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Myanmar an option for Indian textile entrepreneurs

19 Feb '15
7 min read

Besides a continuous supply of materials, which India can provide, the garment sector in Myanmar will need an increasing number of skilled workers if it is to register a sharp rise in manufacturing and exports. This opens another door for India, especially for skill imparting institutions, to set up garment training facilities in Myanmar. The skills will obviously help Indian companies investing in Myanmar for export to other countries, especially the Far Eastern countries. Japan and South Korea are currently the major importers of Myanmar clothing, and they account for 48 per cent and 33 per cent share respectively.

A note of caution

Myanmar faces constraints like a comparatively weak banking system, infrastructure, training and technology, all of which need a comprehensive strategy and government support to be overcome. Second, garment producers in Myanmar are not used to producing in large quantities, as they mostly deliver orders in small quantities of apparel with specific designs and charge service fees for the same.

On the labour front, however, the International Labour Organisation (ILO) and the governments of the United States, Myanmar, Japan and Denmark together launched the Initiative to Promote Fundamental Labour Rights and Practices in Myanmar, last year. The initiative is aimed at modernising Myanmar’s labour code, improving compliance with international labour standards, and fostering a robust dialogue between the government, business, labour and civil society in Myanmar.

Adidas, which for the first time included a Yangon-based factory in its Global Factory List released recently, says, there are three things to be understood before moving into Myanmar: “First, be patient and invest time; second, it is not a one-time investment; and third, it is clear that the government still has a lot of work to do to build the fundamentals, if worker rights are to be properly protected.”

Fibre2fashion News Desk - India

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