Home / Knowledge / News / Apparel/Garments / Myanmar's garment industry hits rough weather
Myanmar's garment industry hits rough weather
10
Aug '11
Garment factories in Myanmar are facing problems due to a rise in the country's currency Kyat, coupled with high taxes on exports. While some garment factories have shut down, others have either reduced operations or laid-off workers, as they fail to pay wages.

The garment manufacturers are struggling to avoid losses in the midst of rising cost of Myanmar's Kyat vis-à-vis the US dollar. This has led several companies to stop taking export orders in foreign currencies.

With reduction in orders, companies are trying to stay afloat by reducing wages, but are facing problems from workers. Companies that shut down are facing protests from workers seeking proper compensation.

Besides the rise in the value of the currency, the high taxes on garment exports is also seen as a reason for the problems faced by garment factory owners. The new Government excluded garment items from the list of products for which it reduced the tax on exports from 10 percent to 7 percent, effective July 1 this year.

Experts also blame mismanagement of the economy by the Government to an extent for the crisis being faced by the garment industry. They say if the situation continues, there would be more instances of workers being laid-off followed by their protests in near future.

Myanmar has about 300 garment factories that employ around 70,000 to 100,000 workers, as per the statistics of the Union of Myanmar Federation of Chambers of Commerce and Industry.

Fibre2fashion News Desk - India


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Urmil Arya

Sushila International, a well established textile organisation established ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search