Posts in category: MANUFACTURING

In April, Myanmar’s industrial sector rose at the fastest rate on record and has grown for three consecutive months in more than three years, according to the S & P Global Myanmar Manufacturing PMI Index report for April 2023. The S&P Global Myanmar Manufacturing PMI was calculated based on responses to questionnaires sent to input procurement managers from a group of approximately 400 manufacturers.

“Abandoning the most sustained decline seen in the last three years, figures since February have signaled an upturn in Myanmar’s industrial sector, with working conditions improving every month. Also, the key PMI index hit a record high for two consecutive months in April, marking the first time in more than three years that it has been above 50.0 for three consecutive months. A surge in new orders has led companies to increase their production, according to survey respondents. Also, job openings rose for the first time in 10 months,” said Maryam Baluch, economist at S&P Global Market Intelligence.

The main S&P Global Myanmar Manufacturing PMI, the only composite index of manufacturing performance, recorded two consecutive months above the neutral 50.0 mark since February, climbing from 55.5 in March to 57.4. The situation of the manufacturing sector is centered on the demand from the shopping side, production, It boosted the number of purchases and jobs.

The rate of increase in industrial production and new business volumes accelerated in April. In fact, the latest gains were the fastest rates recorded since the survey began in December 2015. Looking ahead, optimism among manufacturers has historically been weak, but is one of the best on record in a year. Expectations of increased orders and production supported confidence. However, the majority of respondents (96 percent) expect manufacturing to remain unchanged over the next 12 months, according to the April 2023 S&P Global Myanmar Manufacturing PMI Index report.

Source: Daily Eleven

CMP garment exports generated over US$4.7 billion income abroad during the first 11 months of the 2022-2023 financial year, according to the statistics of the Myanmar Garment Manufacturers Association. Garment factories operating under CMP system were able to export to foreign countries from April 2022 to February 2023 of current FY. Garment industries in Myanmar are run by local entrepreneurs, China, South Korea, Japan and Thailand. Myanmar exports products of these industries to China, Thailand, Singapore as well as European countries.

Deputy Minister for Labour U Win Shein, at the garment factories in Shwelinban and Shwe Thanlwin Industrial zones in Hlinethaya township on 13 January, said that being factory managers, they have to understand that the capacity of skilled workers is the primary factor for timely export of products. He urged them to build fair relationship with workers and employees, must observe and practise the workplace regulations. The garment industry is the major source of job opportunities and emphasizes the producing skilled workers. Employers and employees stand to benefit through mutual interests. Employees must remain committed to their business, he said.

According to the deputy minister, the ministry is responsible for issuing national-level employment certificates that recommend their skill levels. To achieve this, assessment centres would have been set up in garment factories run with significant number of workers, in collaboration with partner ministries, to evaluate their skills without interrupting their work procedures, he added. Now, there are a total of 738 factories operating throughout the entire country including 505 garment factories, 48 shoe manufacturing factories, 8 wig factories, as well as 117 factories involved in bags, sportswear, sports shoes, and socks. All of these enterprises are running their operations in compliance with the rules and regulations. 

Source: The Global New Light of Myanmar

A total of 41 foreign enterprises pumped US$187.426 million into Myanmar’s manufacturing sector in the past eight months (April-November) of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar attracted foreign direct investments of $1.459 billion from 58 enterprises during the April-November period. The majority of the investments were brought into the manufacturing sector. The agriculture sector drew $3.5 million from two projects.

The power sector received $817 million from 10 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. The hotels and tourism sector attracted less than 1 million. The mining sector received $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses is also seen.

Additionally, the livestock and fisheries sector saw a capital expansion of $1.545 million. The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to Myanmar Investment Commission. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report.

In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar. Moreover, Myanmar Garment Manufacturers Association has organized Labour Law Awareness and WCC Training since July 2022, with the support of UNICEF Myanmar. It aims to provide the soft skills needed for industrial development and create a better workplace for garment workers. Additionally, the association launched a voluntary labour compliance assessment-VLCA Online System on 10 November 2022.

Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. There are active 541 factories operated under MGMA. The majority of them are from China, followed by Myanmar and the Republic of Korea. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping an estimated capital of $202.667 million.

Source: The Global New Light of Myanmar

A total of 35 foreign enterprises pumped US$179 million into Myanmar’s manufacturing sector in the past seven months (April-October) of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar attracted foreign direct investments of $1.45 billion from 52 enterprises during April-October period. The majority of the investments brought into the manufacturing sector. Agriculture sector drew $3.5 million from two projects.

Power sector received $817 million from 10 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. Mining sector earned $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses are also seen. Additionally, the livestock and fisheries sector saw a capital expansion of $1.545 million.

The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to Myanmar Investment Commission. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report. In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar.

Moreover, Myanmar Garment Manufacturers Association has organized Labour Law Awareness and WCC Training since July 2022, with the support of the UNICEF Myanmar. It aims to provide the soft skills needed for industrial development and create a better workplace for garment workers. Additionally, the association launched voluntary labour compliance assessment-VLCA Online System in November 2022. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping the estimated capital of $202.667 million.

Source: The Global New Light of Myanmar

A total of 29 foreign enterprises pumped US$129 million into Myanmar’s manufacturing sector in the first half of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar attracted foreign direct investments of $1.24 billion from 39 enterprises during the April-September period. The majority of the investments were brought into the manufacturing sector. The power sector received $702.4 million from six projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $378 million in the service sector respectively.

Additionally, the livestock and fisheries sector saw a capital expansion of $1.545 million. The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to Myanmar Investment Commission. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination program for the workers, as per the HIS Markit’s September report.

In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar. Moreover, Myanmar Garment Manufacturers Association has organized Labour Law Awareness and WCC Training since July 2022, with the support of UNICEF Myanmar. It aims to provide the soft skills needed for industrial development and create a better workplace for garment workers.

Additionally, the association will be launching the voluntary labour compliance assessment-VLCA Online System in November 2022. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping an estimated capital of $202.667 million. 

Source: The Global New Light of Myanmar

Myanmar food exporters are required to be registered with the General Administration of Customs of the People’s Republic of China (GACC), according to the Ministry of Commerce. According to GACC Decrees 248 and 249, GACC registration is mandatory for food exporters starting from 1 January. That being so, Myanmar’s food products in 18 food groups such as meat products, fishery products, dairy products and edible bird’s nests, honey and honey products, eggs and egg products, edible oil, frozen food products, edible seeds and nuts, malted barley, fresh vegetable, dried beans, spices, hard nuts and seeds, dried fruits, coffee beans and cocoa beans, special nutritious food and supplements are required to be registered with GACC.

For GACC registration, the relevant authorities are the Agriculture Department, the Livestock Breeding and Veterinary Department (LBVD), the Fisheries Department and Food and Drugs Administration. Between 1 December 2021 and 30 September 2022, 1,850 applications of 1,022 companies and factories have been submitted to GACC. Among them, 1,711 applications by 883 companies were forwarded through the Agriculture Department, while 118 through the Fisheries Department, 12 through the LBVD and nine through the FDA. Exporters can directly access China International Trade Single Window through https://cifer.singlewindow.cn by creating accounts for those food groups which are not listed on those 18 groups. 

Source: The Global New Light of Myanmar

Business conditions in Myanmar’s manufacturing sector declined for three consecutive months, with employment declining for the first time in eight months, according to the S&P Global Myanmar Manufacturing PMI for July 2022. In July, business conditions in Myanmar’s manufacturing sector have been declining for three consecutive months. In addition, the rate of decline was faster than the rate experienced in June. A sharper decline in production and new orders partly drove the strong decline. It also reported that sector-wide hiring declined for the first time in eight months.

In terms of prices, production costs and sales prices, which saw inflationary pressures calm significantly in July, continued to increase overall. The key S&P Global Myanmar manufacturing PMI, a composite index of manufacturing performance, fell to 46.5 in July from 48.2 in June, showing conditions in the sector fell for three consecutive months. Furthermore, the rate of decline was seen as the fastest since October 2021.

Production volumes fell at a faster pace in July and the rate of decline in factory orders accelerated. Members often stressed that buyers’ financial constraints put pressure on new order acquisition. In addition, ongoing material shortages and rising supplier costs have further reduced production volumes and even resulted in temporary factory shutdowns on occasion. Firms cut their workforce in July as production demand eased. The rate of job cuts was modest, but it ended seven straight months of rising hiring rates.

Most firms reported no changes in staffing levels, but those that did reduce staffing indicated that this was linked to salary dissatisfaction among staff and a decrease in order intake. “Buyers’ financial constraints; Product shortages and rising supplier costs are linked to a faster decline in both production and new orders. Also, the number of employees decreased for the first time in eight months, and purchasing activity declined at a faster rate,” said Maryam Baluch, economist at S&P Global Market Intelligence.

Source: Daily Eleven

Myanmar earned about $404 million from the garment export in March 2022 increasing by $135 million compared to the same period last year, according to the Central Statistical Organization of the Ministry of Planning and Finance. In March 2022, the garment exports earned $403.8 million while $268 million in March 2021. This year earned $135.8 million more than the same period of the previous year.

The country earned $217.2 million from garment exports in February 2021 while $268 million in March, $238.7 million in April, $278.5 million in May, $319.3 million in June, $310.7 million in July, $424.5 million in August, $378.3 million in September, $302.9 million in October, $337.9 million in November, $414.3 million in December, and $ 410.3 million in January 2022, $360.6 million in February and $403.8 million in March.

In the 2019-2020FY, the country earned nearly $4.8 billion from garment exports and the amount decreased by more than $63 million compared to the same period, according to the ministry’s figures. The CMP sector ranks first in the investment sector in three months of this FY. It creates job opportunities for most locals and there are 671 CMP factories/industries in the country. The Myanmar citizens make investments in CMP such as garments, shoes, bags and wig factories and the Chinese, Korean and Japanese invest in that sector most.

Source: The Global New Light of Myanmar

Imports of raw materials by CMP (cut-make-pack) businesses rocketed to US$824.379 million between 1 April and 8 July in the current financial year 2022-2023, which reflects a sharp increase of $456 million compared with the year-ago period, according to the Ministry of Commerce.

The figures rose from $368.27 million registered during the-year ago period, the Commerce Ministry’s data indicated. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for workers as per the IHS Markit’s September report.

In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar. Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on the Cutting, Making and Packaging basis, and it contributes to the country’s GDP to a certain extent. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US.

Source: The Global New Light of Myanmar

During the three months of the 2022-2023 Financial Year-FY, industrial raw materials, including CMP garments, were exported the most, and agricultural products were the second largest, according to the Ministry of Economy and Commerce. In this way, industrial raw materials worth US$2,699.385 million were exported from 1 April to 1 July of the 2022-2023FY.

During this period, among the industrial raw materials exported from Myanmar, officials were able to export the most CMP garments, as well as the most industrial raw materials exported to foreign countries. In the same period of the 2021-2022FY, industrial raw materials worth $1,958.575 million were exported, and this year it was able to export $740.81 million more worth of goods compared to the same period of the previous year.

During the three months from 1 April to 1 July of the 2022-2023FY, agricultural products worth $1,097.809 million were exported by private owners. During the three months of FY2022-2023, it was able to export the second-largest number of agricultural products to foreign countries. In the 2021-2022FY, the export value of $1,102.605 million has decreased compared to the previous year by $4.796 million. 

Source: The Global New Light of Myanmar