Big jump in Myanmar textiles looming

Myanmar is on course for a big jump in textile exports to Europe following the return of trade privileges by the European Union (EU), according to the Thailand Textile Institute.

Photo: myanmargarment.net

The lifting of the ban on Myanmar under the EU's Generalised System of Preferences (GSP) would rapidly drive up Myanmar's exports of textiles, it said. The institute did not predict the size of the increase, but said it would be significant.

Myanmar's textile exports rose 18% last year over 2011, totalling US$946 million (27 billion baht).

The EU reinstated trade benefits to Myanmar on April 22 in the wake of democratic reforms after years under the rule of a military junta. Garments are a key industrial sector of the country. Myanmar was struck off the GSP list in 2003 to a protest against the country's dictatorship.

Many textile producers, including companies in Thailand, have relocated to Myanmar in expectation of benefiting from the GSP, low wages and abundant labour. In Myanmar the minimum monthly wage is US$32, compared with $90 in Cambodia and $100 in Vietnam. Myanmar has a 32.5 million-strong work force in a population of 55 million.

The Thailand Textile Institute warned of poor infrastructure in Myanmar, including inadequate electricity supply and lack of facilities at Yangon port, which it said is hampering business. 

The EU grants GSP privileges to less developed and developing countries as a means to help their exports to the EU.
Source : http://www.mizzima.com/business/investment/9426-big-jump-in-myanmar-textiles-looming.html