More woes for Myanmar garment industry as EU cancels orders

Update: More garment factories stopped operations in Myanmar as European Union countries, a major export market, cancelled orders last week amid the spread of the COVID-19 pandemic, a senior industry leader said.

U Myint Soe, chair of Myanmar Garment Manufacturers Association (MGMA), said the EU market accounts for 70 percent of the country’s garment export.

“All operations of the factories that have accepted orders from the EU have stopped. I don’t know how we will deal with this issue,” he said.

The bad news came as the supply of raw materials from China re-started to flow back into the country after three months of stoppage due to the virus outbreak.

“We began to receive raw materials from China. We have no more raw materials problem. Now, the EU no longer accepts our garment exports. It happened since last week,” U Myint Soe said.