Myanmar’s garment sector can generate foreign revenue of over five billion US dollar yet it lacks raw material processing factories to cut high import and production costs, according to Chinese Textile and Garment Association in Myanmar.

Myanmar’s garment industry needs local raw material factories to substitute import and reduce reliance on foreign manufactured goods and stabilize foreign exchange rate and conserve foreign reserve as the country has to import inputs like zippers, buttons, fabrics and others as per the order of the buyers, causing a significant dollar outflow.

Therefore, Myanmar’s garment industry is endeavouring to transform the Free on Board system from Cutting-Making and Packaging basis by inviting Chinese investors to invest in raw material manufacturing. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the CMP basis and only five per cent are running with locally produced raw materials.

There are 523 member factories of Myanmar Garment Manufacturers Association across the country. Sixty per cent of Myanmar’s garment exports go to Europe while 20 per cent are exported to Japan and other markets account for 20 per cent.

Myanmar garment industry aims to contribute to employment of up to 1.2 to 1.6 million workers in a decade and Myanmar’s apparel market is projected to reach US$15 billion, MGMA stated.

ASH/KK

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