Investment Environment Of Burma Textile And Garment Industry

In recent years, China has been hit by factors such as RMB appreciation, labor shortage and weak purchasing power in Europe and America. In the mainland, Hong Kong businessmen and mainland businessmen investing in textiles and clothing have been seeking cheaper productivity in Southeast Asia and productive potential countries.

Burma is one of the hot spots.

Besides abundant natural resources, Burma has abundant labor supply, and has close geographical proximity to China.

The development of Burma's textile industry began in the imperial dynasty of Burma, and has a history of more than 200 years.

After independence in 1948, enterprises began to adopt the one-stop production mode; in 1962, they switched to socialism, and enterprises were nationalized, all of them were under the jurisdiction of the Ministry of industry.

By 1988, the government was in line with the world and changed to the market economy. At that time, foreign investors were opened to foreign investors for processing.

However, in 1996, the United States passed the Massachusetts legislation to boycott Burma textile products, and launched trade sanctions and embargo in 2003. During the period, Burma's textile exports to the United States decreased significantly.

But with the recent rapid political reform in Burma, US Secretary of state Hilary visited the country more often, and generally believed that relations between the two countries would be opened up.

Burma's famous weaving factory is distributed all over the country, including Phi Jinshan cloth factory, Yangon military department weaving plant and Sha Lingzhi weaving factory.

Local factories mainly produce cloth, including shuttle weaving and military uniform. The ratio of foreign investment to local factories is at 1:50. Although the proportion is not high, China's investment has increased continuously in recent years, and its total has exceeded 14 billion US dollars.

Most of the local joint ventures are exported to Europe and the United States, but at the same time they also actively explore the local market and earn Kyat salaries.

Under the ASEAN agreement, countries such as China, Korea and Japan can be reduced or exempted from customs duties.

Burma has a population of about 59 million, and its domestic sales value reaches US $70 million, and 60% spinning products still need to be imported.

Low wages are one of Burma's competitive advantages.

The director's remuneration ranges from $300 to $500, from $150 to $300, while technical workers range from $80 to $150.

Local textile workers are well supplied, with textile schools and pre vocational schools set up by the government to actively train talents.

With the change of government policy orientation, the local textile industry has undergone different stages of development.

In 1986, it was mainly owned by state-owned enterprises and cooperative factories. Therefore, there was a period of self-sufficiency and no need for external demand. After that, the government encouraged private enterprises to invest by themselves, so many state-owned enterprises were privatized and managed by private enterprises, which provided many opportunities for foreign businessmen, and those skilled workers provided a foundation for the development of Hong Kong businessmen.

According to statistics, at present

It is worth noting that apart from Burma, neighboring countries such as Kampuchea and Vietnam have similar patterns in the development of textile industry, thus providing greater synergy for foreign businessmen to invest in Southeast Asia.

He expects that Burma's political reform, low-cost advantage, normalization with the United States, plus the cooperation of Vietnam and Kampuchea will make more investment portfolios for Hong Kong businessmen.

Statistics show that since the opening up to the outside world, Kampuchea's economy has been developing rapidly. In 2011, garment exports exceeded US $4 billion, accounting for 90% of the total exports of the country, and the number of textile and garment related workers in the country exceeded 290 and 300 thousand respectively.

After signing bilateral free trade agreements with Vietnam, the amount of textile and clothing trade has risen sharply to US $15 billion 600 million over the past 10 years and is among the top 5 in the world.

For foreign businessmen, Burma's exchange rate has always been their focus.

The foreign exchange and import and export must be handled through official banks or designated private banks. Local exchange rate instability is mainly due to the export of natural gas, minerals, oil and so on, which involve a large number of foreign exchange settlement.

The central bank is aware of this problem, so it has asked the world bank to assist in financial reform and will enter the second stage in the coming months.

Many manufacturers are concerned about how to buy land and build factories. Basically, foreign investors can not buy land directly, but only through leasing mode (long term). If the mode is similar to that of the mainland of China, they must apply to the Investment Bureau.

In order to attract foreign investment, the Burma government encourages people to provide more land or to cooperate with foreign investors.

If the factory rents Industrial Park, it needs to connect water and electricity by itself.

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In the last two months, the Customs has implemented the "electronic customs" and its efficiency has improved significantly.

Generally speaking, offshore containers can be delivered to the workshop in about 5 days and the bulk cargo may be increased for several days.

On the supply of raw materials, most of the imported fabrics and linen from China and Korea are packed locally, such as cartons, plastic bags and some embroidery machines.

Most of Shanghai's raw materials for pportation are pported to Yangon by Singapore, which takes about 18 days.

In terms of electricity charges, the current electricity consumption varies from 8 cents to 10 cents.

In the industrial park, 8 hours of power supply is guaranteed daily, but after 4 p.m., it will be allocated priority to residential areas.

The operator has his own generator to prevent voltage instability and increase equipment losses, and ultimately affect production efficiency.

In recent years, there are quite a lot of power generation projects in cooperation with China, and the power supply is expected to be improved.

The second is the lack of communication networks. Although there has been a marked improvement in recent years, there is still a gap. It is believed that it will take a year or two to catch up with the manufacturers' requirements.

The number of middle managers directly affects the operation of factories.

Due to higher wages in Thailand, Jordan and other countries, natural wastage is understandable, but the supply and pre employment training of local college students is abundant enough to fill vacancies.