February 24,2022
IMPORTS of raw materials by CMP (cut-make-pack) businesses have soared to US$918.89 million as of 11 February in the current six-month mini-budget period 2020-2021 since October 2020, which reflects an increase of $107 million compared with the year-ago period, according to the Ministry of Commerce.
The figures rose from $728.38 million registered the last FY2020-2021, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent last year on the back of a slump in demand by the European Union market.
The raw materials imported by the CMP businesses fell simultaneously, stated the Ministry of Commerce. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report. Exports of garments manufactured under the cut-makepack (CMP) system were valued at US$3.6 billion in the last FY2020-2021, according to data from the Myanmar Customs Department.
The garment sector is among the prioritized sectors driving up exports. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent.
Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US.
The export value of CMP garments was only $850 million in the 2015-2016FY, but it has tripled over the past 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 2018 mini- budget period (from April to September). It tremendously grew to $4.6 billion in the 2018- 2019FY and $4.8 billion in the 2019-2020FY, according to the Commerce Ministry. — KK/ GNLM
