Major clothing retailers sourcing from Myanmar have welcomed the minimum wages for the garment industry. Labor costs in Myanmar are ranked second lowest in the world. More than one new garment factory opened every week in the country last year, amid a wave of new orders from international players that has tripled export revenues from clothing in three years. Though Myanmar is blighted with extreme social and compliance risks such as poor working conditions, child labor and human trafficking, many investors see the country’s modest reforms as a move in the right direction compared to other major garment producing countries in the region.

The decision to set a minimum wage in Myanmar came after 13 companies including M&S, Primark and H&M indicated their support for such a move. The reasoning is that this would make the country more attractive to foreign investors. new minimum monthly pay for workers means Myanmar will retain a competitive advantage over rival garment manufacturing states such as Vietnam and Cambodia where the monthly minimum wage is higher. However, many factory workers say they are forced to work overtime to meet production targets and that they are not paid for extra work.