AS the United States renewed economic sanctions on July 7, Myanmar’s garment industry is more stable than when the stricter sanctions were first introduced at the end of August last year, industry sources told Myanmar Times last week.

The managing director of the Crocodile Trading Company, U Zaw Min Oo said that although his company had faced difficulties in August last year, reducing employment and productivity by up to 20 per cent, they were prepared for this month’s announcement.

“We are experienced in overcoming the challenge of sanctions and we have made the necessary preparations in searching for new markets,” U Zaw Min Oo said.

“Despite further sanctions, it will not much affect our industry,” he said.

U Khin Tun, managing director of Prime Industries and Business Limited said his company was looking for new markets in European countries such as Germany and Spain.

“The productivity of our garment factory declined 50 per cent after last year’s sanctions as the majority of our buyers are from the United States,” he said.

U Kyaw Zin, director of Opal International Company Ltd told Myanmar Times that his company’s main customers are from Germany, Austria and France.

“Since the factory first opened we have not operated in the American market, therefore the sanctions are having no effect on our business, but we do face some difficulties in remittance between Myanmar and foreign banks,” said U Kyaw Zin.

Opal garment factory in Hlaing Tharyar Industrial Zone now employs 1700 workers and business is stable, U Kyaw Zin said. The company enjoyed its peak productivity in 2000, he added.

This trend is similar throughout the garment industry – in 2000, the 400 garment factories in Myanmar employed 350,000 people, producing almost 35 million dozen garment batches with an export value of US$397 million.

Myanmar is increasingly targeting Europe as a market for garment CMP (cutting, making and packaging) – the industry expects to increase exports to the region by 6 million dozen garments this year.

There are now about 160 garment factories operating in Myanmar with a workforce of more than 100,000 employees.

While sources in the garment industry were optimistic about the current situation, most admitted that young women – who make up the majority of shop-floor workers in the industry – are the main victims when production decreases.