Myanmar automobile policy due in ‘3 to 6 months’, opening way for assembly plants

With relaxation of regulations for importing vehicles, the internal car market has become a booming sector in Myanmar.
With relaxation of regulations for importing vehicles, the internal car market has become a booming sector in Myanmar.

A comprehensive policy for Myanmar’s automotive sector will be drafted in the next “three to six months,” paving the way for foreign automakers to establish assembly plants in the country, a meeting in Yangon heard Wednesday.
The meeting, to discuss the formation of a committee to develop the policy, brought together the private sector and government officials, including diplomats and representatives from Japanese and Korean automotive manufacturers.
“It will take the committee the next three to six months to accomplish its task,” Dr So Tun, Chairman of Myanmar Automobile Manufacturers and Distributors Association said.
Comprising 12 or 13 members from the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry, Myanmar Engineering Society and the MAMDA, the committee will draft the policy in cooperation with the ministries of Industry, Commerce, Finance, and Rail Transportation, the MAMDA chairman added.
“The formulation of the policy is drawing attention from foreign countries seeking opportunities to set up auto plants in Myanmar, as Myanmar has not yet adopted a policy, unlike other countries including ASEAN members,” he said.
Thailand’s auto industry accounts for 12 percent of the country’s GDP and employs between 400,000 and 700,000 people following its adoption of a comprehensive policy, he said.
Moreover, standards in the policy will prevent Myanmar from becoming a dumping ground for old cars when the ASEAN Economic Community launches in 2015.
International auto assemblers including Nissan and Suzuki are looking at setting up manufacturing facilities in Myanmar, he added.
According to statistics, around 85 million cars are produced globally every year, of which 4.5 million come from ASEAN – mainly Thailand, Malaysia and Indonesia.
Regarding contents of the policy, he told the Global New Light of Myanmar it would include safety standards as well as rules on phasing out old cars based on registration or manufacturing dates, as well as ruling on the importation of right-hand or left-hand drive vehicles.
Japan is assisting the policy formulation process, and a national forum on the policy will be held, he added.

Share this post
Hot News
Hot News