Non-Chinese CMP garment factories struggle to secure orders
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Phyo/ Pearl (NP News)Dec 31
According to the garment industry community, except for Chinese investments, CMP (Cutting, Making, Packaging) businesses are having difficulty obtaining garment orders.
Domestic garment enterprises that import raw materials from abroad and produce locally using the CMP system have recently been finding it difficult to obtain garment orders from abroad.
“There are some situations where it is difficult to find orders. Compared to other countries, we are at a disadvantage. Currently, some Chinese brands are placing orders with local factories. Not many, though. We have orders from Japan, Korea and some European countries,” said a garment entrepreneur.
In addition, it was reported that about 65 percent of the factories operating in Myanmar as CMPs are Chinese-invested, and these Chinese-owned factories are the only ones receiving garment orders from China.
“At the moment, about 65 percent of factories operating under the CMP system in Myanmar are Chinese-owned. And Chinese investors naturally send their orders to their own factories, so those factories continue operating. For local investors, however, it’s a bit difficult. In reality, the CMP garment industry has very thin margins. The profits are not high compared to the investment. However, it can provide employment opportunities for a large number of people. That’s the issue we’re dealing with. In truth, it’s not a business that brings huge returns for investors either. But if orders are not given simply because you’re Myanmar, then what can be done? That difficulty exists as well,” he continued.
Currently, garment entrepreneurs are facing difficulties in obtaining garment orders as well as a labor shortage. –