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Myanmar expected to have earned $2 bn from garment industry

It is expected that Myanmar could earn about US$ 2 billion from CMP (cutting, making and packaging) garment industry, which is running under a piecework system, in 2016, according to Myanmar Garment Entrepreneurs Association.

US$ 1.65 billion was earned in 2015, and over US$ 1.1 billion has been earned between April and November of fiscal year 2016-17 from the industry, said sources from the Ministry of Commerce. 

“As of December 16 this year (2016), CMP garment industry earned US$ 1.158 billion but in the same period of the previous year, we earned US$ 527.665 million. So this year's revenue exceed last year’s by US$ 629.709 million," said assistant secretary Khin Maung Lwin of the ministry. 

At present, orders from European Union countries are increasing and exceeding that of Japan who had placed most orders up until last year. According to the association, order increases from EU countries are a result of GSP (Generalized System of Preferences) sanctions relaxation. 

In 2015,  Japan purchased over US$ 580 million worth of garments. Before 2003, Myanmar's garments were mainly exported to the United States, and Japan became the biggest buyer from 2010 onwards. 

The division of the country's CMP garment export market shares is as follows: 33 per cent goes to Japan, 25 per cent to EU, especially Germany, 25 per cent to South Korea and 2.4 per cent each to the US and China. 

There are more than 100 garment factories across Myanmar with about 400,000 workers. The CMP system has been practised for over 20 years, and FOB, or freight-on-board system in which the factories are solely responsible for producing the garments in their entirety and arranging for shipment has yet to be adopted.

Source:http://www.elevenmyanmar.com/business/7258