HANOI/YANGON — Asian garment manufacturers are signaling concern about disproportionate benefits for Vietnam over regional rivals in the textile sector as a result of major trade deals including the new, U.S.-led Trans-Pacific Partnership and a free trade agreement with the European Union. Vietnam is already the world’s fourth biggest garment exporter, but will gain new preferential access to markets among the 11 other countries that have signed up to the TPP as well as the 28 EU member countries under the EU-Vietnam FTA. These are lucrative markets for Asia’s garment exporters and apparel makers of leading Western brands. “Vietnam’s trade deals will be a concern — not just for us, but the whole region,” said Khine Khine Nwe, secretary general of the Myanmar Garment Manufacturers Association, told the Nikkei Asian Review.
YANGON – Reducing transport overheads will make doing business easier for Ruf Hou, owner of the Aung Min Thu Furniture Mart in Yangon’s Tamwe township, which depends on teak and other timber being trucked across Myanmar’s far flung road system to Yangon. Since 2011, the year the army ceded power to a military-supported civilian government, Aung Min Thu has more than doubled its staff roster to “around 100 people,” according to Ruf Hou. “Many companies come to us and offer to pay extra to have the tables, chairs done more quickly,” he said, discussing the impact of Myanmar’s recent economic growth, which he thinks will continue under a Suu Kyi-run government. “I think that a lot of investor, a lot of company will come to build factories in Myanmar,” he said.
YANGON — Myanmar’s garment manufacturers have signaled their opposition to a proposed national minimum wage of just over $3 per day, saying the increase could force factories in the vital industry to close. “With that wage, businesses cannot survive,” said Khine Khine Nwe, secretary general of the Myanmar Garment Manufacturers Association, which represents 280 factories employing around 200,000 workers. The apparel industry’s resistance to the proposed minimum wage drew a sharp rebuke from local labor groups, as well as the International Trade Union Confederation. “The new minimum wage will still leave workers and their dependents just above the global severe poverty line of $1.25 per person, and many will still struggle to make ends meet,” said ITUC General Secretary Sharan Burrow.