EXPORTS of garments manufactured under the cut-makepack (CMP) system reached nearly US$2 billion in the period from 1 October to 1 March in the current fiscal year, an increase of $880 million from the same period in the 2017-2018FY, according to data from the Ministry of Commerce.
Myanmar’s manufacturing sector is largely concentrated in CMP garments and textiles, which contribute to the country’s GDP to some extent.
The garment sector is among the prioritized sectors driving up exports. The CMP garment industry has emerged as a promising one, with preferential trade from Western countries. The majority of Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into the free-on-board (FoB) system, according to the Myanmar Garment Manufacturers Association.
The export value of CMP garments was only $850 million in the 2015-2016 fiscal year, but it has tripled over the last two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the last mini-budget period (from April to September, 2018), according to the Commerce Ministry.
Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. With demand from foreign trade partners growing, imports of CMP raw materials are rising year by year. There are more than 400 garment factories in Myanmar. Myanmar’s cheap labor attracts investments from foreign manufacturers to the country. — Ko Khant (Translated by Ei Myat Mon)
