The total value of cut-make-pack (CMP) garment exports exceeded US$2 billion before the end of this fiscal year, according to a report in Myawady Daily on Friday.
U Tun Tun, an executive member of the Myanmar Garment Manufacturers Association, said the value of CMP garment exports reached $2.332 billion between last April and the second week of this March. The majority of entrepreneurs are interested in exporting garments through the free on board (FOB) system, as they expect to get healthy profits in the overseas markets. The government’s support is also needed to promote the country’s garment industry.
The vast majority of the country’s garment factories operate through the CMP system. The alternative is the FOB system. Under this approach, retailers simply place orders with highly-capable and well-financed factories in international markets.
The CMP system is being practised for the last 20 years in Myanmar, with authorities also planning to export garments through the FOB system in the future.
Myanmar’s CMP garment industry includes the manufacturing of shoes, garments and bags. The country exports its CMP products mainly to Japan, a few European countries, South Korea, the United States and China.