Myanmar the SE Asian garment sector

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Can Myanmar emerge as the next low-cost destination for global apparel brands and retailers, following China losing its sheen as a cheap production hub? Should this new development also worry garment makers in other South East Asian countries?

The vibes emerging from leaders in countries like Bangladesh, Cambodia and Pakistan seem to indicate that Myanmar could emerge as a potential destination for sourcing clothing for worldwide retailers and brands. However, they do not see Myanmar as a threat to their country’s apparel sector in the immediate future.

It is a known fact that garment brands are in constant search for low-cost production hubs and in their quest, production hubs have moved from US and Europe to China, Bangladesh, India, Vietnam, Cambodia, Sri Lanka and Pakistan. This year in April, in a historic decision, the European Union (EU) suspended most of its sanctions against Myanmar, due to the sweeping democratic changes adopted by the present government and also in an effort to encourage further reforms.

However, the biggest clothing and textiles importing country – US has still not lifted sanctions. It is also worth noting that the EU has not lifted sanctions, but only suspended them for a year. As recently reported on fibre2fashion, global apparel brands are gradually moving out from China, due to its rising costs. Domestic Chinese brands and suppliers to global brands too are looking at overseas destinations to cut costs.

Full news at : http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=112652