16 firms approved to make garments

SUNDAY, June 16, 2013

Sixteen companies were granted permission to operate garment-manufacturing factories using the Cutting, Making and Packing (CMP) system during the first five months of this year, according to Myanmar's Directorate of Investment and Companies Administratio

Those companies will cooperate not only with local entrepreneurs but also other businessmen with foreign investment assistance.

Moreover, local MK Company has agreed to cooperate with Thailand and Japanese-based Wacoal Company to operate in the garment industry.

The European Union last September reinstated tax breaks for imports from Myanmar under its Generalised System of Preferences, or GSP system, which had been suspended since 1997.

The garment industry in Myanmar will benefit from the GSP of the European Union starting from 2013, according to the Myanmar Garment Association. The tax advantages gained from GSP are attracting more investments from South Korea, Japan and Thailand.

The garment factories will be located in Yangon region, the commercial hub of Myanmar, and industrial zones in Bago and Ayeyawady regions.

Malaysian-based Chia Moon Garment, Haker Enterprise (Myanmar) and General Enterprise Garment will operate their business with the fully assistance of foreign investment in Pathein Township of Ayeyawady region and Dagon Myothit (East) Industrial Zone.

Myanmar has earned US$30 billion (Bt900 billion) in garment exports during January, February and March of this year – double the figure for all of last year, according to the statements released by Myanmar Garment Association.

The association is optimistic about an upward trend of Myanmar garment industry by the inception time of the GSP system, despite the recent declining demand for garment export from the country.