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Naypyidaw, Myanmar's new capital and the intended site of a new gem center.



  Plans announced to open gemstone center in Burma's new capital


January 12, 2013


The Burmese government plans to establish a jade and gemstone center in the country's new capital city of Naypyidaw, which officials say will include both processing facilities and sales outlets.

Naypyidaw, which is located approximately 320 kilometers north of the previous capital Rangoon, has served as the country's administrative center since November 2005. Built from scratch under a veil of secrecy by the former military regime, starting in 2002, by 2009 its population was 925,000, making it Burma's third largest city, behind Rangoon and Mandalay, and one of the 10 fastest growing cities in the world.

Speaking to a local newspaper, The Irrawaddy, Thein Swe, managing director of Myanmar Gems Enterprise of the Ministry of Mines, said it would invite members of the local gem trade join the planned "Jade stores, Jade Industry and Gem Market." A number of special benefits will be offered to those ready to make the move.

"After government moved the capital to Naypyidaw in 2005, jade and gem auctions were held mostly in Naypyidaw. Now we try to establish the Jade Stores, Jade Industry and Gem market [here] because we want it to be more convenient for traders and investors to do business," he said.

The government has readied 91 plots for jade stores and jade industries, each to be offered for sale at $375,000, and 19 smaller plots for the gem market that will be sold for $263,000 each.

Foreign investors are welcome, but they will have to be approved by the Myanmar Investment Commission, and on condition that they set up local gemstone processing facilities.

"We never allow foreign investment in the jade and gem excavation sector, but we will allow market and value-added production of jade and gems. Foreign investors who want to invest in those kinds of sectors need government permission," Swe said.

This is not the first time that the government has tried to establish a gem trade and processing center. Previous attempts did not enjoy much success.

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