No 3 Heavy Industry under the Ministry of Industry will work with Korea Apparel Testing Research Institute (KATRI) to improve Myanmar’s textile sector to enter the international market, according to Dr. Eun Ho Shin, the in-charge of KATRI.
The cooperation aims at promoting the textile industry a under three-year-project to effectuate the development of the industry.
Myanmar garment industry is seeing certain garment factories change from Cutting-Making and Packing (CMP) system to, FOB under which garments are manufactured by the local garment factories themselves and exported.
There are a total of 11 projects to develop within Myanmar’s garment industry in two years, with projects beginning last year. Currently, entrepreneurs working under FOB system are making effort to seek a 5 per cent tax exemption, in order to improve their competition in the market.
“South Korea is reported to have the highest investment in the Myanmar garment sector,” said U Myint Soe from Myanmar Garment Entrepreneurs’ Association.
Myanmar garment factories are seen to lack a skilled labor force and face difficulties transforming from a CMP into FOB.
Myanmar garment industry is mainly dependent on assistance from Japanese and South Korean markets. Foreign direct investment in the Myanmar garment industry is from 20 countries including China (Taipei), Malaysia, Turkey and Germany.
Source: The Global New Light Of Myanmar
