Can Myanmar emerge as threat to SE Asian garment sector

25 Jun '12

6 min read

Mr Van Soe Ieng - Chairman - GMAC

He said, “If sanctions are fully lifted, Myanmar will not only be competing with Pakistan but also India and Bangladesh and other regional garment producing countries. Myanmar has the advantage of low cost trained labor availability and the infrastructure which was available previously. Moreover, the energy crisis, law and order situation and political instability in Pakistan may drive away business from here to Myanmar as well even if concessions are not forthcoming”.

“Myanmar may become one of the competitors for Cambodia’s garment sector but not now may be after 7-8 years. However, 7-8 years from now, Cambodia will have moved to a higher level by churning out better and higher value added products. The industry in Myanmar is still at a very nascent stage and it will need time to build its infrastructure and emerge as a competitor”, Mr Van Soe Ieng opined.

“They will need another 3 years to stabilize their policies, then garner investments, enhance production capacities, establish export markets, by which time 7-8 years would have passed. A lot of potential buyers from Europe and Japan are already visiting Myanmar and showing inclination towards garment sourcing. Even some manufacturers from Cambodia are looking forward to set up their production units in Myanmar in the next 5-6 months”.

Considering the positive vibes generated from experts, even from other competitor countries, Myanmar seems on its way to emerging as a competitor for other garment hubs in South East Asia, but maybe not, in the immediate future.

Fibre2fashion News Desk - India

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