The Myanmar Irrawaddy Electronic News reported that KyasdfssdfswWin, vice president of the Myanmar Garment Manufacturers Association (MGMA), said that according to previous practice, orders for manufacturing should have started in August every year in the spring of 2021. For ready-made garments, due to the sharp decline in orders in the EU next spring by more than 50%, the current order volume is only 20-25% of the same period in 2019, a 75% reduction in orders.
At present, it is impossible to determine whether the order will be delayed. According to past experience, winter orders will be received before the end of October at the latest every year. However, this year due to the Due to the impact of the new coronavirus epidemic, orders will definitely be reduced. Orders for the summer of 2021 have not yet been received. Considering that Myanmar’s garment industry uses the EU and the United States as its main export markets, the epidemic has led to a significant reduction in orders, causing some garment factories to plan to lay off employees or even close temporarily or permanently.
The Myanmar Garment Manufacturers Association (MGMA) is investigating the order receiving situation of members. Some factories have not received orders at all. As the demand for winter garment products decreases, the production of jackets and woolen clothing factories have been severely hit. Some factories are busy dealing with disruptions in supply schedules due to the epidemic, so they are still working overtime to process old orders.
In addition, due to the recent rapid appreciation of the kyat against the US dollar, the exchange rate was 1,500 kyats per US dollar at the beginning of 2020, but it was lower than 1,350 kyats at the end of August. This has resulted in a 40-50% decrease in profits for the garment industry, which relies on processing raw materials as its production model, and is expected to hit the profits of Myanmar’s garment industry hard. </p
