appliances manufacturing plant in Myanmar, reported the Korea Times on August 11, as part of the group’s efforts to seek new manufacturing facilities to cut labour costs and improve efficiency.
It is negotiating key conditions with Myanmar authorities and should the process operate smoothly, investments will be expected to land in a few years.
Myanmar’s foreign investment law, passed in 2012, entitles 100 percent foreign ownership in non-restricted sectors and an increase in land lease durations, creating a wave of interest among foreign investors to the country.
In addition, the law also grants overseas investors corporate income tax exemptions for three years minimum, and an exemption from or reduction of taxes on imported capital goods and raw materials.
In January 2013, Samsung Electronics received approval from the Myanmar Investment Commission to establish a factory near Yangon, but the plan was put on hold.
Market researchers believe that with a population of about 62 million people and GDP per capita growing by 7-8 percent annually, Myanmar offers huge potential for suppliers of home appliances, like Samsung./.
