One of the reasons for this is the high wages and relatively higher cost of production in countries like Vietnam, India, China, and South Korea, which is driving entrepreneurs to Myanmar. Secondly, entrepreneurs from China, South Korea, India, and Vietnam are keen on investing in the garment sector of Myanmar to take advantage of the benefits it enjoys with developed markets of the US, EU, and Canada.
The new foreign investment law, which was passed in 2012, increased the maximum shareholding of foreign parties in manufacturing to 50 per cent, making the country a suitable sourcing destination for garments. The law also allows foreign investors to lease land for an initial period of 50 years, tax exemption for first 5 years, and tariff-free import of raw materials to these companies.
According to U Myint Soe, chairman, Myanmar Garment Manufacturers Association (MGMA), the export volume in 2015 was $1.46 billion. The garment industry of Myanmar employs more than 250,000 people and accounts for 10 per cent of export revenues. (HO)
Fibre2Fashion News Desk – India