Myanmar’s garment sector is expected to earn two billion dollars in this fiscal year 2016-2017. Exports from the garment sector earned nearly 1.7 billion dollars last year. The sector is likely to grow five times more than its current status and employ between 3,00,000 and a million laborers by 2024. The aim is to reach a garment export value of ten billion dollars by 2024.
Japan, Europe and South Korea are the main export markets of Myanmar’s garment enterprises and the next target is the United States.
Myanmar’s garment sector is flourishing as the last low-cost production frontier for factory relocation and diversification in southeast Asia.
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.
The country is having a strong emphasis on economic reforms to attract FDI, harmonisation of investment regimes, and the development of special economic zones and the needed infrastructure.
In 2014, Japan and Korea were Myanmar’s major export destinations, accounting for 38 per cent and 31 per cent of its total garment exports.
The EU has become an increasingly important driver of garment export growth for Myanmar.