Apparel March 2020 Apparel March 2020 issue | Page 56

INDUSTRY INSIGHTS
which is mainly rice farming, occupying over 60
per cent of cultivated area with the rest being
used for sugar, rubber, and legume plantations.
The nation is also engaged in a number of
industries that contribute to its national wealth,
such as oil and gas production, copper mining,
precious stones and lumber. But despite this
variety of activity, its export revenue is mainly
dependent on the sale of petroleum gas which
makes up 23 per cent of all exports. Amongst
its other exports are; garments, apparels, and
textiles which come in second highest with a
20.4 per cent share. In total, the national exports
amounted to about USD14.84 billion in 2017 with
total imports adding up to USD18.68 billion.
numerous economic challenges for the new
government. But there have been steps taken to
address these issues.
Once riddled by poverty, thanks to its
precarious political past, Myanmar in recent years
however, has halved the number of people living
in poverty from 48.2 per cent in 2005 to 24.8
per cent in 2017. With consistent growth in its
industries and employment opportunities, the
rate of unemployment has gradually been falling.
Most recently the figures show a fall from 2.2
per cent in 2017 to 1.6 per cent in 2018. The
current range of economic activities in Myanmar
are still significantly dependent on agriculture and
industry, as they contribute a share of 36 per cent
and 26 per cent respectively to the GDP. The
services sector which were once a fledgling, have
now begun to lead with 38 per cent of GDP.
However, despite this sectoral value
distribution, more than 70 per cent of the nation’s
labour is concentrated in the agricultural sector,
54
I APPAREL I
March 2020
TEXTILE AND APPAREL TRADE
Most of the textile and apparel trade in Myanmar
is highly concentrated to only a handful of
regions. As of 2018, the nation’s apparel industry
employs approximately 700,000 people across
600 factories, 90 per cent of whom are women.
This sector has become an even more attractive
labour destination as the government has
introduced a minimum wage policy to encourage
more workers. The garment industry has seen
particular interest ever since the European Union
sanctions against the nation were lifted in 2012
inviting more opportunities for global trade.
This growth opportunity attracted a significant
amount of foreign direct investment, especially
from regional nations such as Thailand and
China. The relatively lower cost of labour led to an
increase in foreign ownership of local textile and
apparel businesses, with nearly 55 per cent of
officially registered firms in the nation being partly
or fully owned, and the majority of them being
from China and Hong Kong. The key reason for