Myanmar Is Set to Surpass One Billion USD Mark in Garment Exports This Fiscal

With plans to revamp the domestic garment industry to enhance access to the western markets gaining momentum, Myanmar is set to surpass one billion USD mark in garment exports this fiscal, ElevenMyanmar reported quoting Myanmar Garment Manufacturers Association officials.
 
As revealed by the association members, through December 2012, the country registered US$ 848 million freight-on-board textile exports, while its cutting, manufacture and packaging (CMP) textile exports stood at US$ 98 million.
 
Prior to imposition of trade sanctions by the US in 2003, the country’s garment exports stood above US$ 800 million. However, as the sanctions hit the industry, its exports dropped to US$ 300 million per year, while over 80,000 workers were rendered jobless, the association said.
 
Experts say, as the country has already become a centre of attraction for international investors, the garment industry is likely to rebound upon regaining access to the western markets. However, the industry would be required to improve its logistic, power and infrastructure facilities, and ensure strict observance of international labour standards like ban on child labour, to actually draw the investors and international buyers, they opine.
 
Managing Director of Lat War garment factory, Khin Maung Aye said the industry would regain pace with restoration of the generalised system of preferences by the EU in June. The scheme allows EU importers to import textiles and garments duty-free from least developed countries.
 
Also, the Ministry of Commerce has stated that the EU has accepted to extend technical help to develop Myanmar’s textile industry.
 
Meanwhile, a spokesperson of the association also corroborated that with a hike in garment prices this year, several foreign investors are also mulling over investing in Myanmar textile sector.
 
Mr. Aye said they foresee establishment of around 2,000 garment firms in the country in near term, which would generate around 1.2 million employment opportunities. Besides, other investments and orders are also expected to come over next three to four months, he added.
 
The Myanmar Investment Commission said it has already sanctioned proposals of 10 companies for setting up garment factories in the industrial zones in the country this year.