Myanmar has emerged as an up-and-coming force in the Southeast Asian textile sourcing market space. The country is catching the attention of investors around the globe. A number of large foreign corporations are interested in manufacturing in Myanmar.
In mid-2014, Gap became the first US Corporation to start textile production in Myanmar following the lifting of American sanctions. Within a year, the company tripled the number of products it was manufacturing in Myanmar.
The country has a Five Year plan to boost textile and garment exports. Economic development has been further supported by internal change. New financial laws are reshaping the economy and increasing mobile banking. Additionally, 2016 saw the lifting of all remaining economic trading sanctions between Myanmar and the US after more than two decades. The country saw historic growth in 2016 and exported more than a billion dollars in garments and tactile goods.
As a most favored nation WTO member, Myanmar boasts low tariff rates for exporting countries that are also WTO members. These positive changes have been associated with a rise in foreign direct investments.
With a competitive minimum wage, GSP trade privileges in the EU market and a strategic location at the China-India intersection, Myanmar is becoming increasingly popular among manufacturing companies burdened by the upward cost spiral in China.