CMP garment exports plummet by 50 per cent in 2 months

Myanmar’s garment export has dropped by 50 percent for now on the back of a slump in demand by the European Union market, the Ministry of Commerce stated. Exports of garments manufactured under the cut-make-pack (CMP) system were valued at US$214 million in the past two months (Oct-Nov) in the current budget year 2020-2021, according to the data from the Ministry of Commerce. The figures plunged from $450 million in the corresponding period of last FY.

The CMP garment sector in Myanmar has been hit hard by the coronavirus impacts amid the global demand slump. The market is expected to recover after the COVID-19 vaccine success in Europe, Myanmar Garment Manufacturers Association stated. 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.
Supply chain disruptions and canceling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 percent of Myanmar’s export sector is bracing for a downward trend owing to cancel of orders from the European countries and suspension of the trade by western countries amid the pandemic.

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, explained the Directorate of Investment and Company Administration (DICA). 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 labour, such as Myanmar.—Ko Htet (Translated by Ei Myat Mon)

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Source: Myanmar Time

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