Myanmar earns US$1.4 M from CMP export

Writer: 
Nilar
A garment factory in Yangon (Photo-Zeya Nyein)

 

Myanmar had earned over US$1.4 million from CMP (cutting, making and packaging) garment export in this fiscal year from April 1 to August 3, according to the Ministry of Commerce.

“We exported US$1.484 million of garment export under the CMP garment sector. The amount is US$704 million more when compared with last year’s amount in the same period,” said an official from the ministry.

Myanmar earned US$337 million from garment export in 2010. It has since then increased three times in 2014 and reached to about US$1 billion, sources from the ministry said.

Moreover the garment export earned US$1.46 billion in 2015 and made up about 10 percent of total exports.

Myanmar textile sector sees a rapid growth. The use of garments manufactured from Myanmar by European Union (EU) market is becoming higher and had increased up to 85 per cent in 2015 in compared to previous years, sources said.

Local textile investors are running their self-established factories while some of them are in service through cooperation with foreign investors to run the garment factories. Most of them are from Japan, China, South Korea and Taiwan businesses.

At the present, Myanmar is charging 10 percent of the value of garment export as a fee for services rendered.

However Myanmar has been granted generalised system of preferences (GSP) by EU, which allows vulnerable developing countries to pay fewer or no duties on exports to the EU, as an advantage to attract investors from China and neighbouring countries to make investment in Myanmar, according to Myanmar Garment Manufacturers Association.

Although the garment sector has great potential due to the EU’s GSP, bad transportation and labour strikes are challenges for the textile industry, sources said.