More than three quarters of foreign enterprises that Myanmar Investment Commission (MIC) endorsed and permitted between October 1 and May 31 flowed into manufacturing sector, according to the Directorate of Investment and Company Administration (DICA).
The MIC will prioritize investments in garment manufacturing as they can create a large number of jobs said Director General of DICA U Thant Sin Lwin. Manufacturers that are able to produce face masks and other personal protective equipment related to COVID-19 will also be given priority.
Enquiries from investors are still flowing in even though garment exports fell to just US$2.7 billion between October 1, 2019 and May 31, representing a $24 million decline from the same period a year before due to order cancellations from the EU as a result of COVID-19, according to U Khin Maung Lwin, assistant secretary of the Ministry of Commerce.
"We are hearing news of orders that were previously cancelled being revived again. There is also some export revenue coming from the Myanmar-Thai border, where garment businesses in Myawaddy have exported around $71 million worth of products to Thailand," added U Khin Maung Lwin.
Around 70 percent of garment products made in Myanmar are exported to the EU as well as Japan, Korea, Canada and the US.
The garment manufacturing sector generated $5 billion worth in export revenues in fiscal 2018-19, according to the Ministry of Commerce.