Following the lifting of European and American economic sanctions, Myanmar’s garment industry is growing. Currently, Japan and European countries are placing the largest orders for garment shipments. Additionally garment exports also go to South Korea, China and America.
Myanmar’s garment industry is focused on cutting, making and packing, which is a basic contract garment assembly system that allows international garment companies to reduce their labor costs. The country is hoping to transition the domestic garment industry into a more value-added free on board system which puts international garment manufacturers in charge of not only cutting and assembling garments but also sourcing materials and shipping finished projects.
The main attraction for garment investors is the cheap labor. There are currently over 400 garment factories in Myanmar, with a labor force of more than 3,00,000 workers. Myanmar earned nearly $400 million from garment exports in the past three months. This is $100 million increase over the same period last year. Natural gas and agricultural products each comprise 25 per cent of Myanmar’s exports. CMP garments account for 16 per cent of exports, minerals eight per cent, fisheries five per cent, and forest, animal products and other products 21 per cent.