After the earthquake of the strength 7.7, which Myanmar shaked last Friday, March 28, and demanded more than 2,700 human life, the association of clothing manufacturers Myanmar (MGMA) and partner associations demanded financial support for the clothing -producing country.
At the local level, they ask for factory -owned, management and members to provide donations for the needy, especially near Mandalay – the epicenter of earthquake – as well as in the Nay Pyi Taw and Sagaing regions.
Myanmar’s clothing industry is dependent on national and international help
At the international level, Aye Mi Shein, Managing Director of the MGMA, told Just Style that the association was there to coordinate international organizations from Great Britain, the USA, Vietnam, Indonesia, Malaysia, Russia, India and China.
International brands and retail companies that have in myanmar are asked to support their delivery companies in these difficult times; Similar to Turkey when the country was hit by devastating earthquakes in February 2023.
“There are a handful of larger factories in Mandalay and the surrounding area that produce for international export markets. These factories could be seriously affected. There are several hundred small family -run textile factories that produce cotton fabrics and clothing for the local market, and I fear that many of them have been hit, as many of these companies in the home industry are around around 50 kilometers around the epicenter are ”, commented Jacob Clere, team leader at Smart Myanmar, in conversation with Just Style.
While the majority of the large clothing export factories focus on better industrial infrastructure and port access as well as a long tradition in clothing production in the regions of Yangon and Bago, the city of Mandalay and the surrounding regions (vertically integrated) are home to that also produce and act coloring and fabrics. Sagaing is the seat of several hundred small, family -run textile factories, which mainly produce for the domestic market. Although the exact effects of the earthquake on the country’s clothing and textile industry will only be shown after a while, supply chain delays and interruptions can be expected, which require patience and understanding from international clients: inside.
The development of myanmar’s clothing industry
Myanmar has a long history in clothing production. The first textile factories were built with British rule between 1824 and 1948. In 1988 the first foreign investments in Myanmar were approved, which led to considerable growth. With the cancellation of European and American trading sanctions, the export volume of clothing, shoes and accessories increased by 750 percent in the past ten years alone and, according to MGMA data, reached $ 9.3 billion in 2022. In 2022, according to the European Chamber of Commerce, Myanmar exported clothing worth around $ 7.6 billion.
This export growth was preceded by an increase in investments in industrial abrasions, whereby the number of clothing factories (with 100 or more employees) almost tripled from around 600 in 2018 in 2018. These employ around 560,000 workers: inside.
However, most companies work with a cut, make and package (CMP) production system, are therefore only responsible for the production of the clothing and are not involved in the design and/or procurement processes. This means that materials such as fabrics, but also zippers and buttons have to be imported, which creates a dependency on these delivery companies.
In view of the military coup in 2021 and labor law violations such as child labor and low wages, international brands and retail companies such as H&M, Inditex, Primark and Marks & Spencer have reduced or hired their activities in the country in favor of other clothing -producing countries such as Bangladesh, Vietnam, Cambodia and Indonesia in recent years.