Abstract: "Since 1988, when the State Law and Order Restoration Council (military government) assumed state responsibility, the market has been partially opened to the outside world. Myanmar?s industrialization has shown little progress as the previous government?s1 policies and poor international relations hampered FDI inflows. As the new ?elected” government took office in 2011, significant changes in policies have taken place and this paper intends to highlight the efforts of the new government in its attempt to enhance industrial development. The paper assesses the performance of related union-level ministries and regional governments towards industrial development through establishing industrial zones in all states and regions, except the Chin and Kayah states. The establishment of seven new industrial zones and extension of 18 existing industrial zones is seen to have a positive effect on industrial development, although improvements in infrastructural facilities need to be realized. Introducing the SME Service Centre in Yangon and SME financing schemes enables the firms to obtain loans from the newly named Small and Medium Industrial Development Bank (SMIDB2, thus contributing to SME development to some extent. New laws related to the industrial sector have been enacted, and rules and regulations to implement the laws are under processing. Though there is a lack of an industrial plan, many of the policy and structural changes have been made for supporting the manufacturing and processing sector. A strategic alignment still needs to be implemented deeply down in the operation level where the real positive changes can be made. The study touches upon the new government?s attempt to attract FDI to Myanmar by revising the existing foreign investment law and creating an enabling environment for it."