Burma's New Hot Spot: There Are More Than 600 Garment Factories, Most Of Which Are Chinese Funded Enterprises.

The Lancang Mekong River cooperation mechanism is a new subregional cooperation platform jointly launched by China and Vietnam, Burma, Laos, Thailand and Kampuchea. It has a close interaction with the "one belt and one road initiative" and is also an important regional platform for the construction of "one belt and one road". Burma is an important node of "one belt and one road". It is also an important member of the Lancang Mekong River cooperation mechanism. It has broad prospects for deepening cooperation and complementary advantages.

The textile industry in Burma is dominated by garment processing. There are no large textile factories and dyeing factories. The raw materials such as yarns and fabrics are mainly imported. China is the main source country of raw materials import.

By the end of July, there were about more than 600 garment factories in Burma, and more than half of foreign and joint ventures were involved. Chinese enterprises were the main force, accounting for about 60% and about more than 300 enterprises. These garment factories are mainly concentrated in the Yangon area.

The advantage of investing in Burma lies in:

Bilateral relations between China and Myanmar are developing well.

Burma enjoys the GSP policy granted by EU and Japan.

Foreign investment can get a 3-7 year tax exemption policy.

Burma has an obvious demographic advantage - 65% of the nearly 53 million people are working age, and half of them are women who are favored by the clothing industry. The Burmese people attach importance to their families and learn to be adaptable. The labor cost is low, the minimum wage is about 654 yuan / month, plus 2 hours overtime and other welfare is about 1500 yuan per month.

The cost of electricity is relatively cheap, which is about 0.9 yuan per kilowatt hour.

The main industrial park is about 0.5-1 hours away from the port and airport, with convenient transportation.

Enterprises do not need to provide accommodation for employees, and reduce management costs, but they need to provide places for eating.

Good social order and plain manners.

The China Myanmar railway is under exploration stage. It started in the Burma City, Mu Jie, from the Mandalay junction to the South and the capital Naypyidaw to Yangon. The entire railway line has a total length of 430 highways, and is expected to be completed in 2021.

Challenges for investing in Burma:

The infrastructure is not perfect, especially the lack of electricity, poor transportation facilities and serious traffic congestion.

Financing channels are scarce and bank financing is difficult.

Lack of localization management talents and low skills of workers, enterprises need skills training for their employees.

The industrial chain is incomplete, the main accessories and accessories depend on imports, and secondary accessories such as cartons, tapes, lines, and some shipping marks can be purchased locally.

The workshop has a high rent: about 2-3 US dollars per square meter, foreigners can not buy land, and can invest in industrial parks for 50+20 years.

Burma's social system, language, cultural differences and trade union system are all problems that enterprises need to face.

Star Li Ya Yangon commercial city

Singapore Star Li Ya group is committed to the development, construction and operation of overseas trade infrastructure, and integrates the comprehensive service functions such as commodity display, purchasing trade, exhibition marketing, living and living. Based on the International Trade Center Singapore, the group has 16 overseas projects in the world, and its land reserves exceed 6 billion, which are located in Southeast Asia emerging countries such as Burma, Kampuchea, Thailand, Indonesia, Philippines, Vietnam and Malaysia, Dubai and the United States, Canada, Australia and other developed countries and regions.

Star Li Ya Yangon Trade City project covers an area of 720 thousand square meters, with a building area of over 3 million square meters. It is located in the Yangon special economic zone of Yangon, 15 kilometers away from the center of Yangon, and 16 kilometers from the international port of Yangon port. It is a key development area in Yangon. At present, the Yangon commercial and Trade City has entered the stage of project construction and investment promotion, and the market property is self-sustaining, and shops are only rented for sale. The industry of inviting business includes: textile leather, accessories and accessories, bags and accessories, clothing shoes and hats and accessories accessories, industrial electrical, hardware tools, hotel kitchen and beverage supplies, automotive and electrical appliances and accessories, household appliances, digital and mobile phone accessories, security equipment, daily general merchandise, etc.

Local wholesale market

Yuzana Plaza, the largest indoor wholesale market in Burma, opened in early 1995. The market has 5 floors, more than 700 shops, mainly in clothing, furniture, household goods, accessories, electronic products and other small commodities. The market is also one of the main places for local residents to purchase goods in Yangon.

Bogyoko Aung San Market was built in 1926. Its original name is Scott's Market. Since the independence of Burma in 1948, it has been renamed Bogyoko Aung San Market to commemorate general Burma's father. There are more than 1000 shops in the market, mainly for handicrafts and clothing.

The top-level design of the "one belt and one road" initiative, the Lanmei cooperation mechanism and the China Burma economic corridor provide important opportunities for the development of Sino Burmese garment industry cooperation. China is not only a source of investment and important raw materials and intermediate products for Burma's textile and garment industry, but also a consuming country of Burma's textile and clothing products. Chinese textile and garment enterprises have brought the experience of organization and management of industrial production, continuously nurtured management talents for Burma, improved the overall technology and technology level of the garment manufacturing industry in Burma, played a technology spillover effect, and directly promoted the benign development and transformation and upgrading of the garment manufacturing industry in the country.