Myanmar is likely to shut around 200 garment factories due to the economic instability caused by military coup in February. The move could plunge the country’s 700,000 garment workers into further economic distress after a year of pandemic-induced shutdowns, says Moe Sandar Myint, Leader, Federation of General Workers in Myanmar.

As per a Sourcing Journal report, a number of brands, including Bestseller, C&A, H&M, Primark and United Colors of Benetton, have already suspended production in Myanmar following the military coup. Though Bestseller, H&M and Primark have since resumed sourcing, factories are struggling to stay open while some have already preemptively closed. Heng Mao (Myanmar) Garment Co, a Chinese-owned apparel factory in Yangon’s Hlaingthaya Township recently announced its closure blaming operational challenges such as economic sanctions, raw-material shortages and the COVID-19.

The coup has created safety, logistical and banking challenges for all businesses, the European Chamber of Commerce in Myanmar said. One-quarter of workers across all industries have lost their jobs and the situation is likely to significantly worsen by the end of June, the organization added.