Since the moment that Burma’s opposition Leader, Aung San Suu Ky, was released from her decade of house arrest it was clear: Nothing would remain the same.
The the fact that she ran for office, as leader of the opposition party, certainly underlined that changes in Burma would possibly be quicker than anyone could have foreseen. In April 2012 her party won 43 out 45 of all parliamentary seats, and still in April the US reacts already by easing their sanctions, the EU suspends most, and Canada lifted them all. in May 2012 the Indian Prime Minister visits for the first time in 20 years, and signs 12 agreements to strengthen the 2 countries diplomatic and trade ties. In August 2012 official censorship in Burma comes to an end. And immediately after, in September, the EU starts planning to reinstate duty free preferences and the US continuous to ease import bans. In short: Burma is very much back to the global map of go-to destination for sourcing. And – invariably – one of the first industry in search of ever cheaper labour cost – the apparel industry – immediately moves into gear.
The stats: As of this year, still, Burmese wages of US$1.1 per day in Burma ($80/month app.) easily compare with $2.48 in Vietnam, $4.99 in Indonesia, $9.84 in Thailand, $7.13 in the Philippines, and $17.62 in Malaysia or similar in China. And even with roughly $120 / month in Bangladesh.
In a 2010 Report on Burma by ClothesSource, the country accounted only for 0.1% of apparel in the global market place, including in countries such as Japan. Only in the category ‘tops and dresses’ the country reached a global share of 2.5%.
These numbers are no doubt set to change.
Here are the proofs by just looking at the news within apparel sourcing specialist publications and networks:
- April 20th 2012, Nathan Associates Economic Consultants, “Is Myanmar the Next Apparel-producing Powerhouse?“
- July 6th 2012, California Apparel News, “Apparel Companies Eye Myanmar As Next Sourcing Spot“
Even before the lift of the sanctions, the topic was discussed in relevant publications:
- February 23rd 2009, ClotheSource, “The endless quest for the next sourcing hotspot – Burma“
Let’s go back to the the wage values in the grey box. The articles listed above show that there is an evident discussion going on within the industry. And the discussion points at that there is no doubt whatsoever that apparel will increasingly be sourced from Burma.
The only questions that remain are how quick the orders will increase, and under what conditions they will be produced.
