The Myanmar union minister for industry, Khin Maung Cho plans to develop the 127 acres of land in No.1 Garment Factory located in Shwe Taung, Bago Region, into a Specialized Textile and Garment Zone (STGZ) where goods will be produced that meet international standards.

The project will be divided into two phases. As part of the first phase, the ministry is working with a Japanese company to do a feasibility study. The second phase will involve the development of 127 acres of land into STGZ.

The specialized textile and garment zone will be equipped to produce raw materials, machines and finished products in a single place. Textile producers in Myanmar currently operate under a ‘cut-make-pack’ (CMP) system, and many are not in a position to shift to a ‘free-on-board’ (FOB) system.

Khin Maung Cho, said the ministry will invite potential local and foreign investors to develop the zone to manufacture high quality products.

Myint Soe, the chairman for the Myanmar Garment Association, said that lack of infrastructure such as a port and power, skilled labor and high rent fees for leasing land are the major challenges in the development of Myanmar’s textile sector. The sector still needs foreign investment.

The government is working to provide lands in Yangon, Bago and Ayeyawady Region to develop textile and garment factory zones.

The new STGZ is expected to create more jobs for local people living in Shaw Taung areas which could help develop the economy.