Sixteen companies have been granted permission to operate garment industries with Cutting, Making and Packing – CMP system during five months of this year, according to the Directorate of Investment and Companies Administration (DICA).
Those companies will cooperate with not
only local entrepreneurs but also other businessmen with the foreign
investment assistance.
Moreover, local MK Company has agreed to
cooperate with Thailand and Japanese-based Wacoal Company to operate in
the garment industry.
The European Union last September
reinstated tax breaks for imports from Myanmar under its Generalized
System of Preferences, or GSP system, which had been suspended since
1997.
Garment industry in Myanmar will benefit
from the Generalized System of Preferences (GSP) of the European Union
starting from 2013, according to the Myanmar Garment Association.
The tax advantages gained from GSP are attracting more investments from South Korea, Japan and Thailand.
The garment factories will be located in
Yangon region, the commercial hub of Myanmar and industrial zones in
Bago and Ayeyawady regions.
Malaysian-based Chia Moon Garment, Haker
Enterprise (Myanmar) and General Enterprise Garment will operate their
business with the fully assistance of foreign investment in Pathein
Township of Ayeyawady region and Dagon Myothit (East) Industrial Zone.
Myanmar has earned US$ 30 billion in
garment export during three months; January, February and March of this
year and the amount is double than the last year, according to the
statements released by Myanmar Garment Association.
The association is optimistic about an
upward trend of Myanmar garment industry by the inception time of the
GSP system, despite the recent declining demand for garment export from
the country.
source: Eleven Myanmar
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