According to the Global New Light of Myanmar, according to statistics released by the Ministry of Commerce, Myanmar’s garment exports exceeded US$1.4 billion in the first five months of this fiscal year (October to February). These factories are facing order cancellations, declining orders and production, and placing new orders. However, Swedish fashion retailer H&M is gradually placing orders again to Myanmar after suspending orders from Myanmar in March this year. Later, more international fashion retailers, such as Primark and Bestseller, began to resume new orders. The garment industry is one of the key industries to drive exports. Traders emphasized that with the preferential trade in Western countries, the CMP garment industry has become an industry with development prospects. However, under the influence of political instability and the COVID-19 epidemic, we cannot currently expect a return to normal due to possible disruptions in logistics and supply and other serious impacts.
IHS Markit said the decline in Myanmar’s manufacturing industry accelerated in previous months as political changes led to factory closures. Layoffs were extended and some workers were forced to return to their hometowns. On the price side, rising material costs and unfavorable exchange rate movements have led to a sharp increase in cost burdens.
According to statistics from the Ministry of Commerce, the total value of CMP garment exports in the 2015/16 fiscal year was only US$850 million, but it has tripled in the past two fiscal years. CMP’s garment export revenue in the 2016/17 fiscal year was approximately US$2 billion. This figure increased to an estimated $2.5 billion in the 2017/18 financial year and to $2.2 billion in the 2018 mini-budget period (April-September). In the 2018/19 fiscal year and the 2019-20 fiscal year, it grew to US$4.6 billion and US$4.8 billion respectively.
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