Posts in category: MANUFACTURING

MYANMAR’S manufacturing sector attracted more than US$63.5 million from 26 enterprises in the
past five months (Apr-Aug) of the current financial year 2023-2024, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Chinese companies primarily made investments in the manufacturing sector. The Myanmar Investment Commission gave the go-ahead to 31 foreign projects from seven countries in the past five months, with an FDI of US$484.155 million, including expansion of capital by the existing enterprises, and the power sector topped the FDI line-ups with $317.178 million from two enterprises.
The agriculture sector drew over $2.5 million from three enterprises. The transport and communication
sector saw a capital expansion of $77.82 million. An increase of capital worth $23 million was pumped into the livestock and fisheries sector as well. The manufacturing enterprises that need a large labour force are prioritized to create job opportunities for the local community.

Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on a
cutting, making, and packing (CMP) basis, and it contributes to the country’s GDP to a certain extent. Following H&M Group phasing outsourcing from Myanmar, the Myanmar Garment Manufacturers Association (MGMA) will accelerate its effort to keep improving Myanmar’s garment sector, joining hands with international brands and partners, as per the MGMA’s statement on its commitment released on 25 August. The MGMA has implemented a Voluntary Labour Compliance Assessment (VLCA) from February
2020 to evaluate the compliance of the factories in line with the national labour laws and international labour standards. To beef up the assessments and expand enrolment, the online version was launched in November 2022. More than 220 factories have accomplished the assessment so far and over 100 are still under scrutiny.

Source: The Global New Light of Myanmar

The export value from the manufacturing sector totalled US$3.85 billion as of 25 August in the financial year 2023-2024 beginning 1 April, Director U Nanda of the Trade Department under the Ministry of Commerce said.
Exports by the private sector were estimated at $2.51 billion while exports worth $1.34 billion were performed by the government sector.
“Myanmar’s manufacturing sector is largely concentrated in garment and textiles manufactured on the cutting, making, and packaging (CMP) basis this FY,” U Nanda said.
The CMP garment export is the main export item in Myanmar, followed by natural gas. Meanwhile, petroleum products are top import goods, followed by textile and garment raw materials.
Myanmar also exports agricultural produce, livestock, fisheries, minerals and forest products to external markets. Of export item groups, the manufacturing sector generates the highest export earnings.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) governor said on Monday in the recent meeting that it is necessary to make solid efforts to provide the local manufacturing industries including MSMEs with financial support.
The governor emphasized that the CBM urged the banks to follow the rules and regulations to ensure a solid banking system, saying the relevant departments of CBM keep watching the banks whether they comply with the instructions. The CBM also considers the internal control and risk management regarding the risk-taking level of the banks, the macro-economy of the country, external impacts and credit risk.
There should be economic growth and it should provide the public with true information. It should also carry out the work procedures properly and follow the rules and regulations.
Moreover, the governor urged all to make business strategy depending on the market condition, follow the rules for foreign currency, focus on monitoring anti-money laundering and counter-terrorism financing and comply with the rules and regulations of the CBM.

Source: The Global New Light of Myanmar

Following H&M Group phasing out outsourcing from Myanmar, the Myanmar Garment Manufacturers Association (MGMA) will accelerate its effort to keep improving Myanmar’s garment sector, as per the MGMA’s statement on its commitment released on 25 August.
Reuters reported on 17 August that H&M Group decided to cut ties with Myanmar suppliers.
The MGMA was disheartened to see this unexpected news as it will bring negative impacts on the livelihood of the employees and pose a higher risk of layoffs amid the challenging economic climate. Since its establishment in 2002, the MGMA has been joining hands with all the stakeholders in the industry, development agencies, international partners and valuable brands to enhance the working environment of Myanmar garment factories.
The MGMA has implemented the Voluntary Labour Compliance Assessment (VLCA) from February 2020 to evaluate the compliance of the factories in line with the national labour laws and international labour standards. To beef up the assessments and expand enrolment, the online version was launched in November 2022. More than 220 factories have accomplished the assessment so far and over 100 are still under scrutiny.
Furthermore, the MGMA is discussing constructive engagements and cooperation with the stakeholders concerned in the industry to address the livelihood and labour issues of the workers.
Additionally, the MGMA is encouraging to deepen the ties between the international garment brands and local factories and foreign-owned factories established in the country. The MGMA has experienced negative impacts from the similar withdrawals of the multinational companies in early 2000. The MGMA clearly said in the statement that it strongly believed the responsible presence of international brands in the country is the best way to improve the labour market conditions and safeguard the dignified livelihood of a hundred thousand young women employees. The responsible partnership will contribute to the improvement of the working conditions in progress, as per the statement.
Thus, MGMA is willing to work together with international brands and partners to carry out responsible businesses in Myanmar and commit to keep improving the situation of Myanmar’s garment sector. 

Source: The Global New Light of Myanmar

General Secretary of the Myanmar Garment Manufacturers Association (MGMA) and Secretary-General of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), Daw Khine Khine Nwe, stated that 2022 is the year when the highest exports of industrial products, textiles, and clothing items can be made.
The statement was made at the coordination meeting over increasing the export of industrial products, textiles, and clothing items held at the UMFCCI on 8 July.
The association has adopted a 10-year strategic plan for 2015-2025, and targets such as the number of factories, export value and employment were set and it met the target until the pre-Covid-19 period.
She also unveiled that in order to increase exports abroad, it is necessary to obtain a large number of garment orders, build trust with the workers, and improve working relations.
For the export development of the garment sector, in cooperation with the Ministry of Science and Technology’s TVET Department, discussions have started to deliver a Diploma in Fashion Technology in the garment training sector.
In 2017, the association also introduced Myanmar’s garment sector (Made in Myanmar) at the Texworld (Messe, Frankfurt, and Paris) held in France.
In addition, the association is working to deliver necessary courses, clarify and teach laws for responsible businesses, and increase working relationships.
At the meeting, deputy chairmen, general secretaries, and business representatives from the MGMA discussed raw materials for export, conditions and difficulties encountered in the import and export of goods, the difficulties and conditions of raw materials required to be able to manufacture and export with the FOP system, allowing workers in the garment sector to work more night shifts, the development of local weaving industries, and ways to facilitate the production and export of local traditional textiles at a high level.

Source: The Global New Light of Myanmar

The export value from the manufacturing sector totalled over US$1.74 billion as of 6 June in the financial year 2023-2024 beginning 1 April, the Ministry of Commerce’s statistics showed.
Garment export is the key driver in the manufacturing sector, followed by sugar, jewellery and natural gas, as per the Ministry of Commerce. Exports by the private sector were estimated at $1.064 billion while exports worth 676.349 million were performed by the public sector.
The value of manufacturing exports over the past three months in this FY declined from $2.153 billion recorded in the corresponding period last year.
Garment export is ranked first among the top ten export items including natural gas and minerals Myanmar exports agricultural products, livestock products, fisheries, minerals, forest products, finished industrial goods and other goods. Of them, the manufacturing sector pocked the highest foreign income. 

Source: The Global New Light of Myanmar

Myanmar Investment Commission gave the green light to 11 foreign projects from six countries in the Q1 of the current financial year 2023-2024 beginning in April. The country attracted a capital of US$13.59 million, including the expansion of capital by the existing enterprises, according to the Directorate of Investment and Company Administration (DICA).

MIC nodded one foreign enterprise in April, four in May and six in June respectively. The agriculture sector drew $1 million from one enterprise. The remaining FDI flowed into the manufacturing sector.
In Q1 this FY, China is the top source of FDI so far, investing $8.4 million from six enterprises. One enterprise each from India, Republic of Korea, Samoa, Singapore and the USA also made investments this year.

Next, $21.99 million of FDI flowed into the country in the corresponding period last FY. The figures indicated a decrease of 38 per cent in Q1 this FY compared to that of the last FY. Myanmar attracted foreign direct investments of $1.64 billion from 87 enterprises last financial year 2022-2023 (April-March). The majority of the investments were brought into the manufacturing sector, drawing $271.8 million from 64 enterprises. Singapore, China and Thailand made the highest investments last year.

Source: The Global New Light of Myanmar

MYANMAR’S manufacturing sector drew over US$3.7 million in April 2023, including capital expansion by
the existing enterprises, as per the statistics released by the Directorate of Investment and Company
Administration (DICA). One enterprise listed from China put a foreign direct investment of $2 million in the manufacturing sector in April.
Myanmar attracted foreign direct investments of $1.64 billion from 87 enterprises last financial year 2022-
2023 (April-March). The majority of the investments were brought into the manufacturing sector, drawing
$271.8 million from 64 enterprises. The agriculture sector drew $3.5 million from two projects. The power sector received $820.27 million from 11 projects, while one enterprise put $29 million in the real estate sector and five other foreign enterprises made an investment of $504 million in the service sector respectively. The hotels and tourism sector attracted $2.8 million with two projects. The mining sector received $7 million from one project.
Additionally, the livestock and fisheries sector attracted one enterprise with over $2 million in investments. The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community. Manufacturing of fertilizer, cement, iron and steel, value-added foodstuff, electric vehicle and pharmaceutical and medical devices, agriculture and livestock farming and related industries and public transportation services will be prioritized for investment. The commission welcomes both foreign direct investment and domestic investments made by Myanmar citizens in those sectors.

Myanmar Investment Commission and the related ministries will also ensure investment facilitation.
Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting,
Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. There are active 541 factories operated under Myanmar Garment Manufacturers Association. The majority of them are from China, followed by Myanmar and the Republic of Korea. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping an estimated capital of $202.667 million.

Source: The Global New Light of Myanmar

In April, Myanmar’s industrial sector rose at the fastest rate on record and has grown for three consecutive months in more than three years, according to the S & P Global Myanmar Manufacturing PMI Index report for April 2023. The S&P Global Myanmar Manufacturing PMI was calculated based on responses to questionnaires sent to input procurement managers from a group of approximately 400 manufacturers.

“Abandoning the most sustained decline seen in the last three years, figures since February have signaled an upturn in Myanmar’s industrial sector, with working conditions improving every month. Also, the key PMI index hit a record high for two consecutive months in April, marking the first time in more than three years that it has been above 50.0 for three consecutive months. A surge in new orders has led companies to increase their production, according to survey respondents. Also, job openings rose for the first time in 10 months,” said Maryam Baluch, economist at S&P Global Market Intelligence.

The main S&P Global Myanmar Manufacturing PMI, the only composite index of manufacturing performance, recorded two consecutive months above the neutral 50.0 mark since February, climbing from 55.5 in March to 57.4. The situation of the manufacturing sector is centered on the demand from the shopping side, production, It boosted the number of purchases and jobs.

The rate of increase in industrial production and new business volumes accelerated in April. In fact, the latest gains were the fastest rates recorded since the survey began in December 2015. Looking ahead, optimism among manufacturers has historically been weak, but is one of the best on record in a year. Expectations of increased orders and production supported confidence. However, the majority of respondents (96 percent) expect manufacturing to remain unchanged over the next 12 months, according to the April 2023 S&P Global Myanmar Manufacturing PMI Index report.

Source: Daily Eleven

CMP garment exports generated over US$4.7 billion income abroad during the first 11 months of the 2022-2023 financial year, according to the statistics of the Myanmar Garment Manufacturers Association. Garment factories operating under CMP system were able to export to foreign countries from April 2022 to February 2023 of current FY. Garment industries in Myanmar are run by local entrepreneurs, China, South Korea, Japan and Thailand. Myanmar exports products of these industries to China, Thailand, Singapore as well as European countries.

Deputy Minister for Labour U Win Shein, at the garment factories in Shwelinban and Shwe Thanlwin Industrial zones in Hlinethaya township on 13 January, said that being factory managers, they have to understand that the capacity of skilled workers is the primary factor for timely export of products. He urged them to build fair relationship with workers and employees, must observe and practise the workplace regulations. The garment industry is the major source of job opportunities and emphasizes the producing skilled workers. Employers and employees stand to benefit through mutual interests. Employees must remain committed to their business, he said.

According to the deputy minister, the ministry is responsible for issuing national-level employment certificates that recommend their skill levels. To achieve this, assessment centres would have been set up in garment factories run with significant number of workers, in collaboration with partner ministries, to evaluate their skills without interrupting their work procedures, he added. Now, there are a total of 738 factories operating throughout the entire country including 505 garment factories, 48 shoe manufacturing factories, 8 wig factories, as well as 117 factories involved in bags, sportswear, sports shoes, and socks. All of these enterprises are running their operations in compliance with the rules and regulations. 

Source: The Global New Light of Myanmar