A Glance at Myanmar Garment & Textile Industry
Myanmar’s clothing industry is predicted to grow significantly in the coming years, according to a report in the latest issue of Global Apparel Markets from the business information company Textiles Intelligence.
The Myanmar government has published a strategy for the textile and garment industry as part of a document, titled National Export Strategy 2015-2019. The report pushed the industry to move from operating on a cutting, making and packaging (CMP) basis to operating on an FOB (free-on-board) basis; increase volume; improve quality; produce a greater volume of knitted products.
There are a slew of measures that needs to be taken for further growth, like the industry will need modern machinery, raw materials, skilled labour, social and environmental certification, energy sources that are reliable, a logistics infrastructure and a financing system which runs smoothly.
Currently, Myanmar has the lowest minimum wage and average payout when compared with key garment hubs like China, Thailand, Cambodia, Vietnam and India, but very close in comparison to the corresponding rates in Bangladesh. Competitive pricing is one of the key factors governing business decisions in the garment industry and, as labor costs contribute about 15% to 20% of the total garment cost, will directly help Myanmar to edge out other garment manufacturing hubs.