The export value from the garment industry under Cutting-Making and Packing (CMP) system is expected to fetch up to US$10billion in a decade, it is learnt from Myanmar Garment Manufacturers Association (MGMA).
“We expect garment industry to be in operation with 1,500 factories in 2025, with a total labour force of one million. To meet a target income, CMP enterprises are required to attract the attention of more foreign investors. The garment industry is making a concerted effort to turn the FOB system from a CMP system to creat more job opportunities,” said U Myint Soe, the chairman of MGMA.
Currently, the local garment enterprises practice the CMP system. The local entrepreneurs are depending on 90 per cent of the imported materials.
The following facts have been enshrined in the FOB system. The imported raw materials will be free from taxation and these materials will be controlled by the Customs department. And, these materials can also be purchased under loan contract and so, the foreign banks and Myanmar banks are required to link.
The export volume from garment industry has currently been on the rise. The export value from this sector was US$1.4 billion in 2014 whereas 1.65 billion was earned from the garment industry in 2015.