Manufacturing exports reach $3.95 bln in current FY

LOCAL NEWS

Exports of finished industrial goods touched a high of US$3.95 billion between 1 October and 21 February in the 2019-2020 fiscal year, reflecting an increase of $521.65 million compared with the corresponding period of the previous financial year, according to the Ministry of Commerce.
As per figures provided by the ministry, the exports of finished industrial goods totaled $3.43 billion during the same period in the 2018-2019FY.
Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the cutting, making, and packaging (CMP) basis, and it contributes to the country’s GDP to a certain extent.
The CMP industry has emerged as a very promising one in the export sector. The value of CMP exports was just $850 million in the 2015-2016 financial year, but it tripled within two years to touch $2.5 billion in the 2017-2018FY, as per figures provided during the Myanmar Global Investment Forum 2018, held on 12 September.
In the first four months of the current financial year, exports of clothing produced under the CMP system crossed $1.6 billion, an increase of $170 million from the same period in the 2018-2019FY, according to data from the Ministry of Commerce.
Japan is the largest market for Myanmar apparel, followed by the European Union.
The Myanmar Garment Manufacturers Association (MGMA) has more than 500 members, and garment factories in Myanmar employ more than 500,000 workers. Investors prefer to invest in cheap-labor countries like Myanmar.
According to an official from the Myanmar Garment Manufacturers Association, more than 1,000 workers are out of jobs at present owing to COVID-19 as factories struggling with shortage of raw materials have laid off workers.
“Some CMP enterprises from Myanmar mainly rely on China for raw materials, and they are now facing a shortage of raw materials. They may find themselves battling against other importer countries for CMP raw materials. Some businesses may grind to a halt due to the lack of raw materials. There have already been layoffs in factories,” said the official. — GNLM (Translated by EMM)

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