Garment Exports Jump More Than Threefold in 2016-17FY

Garment sector’s export volume during the five months of 2016-17 reached $512 million compared with the same period last year, according to Ministry of Commerce.

“Until September 9, garment export reached $745.49 million. Last year in this season, the export reached $232.81 million. In last year August, we aimed to boost the export volume, and our efforts have paid off,” Deputy Secretary of Ministry of Commerce, U Khin Maung Lwin, told Myanmar Business Today.

Myanmar’s garment sector mainly practices CMP (Cut-make-pack) system, where raw materials are imported, manufactured into final products in Myanmar and then exported. The profit of the garment businesses thus depends on the volume of orders received from foreign countries.

“We practice CMP system in Myanmar, so the local entrepreneurs in the sector earn only about ten percent of the exported amount,” Secretary of Myanmar Garment Manufacturers Association, Daw Khaing Khaing Nwe, said.

Majority of Myanmar garment products go to Japan, South Korea and Europe. United States recently reinstated Myanmar’s GSP benefit, a tariff advantage provided to poor countries, and that is expected to boost garment exports twofold, according to local garment manufacturers.

In Myanmar, there are 171 locally-owned factories, 196 foreign-owned factories, and 22 joint venture factories. These factories operate with with more than 300,000 labourers, according to Myanmar Garment Manufacturers Association.

 

Source: Myanmar Business Today

 

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