MYANMAR’S garment sector can generate foreign revenue of over five billion US dollar yet it lacks raw material pro­cessing factories to cut high import and production costs, according to Chinese Textile and Garment Association in Myanmar.

Myanmar’s garment in­dustry needs local raw material factories to substitute import and reduce reliance on foreign manufactured goods and sta­bilize foreign exchange rate and conserve foreign reserve as the country has to import inputs like zippers, buttons, fabrics and others as per the order of the buyers, causing a significant dollar outflow.

Therefore, Myanmar’s gar­ment industry is endeavouring to transform the Free on Board system from Cutting-Making and Packaging basis by inviting Chinese investors to invest in raw material manufacturing. Myanmar’s manufacturing sec­tor is largely concentrated in garment and textiles produced on the CMP basis and only five per cent are running with lo­cally produced raw materials.

There are 523 member fac­tories of Myanmar Garment Manufacturers Association across the country. Sixty per cent of Myanmar’s garment exports go to Europe while 20 per cent are exported to Japan and other markets account for 20 per cent.

Myanmar garment in­dustry aims to contribute to employment of up to 1.2 to 1.6 million workers in a decade and Myanmar’s apparel market is projected to reach US$15 bil­lion, MGMA stated. — ASH/KK