China Myanmar Cooperation In Establishing Myanmar'S First Textile Industrial Zone

Myanmar Eastern development international and China's Dongzhan Textile Group will jointly develop a textile industry cluster worth more than 371 million US dollars in Sagaing Province, Myanmar global new light reported. The two companies will work with the private sector at all stages of the project to make it Myanmar's first textile based industrial zone.

The project design includes two stages: plant construction and plant mechanical installation.

The first stage

It includes the construction of 12 garment related factories, knitting fabric factories, printing and dyeing factories and down factories; and the construction of residential buildings for employees. Among them, 8 factories will be located in textile mill No. 3 (shigge), and the remaining 4 factories, including wastewater treatment system and thermal power plant, will be established in textile mill No. 3 (Shijie).

The second stage

It will include the construction of five garment related factories, embroidery factories, carton factories and polyester cotton factories. An international textile supermarket will also be established in sago. It is suggested that the initial operation period of the project is 20 years. After the initial 20-year term has expired, it can be extended twice, each for five years. The project is scheduled to start in fiscal year 2020 / 21 and is expected to be completed in fiscal year 2029 / 30. It will also benefit stakeholders across the textile value chain (SMEs, employees, fashion designers), provide locally produced raw materials for the textile and garment industry and create entrepreneurial opportunities.

It is expected that the import of raw materials in the whole textile value chain will decrease, and the export earnings from using locally produced raw materials will increase. The establishment of textile based industrial clusters will reduce transportation costs, make use of common infrastructure, resources and labor advantages, speed up the learning process, and make the textile industry have international competitiveness and sustainable development of Commerce. Myanmar's manufacturing industry relies heavily on CMP garment and textile exports. According to the statistics of Myanmar garment Entrepreneurs Association, the total export revenue of Myanmar's garment and textile industry is expected to reach 10 billion US dollars by 2024. CMP garment industry accounts for more than 20% of Myanmar's exports. Thousands of Burmese work in garment, textile, footwear and accessories factories across the country. Myanmar received US $4.6 billion from CMP garment exports in fiscal year 2018 / 19 and US $4.28 billion in fiscal year 2019 / 20.