Facebook Pinterest Search Icon SourcingJournal_horiz Tumbler Twitter Shape photo-camera graph-trend Shape latest-news icon / user

Burma-Myanmar Not Yet Prepared For US Garment Manufacturing

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

Myanmar, or Burma, as it is also known, may some day become a first-rate manufacturing source for US garments and textiles, but not quite yet.

Big US clothing and textile brands have taken a close look at Myanmar’s infrastructure, power supply, government regulations and taxes, factory capacity and safety conditions, working conditions and worker salaries, and have decided to withhold major manufacturing orders until the country’s numerous problems are resolved.

Among the brands which have expressed an interest in doing business in Myanmar are Adidas, Nike and Gap, according to Dr. U. Aung Win, vice-chairperson of Myanmar Garments Manufacturers Association.

“However no concrete steps have been taken yet because the sector still faces many challenges here,” he said. “To be honest,” said U. Aung Win, “we don’t have any factories that are good enough for US companies.”

Before Myanmar attracts US manufacturing orders and investments, the Southeast Asian country of some 60 million plus people will have to spend hefty amounts of cash, U Aung Win predicted.

But U Aung Win was not optimistic about the prospects for that to occur.

“…I’m not confident that the government will overhaul the CMP system because it will require a massive effort,” he said.

Current Myanmar garment manufacturing specialties consist of what U Aung Win cited as a cut, make and pack system. “Our system lags far behind other countries because a third party is required as a go-between for exports to the US,” he said.

Despite its problems, the European Union has no qualms about doing business with Myanmar. Recently EU foreign ministers permanently lifted trade and economic sanctions against Myanmar, and trade between the two is expected to increase.

Related Articles

More from our brands

Access exclusive content Become a Member Today!