According to the Ministry of Commerce, Myanmar earned over US$1.4 million from CMP (cutting, making and packaging) garment export in this fiscal year from April 1 to August 3, registering an increase of US$ 704 million over the same period last year.
The textile sector in Myanmar is witnessing a rapid growth. Local textile investors are running their self-established factories in the country while some of them are in service through cooperation with foreign investors to run the garment factories. Most of these investors are from Japan, China, South Korea and Taiwan businesses.
According to Myanmar Garment Manufacturers Association, the country at present, charges 10 percent of the value of garment export as a fee for services rendered. However, the country has been granted generalised system of preferences (GSP) by EU, which allows vulnerable developing countries to pay fewer or no duties on as an advantage to attract investors from China and neighboring countries.
Although the garment sector has great potential due to the EU’s GSP, bad transportation and labor strikes are challenges for the textile industry, sources said.
