24 out of 54 money-losing state-owned factories to transform into joint ventures with private sector

Twenty-four out of 54 money-losing government-owned factories will be operated in joint ventures with private entrepreneurs after the coming session of parliament, Union Minister for Industry Khin Maung Cho said December 30.

Parliament has also decided to mothball money-losing government-owned factories, he told a regular meeting between the vice president (1) and local entrepreneurs.

 “The crucial point is textile factories. Especially, those factories that produce school uniforms for the Education Ministry and university teachers, said Khin Maung Cho.

The uniforms are needed, regardless of interruptions in electricity and that has raised production costs as the government sought new suppliers.

The solution is for the government to partner with entrepreneurs to ensure efficient and timely production and a profit. And that would mean the factories would not have to be permanently closed, he said.

Many government-owned factories have been operating at a loss since 2010.

Plans are underway to hand over the money-losing operations to the private sector, said Union Minister for Planning and Finance Kyaw Win.

As quality and production increased under the private sector, an increase in GDP would result.

“Necessary arrangement will be made for staff,” Kyaw Win added.

(Eleven Media Group: http://elevenmyanmar.com/business/12960 )

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