Can Myanmar emerge as threat to SE Asian garment sector

25 Jun '12

6 min read

Mr Shezad Salim - President - PRGMEA

Similarly, Turkey which ranked third among top most export destinations for Myanmar clothing in 2010, saw shipments slipping from $196.6 million in that year to a measly $9.42 million in 2011.

“However, to achieve a meaningful integration in to the global business and trade, the Myanmar government would need to concentrate on development of much needed infrastructure, initiatives toward good governance, better economic & trade policies, a congenial investment & business climate”, says Mr Shafiul Islam – President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Mr Shezad Salim, President of Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) also avers, “Prior to the sanctions, Myanmar’s garment industry was very vibrant and many western companies had their production units there.

“I have visited Myanmar prior to these sanctions and have witnessed some of their production facilities, first hand. In those days also they had very low cost and efficient labor available. The western companies may have left due to sanctions but the labor force is still there and therefore I feel western countries will definitely look at Myanmar again”.

Mr Van Soe Ieng, Chairman of the Garment Manufacturers Association of Cambodia (GMAC) sounded more optimistic when he said, “Yes, Myanmar will become one of the exporters and one of the destinations for sourcing of garments and textile not only because they have lower wages but also because they have ample workers”.

When quizzed if Myanmar could emerge as a competitor to Bangladesh, Mr Shafiul Islam said, “The emergence of Myanmar as a low-cost production destination could create an option for the buyers looking for China-plus. Bangladesh holds only 4.6% share of the global clothing exports, whereas China serves more than 36% of it.

“So an emerging producer like Myanmar can take benefit of this opportunity, rather taking from the pie of Bangladesh. Moreover, we are putting relentless efforts to explore new markets and have already started growing in Latin America, South Africa, Russian, even East and South Asian countries, like Japan, Korea, China and India.

“Therefore, we do not see Myanmar as an immediate competitor for us based on all these considerations. But at the same time, we will not take lightly, the potential of Myanmar emerging as our competitor in the near future”.

Mr Shezad Salim is of the opinion that, Myanmar will be viewed sympathetically by the western nations because of Aung San Suu Kyi’s struggle for democracy spanning over two decades, and that developed countries will give Myanmar concessions.

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