Thursday, 18 March 2010 11:30 Kyaw Kha
Chiang Mai (Mizzima) - Officials from the Myanmar Garment Manufacturers Association said the industry, affected by the global economic downturn, is still struggling to achieve its previous position.
Since the end of November 2008, production has fallen 30 percent and manufacturers are struggling hard to maintain preventing a further downturn, said U Myint Soe, Chairman of the association.
"The world (financial) crisis has hurt our garment industry since November 2008 and has affected production in February (2010), with the trend continuing. We are trying to stabilize the situation so it doesn’t deteriorate,” added U Myint Soe.
Burmese garment producers receive sub-contracts from international companies and many exports go to Europe, Latin America and Asia, with Japan the principle importer of Burmese textiles. Since 2003, the U.S. government has imposed economic sanctions against Burma’s military regime and banned the import of clothing products from Burma.
U Myint Soe explained labor wages for factory workers have also been affected by the global economic crisis, with unemployment in foreign countries resulting in a loss in demand for textiles.
"It is true that wages and production have declined since there is less demand for clothing around the world. Clothing prices are falling and it means less revenue for the producers," he expanded.
Nonetheless, although the industry is running slowly, according to official figures three new garment factories have begun operations in Rangoon during the last three months, with more than 120 garment factories operating in Burma in total.
The main problems for garment factories in Burma is frequent electricity shortages and extra fuel expenses that add to transaction costs and ensure a low return, a manufacturer from Dagon Seik Kan Township told Mizzima.
Most factory workers in the garment industry are young girls recruited from rural areas who typically earn from 45,000 to 60,000 kyats (US $45 to $60) a month.
Thursday, March 18, 2010
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