Dec 27, 2012

Myanmar garment industry to enjoy GSP in 2013

Garment industry in Myanmar will benefit from the generalised 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.

“Investors from South Korea are coming to see us daily to sound out the investment opportunities. There are also Japanese and Thai investors visiting us. Those potential investors are interested in tax advantages from GSP,” Khine Khine Nwe, secretary of the garment association, said.

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.

“Most of garment export from Myanmar is bound to Japan and South Korea. However, the 2011 earthquake in Japan caused a decline in our export to Japan,” Khine Khine Nwe added.

She also said that some drawbacks still exist such as weak infrastructures and the fact that the number of orders placed to the factories is still small.

Source: Eleven Media Group