Dec 05, 2025 (MarketLine via COMTEX) --
MyanmaraEUR(TM)s garment industry is turning to technological upgrades and cleaner energy to manage worsening electricity shortages and operational instability as political uncertainty clouds the sectoraEUR(TM)s long-term outlook.
Nearly half of the sectoraEUR(TM)s foreign investors entered Myanmar in the decade before 2021, driving a major round of machinery upgrades between 2016 and 2021, ahead of the coup that toppled MyanmaraEUR(TM)s former elected government, sparking the ongoing civil war. While not cutting-edge by global standards, many factories now operate with equipment only five to six years old. A
But with the war and its shifting areas of control nationwide disrupting power production and transmission, MyanmaraEUR(TM)s clothing and textile sector is undergoing aAsecond modernisation as regards energy supply, specialists told Just Style.
These investments are designed to stave off a deepening power crisis in Myanmar aEUR" documented in the World BankaEUR(TM)s aEUR~In the DarkaEUR(TM) 2023 report. A
It said: aEURoeAs a result, major cities and industrial zones face frequent blackouts; many factories, commercial buildings, and businesses operate using diesel generators or off-grid sources aEUR" which substantially increases operating costs and undermines competitiveness of energy-intensive sectors (including garments/textiles).aEURA
MADE in Myanmar promotes renewable energy in garment factories Jacob Andrew Clere, team leader of the EU-funded MADE in Myanmar programme, noted the countryaEUR(TM)s clothing and textile factories are installing rooftop solar systems, lithium-ion battery storage and power inverters to reduce diesel dependence (Global Energy Alliance for People & Planet, 2023).
Indeed, Clere stressed that MADE promotes and encourages renewable energy technologies and wants a 100% phase-out from burning coal as boiler fuel by 31 December 2025:AaEURoeOur organisation helped match together the first factory in Myanmar with their service provider for rooftop solar and we have worked with over 20 factories with rooftop solar systems to provide independent advice, to boost up system performance and safety. We have also intensively advised factories on adoption of rice husk briquettes and rice husk pellets as substitutes for coal and virgin forest wood,aEUR he told Just Style.A
Clere said these investments are cutting fuel costs, stabilising production and improving working conditions. By 2026, he added, MyanmaraEUR(TM)s largest garment manufacturers are expected to combine modern machinery with significant solar-generation capacity, lowering carbon emissions and hence increasing appeal to international buyers, made uneasy about reputational issues by MyanmaraEUR(TM)s ongoing and bloody civil war, which has killed more than 6,000 civilians, according to UN figures.A
MADE in Myanmar provides expert advice to manufacturers and is providing technical support to more than 20 factories to improve system performance and safetyAwith a July update saying: aEURoeWe believe that by December 2025 all the factories supplying MADE brands will have phased out use of coal-burning boilers which was one of the aEUR~heightened commitmentsaEUR(TM) made by [buyer] brands when they joined the programme. Currently we have 31 brands in the programme.aEURA
Clere said Myanmar clothing and textile factory-level carbon footprints are expected to fall sharply in 2025aEUR"2026. One factory, which Clere would not name, has already transitioned from coal to rice-husk briquettes for its boiler, offering ash for reuse in cement and fertiliser, reducing emissions while supporting surrounding communities.A
MADE in Myanmar works to address labour rights concerns Co-funded by the European Union (EU) with ae3m ($3.49m) over a four-year period (2022aEUR"2026), MADE in Myanmar is also working to address labour rights concerns that have prompted some Western buyers to leave the country after the coup. The initiative engages with 175 factories and 33 retailers representing 200,000 workers, most of them women. Its work includes strengthening worker protections, expanding access to remediesA- meaning clearer, safer ways for workers to report grievances and receive fair, timely resolutions of disputes without fear of retaliation.
This comes as business group EuroCham Myanmar issued a public statement (in April) calling on buyers to offer fair payments to Myanmar manufacturers to ensure wages rise in real terms each year.A
Despite political turmoil and war, more than 100 Western brands continue sourcing from Myanmar. Some companies that left after the 2021 coup have returned, while others reversed planned exits. The EU remains the largest export destination, accounting for an estimated 52%aEUR"54% of garment shipments, while China and Russia each account for around 2% according to data from EuroCham Myanmar, 2023; the World Bank, 2023; and the UN Development Programme.
Clere noted that while UK and German buyers largely withdrew, they have been partly replaced by clients from Italy, France, Czechia, Poland and TA 1/4rkiye. Germany nonetheless remains MyanmaraEUR(TM)s top market with German exports of garments, footwear, and handbags expected to exceed ae1.2bn in 2025, though official data has yet to be released.A
Sector-wide challenges continue to constrain growth. Clere said widespread boycotts, roughly 200,000 idle workstations, and more than ae1bn in underutilised capital are limiting output, leaving exports of garments, textiles, and footwear products) projected at $8aEUR"$9bn in 2025 aEUR" far below the pre-coup levels of $18bn. Security concerns and movement restrictions are also preventing many Western buyers from visiting Myanmar, pointing to a recovery that may take years.A
With national elections scheduled for late December in areas of Myanmar under the control of the military government, many international buyers have adopted a cautious aEURoewait-and-seeaEUR stance. This is not surprising, given the US-based Council on Foreign Relations estimated in October (2025) that the military controls only 21% of the country's territory, while rebel forces and ethnic armies hold 42% - the rest being contested or relatively unpopulated. Even so, factories are preparing for potential rebounds, expanding capacity and training workers ahead of expected orders. aEURoeWe asked six suppliers about their expectations for 2026 after the elections aEUR" five were optimistic, one was pessimistic,aEUR said Jacob Clere. aEURoeThat reflects the sectoraEUR(TM)s mood: hope is high, but confidence isnaEUR(TM)t universal.aEURA
Global fashion buyers monitor Myanmar's political climate Vicky Bowman, former head of the Myanmar Centre for Responsible Business, and current chair of anti-censorship organisation the Global Network Initiative (GNI), saidAretailers in key markets such as the EU and Japan are closely monitoring both the political climate and the military-organised polls. She noted that brands will be especially concerned if the period sees politically motivated arrests of trade unionists or labour-rights defenders.A
After the vote, she added, European retailers will be looking for long-delayed reforms: a substantial increase in the statutory minimum wage to correct wage distortions that fuel forced overtime, an end to conscription that is pushing workers to flee and improvements in electricity supply.A
One Myanmar-based exporting companyaEUR(TM)s managing director, Mr Naing Zaw aEUR" a pseudonym used for security reasons aEUR" said he expects little change regardless of the outcome. aEURoeIf the military regime continues to influence the new government, or if Min Aung Hlaing [the military regimeaEUR(TM)s leader] installs another civilian administration, international sanctions will remain in place,aEUR he predicted.A
Just Style contacted a spokesperson for the Myanmar Garment Manufacturers Association for an official comment on the garment and textile sector, but he declined to speak. Labour rights activists based in Myanmar also refused to comment, citing security concerns.A
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