Market Assessment

Myanmar Garment Sub-Sector Value Chain Analysis, ILO, 2015

    With the lifting of the European and American export sanctions on Myanmar, the garment sector in the country is now experiencing new levels of growth. The Myanmar Garment Manufacturers Association (MGMA) reports that new garment factories are opened every week, and the number of workers involved in the industry is forecast to grow from the 260,000 currently employed to 600,000 in the next three years. While growing, the sector is still in its early stages and most of the manufacturers active in the country are operating on a Cut, Make and Package (CMP) production system, whereby producers are only responsible for the pure production of the garments, and not involved in the design and/or input sourcing processes.

    With funding from DANIDA, the ILO aims to contribute to decent work opportunities for women and men in garment sector value chains, while ensuring the main actors targeted within these chains work towards following responsible business practices. In particular, the ILO is interested in helping the Myanmar garment sector to capture a larger part of the global value chain. Garment pricing in Myanmar is currently on a CMP basis (cut, make, and pack), whereby manufacturers in Myanmar negotiate fees only for the assembly labour performed on garments, not for the full value of the garments. It is therefore a sector priority for Myanmar’s garment sector input value
    chains to be strengthened.

    The aim of this study was to approach the sector by following the “Making Markets Work 4 the Poor” (M4P) approach. The aim was to consider all the relevant market components.

    The report starts by giving an overview of the Myanmar garment sector and of primary and secondary findings that were collected during the research process. The following sections give an overview of the selected inputs supplies: Packaging Materials, Hangers and Textiles. Finally, the last section presents a list of recommendations designed for the ILO to consider, broken down into Near Term interventions, Year-Long Interventions and Policy recommendations.