Global New Light of Myanmar reported that according to statistics from the Ministry of Commerce, during the current fiscal year 2020/21 from October 1 to June 30, production under the supplied materials processing (CMP) system garment exports reached a low of US$2.5 billion. Due to declining demand from the EU, Myanmar’s garment exports have dropped by more than 20% year-on-year in the past nine months, a sharp decline from more than US$3 billion in the same period last year.
The ready-made garment industry is facing order cancellations and a sharp drop in output and new orders. However, Swedish fashion retailer H&M gradually resumed ordering from Myanmar after suspending orders in March. Subsequently, more international fashion retailers such as Primark and Bestseller began to resume new orders. In addition, Germany will continue to support Myanmar’s garment industry so that Myanmar women can continue to survive. However, COVID-19 infections are surging in Myanmar, and all CMP factories can only be temporarily closed during official public holidays.
Myanmar’s manufacturing industry mainly focuses on garments and textiles produced on the basis of supplied materials processing (CMP), and makes an important contribution to Myanmar’s GDP. Myanmar mainly exports CMP garments to Japan and European markets, as well as South Korea, China, and the United States. According to statistics from the Ministry of Commerce, CMP garment exports in the 2015/16 fiscal year were only US$850 million, but have tripled in the past two fiscal years. In the 2016/17 fiscal year, CMP’s ready-made garment exports generated revenue of approximately US$2 billion, which increased to approximately US$2.5 billion in the 2017/18 financial year and to US$2.2 billion during the 2018 mini-budget period (April-September). Subsequently, it increased significantly to US$4.6 billion in the 2018/19 financial year, and as high as US$4.8 billion in the 2019/20 financial year. Myanmar’s exports of processed garments plummeted to US$2.5 billion this fiscal year
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