Companies from China, Taiwan and Hong Kong have offered to open footwear factories in Myanmar due to cheap labour and tax reliefs, according to Myanmar Footwear Entrepreneurs Association.

“In China, the daily labour cost for a factory worker is between US$ 15 to 20. In Myanmar, the daily labour cost is US$ three to four only,” said Aung Min, President of Myanmar Footwear Entrepreneurs Association.

Being a developing country, Myanmar has got tax reliefs from the EU, Japan and ASEAN. Companies from China, Taiwan and Hong Kong want to invest in Myanmar in order to seize this opportunity.

“Our advantage is Myanmar has got the zero tax for exports of products to the EU. The EU is still considering whether it will withdraw this right or not. But we are still ok,” he added.

Aung Thein, President of Myanmar Industrial Products Manufacturers Association said some Chinese factories which will export products to the USA are discussing with us to open the factories in Myanmar.

Myanmar has redrafted the Myanmar Investment Law. Foreign companies are becoming interested in Myanmar as labour costs are cheap and have young workforces compared to those in the regional countries.