Myanmar’s manufacturing sector attracts whole FDI of US$40M in April
Foreign direct investments of more than US$39.6 million were pumped into Myanmar’s manufacturing sector from eight enterprises in the first month of the current financial year 2024-2025 (April-March), as per the statistics released by the Directorate of Investment and Company Administration (DICA).
The manufacturing sector drew 100 per cent of foreign investments flowing into the country in April. Chinese companies primarily made investments in the manufacturing sector with four projects, followed by Indonesia, India, Chinese Taipei and Singapore with each project.
The manufacturing enterprises that need a large labour force are prioritized to create job opportunities for the locals.
Myanmar’s manufacturing sector is concentrated mainly in garment and textiles produced on a Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent.
Myanmar Garment Manufacturers Association (MGMA) is committed to accelerating its effort to keep improving Myanmar’s garment sector, joining hands with international brands and partners, as per the MGMA’s statement on its commitment released on 25 August 2023.
The MGMA launched the Grievance Mechanism online at c.mgma-vlca.com, where workers from MGMA member factories can directly report their grievances, ensuring the confidentiality of the names and personal information of those who file complaints.
The MGMA has implemented a Voluntary Labour Compliance Assessment (VLCA) since February 2020 to evaluate the compliance of the factories with national labour laws and international labour standards. In order to beef up the assessments and expand enrolment, the online version was launched in November 2022. More than 220 factories have accomplished the assessment so far, and over 100 are still under scrutiny.
There are 539 active factories operated under the MGMA as of April 2024, comprising 315 from China, 55 from South Korea, 18 from Japan, 16 from other countries, 62 domestic factories and 27 joint ventures. Fifty factories are temporarily closed for now, according to the MGMA’s monthly Newsletter. — KK
