Myan­mar Gets Ben­e­fit­ted with GSP

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Af­ter the re­in­state­ment of Gen­er­alised Scheme of Pref­er­ences (GSP) rights to Myan­mar, or­ders from Euro­pean Union have been in­creas­ing, and it has now be­come the top mar­ket for Myan­mar’s cut-make-pack (CMP) gar­ment sec­tor. This has re­duced Myan­mar’s heavy de­pen­dence on Ja­pan for its CMP ex­ports, ac­cord­ing to Myan­mar Gar­ment En­trepreneurs’ As­so­ci­a­tion.

The Myan­mar In­vest­ment Com­mis­sion had ap­proved numer­ous ap­pli­ca­tions this year for set­ting up of new CMP units in the coun­try, ac­cord­ing to the Direc­torate of In­vest­ment and Com­pany Ad­min­is­tra­tion. In the past, th­ese in­vest­ments were mainly from South Korean and Ja­panese com­pa­nies, but now there is in­flow of in­vest­ment from China as well.

There are more than 400 com­pa­nies in Myan­mar’s gar­ment sec­tor which to­gether em­ploy over 400,000 peo­ple. Th­ese com­pa­nies to­gether fetched ex­port earn­ings of $2.2 bil­lion last year, beat­ing es­ti­mates of $2 bil­lion.

In the first four months of the on­go­ing fis­cal year, CMP ex­port earn­ings have reached nearly $700 mil­lion, and they are ex­pected to touch $3 bil­lion this fis­cal, ac­cord­ing to the com­merce min­istry. Cur­rently, gar­ment ex­ports ac­count for around 16% of to­tal ex­port earn­ings by Myan­mar.

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