The Association Of Burma And The "One Belt And One Road" Survey

　 In the past 6 years, China has adhered to the principle of "co operation, co construction and sharing", and has signed 173 "one belt and one way" cooperation documents with 125 countries and 29 international organizations. According to the statistics of Ministry of Commerce, from 2003 to 2018, China's textile industry's foreign direct investment totaled 9 billion 796 million US dollars, with an average annual growth rate of 15.6%, accounting for 5.2% of the total foreign direct investment of manufacturing industry. The textile industry is a leading industry for China to actively promote the "one belt and one way" construction. It is also the preferred industry to promote industrial development, create national wealth and provide substantial employment. The enterprises in China's line industry understand the development status, investment prospects, economic and trade cooperation and future trends along the belt road. The China Textile Industry Association, the China textile international capacity cooperation enterprise union and the China Textile Promotion Committee of the International Trade Promotion Committee, were led by Zheng Junlin, vice president of China Industrial Textiles Association, to Burma on 12-14 August 2019. The Chinese Textile Industry Association, the chairman of the cable Association, Ding Junmin, chairman of Zhejiang Textile Industry Co., Ltd., as well as the backbone enterprises of Fujian branch, Dongguan Yongheng, Dongguan line, Xiamen Yao Ming, Zhejiang Australia, Kaiping Kai fan, Dongguan Jiayi, Kaiping herd, and Yongli Lai came to visit the company. Burma and Vietnam are important nodes of the "one belt and one way". They are also an important member of the Lancang Mekong River cooperation. They have broad prospects for deepening cooperation and complementary advantages.

Overview of Burma

Republic of the Union of Myanmar (abbreviation: Burma) is located on the west side of the peninsula. Its land area is 676 thousand square kilometers (slightly smaller than that of Qinghai). It is the largest land area in Southeast Asia. The country is divided into 7 provinces, 7 states and two central municipalities (Yangon and Naypyidaw). In November 2005, the administrative capital moved from Yangon to Naypyidaw. Yangon is the largest city in Burma, and it is the national economic, cultural and transportation center. The total population of Burma is about about 53000000, with 135 ethnic groups, of which Burmese account for 68% of the total population. More than 89% of the people in China believe in Buddhism, and about 8% believe in Islam. At present, the number of Chinese and overseas Chinese in Burma is about 2 million 500 thousand, and the Chinese in Burma are almost involved in all areas of Burma's social economy, especially in the business, service and processing industries.

Burma's main trading partners are Asian countries and regions, and trade with its host countries accounts for 90% of Burma's total foreign trade. According to the latest statistics from the Central Bureau of statistics of Burma, China is the largest trading partner of Burma, and the top 5 trading partners are China, Thailand, Singapore, Japan and India. According to the Ministry of commerce data of Burma, the total foreign trade volume of Burma amounted to US $33 billion 320 million in the fiscal year 2017/2018, of which the export volume was US $14 billion 675 million and the import volume was US $18 billion 645 million. As an ASEAN member, Burma joins the ASEAN Free Trade Area, the China ASEAN Free Trade Area, the Korea ASEAN Free Trade Area, the Japan ASEAN Free Trade Area and the India ASEAN Free Trade Area. At the same time, it enjoys the treatment of trade GSP (GSP) granted by the United States and the European Union. A kind of

01 talks with Burma Chinese Enterprises Association

　　 The delegation held talks with Luo Jun, executive vice president of Burma chamber of Commerce of Chinese enterprises and Luo Muzhen, deputy secretary general.

Luo vice chairman introduced that in February 2017, with the leadership and support of the Chinese Embassy in Burma, the Burma chamber of Commerce of Chinese enterprises was reorganized and officially registered in November of the same year. At present, 300 members have set up 7 branches, including textile and garment, real estate and construction, ICT communications, agriculture, electricity, tourism and services. The purpose of the chamber is to build an important platform for Chinese Burmese funded enterprises to communicate, coordinate and cooperate with the government departments of China and Myanmar.

Deputy Secretary General Luo said that before 2004, the clothing industry in Burma was more developed, but because of the sanctions imposed by western countries, the garment industry in Burma was in a long-term recession. In 2012, Burma promulgated the foreign investment law and formulated investment rules for the garment industry to encourage the development of foreign garment industry. With the lifting of economic sanctions in Europe and America and more and more Chinese enterprises starting to invest and build factories in Burma, Burma's textile and garment industry has grown significantly and trade scale has also increased rapidly. However, the unbalanced development of Burma's textile and garment industry chain is prominent at present. The garment industry is growing rapidly. The upstream industry of textile industry develops slowly, and the scale is obviously smaller than that of the garment industry. The textile industry in Burma is dominated by garment processing. There are no large textile factories and dyeing factories. The raw materials such as yarns and fabrics are mainly imported. China is the main source country of raw materials import.

By the end of July, there were about more than 600 garment factories in Burma, and more than half of foreign and joint ventures were involved. Chinese enterprises were the main force, accounting for about 60% and about more than 300 enterprises. These garment factories are mainly concentrated in the Yangon area.

The advantage of investing in Burma lies in:

Bilateral relations in China and Myanmar are developing well

Burma enjoys the GSP policy granted by EU and Japan.

Foreign investment can get a 3-7 year tax exemption policy.

Burma has an obvious demographic advantage - 65% of the nearly 53 million people are working age, and half of them are women who are favored by the clothing industry. The Burmese people attach importance to their families and learn to be adaptable. The labor cost is low, the minimum wage is about 654 yuan / month, plus 2 hours overtime and other welfare is about 1500 yuan per month.

The cost of electricity is relatively cheap, which is about 0.9 yuan per kilowatt hour.

The main industrial park is about 0.5-1 hours away from the port and airport, with convenient transportation.

Enterprises do not need to provide accommodation for employees, and reduce management costs, but they need to provide places for eating.

Good social order and plain manners.

The China Myanmar railway is under exploration stage. It started in the Burma City, Mu Jie, from the Mandalay junction to the South and the capital Naypyidaw to Yangon. The entire railway line has a total length of 430 highways, and is expected to be completed in 2021.

Challenges for investing in Burma:

The infrastructure is not perfect, especially the lack of electricity, poor transportation facilities and serious traffic congestion.

Financing channels are scarce and bank financing is difficult.

Lack of localization management talents and low skills of workers, enterprises need skills training for their employees.

The industrial chain is incomplete, the main accessories and accessories depend on imports, and secondary accessories such as cartons, tapes, lines, and some shipping marks can be purchased locally.

Factory rental is higher:

About 2-3 dollars per square metre, foreigners can not buy land, investment in industrial parks can be 50+20 years of rental land to build factories.

Burma's social system, language, cultural differences and trade union system are all problems that enterprises need to face.

02 visit to Heng Tian (Yangon) Garments Co., Ltd.

In November 2014, Heng Tian (Yangon) Garments Co., Ltd. settled in the Shui Ling ban industrial area near Leda District, near Yangon. The first factory was built in June 2015, with a staff of 1000 people, 24 sewing lines, a capacity of 600 thousand pieces / month, products exported to Europe and China; second factories built in May 2016, 2000 employees, 44 sewing lines + 20 prints + embroidery 10, the capacity is 1 million 200 thousand / month, and products are exported to Japan and Europe. At present, the factory covers an area of 42 thousand square meters, and the current number is 3000. Among them, 31 are Chinese managers, with 68 production lines, with an average production capacity of 1 million 800 thousand pieces per month. Third factories have been built, 35 sewing lines, 60 printing lines, 30 embroidery machines, and the staff are expected to recruit 1500 people. The products are mainly exported to Japan and Europe. Heng Tian enterprise plans to form a garment factory scale by 2020: about 11000 employees, 230 garment production lines, 10 million production capacity / month, fabric factory scale: 6 production lines, production capacity of 1000 tons / month.

　　 General manager Yan Qiuhong said that the main business is the strike movement. In order to prevent strike fundamentally, companies and trade unions establish regular trade union meetings and dialogue mechanisms to ensure that enterprises understand the views and needs of trade unions in a timely manner and conduct constructive interaction with trade unions to properly handle the relationship between employers and labour or ILO. In order to prevent staff turnover, the company takes full account of the living habits of Burma employees, such as water splashing Festival, Lantern Festival, Moon Festival and other traditional holidays in Burma. The company respects employees' beliefs and sets up a Buddhist hall in the company to facilitate staff's daily gift. Employees marry, children run full moon wine, and the company sends them blessings and gifts. Through these real and deeply caring actions, the company has become the second trusted member of the Burmese staff. In 2018, the company released its first overseas factory social responsibility report on the basis of the United Nations sustainable development goals.

　　 03 research star Li Ya Yangon commercial city

Singapore Star Li Ya group is committed to the development, construction and operation of overseas trade infrastructure, and integrates the comprehensive service functions such as commodity display, purchasing trade, exhibition marketing, living and living. Based on the International Trade Center Singapore, the group has 16 overseas projects in the world, and its land reserves exceed 6 billion, which are located in Southeast Asia emerging countries such as Burma, Kampuchea, Thailand, Indonesia, Philippines, Vietnam and Malaysia, Dubai and the United States, Canada, Australia and other developed countries and regions.

Star Li Ya Yangon Trade City project covers an area of 720 thousand square meters, with a building area of over 3 million square meters. It is located in the Yangon special economic zone of Yangon, 15 kilometers away from the center of Yangon, and 16 kilometers from the international port of Yangon port. It is a key development area in Yangon. At present, the Yangon commercial and Trade City has entered the stage of project construction and investment promotion, and the market property is self-sustaining, and shops are only rented for sale. The industry of inviting business includes: textile leather, accessories and accessories, bags and accessories, clothing shoes and hats and accessories accessories, industrial electrical, hardware tools, hotel kitchen and beverage supplies, automotive and electrical appliances and accessories, household appliances, digital and mobile phone accessories, security equipment, daily general merchandise, etc.

　　 04 investigate local wholesale markets

Yuzana Plaza, the largest indoor wholesale market in Burma, opened in early 1995. The market has a total of 5 floors, with more than 700 shops, mainly in clothing, furniture, household goods, accessories, electronic products and other small commodities. The market is also one of the main places for local residents to purchase goods in Yangon.

Bogyoko Aung San Market was built in 1926. Its original name is Scott's Market. Since the independence of Burma in 1948, it has been renamed Bogyoko Aung San Market to commemorate general Burma's father. There are more than 1000 shops in the market, mainly for handicrafts and clothing.

　　 The top-level design of the "one belt and one road" initiative, the Lanmei cooperation mechanism and the China Burma economic corridor provide important opportunities for the development of Sino Burmese garment industry cooperation. China is not only a source of investment and important raw materials and intermediate products for Burma's textile and garment industry, but also a consuming country of Burma's textile and clothing products. Chinese textile and garment enterprises have brought the experience of organization and management of industrial production, continuously nurtured management talents for Burma, improved the overall technology and technology level of the garment manufacturing industry in Burma, played a technology spillover effect, and directly promoted the benign development and transformation and upgrading of the garment manufacturing industry in the country. As a supporting industry of textile and clothing, the ribbon has not yet been formed in mass production in Burma. Most of them rely on imports from China except for a small number of sewing thread local production. The development of textile industry in Burma is still in its infancy, and there is still a long way to go in the future.