Myanmar’s manufacturing sector leads in FDI with US$88.78M in Apr-Oct

Foreign direct investments of more than US$88.78 million were pumped into Myanmar’s manufacturing sector from 36 enterprises in the past seven months (from April to October) 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).
The power sector topped the FDI line-ups with $317.178 million from three enterprises, followed by the manufacturing sector. Chinese companies primarily made investments in the manufacturing sector.
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 garment and textiles produced on a Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. Myanmar Garment Manufacturers Association (MGMA) is committed to accelerating 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 launched the Grievance Mechanism online at c.mgma-vlca.com where workers from MGMA member factories can directly report their grievances, ensuring the confidentiality of the name and personal information of those who file complaints.
The MGMA has implemented the 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.
There are 529 factories operating under the MGMA as of October 2023, comprising 305 from China, 54 from Korea, 19 from Japan, 20 from other countries, 59 domestic factories and 29 joint ventures, according to the MGMA’s monthly Newsletter. — KK