Myanmar Government has decided to develop a specialized textile and garment zone in the country with an aim to attract investment from both local and foreign players. A joint assessment by the Ministry of Industry and a Japanese company is underway to set up the zone at 127 acres land of garment factory in Shwe Taung.
It will also be helpful in generating job and play significant role in the growth country’s economy. Myanmar Investment Commission (MIC), a Government-appointed body under the Ministry of Planning and Finance that appraises domestic investment proposals in Myanmar, has recommended several fiscal incentives for companies interested in starting projects in Sittwe, to encourage investment in a less developed region.
The proposed incentives include an income tax exemption for seven years and exemption on customs duties and local taxes, on import of raw materials and partially manufactured goods. The relaxation of duties and taxes would be for those companies, which import raw materials to export finished goods.
Over 300,000 people are employed with over 400 apparel manufacturing units in Myanmar. Japan is the largest importer of apparels manufactured in Myanmar, accounting for 33 per cent of all clothing exports. In addition, Myanmar also exports to South Korea, Germany, China and American markets.