Hongkong'S Wages Rise, And Many Garment Manufacturers Turn To Burma'S Production And Processing.

The rise in wages and the stricter laws and regulations make mainland China Ready-made clothes The manufacturing industry has been losing the competitiveness of supplying garments at low cost. Therefore, more and more enterprises are looking for alternative sourcing sources, such as Burma and other newly developed countries.

Hongkong lawmakers confirmed that 12 Hongkong garment makers will set up factories in Thilawa Special Economic Zone, Yangon, Burma.

This (2014) April 14th, Zhong Guobin, a member of the Hongkong Legislative Council textile and garment industry (Felix Chung), mentioned the above plan at a seminar organized by the Burma clothing industry training authority.

Zhong Guobin pointed out that the 12 garment makers were reluctant to disclose their company names, but most of them were underwear manufacturers and others were jacket manufacturers. One of them will process and recycle cloth to supply underwear. Swimwear Manufacturer.

Supplier transfer

Zhong Guobin said that Hongkong operators allocated 100 hectares of site area and pointed out: "among the 12 garment manufacturers, one of them wants to establish a complete production chain from textiles to dyeing in Burma. The industry is looking for big space to shift its suppliers.

The factory is expected to be completed by December this year, and the 12 operators will begin production in May (2015).

Burma Myanmar International Terminal Thilawa is a part of the port of Hongkong harbour group port, which is only 20 km away from the de la SAR special economic zone. Therefore, Zhong Guobin said transportation will improve. Moreover, it is revealed that Hutchison Port Group is willing to invest funds to increase the capacity of the terminal and improve its capacity.

Members of the Legislative Council added that the Hongkong government has signed an agreement on investment promotion and protection with Burma, which is yet to be agreed by the Chinese government.

Sino Burma competition

For the garment manufacturing industry, China has lost its original competitive advantage. Zhong Guobin thinks it is due to soaring wages and tighter regulations.

He stressed that the average monthly salary of mainland Chinese skilled workers was 600 dollars, but that of Burma was 100 dollars.

Labor monthly minimum in mainland China salary About $250, but Burma has no statutory minimum monthly wage.

In view of the above factors, Zhong Guobin added that it is very reasonable to move the business to Burma instead of mainland China, because the monthly salary of mainland Chinese workers is US $400 and rising.

Compared with Kampuchea and Bangladesh, he thinks Burma's manufacturing industry is more attractive, and says that the minimum wage in Kampuchea has increased from 60 US dollars to 100 US dollars, because the population of Cambodia is too small. In addition, labour groups in Kampuchea are influential, and there may be 5 or 6 trade unions in a factory.

He said that dealing with a number of trade unions is a lot of trouble. In view of the issue of human rights and corporate social responsibility in Bangladesh, big enterprises are considering suspending orders from Bangladesh.

　 Business opportunities in Burma

Zhong Guobin said that Burma's labor force is sufficient and serious and obedient, and stressed that Burma's population is nearly 60 million and the unemployment rate is high, so labor is quite abundant.

He said that the Hongkong Clothing Industry Training Bureau would train workers in Burma besides helping workers in Bangladesh and Kampuchea.

In addition, the government of Hongkong set up an industrial organization called Hongkong Burma Manufacturing Association (HKMMA), which represents better conditions for Hongkong businessmen to negotiate with the Japanese government and the Burma authorities.

He predicted the political stability of Burma in the next few years, and the current liberalization policy will continue, but warned: the wind of corruption can hardly be stopped.

Speaking of HKMMA later, Dominic Cheng said that Hongkong's garment manufacturers moved to Burma and their products could enjoy low tariff and zero tariff export preferences to the EU.