Myanmar’s CMP (cut, make and pack) garment factories are struggling due to the lack of orders from the European Union, says Myanmar Garment Manufacturers’Association (MGMA).

In January, the majority of clothing factories were forced to stop running overtime due to dwindling stocks. Around 90 percent of supplies came from China, which were blocked because of coronavirus, and the rest came from Indonesia, Vietnam, Thailand and South Korea.

Many factories have reduced working hours and cut jobs, while some have permanently or temporarily shut down. Some factories have not received orders or even price enquiries since March.

Many clothing shops across Europe have closed and the demand from Japan has declined by almost half, he said. Without new orders, many factories will be forced to reduce their workforce and working hours, and close either temporarily or permanently.

International closures have removed 50 percent of market demand for Myanmar’s clothing, handbags and footwear, according to the MGMA. Garment exports are mainly shipped to the EU, Japan and South Korea and the country earned over $4.5 billion (6.2 trillion kyats) from the sector from Oct 1 to July, according to the Commerce Ministry.

Export revenues are down $65 million (90 billion kyats) compared to the same period a year earlier, mainly due to COVID-19.