Overseas investor desire in Myanmar’s garment producing sector is nevertheless potent even with a drop in the volume of garment exports in fiscal 2019-twenty, according to the federal government. Of the 178 foreign enterprises endorsed by the Myanmar Investment decision Fee (MIC) and permitted to devote in Myanmar in between Oct 1 past year and May well 31 this year, a lot more than 3 quarters channelled capital into the producing sector, according to the Directorate of Investment decision and Enterprise Administration (DICA).

The new traders include things like garment makers.

The MIC will prioritise investments in garment producing heading ahead as these are labour intensive industries probably to develop a massive number of jobs, DICA director normal U Thant Sin Lwin advised point out-managed media lately.

Companies that are able to produce facial area masks and other personal protective tools linked to COVID-19 will also be supplied precedence. Enquiries from traders are nevertheless flowing in even nevertheless garment exports fell to a mere $2.7 billion in between Oct 1, 2019, and May well 31, 2020, representing a $24 million decline from the similar period a year ahead of because of to get cancellations from the European Union, according to U Khin Maung Lwin, assistant secretary in the ministry of commerce.

This has also led to a increasing number of disputes in between companies and their workforce as factories are compelled to lay off or close. The marketplace hires up to seven-hundred,000 predominantly female personnel across 600 factories, according to data furnished by the EU.

Disruptions to the Myanmar garment sector very first started out in February, when raw material imports from China grew to become sporadic as a outcome of COVID-19 closures and lockdowns.

“We are listening to news of orders that were being formerly cancelled being revived once more. There is also some export revenue coming from the Myanmar-Thai border, in which garment corporations in Myawaddy have exported all over $seventy one million worthy of of goods to Thailand,” Maung Lwin mentioned.

Fibre2Fashion Information Desk (DS)

Overseas investor desire in Myanmar’s garment sector is nevertheless potent even with a drop in garment exports in fiscal 2019-twenty, mentioned the Directorate of Investment decision and Enterprise Administration. Of the 178 foreign companies permitted to devote in between Oct 1,2019, and May well 31 this year, a lot more than 3 quarters channelled capital into the producing sector, it mentioned.