Posts in category: MANUFACTURING

In the 11 months from October to the end of August of the 2020-2021 fiscal year, Myanmar exported more than $ 3,240 million worth of garments from the CMP sector, followed by natural gas at more than $ 2,693 million, according to the Ministry of Commerce. In the 11 months from October to August of the 2020-2021 fiscal year, Myanmar exported $ 3,240.04 million worth of garments through the CMP wage system. Exports of natural gas were $ 2,693.78 million and rice and broken rice were $ 661.41 million.

In the 11 months to August of the 2020-2021 fiscal year, Myanmar topped the list of top 10 exporters with $ 4,760.55 million, followed by Thailand with $ 3,002.05 million. $ 855.20 million to Japan; $ 729.97 million to India; $ 566.66 million to the United States; $ 397.42 million to Germany; $ 361.16 million to Spain; $ 352.47 million to the UK; $ 324.26 million to the Netherlands; It exported $ 278.58 million to South Korea.

From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar-China trade amounted to more than $ 12.126 billion, and China imported more than $ 6.724 billion worth of imports. From October to September of the 2019-2020 fiscal year, Myanmar-China trade amounted to $ 12126.278 million, with exports from Myanmar worth $ 5,401.943 million and imports from China worth $ 6,724.335 million. The main priority areas of the National Export Strategy 2020-2025 are agro-based food production, textiles and clothing; Industry and electronics; Fisheries sector; Forest products; Digital products and services; Logistics services; Quality management sector; Trade Information Services; And innovation and entrepreneurship.

Source: Daily Eleven

Majority of foreign enterprises eye the manufacturing sector for investments in the last financial year 2020-2021, pumping the estimated capital of US$286 million into 27 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need large labour force are prioritized, the Myanmar Investment Commission stated. At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 negative impacts and the political changes.

Myanmar’s garment export drastically dropped on the back of slump in demand by European Union market in the previous months. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Nonetheless, the industry is returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report. Myanmar’s manufacturing sector is largely concentrated on garment and textiles produced on a Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent.

Myanmar drew foreign direct investment of more than $ 3.79 billion in the last FY, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated. Of 48 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 September of the FY 2020-2021, 27 enterprises pumped FDI into the manufacturing sector. Power sector received six large project and livestock and fisheries sector attracted six projects. Other service sector drew five projects while agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors.

Source: The Global New Light of Myanmar

Myanmar’s manufacturing output rose slightly in September but fell for 13th straight months, according to the HIS Markit Myanmar Manufacturing PMI, the Manufacturing Purchasing Manager’s Index released on October 1. Myanmar’s manufacturing PMI, the most important indicator of productivity, stood at 41.1 in September, up from 36.5 in August. However, the PMI index remained below 50 points for 13 consecutive months without significant change.

The production situation in Myanmar is the same as in the year 2020. The survey showed a monthly decline since September. The decline in production and new orders in September was significantly weaker than last August. Drops in production and new orders are likely to weaken significantly over the past two months, and efforts to vaccinate could be hampered by a fourth wave. For now, companies are eagerly awaiting the lifting of restrictions and want to resume operations and clear inventories, said an economist at the IHS market.

A look at prices shows that international shortages of raw materials and unfavorable exchange rate speculation have put pressure on inflation, leading to a significant increase in purchasing and selling costs. In response to rising costs, companies raised their sales, becoming the fourth largest in survey history. Sales prices have risen for the 10th straight month. Purchasing Manager’s Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ supply duration and stockpiles. The survey is based on original data collected from industry by HIS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

Hlaing Tharyar Industrial Zone and Shwe Thanlwin Industrial Zone in Hlaing Tharyar Township have closed 38 factories since February, and nearly 10,000 workers lost their jobs, according to the Industrial Zone Committees on September 23. There are 29 factories in Hlaing Thar Yar Industrial Zone that have been temporarily closed since February. About 7,000 workers have lost their jobs as a result of the closure of the 29 factories, according to an official from the Hlaing Thar Yar Industrial Zone Committee. 

This year, 29 factories have been closed in Hlaing Thar Yar Industrial Zone. This year, starting in February. What they are submitting to us is that the block is temporarily closed. As for the salaries of the workers, if the factory closes, they will have to pay compensation. As far as it is concerned, about 7,000 workers have lost their jobs due to the closure of those 29 factories, said an official. Similarly, in Shwe Thanlwin Industrial Zone, there are nine factories that have been temporarily closed and closed. An official from the Shwe Thanlwin Industrial Zone Committee said that the closure of the nine factories had left nearly 3,000 workers unemployed.

In Shwe Thanlwin Industrial Zone, there were 12 closed factories. Of the 12 factories, only three have been reopened, with only nine remaining. From January this year until now. When it comes to workers’ salaries and wages, It is closed after clearing everything. Some factories are said to be closed, but others are temporarily closed. There are relocations. Add to that the closure of these factories, bringing the total number of unemployed to more than 2,000. Because some factories alone have about a thousand workers. Some factories are small. So, in total, more than 2,000. There are almost three thousand. It is an estimate, said an official from the Shwe Thanlwin Industrial Zone Committee. 

On September 21, the Myanmar Unique garment factory in Hlaing Tharyar Industrial Zone was temporarily closed due to a lack of orders. The factory has not received orders from the factory since 2020. Due to Kovis disease; According to a factory official, the factory will be temporarily closed from September 21 due to political reasons. The Myanmar Unique factory also had layoffs during the Kovis period, and the remaining workers were legally compensated when it was temporarily closed. The factory has been operating for about five years. Currently, there are more closed factories and more unemployed workers in Burma, according to labor representatives.     

Source: Daily Eleven

Myanmar’s manufacturing output fell for the 12th consecutive month, with the decline in August being the worst during the COVID-19 epidemic, according to the IHS Markit Myanmar Manufacturing PMI (Manufacturing Purchasing Manger’s Index) released on September 1. The rise in Myanmar’s manufacturing PMI from 36.5 in July to 36.5 in August indicates a 12-month slump in manufacturing conditions. 

The rate of decline was significant, with some companies experiencing COVID-19 damage, the most in the survey’s history. Purchasing Manager ‘Index (PMI) New orders Workplace Five indicators are calculated: suppliers’ delivery time and stockpiles. Factories closed; Production volumes were further reduced due to weak demand from customers and lack of migrant workers. The decline was significant, with 61 percent of respondents reporting lower production in August than in July, according to the survey.

The supply chain continued to suffer from shortages of raw materials, but the delay in completion was only a tenth in August. According to prices, the shortage of raw materials and the volatility of the dollar exchange rate have led to higher costs for producers in Myanmar. Myanmar’s economy is facing serious consequences due to the epidemic. Vaccination is especially important to control future constraints and demand shocks, said an economist at IHS Markit. The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.

Source: Daily Eleven

Exports of garments manufactured under the cut-make-pack (CMP) system touched a low of US$2.5 billion between 1 October and 30 June in the current FY2020-2021, according to data from the Ministry of Commerce. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past nine months compared with a-year ago period on the back of slump in demand by European Union market, the Ministry of Commerce stated. The figures plunged from over $3 billion in the corresponding period of last FY2019-2020. The garment industry is facing cancellation of order and slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller started to resume new orders.

Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted. Nonetheless, the COVID-19 infections are spiking in the country and all the CMP factories are temporarily closed down during the official public holidays. The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries. But, we cannot expect normalcy for now due to the possible disruption in logistics and supply sector and other serious consequences amid the COVID-19 impacts, traders stressed.

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. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017 FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018 FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019 FY and $4.8 billion in the 2019-2020 FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

The majority of foreign enterprises eye the manufacturing sector for investments in the past ten months (Oct-July) of the current financial year 2020-2021, pumping the estimated capital of US$262 million into 24 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need large labour force are prioritized, Myanmar Investment Commission stated.

At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 impacts and the political changes. Myanmar’s manufacturing sector is largely concentrated on garment and textile produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. At present, Myanmar’s garment export drastically dropped on the back of slump in demand by the European Union market. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed.

Myanmar drew foreign direct investment of more than US$3.76 billion in the past ten months of the 2020-2021 financial year, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated. Of 45 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 31 July of the current FY, 24 enterprises pumped FDI into the manufacturing sector. The electricity sector received six large projects and the livestock and fisheries sector, six projects. Other service sector drew five projects while the agriculture sector pulled two projects and one foreign enterprise each entered the industrial estate and the hotels and tourism sectors.

Source: The Global New Light of Myanmar

IMPORTS of raw materials by CMP (cut-make-pack) businesses have sunk to US$1.24 billion as of 23 July in current financial year 2020-2021 since October 2020, which reflects a decrease of $558.26 million compared with the year-ago period, according to the Ministry of Commerce. The figures plunged from $1.79 billion registered last FY2019-2020, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (Oct-May) of the current financial year 2020-2021 compared with a-year ago period on the back of slump in demand by European Union market. The raw materials import by the CMP businesses fell simultaneously, the Ministry of Commerce stated.

Exports of garments manufactured under the cut-make pack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce. The figures plunged from $2.7 billion in the corresponding period of last FY 2019-2020. The garment industry is facing cancellation of order and slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller start to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted. Nonetheless, the COVID-19 infections are spiking in the country and all the CMP factories are temporarily closed down during the official public holidays (17-25 July).

The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries. Nevertheless, we cannot still expect normalcy for now due to the possible disruption in logistics and supply sector and other serious consequences amid the COVID-19 impacts, traders stressed. 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. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017 FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018 FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019 FY and $4.8 billion in the 2019-2020 FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

The majority of foreign enterprises eye the manufacturing sector for investments in the past nine months (Oct-June) of the current financial year 2020-2021, pumping the estimated capital of US$256.85 million into 23 projects, the Directorate of Investment and Company Administration stated. The manufacturing enterprises and businesses that need a large labour force are prioritized, stated Myanmar Investment Commission.

At present, labour-intensive enterprises are facing financial hardship amid the COVID-19 negative impacts and political changes. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Pack basis, and it contributes to the country’s GDP to a certain extent. At present, Myanmar’s garment export drastically dropped on the back of a slump in demand by the European Union market. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed.

Myanmar has drawn foreign direct investment of more than US$3.76 billion in the past nine months of the 2020-2021 financial year, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, the DICA’s statistics indicated. Of 44 foreign enterprises permitted and endorsed by MIC and the respective investment committees between 1 October and 30 June of the current FY, 23 enterprises pumped FDI into the manufacturing sector. The power sector received six large projects and the livestock and fisheries sector attracted six projects. Other services sectors drew five projects while the agriculture sector pulled two projects and one foreign enterprise each entered industrial estate and the hotel and tourism sectors. 

Source: The Global New Light of Myanmar

Imports of raw materials by CMP (cut-make-pack) businesses has touched a low of US$1.18 billion as of 9 July in the current financial year 2020-2021. It reflects a decrease of $531 million compared with the year-ago period, the Ministry of Commerce stated. The figures plunged from $1.7 billion registered in the last FY2019-2020, the Commerce Ministry’s data indicated. Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (October-May) of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by the European Union market. The raw materials import by the CMP businesses fell simultaneously, stated the Ministry of Commerce. Exports of garments manufactured under the cut-make-pack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce.

The figures plunged from $2.7 billion in the corresponding period of the last FY2019-2020. The garment industry is facing cancellation of the order and a slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller starts to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted. Nonetheless, the COVID-19 infections are spiking in the country, and all the CMP factories are temporarily closed down during the official public holidays (17-25 July). The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries.

Nevertheless, we cannot still expect normalcy for now due to the possible disruption in the logistics and supply sector and other serious consequences amid the political instabilities and the COVID-19 impacts, traders stressed. Myanmar Garment Manufacturers Association (MGMA) reported in the June newsletter that 502 factories are actively running the business. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes a majority of the foreign investment with 267 factories. Myanmar’s manufacturing sector recorded an accelerated downturn in the previous months as political changes and the COVID surge led to factory closures. The layoff is extended, and some workers were forced to return to their hometowns. Turning to prices, higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, the HIS Markit stated.

More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with about 600,000 workers. Women account for 95 per cent of workers in the garment industry. However, a third of garment industry workers are out of jobs in difficult times. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packing basis. It contributes to the country’s GDP to a certain extent. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019FY and $4.8 billion in the 2019-2020FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar