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Myanmar emerging a strong sourcing centre for brands

Just five years ago, Myanmar was isolated from the rest of the world. But that is changing. In 2011, the number of garment factories had grown to 200, from 120 the previous year. Today, it is estimated that the industry employs more than 2,00,000 workers, a tenfold increase since 2010 and double the number employed before US sanctions were toughened in 2003. An average of two new factories are opening every week.

One reason enticing garment producers back to Myanmar is cheap labor. The country has some of the lowest wages in Asia. At present, there is no minimum wage in Myanmar. Some of the world’s biggest fast fashion brands are already taking notice of Myanmar. Swedish apparel giant H&M placed test orders in 2013 and began sourcing from the country in earnest last year. Its garments are being manufactured in some 13 factories. Gap was the first major US apparel retailer to establish a presence in Myanmar.

Though manufacturing jobs will increasingly provide employment opportunities for young people in Myanmar, they will only be able to lift themselves out of poverty if these jobs provide fair wages and conditions. Due to Myanmar’s isolation and lack of exposure to international practices, it has limited experience in adopting new business methods or complying with international standards.

 
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