Myanmar’s small and medium-sized businesses want to work more closely with US companies. However, a number of important changes have to be made. Until 2003, more than 50 percent of Myanmar’s garment exports were shipped to the US. This was when trade sanctions crippled the industry, forcing many factories to close. The, the US government eased sanctions since 2012 prompting US companies such as Ball Corp, Coca-Cola and clothing retailer Gap, to reach out to local SMEs again.

U Than Htaik Lwin, Director of manufacturer Proven Group, during a US-ASEAN Business Council seminar in Yangon, said that SMEs in Myanmar could develop faster with help from the US. However, he also added that they need an open market and they would like to export to the US, but would first have to improve many things, such as access to funding and technology.

U Sai Maung from RWT Garment said that companies in the garment sector in particular wish to improve relations with the US. They had good relations before sanctions were imposed and if more US companies could engage with their garment sector, it would help with job creation, Maung added. However, at present, many struggle to find opportunities to work with US businesses and that US companies are unwilling to do business in Myanmar due to an underdeveloped supply chain, he stated. The costs in Myanmar are high and they don’t have factories to manufacture raw materials such as cotton, mentioned Maung.

According to Maung, the US sanctions has extended beyond US companies and another challenge was to understand what these US companies wanted. Businesspeople looking to export to the US would find it difficult at first, until they learn how to produce products to an international standard, he said.