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    Sanctions Lifted: Myanmar'S Garment Industry Will Welcome The Warm Spring, And Chinese Enterprises Will Increase Their Investment In It

    2014/10/10 23:02:00 400

    LiftingSanctionsMyanmarClothingIndustryChinese EnterprisesInvestment

    Since the military regime came to power in September 1988, Myanmar has been subject to long-term sanctions by Western countries. Countries and international organizations that have imposed sanctions on Myanmar include the United States, the European Union (the United Kingdom, France, Germany and other countries have separate sanctions), Canada, Australia, Japan, as well as the International Monetary Fund (IMF), the World Bank (WB), the Asian Development Bank (ADB) and so on. Later, Japan soon abandoned sanctions against Myanmar.

    suffer Europe and America Under the influence of long-term national sanctions, Myanmar's clothing industry has been unable to develop. It is understood that the source of orders in this country is narrow, and most orders come from Japan and South Korea.

    In recent years, with the increasing production costs in mainland China, a major clothing country, more and more countries want to transfer the textile and clothing industry to Southeast Asia and other countries. Myanmar, as a country with great potential for development, can only sigh at the sight of Vietnam and other countries' booming clothing industry.

    However, after Myanmar implemented political reforms, western countries gradually relaxed sanctions against Myanmar. Clothing labeled "Made in Myanmar" can now be sold in American stores in a grand manner. This is of great significance to the recovery of Myanmar's clothing industry.

       Myanmar According to the relevant media of, during the ten years of western sanctions, Myanmar's garment export industry to western countries has suffered a heavy blow. Myanmar's garment exporters have no choice but to find markets in eastern countries in order to survive.

    However, the situation has changed recently. As the West eased sanctions, Myanmar clothing has more opportunities to enter the European and American markets. Now Myanmar's clothing industry is beginning to recover, which is unprecedented in the last decade.

    Although Myanmar's garment industry has ushered in good development opportunities, the competition in this industry is becoming increasingly fierce. The total export volume of Myanmar's clothing this year (2014) is expected to reach US $1.8 billion, much more than the total export volume in 2001 at its peak. Gap, an American clothing chain Inc announced in June this year that it will import clothes from Myanmar factories, which means that clothes with the label "Made in Myanmar" will be put on the shelves in the United States. Myanmar exporters expressed their hope that more Western enterprises would come to place orders like this American enterprise.

    Mainland China's garment industry will invest more in Southeast Asia

    According to the analysis, the investment of Chinese mainland enterprises in Southeast Asia is increasing, and the investment in Myanmar will certainly increase in the future. Myanmar has rich natural resources, abundant labor supply, and borders on the mainland of China, with geographical advantages.

    As far as the textile and clothing industry is concerned, Myanmar will have greater synergy and create more investment portfolios by virtue of political and economic reform, low-cost advantages, normalization of relations with the United States, the European Union and other countries, and cooperation with surrounding Vietnam and Cambodia. according to understand Many countries, such as South Korea and Japan, have shown great enthusiasm for the country, and are planning Myanmar as a beachhead.

    In order to enable entrepreneurs to have a comprehensive and in-depth understanding of Myanmar's investment environment, relevant departments on the mainland held a forum with the Ministry of National Planning and Economic Development of the Myanmar Government and the economic adviser officials of the President of Myanmar, and gained a comprehensive understanding of Myanmar's economic development status, economic development plans, preferential policies for foreign investment, etc.

       Development of Myanmar's textile and clothing industry

    The development of Myanmar's textile industry has a history of more than 200 years. In 1988, the market economy was implemented to attract foreign capital and open to foreign investors for processing with supplied materials. The enterprise is mainly divided into sole proprietorship, joint venture and private enterprise, and the ratio of foreign capital to local factory is 1:50. The local factory mainly produces cloth, including shuttle cloth and military uniform cloth; The joint venture port factory is mainly for export, and also develops the local market to earn Kyat to pay local workers. In recent years, the investment of the Chinese mainland has increased continuously, and the cumulative amount has exceeded 14 billion US dollars. According to ITMF statistics, Myanmar had spinning equipment in 2010, including 250000 ring spinning spindles, 1600 rotor spinning spindles, and 5000 shuttle looms. The productivity is low, and 60% of the textiles still need to be imported. Under the ASEAN agreement, imported textiles from mainland China, South Korea, Japan and other countries can enjoy tariff reduction and exemption.

    It is understood that the main markets of Myanmar's textile and clothing exports before the United States imposed trade sanctions on Myanmar in 2003 were the United States and the European Union. For example, in 2000, the United States and the European Union accounted for 54.1% and 34.6% respectively, that is, the combined proportion of the two accounted for nearly 90%. Since the US sanctions, not only has the loss to the US stalled, but also the loss to the EU has declined sharply, and Japan and South Korea have taken its place. In 2010, Japan ranked first in Myanmar's textile and garment exports, accounting for 32%, the European Union 31%, South Korea 22%, and the three accounted for about 85%. It is estimated that Myanmar's textile and garment exports to the United States and the European Union will increase significantly after the United States will relax and give preferential treatment to Myanmar's imports of products.


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