Home / Knowledge / News / Apparel/Garments / Can Myanmar emerge as threat to SE Asian garment sector

Can Myanmar emerge as threat to SE Asian garment sector

25
Jun '12
Mr Shafiul Islam - President - BGMEA
Can Myanmar emerge as the next low-cost destination for global apparel brands and retailers, following China losing its sheen as a cheap production hub? Should this new development also worry garment makers in other South East Asian countries? 
 
The vibes emerging from leaders in countries like Bangladesh, Cambodia and Pakistan seem to indicate that Myanmar could emerge as a potential destination for sourcing clothing for worldwide retailers and brands. However, they do not see Myanmar as a threat to their country’s apparel sector in the immediate future. 
 
It is a known fact that garment brands are in constant search for low-cost production hubs and in their quest, production hubs have moved from US and Europe to China, Bangladesh, India, Vietnam, Cambodia, Sri Lanka and Pakistan. This year in April, in a historic decision, the European Union (EU) suspended most of its sanctions against Myanmar, due to the sweeping democratic changes adopted by the present government and also in an effort to encourage further reforms. 
 
However, the biggest clothing and textiles importing country – US has still not lifted sanctions. It is also worth noting that the EU has not lifted sanctions, but only suspended them for a year. As recently reported on fibre2fashion, global apparel brands are gradually moving out from China, due to its rising costs. Domestic Chinese brands and suppliers to global brands too are looking at overseas destinations to cut costs. 
 
China’s loss could be Myanmar’s gain if it is able to attract the investments flowing out China or other high cost production bases, if it adopts correct investment policies and initiates sweeping reforms. Although, overall garment exports to top ten overseas destinations adds up to just around US $608 million in 2011, the pace at which these shipments are growing will make one sit up and take notice. 
 
For instance, apparel exports to Japan, Myanmar’s bigger buyer of garments, nearly doubled from $181.57 million in 2010 to $349.30 million in 2011. Likewise those to South Korea also nearly doubled in the same period from $123.89 million to $232.42 million. Likewise, apparel exports to the Latin American country of Colombia have skyrocketed from a measly $8,000 in 2007 to $435,000 in 2011, which again zoomed more than five times to $2.74 million in 2011. 
 
However, on the flipside, clothing exports too have declined in the last two years to major destinations like South Africa, France, Australia who are among the top ten buyers of made in Myanmar garments. Shipments to France have crashed from a high of $13.35 million in 2007 to just $500,000 in 2011. Those to South Africa have plunged from a peak of $136.72 million in 2007 to only $2.48 million, better than those to France.


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 15th May 2021

Australian govt earmarks Au$1 mn for boosting fashion industry

The government of Australia has earmarked Au$1 million to promote and ...

Pic: Sorbis / Shutterstock.com

Apparel/Garments | On 15th May 2021

Prime Content| US textiles & apparel imports grow 4.32% in Q1 2021

The import of textiles and apparel by the United States increased by...

Pic: Amanda Wakeley

Fashion | On 15th May 2021

British luxury fashion company Amanda Wakeley enters administration

The British luxury fashion designer Amanda Wakeley’s company, AW...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Textile Industry, Head honchos

Textile Industry
Head honchos

Strike a balance between handmade in India and 'Make in India'

Chini Chouhan,

Chini Chouhan

Founded by Chini Chouhan, her eponymous brand specialises in women's...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

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

Leave your Comments


May 2021

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


Advanced Search