Monday, February 18, 2013

Myanmar garment factories gear up for foreign investment


Monday, 18 February 2013 15:53 Khin Myo Thwe

The Myanmar Garment Entrepreneurs Association has said that some local garment enterprises are changing their business tactics to appeal to foreign investors.

Dr. Aung Win, vice chairman of the association said, “Over the past month, 10 or 15 locally-run garment enterprises have been developing their business tactics to appeal to foreign investment. We should welcome this kind of thing.”

Photo: Opal Int'l Co., Ltd.

Local garment entrepreneurs have told Mizzima that hundreds of foreign garment enterprises have been attracted by Myanmar's tax breaks.

“Depending on the type of export goods, tax will be reduced to 15 percent in accordance with the EU’s Generalized System of Preferences (GSP), so enterprises from countries such as South Korea, Japan and Thailand are coming to discuss the investment in garment enterprise sector,” said Hla Win, a garment entrepreneur.

The potential investment by these companies will offer huge job opportunities, but the success depends on the allowance of joint-ventures, said the association.

“If joint-ventures are permitted, the entrepreneurs will need to construct factories completely," said a spokesperson from Myanmar Garment Entrepreneurs Association. "It would be beneficial for local entrepreneurs, foreign entrepreneurs and the government,” he said.
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