A Chinese company will cooperate with local firm Lat War to create a garment factory in Bago region – a US$20-million project expected to employ thousands of people.
Sumec Textile & Light Co Ltd, the Chinese firm, and Lat War will rent a former paper factory from the Ministry of Industry in Yedashe Township, Bago, Dr Khin Maung Aye, the managing director of Lat War garment company, said.
“We rent the Yaene paper factory for this garment factory. Total investment is around US$20 million (Ks 19.46 billion),” he said.
“Factory processes have started to operate and over 200 staff have already been placed in some parts of the factory. After phase one of the factory is finished, about 1,500 employees will get jobs and after phase two over 5,000, and after phase three, up to 15,000 [people].
“This project is targeted to give jobs to 15,000 employees,” Dr Khin Maung Aye said.
Currently, the factory is being modified and operations are expected to start at the end of this year.
A memorandum of understanding on setting up the garment factory at Yedashe was signed by Lat War company and the Chinese firm Sumec on July 4 at the Sedona Hotel in Yangon.
The government has given permission for 100-per-cent foreign investment in the garment industry, plus foreign-local joint ventures, under the foreign investment law.
More investments are expected from companies from Japan, China and Hong Kong. Money going into the garment industry is expected to create more job opportunities, although analysts have said the rights of workers also need to be clarified for the industry to prosper.
Source: ELEVEN MYANMAR