Sixteen companies have been granted permission to operate garment industries with Cutting, Making and Packing – CMP system during five months of this year, according to the Directorate of Investment and Companies Administration (DICA).
Those companies will cooperate with not only local entrepreneurs but also other businessmen with the foreign investment assistance.
Moreover, local MK Company has agreed to cooperate with Thailand and Japanese-based Wacoal Company to operate in the garment industry.
The European Union last September reinstated tax breaks for imports from Myanmar under its Generalized System of Preferences, or GSP system, which had been suspended since 1997.
Garment industry in Myanmar will benefit from the Generalized System of Preferences (GSP) of the European Union starting from 2013, according to the Myanmar Garment Association.
The tax advantages gained from GSP are attracting more investments from South Korea, Japan and Thailand.
The garment factories will be located in Yangon region, the commercial hub of Myanmar and industrial zones in Bago and Ayeyawady regions.
Malaysian-based Chia Moon Garment, Haker Enterprise (Myanmar) and General Enterprise Garment will operate their business with the fully assistance of foreign investment in Pathein Township of Ayeyawady region and Dagon Myothit (East) Industrial Zone.
Myanmar has earned US$ 30 billion in garment export during three months; January, February and March of this year and the amount is double than the last year, according to the statements released by Myanmar Garment Association.
The association is optimistic about an upward trend of Myanmar garment industry by the inception time of the GSP system, despite the recent declining demand for garment export from the country.