Myanmar Shipyards has announced it will build 30 merchant vessels in a $175 million deal that will be completed in 2017.
The shipyard, a state-owed enterprise, and a Vietnam company, Dong A Shipbuilding Industry, began work last month, Myanmar Shipyards director U Maung Maung Aung told the media.
An agreement between the Ministry of Transport and Dong A Shipbuilding Industry was signed in January 2015.
The joint venture is aimed at attracting more foreign orders for vessels build in Myanmar, officials said.
The new company will be capable of building vessels of up 22,000 deadweight tones (dwt) and repair vessels of up to 30,000 dwt as well as conduct other ship building-related enterprises.
Union Minister for Transport U Nyan Tun Aung said Myanmar Shipyards has been mainly repairing and building vessels for 45 years.
“It needs capital, technology and markets to enlarge the enterprise, which is why we invited foreign investment,” he said.
“We believe that this enterprise will provide technical support to develop the country and the economy,” said U Nyan Tun Aung.
A new dockyard capable of handling modern, larger vessels, as well as upgrades to existing shipyards, and human resources improvements are included in the deal.
The government will provide land, shipbuilding facilities, machines, equipment and materials under the agreement.