Joining overseas trade fairs and adjustments in work processes are just the tip of technical assistance provided by European experts to garment factories in Myanmar. To all factories joining the European Union-funded Smart Myanmar, the scheme helps raise manufacturing standards while nurturing social and environmental conditions. Maple Trading Co, which has more than 800 employees, has gained significantly from joining the project when it started in 2013. “In the past, the sewing department needed to re-cut fabric by hand. Smart Myanmar team advised us to make the cutting department [operated by machines] strictly follow the orders. The result was unbelievable. There is no longer re-cutting in the sewing department. It saved us approximately US$3,600 (Bt13,000) a year: 65.4 per cent on material costs and 34.6 per cent on labour costs,” said Thet Su Zin Win, director of the factory. She said that the company’s operation has improved significantly. Through workshops, the company learnt more about occupational health and safety standards, human resource practices, implementation of clear policies and procedures, communication with the workers, and raw material savings. “Before joining it, a European client cancelled his order, saying our products did not meet international standards. Now the trend has changed. We are receiving orders from Japan, Germany, and the Netherlands,” she said. Thanks to the project, Myanmar Synergy Garment Co also won orders from the Netherlands, the United Kingdom, France, and South Korea. “I joined a study mission to Europe. We visited relevant trade fairs and gathered information about the EU market. The trip gave me insights on what European clients want and how we should produce quality products,” said Min Gaung Oo, managing director. In the past three years, the project team paid 12 consultation visits to his factory. In the team, garment and social compliance experts shared tips how to improve the working conditions and environment. Knowledge on child protection policy, energy, safety issues, and human resources management was also shared. The executives of both companies appeared last week at the event to officially kick off the second phase of the Smart Myanmar project. Dozens of local garment factories joined the first phase, which resulted in the creation of more than 300,000 jobs for female workers. To run for four years, the new phase will expand and accelerate some of its previous activities – such as assistance to factories on social compliance and human resources management – as well as introduce new activities related to promoting sustainable production and transparency in procurement practices. Both phases require funding of 4.8 million euros. The project is warmly welcomed by Myanmar Garment Manufacturers Association, which lauds the tips in increasing productivity and saving the environment. Myint Soe, chairman of the association, noted that enhancement in workforce capacity is a must given that Myanmar wants to increase garment exports to Europe. Garment exports to Europe enjoy low tariffs under the generalised system of preferences. Myint Soe noted that a great benefit of the scheme is that it reduces employer-employee conflicts. “Smart Myanmar not only works with employers but also with the management, supervisors and workers to share best practices. Employers came to know how to work under labour laws and this leads to zero strikes at all factories (joining the scheme),” he added. Simone Lehmann, project director, noted that the garment sector has quickly become Myanmar’s main export sector after oil and gas. The value of exports has more than doubled in less than two years and will continue to grow almost exponentially for the next several years. She expects the growth rate to rise by 300 per cent in three years if the industry meets international standards. Exports to Germany will be doubled in five years. Her concern is on limited access to finance to support the momentum, adding that many donors and stakeholders are working on the issue together with the central bank and Myanmar Banks Association. “The EU supported the project for three main reasons. First, garments are one of the star sectors of Myanmar’s economy. It can generate a lot of revenues and foreign currencies for the country as well as create job opportunities and uplift the people’s living standards. Secondly, we are willing to support the garment sector to ensure all the production is sustainable. EU is keen not only on increasing the number of jobs but also quality of the products to ensure Myanmar products can meet the EU standards. Thirdly, EU also emphasises heavily on protecting the environment,” said EU Ambassador Roland Kobia.
