Current Economic Environment Of Myanmar Benefits Foreign Businesses

Business travellers who are attending conventions, events or trade fairs in Myanmar can opt for hotels near Yangon Convention Centre with its flexible function spaces. This week, the 7th Myanmar International Textile & Garment Industry Exhibition was held at the Yangon Convention Centre and was attended by 130 brands from 13 countries.

The exhibition highlighted the vibrant textile and garment industry in Myanmar and the unexpected consequences of the trade war between the United States and China. According to the European Union, preferential exports to the EU dramatically increased in recent years especially for the textile industry that accounts for 72.2% of Myanmar’s exports.

The current economic environment of Myanmar has benefited both domestic and international firms. Wu Chaolin, an agent for different machinery companies who has attended the convention for 3 times noticed the changes in the local textile industry. Most local industries are generally small scale but after receiving additional foreign investments, the small factories were willing to improve and expand their facilities.

According to the new laws on new companies, foreign investors are allowed to hold up to 35% of a domestic firm. Hu, a Chinese backpack manufacturer is set to start production in the next 3 months after he found potential machines from a new factory and thousands of workers from a suburban area in Yangon.

According to Wu, building a new factory in Myanmar will help the business avoid the high tariff imposed on exported goods to the US. Since the trade war between the US and China has escalated in recent months, many Chinese businesses are transferring their factories to Myanmar. Businesses avoid the 20% tariff on exports and at the same time, they benefit from the GSP policy of the EU and the US. More than four hundred garment factories has brought economic benefits to Myanmar.

The central location of hotels near Yangon Convention Centre does not in any way affect the comfort, tranquillity and warm hospitality of the place. The hotel can be the home away from home for business and leisure travellers as well as expatriates. The creative décor of the rooms and apartments are inspired by the Myanmar people and culture.