South Korean conglomerate Samsung says Myanmar will be its next home appliance manufacturing hub if investment conditions can be met, the Korea Times reported last week.
Samsung Electronics is considering making home appliances in Myanmar because of rising production costs at its plants in China and Vietnam, the newspaper said on August 10, quoting industry sources.
“If conditions are met, then the country will be the company’s next manufacturing hub,” it quoted one source as saying.
Myanmar Investment Commission granted approval to Samsung Electronics in January 2013 to establish a factory near Yangon but the plant was put on hold, the Korea Times said.
“Samsung Electronics wants guarantees about greater land availability, with more benefits and power supply, before making an investment in that country,” it quoted a diplomatic source as saying.
“The key issue how to reach a consensus about administrative-related issues,” the source said.
The report said tax exemptions and other privileges granted under Myanmar’s 2012 Foreign Investment Law were not as competitive as those available in Vietnam.
Samsung’s strategy for managing higher labour costs was to choose new manufacturing destinations, the report said.