For ages, Mynmar was suffering from the crippling of decades of military rule. But now, the country is slowly emerging from the bad effects where poorly-managed resources industry dominated much of the country’s trade.
The Aung San Suu Kyi-led government is encouraging foreign and local investment in job-creating export industries with a strong focus on manufacturing. Boosted by US President Barack Obama’s recent withdrawal of executive sanctions on the country, Myanmar’s garment industry is on the rise so much so that it aims to be the nation's largest employer. The NLD-led government hopes to see new factories coming up which can provide employment for hundreds of thousands whose education and work opportunities were stunted under 50 years of military rule.
Exports have almost doubled in the last five years to $1.1 billion for the 2015 financial year. According to the ILO, the sector employed 380,000 people, mostly women. The government recently passed an investment law that allows tax breaks for investment in the industry. The Myanmar Garment Manufacturing Association estimates the industry will employ up to 1.5 million workers by 2024.
However, many problems persist. An inexperienced government has been slow in detailing policies that give businesses the predictability they need. While some companies have benefited from foreign help, many factories are still coming to grips with Myanmar’s transition. Industrial relations are struggling to keep pace with growth.
