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Myanmar urges raw material producers to invest in garment factories

  

Myanmar is urging raw material producing factories such as buttons and thread manufacturers to invest in Myanmar, said U Aye Thaung, Chairperson, Shwe Lin Pan Industrial Zone.

Currently, garment manufacturing in Myanmar is carried out in a cut-make-pack style, where fabrics and accessories are imported and then cut, sewn and styled. The finished products are packed for exports to big fashion brands overseas.

Myanmar's garment exports have declined by more than $60 million in fiscal 2019-20 compared to the previous year and will continue to be under pressure in the current fiscal year, said U KhinMaungLwin, Assistant Secretary,Ministry of Commerce.

The sector first started facing difficulties when the supply of Chinese raw materials needed for garment manufacturing began to face disruptions. Meanwhile, order cancellations from major importers like Europe also affected production. That culminated in factory closures, job losses and declines in export revenue.

Around 70 percent of Myanmar-made garments are exported to Europe, while the remaining is sent to Japan, Korea, the US and China.

Since the pandemic started, operations at around 500 garment factories in Myanmar have been seriously affected. Meanwhile, those that reopened are only able to employ a third to half of their workforce due to COVID-19 risks and restrictions, said Thaung.

He added that most factories have not received any new orders in recent months and since the second wave of the virus started in Myanmar in September, the factories which have been permitted to reopen are working on older orders.

The factories that produce shoes and bags are facing the most difficulties, U Aye Thaung said. Things have deteriorated further since the recent lockdown in Yangon, under which all factories were instructed to close for two weeks. Many orders were forfeit during this period.

 
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