Covid-19 shuts down more than 100 garment factories

THE Covid-19 pandemic has led to the closure of some 100 CMP (Cut Make Pack) factories in Myanmar, said a representative from the Myanmar Garment Manufacturers Association.

Khin Maung Oo said that the pandemic has resulted in difficulties in meeting orders and a decline in global sales, forcing these factories to either halt work temporarily or cease operations for good.

He said that there are over 700 member factories registered under the association, of which more than 50 shut down during the first wave of the pandemic and another 50 closed during the second wave.

“Some (factories) have to take a break due to order difficulties,” said Khin Maung Oo. “However, about 350 member factories are applying for export and import licenses, ” he said. Owner of a garment factory Aung Myo Hein said such closures are necessary as it makes more financial sense.

“The worst situation for the garment industry is over but it is true that orders are (not coming in). There are factories that do not get orders at all and the factories that do not have enough money will have to close for a while, he said. “It is cheaper to close than to continue operations. There are a lot of such cases now,” added Aung Myo Hein.

Business owners said that many of the suspended factories are owned by foreigners, many of whom are Chinese nationals.

“Our garment factory has been closed for three months. The owner said the factory closed because of low orders,” said Ma Kay Khaing, a worker in Hlaing Tharyar Township.

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Source: Myanmar Times

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