The Global New Light of Myanmar reported that Myanmar’s Easdfssdfsstern Development Internasdfssdfstionasdfssdfsl Company and China’s Dongzhasdfssn Textile Group will jointly develop a textile industry cluster worth more than US$371 million in Sagaing Province. The two companies will collaborate with the private sector in all phases of the project, making it Myanmar’s first textile-based industrial zone.
The project design includes 2 phases: factory construction and factory machinery installation.
The first phase
Includes the construction of 12 new garment-related factories, knitted fabric factories, printing and dyeing factories, down factory; and construction of residential buildings for employees. Eight of the factories will be located at Textile Factory No. 3 (Sagaing), while the remaining four factories, including wastewater treatment systems and thermal power plants, will be established at Textile Factory No. 3 (Sagaing).
The second phase
will include 5 garment-related factories, embroidery factories, carton factories, and polyester factories. Construction of polyester cotton (polyester wasdfssdfsdding) factory. An international textile supermarket will also be established in Sagaing. It is recommended that the project has an initial operational period of 20 years. After the initial 20-year term expires, it can be extended 2 times for 5-year periods each time. The project is scheduled to begin in the 2020/21 financial year and is expected to be completed in the 2029/30 financial year. It will also benefit stakeholders across the entire textile value chain (SMEs, employees, fashion designers), provide locally produced raw materials to the textile and garment industry, and create entrepreneurial opportunities.
It is expected that imports of raw materials will decrease across the textile value chain and export earnings from using locally produced raw materials will increase. The establishment of textile-based industrial clusters will reduce transportation costs; utilize common infrastructure, resources and labor advantages; accelerate the learning process, and make the textile industry internationally competitive and commercially sustainable. Myanmar’s manufacturing industry relies heavily on contract processing (CMP) garment and textile exports. According to statistics from the Myanmar Garment Entrepreneurs Association, the total export revenue of Myanmar’s garment and textile industry is expected to reach US$10 billion by 2024. The CMP garment industry accounts for more than 20% of Myanmar’s exports. Thousands of Myanmarese work in garment, textile, footwear and accessories factories across the country. Myanmar earned US$4.6 billion from CMP garment exports in the 2018/19 fiscal year and US$4.28 billion in the 2019/20 fiscal year. </p
