Formalizing Foreign Manufacturer Status While Deepening Local Embeddedness: Korean Manufacturers in Myanmar’s Export-Oriented Apparel Industry

Jinsun Bae ()
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Jinsun Bae: Carleton University

A chapter in Knitting Asia, Weaving Development, 2023, pp 127-163 from Springer

Abstract: Abstract In Myanmar’s export-oriented apparel industry, foreign manufacturers, accounting for nearly two-thirds of the factories, play a significant role in the industry’s development. This paper focuses on Korean manufacturers that have maintained a long-standing and sizeable presence in the country. They played a part in starting Myanmar’s export-oriented apparel industry and sustaining it through economic sanctions. The industry experienced profound changes following the country’s 2011 reform and the subsequent easing of the sanctions. The Myanmar government strengthened its legal labor regime with the assistance of international actors, and newly available European and North American buyers require suppliers to comply with their private labor standards. Korean manufacturers adapted to these changes and formalized their collective identity as industry stakeholders. Central to this formalization process is Korean Garment Manufacturer Association in Myanmar. That formalization was propelled by greater participation of small and entrepreneurial manufacturers in the association’s governance and rapid industry-level changes necessitating better information flow within the membership and strategic representation of their collective interests to external actors. This historical overview underscores the Korean manufacturers’ high adaptability to changing local and value chain contexts. They have simultaneously pursued being competent suppliers for international buyers and conforming to local rules and norms. Since the Covid-19 pandemic and the return of the military junta, the industry’s growth has come to an abrupt halt. International buyers ceased sourcing from Myanmar, and a nosedive in orders forced factory closure and layoff of workers whose livelihoods are at severe risk. Korean manufacturers and their association are currently grappling with the question of how to adapt to this uncertain business environment.

Keywords: Myanmar reform; Myanmar’s apparel industry; Foreign manufacturers; Korean apparel manufacturers; Social compliance; Garment manufacturer association (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-3764-6_6

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DOI: 10.1007/978-981-99-3764-6_6

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