Korea-Myanmar venture to build 500-acre garment zone
Myanmar-based Olympus Asia Group and Korea’s Panko Corporation signed a memorandum of understanding on August 20 and are looking for land in Yangon, Bago or Ayeywarwady regions. Under the CMP model, a foreign buyer with financial backing and technical expertise will contract a garment factory, usually in an emerging market, to carry out their labour-intensive work. Under the FOB system, on the other hand, foreign retailers place orders from well-financed factories with technical expertise. Most factories in Myanmar lack access to financing and do not have enough skilled workers to operate under the more profitable FOB model. Choi Yung Joo, chair of Panko Corporation, said, “Myanmar has the potential to develop its textile industry and we are sure this project will contribute to development.”
