Phyo/Pearl (NP News) - Nov 13
According to responses given to The Statesman Journal by a CMP entrepreneur, businesses operating under the CMP system, which imports raw materials from abroad and produces them locally, are facing price suppression despite receiving garment orders.
“The orders are not that much at the moment. However, the prices offered for incoming orders are very low, which is another challenge. The prices are unreasonably low, regardless of the type of order. Buyers are offering prices lower than what we used to receive. That is the kind of situation we are facing. There may be other factories that are getting better prices,” he said.
The garment sector is also facing a shortage of skilled workers.
“Another challenge is the instability of the workforce. We do not have a stable workforce, as employees keep coming and going. So, I cannot say that the situation is very good. We are still hoping things will improve. As for CMP businesses, the application process is relatively smooth. If you apply for CMP, it goes through without much difficulty. I cannot speak for other sectors, but there are no major problems with applications for CMP businesses,” he said.
About 65 percent of the CMP factories operating in Myanmar are Chinese-invested, and in the past, garment orders from China were received only from these Chinese-invested factories.
“The number of Chinese-owned CMP factories in Myanmar has grown significantly. The number of factories and the number of investors are also large, so their market is huge," he said.
At a Union Government meeting held recently, President U Min Aung Hlaing urged relevant ministries and regional governments to provide the necessary support to facilitate CMP operations. –
