Posts in category: MANUFACTURING

CMP raw materials import has registered at US$2.17 billion in the past financial year 2019-2020, which plunged from $2.37 billion recorded in the 2018-2019FY, according to the Ministry of Commerce. Myanmar manufacturing sector has mostly concentrated in garment and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. At present, some CMP garment factories have shut down on the reason for the lack of raw materials due to the COVID-19 negative impacts, leaving thousands of workers unemployed. The COVID-19 badly batters the labor-intensive enterprises, said an official of the Directorate of Investment and Company Administration.

To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have jointly imported raw materials through border trade channels and airlines. However, import values of raw materials by CMP businesses in the last FY dropped by $197.7 million compared to a year-ago period. The CMP garment sector in Myanmar has been hit hard by the coronavirus impacts amid the global demand slump, said an official of Myanmar Garment Manufacturers Association. Supply chain disruptions and cancelling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is bracing for downward trend owing to the cancellation of order from the European countries and suspension of the trade by western countries amid the pandemic.

Exports of garments manufactured under the cut-make-pack (CMP) system were valued about US$4 billion around the past eleven months in the last financial year 2019-2020, said an official of the Ministry of Commerce. Since an outbreak like Covid-19 might happen in the future, it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our sources, including weaving, knitting, dyeing, and sewing factories. Japan is the largest market for Myanmar apparel, followed by the European Union. The MGMA has more than 500 members, and garment factories in Myanmar, employing more than 500,000 workers. Investors prefer to invest in countries with inexpensive labor, such as Myanmar.

Source: The Global New Light of Myanmar

Myanmar’s manufacturing sector has been hit hard by the new Lockdown program, which has led to a slump in production and the closure of many factories, reducing many jobs, according to the September 2020 Nikkei Myanmar Manufacturing PMI. Myanmar’s manufacturing sector has been hit hard by a number of new lockdown plans to combat the growing Coronavirus outbreak. Factories in Rangoon Division, including major industrial zones, temporarily closed, both production and new orders fell sharply and jobs were cut. Deteriorating business conditions in September abruptly ended the short recovery period between July and August.

Myanmar’s manufacturing PMI stood at 35.9 in September, down from 53.2 in the previous month, signaling a sharp decline in manufacturing. At 35.9, the second-lowest level in the survey, which began in December 2015, was higher than April 29, but the one-month PMI decline of 17.3 was the highest in record history, surpassing the April drop of 16.3. Four of the five components of the PMI were negative in September, with the exception of supply delays. Both production and new orders fell for the second-highest rate in survey history, with indexes falling more than 28 points in a single month. The list of jobs and inventories fell at the fastest rate in three to six months, respectively. Production fell sharply in September as the virus forced the closure of factories in key areas. More than half of the companies surveyed, 54 percent, reported lower production than the April record 81 percent, the latest decline in the three-month period after the spring lockdown.

New restrictions slowed demand during the period, and the number of new jobs fell in June-August, after a surge in new production, making it the second-highest rate in survey history. Demand in domestic markets was particularly weak, with new export orders, which stabilized in August, fell this month. India Thailand Businesses reported weak demand in Asian markets, including Vietnam and Qatar. New jobs fell sharply in September, while inventories fell at the strongest pace in three months, and the 12-month production outlook slipped to its weakest point in April. Many factories closed and jobs plummeted, declining again for the first time in seven months in August. About 16 percent of companies cut their workforce, the highest number of any period since the second quarter of 2020. Imports fell sharply in September, and inventories fell to a four-month high. Depreciation pressures continued in September, with selling prices hitting record highs as import prices fell.

Source: Daily Eleven

Exports of garments manufactured under the cut-make-pack (CMP) system were valued US$3.74 billion in the period between 1 October and July-end in the current financial year 2019-2020. Myanmar’s manufacturing sector is primarily concentrated in CMP garments and textiles, which contribute to the country’s GDP to some extent. The garment sector is among the prioritized sectors driving up exports. The CMP garment industry has emerged as a promising one, with preferential trade from Western countries. The majority of Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into the free-on-board (FoB) system. Following the negative impacts caused by the COVID-19 on the garment industry, some CMP garment factories have shut down on the reason for the lack of raw materials, leaving thousands of workers unemployed.

The COVID outbreak and spread hit the labor-intensive businesses so severely, the Directorate of Investment and Company Administration (DICA) stated. However, foreign direct investments flow into many types of businesses, including garment enterprises. The foreign investors are not bothered by the disputes between employers and employees and the closure of some CMP businesses during the meantime. Of the investment proposals, the manufacturing and labor-intensive industries are prioritized by the commission. Myanmar Investment Commission is endeavoring to accept investment projects in manufacturing masks, pharmaceuticals and others which can contribute to the fight against the coronavirus in the country at the soonest. Supply chain disruptions and cancelling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is bracing for downward trend because of the cancellation of order from the European countries and suspension of the trade by western countries amid the pandemic.
At present, all the garment factories have been temporarily closed due to the coronavirus resurgence.

The export value of CMP garments was only $850 million in the 2015-2016 financial year, but it has tripled over the last two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period. It tremendously grew to $4.6 billion in the 2018-2019FY. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. With demand from foreign trade partners growing, imports of CMP raw materials are rising year by year. Since an outbreak like COVID-19 might happen in the future, it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our own sources, including weaving, knitting, dyeing, and sewing factories. The MGMA has more than 700 members, and garment factories in Myanmar, employing more than 500,000 workers. Investors prefer to invest in countries with inexpensive labor, such as Myanmar.

Source: The Global New Light of Myanmar

Imports of raw materials by CMP businesses have been valued at US$1.87 billion over the past ten months beginning in October in the 2019-2020 financial years, which plunged from $2 billion registered in the corresponding period of last financial year.  Myanmar’s manufacturing sector is mostly concentrated in garment and textiles produced on the cutting, making, and packing basis, and it contributes to the country’s GDP to a certain extent.At present, some CMP garment factories have shut down on the reason for the lack of raw materials due to the coronavirus negative impacts, leaving thousands of workers unemployed.

The pandemic badly batters the labour-intensive enterprises, said an official of the Directorate of Investment and Company Administration (DICA). To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have jointly imported raw materials through border trade channels and airlines.
However, import values of raw materials by CMP businesses dropped by $140.49 million compared with a year-ago period. The CMP garment sector, which contributes to 30 per cent of Myanmar’s export sector, is facing hardships because of the cancellation of order from the European countries and suspension of the trade by western countries amid the coronavirus pandemic. It can harm the export sector to a certain extent, highlighted the businesspersons. The CMP industry has emerged as very promising in the export sector.

The value of CMP exports was just $850 million in the 2015-2016 budget year, but it tripled within two years to reach $2.5 billion in the 2017-2018FY. During the last financial year 2018-2019, incomes from garment exports were over $1 billion higher than the previous budget year. Since an outbreak like COVID might happen in the future, it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our sources, including weaving, knitting, dyeing, and sewing factories. Japan is the largest market for Myanmar apparel, followed by the European Union. The MGMA has more than 500 members, and garment factories in Myanmar, employing more than 500,000 workers. Investors prefer to invest in countries with inexpensive labor, such as Myanmar.

Source: The Global New Light of Myanmar