Global New Light of Myanmar reported that according to statistics from the Ministry of Commerce, as of November 20 in the 2020/21 fiscal year, raw material imports by contract processing (CMP) companies were as low as US$264 million. point, a sharp decline of 20.48% from US$332 million in the same period of the previous fiscal year. Due to the negative impact of the COVID-19 epidemic, some CMP garment factories have been closed, leaving thousands of people unemployed.
The Myanmar Investment and Companies Authority (DICA) stated that the new crown epidemic has severely hit labor-intensive enterprises. In the 2019/20 fiscal year, CMP companies’ raw material imports dropped to US$2.17 billion from US$2.37 billion in the 2018/19 fiscal year.
Myanmar’s manufacturing industry is mainly concentrated in garments and textiles produced on the basis of CMP. After the outbreak of the new crown epidemic, supply chain interruptions and customer order cancellations damaged the textile industry, accounting for 10% of Myanmar’s textile industry. The CMP garment industry, which exports 30%, is also facing a downward trend. The reason is that European countries have canceled orders and Western countries have suspended trade due to slow demand during the new crown epidemic.
