Great Potential for Garment Sector in Myanmar
The garment industry in Myanmar has great potential for growth in the next 10 years, if it works towards development with strategic planning, according to the members of the Myanmar Garment Manufacturers Association (MGMA), a newspaper report said there.
The garment sector needs to draw appropriate plans to obtain higher quantity and stable orders with higher profits. The challenge, particularly for the low-margin, high-volume cut-make-trim garment production that Myanmar specializes in, is to provide a more compelling place to set up a factory than its competitors.
The MGMA president, Mr. U Myint Soe said the association is launching a project management team, aiming to work with the government to improve the industry. He said the garment sector is also quite important as an employment generator. It will require many workers as it expands its potential providing millions of jobs.
With the preferential market access offered by the European Union and the China market may also be opening to imports, the growth potential looks strong for the sector, he said. On average one new factory a week is opening, with up to 2000 workers. However, the sector must overcome significant hurdles if it is to realize its potential, Mr. Soe said.
Key constraints include the weak banking system, taxes on imports and exports, infrastructure and training and technology. These areas will need government support and a comprehensive strategy to overcome, he felt.
With new planning strategy, Myanmar could have 10 billion US dollar in exports within 10 years, although 1.5 billion US dollar worth of exports is recorded this year.
In recent months, more than 20 countries, including Japan, China, Malaysia and Germany, have announced investment in Myanmar’s garment industry, MGMA sources said.