Myanmer is getting more stable in textile industry. Myanmar’s export revenues from the textile manufacturing sector make up nearly 10 per cent of the country’s export revenues. The country exports its garments and textiles mainly to Europe, Japan and South Korea. If manufacturers make a shift from the Cut, Make, Pack (CMP) production system to a free on board (FOB) system, annual earnings could swell 10-fold should demand remain at the current level. Under a CMP system, all raw materials, such as fabric and buttons, are imported by local factories, which then assemble the garments for export. Under an FOB system, the exporter quotes a price that includes all costs, including delivery of goods aboard an overseas vessel. The local factory is responsible for the whole production process. The European Union is working with more than a hundred garment and textile factories in Myanmar in expanding training and capacity building programs for social and environmental performance.
Employment in the industry is also expected to hit a million workers by 2024. Around 600 factories in the country now offer job opportunities to approximately five lakh workers. The boom in Myanmar’s clothing and textile industry comes at a time when wages in other regional production hubs such as Vietnam and Cambodia have risen, driving manufacturers to cheaper nations. The minimum wage in Myanmar is among the lowest in Southeast Asia.