Korean Clothing Merchants Will Invest In Burma

2010/4/8 14:26:00 9

Wu Minsuo, President of the Burma apparel industry association, said that Korean clothing companies will invest in Burma, which has led to a downturn in the clothing industry due to economic sanctions.

Wu Minsuo said that the Burma clothing association signed an agreement with the Korean garment manufacturers. The Burma Garment Association will provide assistance for Korean clothing traders to invest in Burma, import equipment and handle business licenses.

The Secretary General of the Burma Federation of industry and commerce, Dr. Maung Lai Lai, said that the profits of Korean garment traders mainly invested in China were significantly reduced by the rise of the minimum wage and the appreciation of Renminbi in China. Therefore, Korean businessmen gradually shifted their investment to ASEAN countries such as Indonesia, Laos and Kampuchea.

A Burma clothing trader said that the wages of employing a Chinese worker could not be less than 250 dollars, while employing Burma laborers should only be $50.

A person in charge of Daewoo clothing company said that Burma's labor wages were about 80% lower than that of Chinese workers, but Burma's electricity supply was insufficient, and Burma's taxes were higher than those of other ASEAN countries.

According to information from the Burma Apparel Association, in 2008, the garment industry in Burma made a foreign exchange of 380 million US dollars, mainly exported to Japan.

Source: Ministry of Commerce