Myanmar's textile exports are set to skyrocket, following reinstating of the trade benefits by the EU under its Generalized System of Preferences (GSP), the Thailand Textile Institute (THTI) has said. According to a Bangkok Post report, although THTI did not predict the likely growth of Myanmar's garment exports, the institute said it would certainly be noteworthy. Last year, Myanmar exported around US$ 946 million worth of apparels, registering a rise of 18 percent year-on-year.
The EU lifted the ban imposed on Myanmar under its GSP on April 22 this year, considering the democratic reforms made by Myanmar after enduring several years of military rule. Under the GSP system, EU allows preferential trade access to developing and less developed countries to its markets. However, to voice its disapproval to dictatorship in the country, in 2003 EU withdrew the trade preferences extended to Myanmar.
Looking to make the most of the return of the trade privileges, and easy availability and low charges of labour, several textile and clothing firms, including those from Thailand, have shifted to Myanmar, THTI said. The minimum wage in Myanmar is US$ 32 per month, compared to US$ 90 in Cambodia and US$ 100 in Vietnam. Moreover, Myanmar has a 32.5 million strong workforce. On the negative side, THTI said lack of infrastructure might hamper the growth of the apparel industry in Myanmar, especially insufficient power supply and inadequate facilities at Yangon Port.
