Exports from garment factories that operate under the Cut-Make-Pack (CMP) system earned some US$1.86 billion, as of the first week of January this fiscal year (FY), with the amount increasing by more than $560 million, compared to last FY, according to the commerce ministry.
The garment sector is one of the prioritised sectors that drives increasing exports. Garment exports are primarily made to Japan and European markets. Additionally, garments are exported to markets in South Korea, China and America.
The majority of Myanmar’s garment factories operate under the CMP system, while those engaged in this industry
are striving to transform CMP into the free on board (FoB) system.
The 2016-2017 FY saw estimated earnings of some $2 billion from garment exports, according to the commerce ministry. In the export sector, natural gas and agricultural products individually accounted for 25 per cent, while CMP garments accounted for 16 per cent, minerals for eight per cent, fisheries for five per cent and forest, animal products and other products for 21 per cent.
There are more than 400 garment factories in Myanmar, with a labour force of greater than 300,000 workers. Myanmar’s inexpensive labour attracts investments from foreign manufacturers to the country, which sometimes leads to a conflict over wages between workers and employers.
by Ko Khant