Myanmar an option for Indian textile entrepreneurs

One reason for this quick-paced growth is the low-wage rate compared to other countries in the region. Though there is no official minimum wage, on an average, an apparel worker in Myanmar earns between K85,000 ($85) and K110,000, depending on skill levels. Currently, the Myanmar ministry of labour, employment and social security in partnership with the Confederation of Trade Unions Myanmar is conducting a survey on prevailing wages, which is likely to be completed in February 2015. However, wages are likely to remain relatively low in Myanmar compared to other competing nations, at least for the next few years, as wages in other countries are also likely to increase along with that in Myanmar.

Another advantage is the shorter sea route. The port of Chennai in southern India is at a distance of 1,145 nautical miles from the port of Yangon in Myanmar, which means finished goods from Myanmar can reach India by spending about five days on sea.

“The Myanmar Garment Manufacturers Association has seen a sharp increase over the last half-year because of interest from Indian textile entrepreneurs in Myanmar’s garment industry. This is partly because of the excitement surrounding the Shipping Corporation of India’s new regular freight shipment between India and Myanmar,” informs Clere.

Commenting on scope of India-Myanmar textile trade, Viren Mehta, head - sales and marketing at fibre2fashion, said, “Although we cater to the worldwide textile and apparel industry, requests from Myanmar for our B2B services were very rare. However, after the announcement of ‘Make in India’ and visit of Prime Minister Narendra Modi to Myanmar in November last year we have started receiving a good number of queries from Myanmar. This shows there is a good scope for expansion of India-Myanmar textile relations.”

Opportunities for India

“We encourage Indian textile entrepreneurs to explore Myanmar. Establish connections, learn about the industry, but don’t expect a quick sale. Many traders have been coming to Myanmar from India hoping for quick business, but it takes time to build trust and establish long-term business relationships,” argues Clere.

Explaining the various business opportunities, he adds, “In this burgeoning industry, there are many business opportunities, but not just for selling textiles. Think about setting up factories or providing the other production inputs needed for garment production – elastic bands, packaging materials, hangers, etc. As this industry reaches a certain critical mass, these inputs to production are more and more in demand.”