Myanmar takes measures for prompt construction of factories in cyber city

YANGON, Feb. 1 (Chinese media) -- Myanmar will exempt tax on import of raw parts of machinery used in building of factories in the country's new Yadanabon cyber city as part of its measures to speed up the construction, the local weekly Yangon Times reported Sunday.

The measures will be effective during the period of construction and test-run of the factories, the report said.

Commercial tax will also be exempted for three years after the factories are formally put into service, it said, adding that the exemption permit can be renewed yearly.

According to the report, a total of 13 local companies will inject 22 million U.S dollars in the cyber city.

The Yadanabon cyber city in Pin Oo Lwin stands as Myanmar's first largest ICT park launched in December 2007.

As part of the project in the development of the cyber city, Myanmar authorities have allotted 372 acres (150 hectares) of land in the soft-base factory area of the Yadanabon cyber city for 35 more local and foreign IT companies to develop their business undertakings, earlier report said.

To encourage and help employees settle in the cyber city, Myanmar is also implementing new private housing projects there, offering land lease grant for 30 years for the establishment which is not allowed for re-sale or transferred within 10 years.

Under the projects, school, market, fire station, police station, clinic, sports ground and park are to be built.

Private entrepreneurs, who win the land lease grant, are set to start construction within three months and complete in a year after being allotted with the land plot, according to the city development committee which also prescribed that the allotted land plot will be confiscated in case the construction work could not start in a duration period of up to a year.

The cyber city, which covers an overall area of 10,000 acres (4,050 hectares), located in the hilly Pyin Oo Lwin near a highway, 67 kilometers east of the second largest city of Manda lay in the north, and 20 percent of the cyber city area produce software and hardware.

The internet of the cyber city not only links with the whole country but also connect neighboring China, Thailand and India.