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    Lifting Sanctions: Burma'S Clothing Industry Will Welcome Warm Spring

    2014/10/10 18:56:00 21

    BurmaClothingInvestment

    Since the military regime came to power in September 1988,

    Myanmar

    Long term sanctions imposed by western countries.

    Countries and international organizations that imposed sanctions on Burma included the United States, the European Union (Britain, France, Germany and other sanctions), Canada, Australia, Japan, and the International Monetary Fund (IMF), the World Bank (WB) and the Asian Development Bank (ADB).

    The clothing industry in Burma has been unable to develop because of the long-term sanctions of the European and American countries. It is understood that the country's order source is narrow, and most of the orders are from Japan and South Korea.

    In recent years, with the increasing cost of production in the big garment country, more and more countries want to pfer the textile and garment industry to Southeast Asia and other countries.

    Seeing that the clothing industry of Vietnam and other countries has made great progress, Burma, as a country with great potential for development, can only be disappointed.

    However, after Burma implemented the political reform, the western countries gradually relaxed their sanctions against Burma.

    The clothes made in Burma can now be sold openly in American stores.

    This is for Burma.

    clothing

    Industrial recovery is of great significance.

    Burma's relevant media pointed out that during the ten years of Western sanctions, Burma's export industry to western countries suffered heavy losses. Burma garment exporters must no longer have to look for markets in the east to survive.

    Recently, however, things have changed.

    As the West eased sanctions, Burma clothing had more opportunities to enter the European and American markets.

    Now the clothing industry in Burma has begun to recover, which has never been seen in the past ten years.

    Although the clothing industry in Burma has ushered in a good development opportunity, the competition in this industry is becoming more and more intense.

    The total export volume of clothing in Burma today (2014) is expected to reach US $1 billion 800 million, much larger than that in 2001.

    Gap Inc, the US clothing chain, announced in June that it would import garments from the Burma plant, which means that the clothes with the "Burma made" label will be on the shelves in the United States.

    Burma exporters expressed the hope that more western companies would come to the market like this American company.

    Garment industry in mainland China will increase investment in Southeast Asia

    The analysis shows that the Chinese mainland enterprises have great influence on Southeast Asia.

    Investment

    In the future, investment in Burma will also increase.

    Burma is rich in natural resources, abundant in labor force, and has a geographical advantage on the mainland of China.

    In terms of textile and garment industry, Burma will have greater synergy and create more investment portfolios through political and economic reforms, low cost advantages, normalization of relations with the United States, the European Union and other countries, together with the surrounding Vietnam and Kampuchea producing areas.

    It is understood that many countries such as South Korea and Japan show great enthusiasm for the country and layout Burma as a beachhead.

    In order to enable entrepreneurs to have a comprehensive and in-depth understanding of the investment environment in Burma, relevant departments of mainland China have held talks with officials from the Ministry of national planning and economic development of the Burma government and the economic advisers of Burma's presidents, and have a comprehensive understanding of Burma's economic development status, economic development plans and preferential policies for foreign investment.

    Development of textile and garment industry in Burma

    The development of Burma's textile industry has been more than 200 years ago. In 1988, the market economy was implemented, attracting foreign investment and opening to foreign suppliers for processing.

    Enterprises are mainly owned by sole proprietorship, joint ventures and private enterprises, and the ratio of foreign investment to local factories is 1:50.

    The local factory mainly produces cloth, including shuttle weaving and military uniform. The joint venture port is mainly exported, and it also develops the local market to earn Burma (Kyat) to pay the local workers.

    In recent years, investment in mainland China has increased continuously, with a total of more than 14 billion US dollars.

    According to ITMF statistics, in 2010, Burma had 250 thousand spindles for spinning ring spinning, 1600 spindles for air spinning, 5000 sets of lobule machines, low productivity, and 60% textile products still needed to import.

    Under the ASEAN agreement, imports of textiles from mainland China, Korea and Japan can be reduced or exempted from customs duties.

    It is understood that Burma textile and clothing exports, in 2003 the United States sanctions against Burma trade before the main market is the United States and the European Union, such as exports in 2000, the United States and the European Union accounted for 54.1%, 34.6%, that is, the two share nearly 90% of the proportion.

    After the US sanctions, not only did the us lose its grip on the US, but also the European Union dropped sharply.

    In 2010, Japan ranked first in the export of Burmese garments, accounting for 32%, the European Union accounted for 31%, Korea accounted for 22%, and three accounted for about 85%.

    It is estimated that after the US entry and exit of Burma products will be relaxed and preferential, Burma will greatly increase exports to the US and EU.


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