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
#TheGlobalNewLightOfMyanmar
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