Myanmar enacts Industrial Zone Law including provisions on environmental pollution

The Industrial Zone Law was enacted by the Assembly of the Union of Myanmar on May 26, 2020. The law, consisting of 75 articles divided into 20 chapters, was enacted to ensure the sustainable development of approximately 60 industrial parks across the country. In Myanmar, the Special Economic Zone Law was enacted in 2014, but this covered only three SEZs in the country: the Thilawa SEZ near Yangon, the Dawei SEZ driven by Japan in the south, and the Kyauk Phyu SEZ driven by China in Rakhine State. Therefore, the need for a law to control the many other industrial zones that do not fall under SEZs has been discussed. It is expected that the Industrial Zone Law will improve the management of industrial zones, which have not been well governed in the past.

In accordance with this law, those who acquire land and make investment shall obtain approval from the regional industrial zone management committee and proceed with the project according to the scheduled timeline. If the project is delayed, a fine of 10% of the land value shall be paid annually. In terms of the environment, the law stipulates responsibility for waste disposal. Investors shall make their own arrangements to dispose of waste properly if the industrial zone does not have a collective waste disposal system. In addition, investors shall ensure that their business complies with the environmental impact assessment conducted by the industrial zone.

The original text of the Industrial Zone Law can be viewed from the following URL.
https://www.mlis.gov.mm/mLsView.do?lawordSn=14221