According to Myanmar’s new foreign direct investment (FDI) laws, the government will now allow 100% investments in the clothing sector; it previously only allowed joint ventures with at least 65% local investment (reports Myat May Zin in Yangon).
The government has also improved investment incentives. Foreign investors can now lease land for factories for at least 30 years, while the initial tax holiday has been increased from three to five years.
“The government has reduced some restrictions for foreign investors in the clothing industry. We can do joint ventures with 51% local and 49% foreign investment,” said Aung Win, vice chairman of the Myanmar Garment Manufacturers Association (MGMA).
There are more than 300 clothing factories in Myanmar. However, less than 5% of these are joint ventures and 10% are 100% foreign investments, mostly from Japan, South Korea, Taiwan and Thailand.
For the full story, see the March 2013 edition of Textiles South East Asia. Not a subscriber? Subscribe HERE