Thanks to the EU’s Generalised scheme of preferences (GSP) right, Myanmar can create 0.6 per cent jobs. If the GSP right remains, the employment rate may increase to six per cent of the total population, said Aung Naing Oo, Director General of Directorate of Investment and Company Administration (DICA), at a talk titled “Democracy, Poverty and GSP” at the Union of Myanmar Federation of Chambers of Commerce and Industry (headquarters) in Yangon on January 5.

There were 24 factories—22 garment factories which export garment to the EU, one factory (non-CMP industry) and one factory (CMP industry) before the EU’s reinstatement of GSP right to Myanmar in 2013. At the time, these factories created more than 23,000 jobs.

After Myanmar got the GSP rights beyond 2013, the number of factories has increased to 305—202 garment factories, 26 factories (non-CMP) and 77 factories (non-CMP garment). These factories can create  more than 300,000 jobs. In Myanmar, 0.6 per cent in 1,000 people has to enjoy the EU’s GSP rights.

Thanks to the EBA/GSP rights, some foreign investors are becoming interested in the establishment of factories in Myanmar. They are making inquiries about investments at the Myanmar Investment Commission. Some factories want to shift to Myanmar. More than 300 factories can create jobs for six in 1,000 people. If the number of factories has increased to 3,000, this sector can create about 60 jobs, he added.

The EU sent the EBA monitoring mission to Myanmar to make inquiries about the situations. The EU parliament would decided whether it would withdraw the GSP rights or not, according to a press conference on October 30.

The EU is thinking about a plan to withdraw the EBA/GSP rights granted to Myanmar due to the Rakhine issue. More than 100,000 workers lost their jobs as the EU withdrew the GSP rights in 1997. In June, 2013, the EU lifted its ban on the GSP rights.