Myanmar’s manufacturing sector attracted more than US$63.5 million from 26 enterprises in the past five months (Apr-Aug) of the current financial year 2023-2024, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA).
Chinese companies primarily made investments in the manufacturing sector.
The Myanmar Investment Commission gave the go-ahead to 31 foreign projects from seven countries in the past five months, with an FDI of US$484.155 million, including expansion of capital by the existing enterprises, and the power sector topped the FDI line-ups with $317.178 million from two enterprises.
The agriculture sector drew over $2.5 million from three enterprises. The transport and communication sector saw a capital expansion of $77.82 million. An increase of capital worth $23 million was pumped into the livestock and fisheries sector as well.
The manufacturing enterprises that need a large labour force are prioritized to create job opportunities for the local community.
Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on a cutting, making, and packing (CMP) basis, and it contributes to the country’s GDP to a certain extent.
Following H&M Group phasing outsourcing from Myanmar, the Myanmar Garment Manufacturers Association (MGMA) will accelerate its effort to keep improving Myanmar’s garment sector, joining hands with international brands and partners, as per the MGMA’s statement on its commitment released on 25 August.
The MGMA has implemented a Voluntary Labour Compliance Assessment (VLCA) from February 2020 to evaluate the compliance of the factories in line with the national labour laws and international labour standards. To beef up the assessments and expand enrolment, the online version was launched in November 2022. More than 220 factories have accomplished the assessment so far and over 100 are still under scrutiny. — KK
