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Myanmar – Potebtial Market For Indian MMF Textliles

 

Myanmar has recently opened up its market for imports of goods including textiles from all over world.  Total import of man-made fibre textiles by Myanmar in 2013 was around US$ 690 Mn. of which US$ 539.84 Mn. was fabrics, US$ 83.91 Mn. was yarn, US$ 57.20 was Made-ups, and US$ 8.96 Mn. was fibre. However export of Indian MMF textiles to Myanmar during 2013 was only US$ 0.63 Mn. accounting for 0.09% in total import of these textiles by Myanmar. Product share in the export basket of Indian MMF textiles to Myanmar was fabrics 11% (US$ 0.07 Mn), made-ups 14.29% (US$ 0.09 Mn), and yarn 75% (US$ 0.47 Mn). Main countries Myanmar imported MMF textiles from were China, Republic of Korea, Japan, Taipei, Indonesia, Thailand, etc.

 

Myanmar is a potential market for Indian MMF textiles as per the statistics given below:

Value in US$ Mn.

MMF Textile Products 

Import from World

Import from India

% Share of India

Fabrics

539.84

0.07

0.01

Made-ups

57.20

0.09

0.16

Yarn

83.91

0.47

0.56

Fibre

8.96

0.00

0.00

Total

689.91

0.63

0.09

Source: Compiled from UN Comtrade data

Main MMF textiles items imported by Myanmar from World were as follows:

FABRICS

HS CODE

PRODUCT DESCRIPTION

IMPORT IN 2013 (In US$ Mn.)

551219

Woven fabrics,containg>/=85% of polyester staple fibres

119.9

540761

Woven fabric >85% non-textured polyester filaments

48.41

540752

Woven fabrics,>/=85% of textured polyester filaments, dyed

32.21

551614

Woven fabrics, containing>/=85% of artificial staple fibres, printed

24.78

540742

Woven fabrics,>/=85% of nylon/other polyamides filaments, dyed

24.64

551331

Plain weave polyest stapl fib fab,

22.93

600632

Dyed fabrics, knitted or crocheted, of synthetic fibres

21.57

551211

Woven fabrics, containing>/=85% of polyester staple fibres, unbl or bl

19.45

551321

Plain weave polyester staple fib fab,

15.11

551341

Plain weave polyester stapl fib fab,

12.75

551513

Woven fab of polyester staple fibres mixd w/wool/fine animal hair

11.99

551311

Plain weave polyest stapl fib fab,

9.52

540782

Woven fabrics of synthetic filaments,

9.28

540710

Woven fab of high tenacity fi yarns of nylon oth polyamides/polyesters

7.02

540769

Woven fabric >85% polyester filaments

6.34

551612

Woven fabrics, containing>/=85% of artificial staple fibres

5.23

Source: Compiled from UN Comtrade data

YARN

HS CODE

PRODUCT DESCRIPTION

IMPORT IN 2013

(In US$ Mn.)

550932

Yarn,>/=85% acrylic/modacrylic staple fibres,multiple,not put up

10.27

550810

Sewing thread of synthetic staple fibres

6.97

540110

Sewing thread of synthetic filaments

3.79

540269

Yarn of synthetic filaments, multiple, nes, not put up

2.27

540261

Yarn of nylon or other polyamides fi, multiple, nes, not put up

1.74

540120

Sewing thread of artificial filaments

1.37

540233

Textured yarn nes,of polyester filaments,not put up for retail sale

1.21

540331

Yarn of viscose rayon filaments, single, untwisted, nes, not put up

1.12

550922

Yarn,>/=85% of polyester staple fibres, multiple, not put up, nes

0.71

551110

Yarn,>/=85% of synthetic staple fibres, o/t sewing thread, put up

0.60

Source: Compiled from UN Comtrade data

MADE-UPS

HS CODE

PRODUCT DESCRIPTION

IMPORT IN 2013 (In US$ Mn.)

560811

Made up fishing nets, of man-made textile materials

22.32

630140

Blankets (o/t electric) and travelling rugs, of synthetic fibres

16.17

630533

Sacks, bags, packing, of strip plastic material

4.82

630790

Made up articles, of textile materials, nes, including dress patterns

3.25

630312

Curtains,drapes,interior blinds&curtain/bd valances,of syn fib,knittd

1.80

590900

Textile hosepiping and similar textile tubing

1.20

630293

Toilet and kitchen linen, of man-made fibres

0.79

630532

Flexible intermediate bulk containers, man-made mater

0.75

630222

Bed linen, of man-made fibres, printed, not knitted

0.70

631090

Used or new rags of textile materials, not sorted

0.58

630720

Life jackets and life belts, of textile materials

0.46

611780

Clothing accessories nes, of textile materials, knitted

0.35

630493

Furnishing articles nes, of synthetic fibres, not knitted or crocheted

0.31

Source: Compiled from UN Comtrade data

FIBRE

HS CODE

PRODUCT DESCRIPTION

IMPORT IN 2013 (In US$ Mn.)

  550330

Staple fibres of acrylic or modacrylic, not carded or combed

                       4.81

550320

Staple fibres of polyesters, not carded or combed

3.70

550620

 Staple fibres of polyesters, carded or combed

0.45

Source: Compiled from UN Comtrade data

TEXTILE AND APPAREL INDUSTRY IN MYANMAR

With the change in the political scenario, Myanmar is trying to establish itself as a leading manufacturing hub. The ongoing quest for low cost production has drawn manufacturers' attention to the clothing industry in Myanmar. The country has a long history of making yarn, fabric and garment. Currently, there are over 200 garment factories in Myanmar, reached employing about 20,000 people. Most of these factories are privately held.

MYANMAR APPROVES NEW FOREIGN INVESTMENTS IN GARMENT SECTOR

Due to cost advantages Myanmar has attracted significant foreign investments in the textiles industry. Currently there are 19 foreign companies in the Myanmar's garment industry. These includes Costic International Co.,Ltd, Honeys Garment Industry Ltd, Nadia Pacific Apparel Co Ltd, Manufacturer GFT Enterprise Co Ltd, JS Filter Co Ltd, Eurogate Sportsware Ltd, THY Garment Co Ltd, Shinsung Tongsang Inter Co Ltd, Korea Link Industrial Co Ltd & Mac Do Co Ltd. etc.

Recently, Myanmar Investment Commission (MIC) has given its approval to several foreign businesses to invest in the country’s garment manufacturing sector. Two companies, one from the UK and another from Hong Kong, have been given permission to bring in hundred-percent foreign investment for setting up their own business of cutting, making and packing (CMP) apparel in the country.

As per available information, some of Thailand's top garment companies likely to start their operations to Myanmar soon. The Myanmar Investment Commission has allowed six foreign companies to run garment factories and to take advantage of lower wages by the second half of this year. The companies would start operations by investing about US$ 10 in each plant for a total of US$ 60 million. 

ADVANTAGES OF MYANMAR

Hiring labor in Myanmar offers significant cost savings to western manufacturers, as Burmese workers are among the lowest paid in Asia, earning an average US$2 per day versus US$20 per day in neighboring Thailand. But, it is not just the cheaper and abundant labor, but the investment and tax incentives, the Myanmar government is offering for those manufacturers established in special economic zones which are attracting interest.  Incentives include a 5 year holiday on tax, custom duty exemptions on imported machinery and equipment as well as the value of the machinery being considered part of the capital investment requirement. Myanmar is likely to develop into a viable apparel sourcing destination very soon.

SCOPE FOR INDIA

The flourishing garmenting sector in Myanmar promises good scope for exporting man made fibre textile products including fabrics from its neighbouring markets since its domestic production of these textile products are insufficient to meet growing demand. India being the largest man made fibre producing and exporting neighbour of Myanmar, it offers opportunities for India to tap the market and increase exports to Myanmar. Moreover, the long span friendly political relationship that both countries share will be an additional advantage for India to do business with Myanmar. 

The key export markets of Myanmar are Japan (US$348 million) and South Korea (US$232 million), with remaining exports going to Brazil, Argentina, South Africa and Turkey. Since the US has planned to lift most of the trade sanctions on Myanmar, the garment manufacturers anticipate a lot of demand in the coming years. Prior to the sanctions, about 85% of the nation's exports were apparel and textiles of which around 25% went to the U.S. Currently; Japan is Myanmar's largest garment customer, with shipments of US$ 243 Mn accounting for 34% of total clothing exports.

SRTEPC PROMOTIONAL PROGRAMME

In view of steadily scope to increase our exports to Myanmar, The Synthetic & Rayon Textiles Export Promotion Council is planning to organise INTEXPO in Burma during 2014-15. It is expected that the event will give a platform to Indian textile companies to establish their base in Myanmar in order to tap this market.  It is also expected that the event will help in increasing exports of Indian MMF textiles to this market significantly. Moreover, it will give an opportunity to the textile communities of both countries to meet and have better business ties. Thus, all the member-companies may take the advantage of the event and be a part of the national endeavour to increase exports to new heights. We urge all the member-exporters to participate in the show in a big way.