Myanmar will expand its textile and garment industry under its new export strategy to boost economic growth. It has set a target of earning US$8 billion this year. It is a big leap from exports of $900 million in 2012 to $1.7 million in 2014.
Official statistics show that since 1988, when the country opened to foreign investors, foreign investment in the manufacturing sector reached $5.46 billion. Myanmar has the potential to attract business from neighboring countries where manufacturing costs are high. Bringing transparency in laws and regulations, improving the infrastructure, efficient shipping connectivity, development of skilled manpower, increased productivity, economical and reliable energy and telecommunications will automatically boost the growth of garment industry. Today, the garment industry of Myanmar is rapidly developing. It is at a juncture where it has an opportunity to rise and transform itself into a leading garment manufacturing hub in the world.
Myanmar’s textile industry is thousands of years old. It is a land rich in culture, and with abundant natural resources. Myanmar’s most popular handicraft is traditional weaving. Medieval wall paintings, palm leaf writing and literatures show that since the Bagan period (9th to 13th centuries), the weaving industry had flourished. Ancient wood carvings, sculpture and mural paintings of ancient pagodas clearly indicate the high quality of apparel woven during those times. Situated in Southeast Asia having China, India, Bangladesh, Laos and Thailand as neighbors. The garment industry of Myanmar has a huge potential to contribute to national economic growth as a substantial employment giver, and attract foreign investment.
In the 19th century, local factories were set up that produced ‘lun taya acheik longyi’ (one hundred shuttle wave) with patterns of horizontal wavy lines. Pure silk threads were used to weave for both weft and warp, and more than 100-200 shuttles were used depending on the design. The traditional weaving technology has become a national treasure, a legacy that has been handed from one generation to another.
During the years from 1962-88 all major industries were nationalized. Therefore, any development in the garment industry could happen only with the support of the Ministry of Industry. During the period 1990-2001, garment exports increased from 2.5 per cent of total exports to 39.5 per cent. This meant that it became the largest export industry in the country. There were around 400 factories with three lakh employees in early 2000 generating revenue of US$ 600 million. Most exports went to the US (more than 50 per cent), countries in the EU (40 per cent), and the rest to South Korea, Malaysia, Canada, Singapore and Australia. Unfortunately, the trade regulations and sanctions in 2003 greatly impacted the garment industry of Myanmar. Instantly, the US market was lost.
The garment industry was adversely affected due to the changes in the country’s taxation and regulations, besides the international agreement on textiles and clothing being phased out in 2005. Other reasons such as the emergence of China and Bangladesh as leading garment exporters and limited access to finance also stopped many producers from expanding or renovating the factories to become more competitive. This made Myanmar’s garment factories less competitive and globally isolated. As a result, hundreds of factories closed down and more than a lakh of workers became unemployed.
From 2005 to 2010, around 130 garment factories which survived the downfall started exploring new markets in Japan and Korea. In 2011, the new government took up a series of reforms and changes to facilitate trade and foreign direct investment (FDI). After improvement in the political and business conditions in Myanmar, the garment sector is rapidly growing today. At present, two new garment factories open every week in Myanmar. The Myanmar Garment Manufacturers Association (MGMA) looks after the development and productive growth of this sector. Today, many garment factories are operating in Bago, Pathein, Hpa-An and Greater Yangon. More than 50 new apparel factories have come up in these areas in 2014 alone. The rest is history.
In Myanmar, more than 90 per cent of the total garment manufacturing is dominated by woven products. The main garment export destinations are Japan, Korea, Spain, Germany, UK and Turkey. They account for 85 per cent of total garment exports.
