CMP raw materials import plunges to $264.7 mln as of 20 November

Imports of raw materials by CMP businesses touched a low of US$264.7 million as of 20 November in the current financial year 2020-2021, which fell from $332 million registered in the previous 2019-2020FY, according to the Ministry of Commerce. The figures reflected a decrease of $67 million, the Commerce Ministry’s data showed.

At present, some CMP garment factories have shut down due to the COVID-19 negative impacts, leaving thousands of workers unemployed. The Covid-19 badly batters the labour-intensive enterprises, the Directorate of Investment and Company Administration stated. To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have jointly imported raw materials through border trade channels and airlines. However, import values of raw materials by CMP businesses in the past FY2019-2020 dropped to $2.17 billion, which plunged from $2.37 billion registered in the FY2018-2019.

Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. The CMP garment sector in Myanmar has been hit hard by the coronavirus impacts amid the global demand slump, as per Myanmar Garment Manufacturers Association. Supply chain disruptions and cancelling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is bracing for downward trend owing to cancel of order from the European countries and suspension of the trade by western countries amid the pandemic.

Since an outbreak like Covid-19 might happen in the future, it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our own sources, including weaving, knitting, dyeing, and sewing factories.Japan is the largest market for Myanmar apparel, followed by the European Union. The MGMA has more than 500 members, and garment factories in Myanmar, employing more than 400,000 workers. Investors prefer to invest in countries with inexpensive labor, such as Myanmar. —Ko Htet

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Source : The Global New Light of Myanmar

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