The Global New Light of Myanmar reported that the Ministry of Commerce stated that against the backdrop of sluggish demand in the EU market, Myanmar’s garment exports have declined in the past eight months of the current fiscal year 2020/21 (October to May). month) fell by more than 20% compared with the same period last year. During the period from October 1 to May 28 of this fiscal year, exports of ready-made garments produced under the contract processing (CMP) system totaled US$2.2 billion. This figure dropped significantly from $2.7 billion in the same period in the 2019/20 financial year.
Myanmar’s manufacturing decline has accelerated in previous months as political changes led to factory closures. Layoffs were extended and some workers were forced to return to their hometowns. IHS Markit said that in terms of price, rising material costs and unfavorable exchange rate movements have led to a sharp increase in cost burden. Myanmar’s manufacturing industry mainly focuses on garments and textiles based on CMP, which contributes a lot to the country’s GDP. Myanmar’s main CMP garment export markets are Japan, Europe, South Korea, China, the United States, etc.
