“Yangon Garment Factories Close as US Tariffs and Junta Controls Bite”, 22 October 2025

At least six garment factories in Yangon’s industrial zones have shut down since August, while others have cut staff and reduced overtime, amid a drop in orders from the United States following tariff hikes.

The US, Myanmar’s fourth-largest apparel market, raised tariffs on Myanmar-made garments from around 20 percent to 40 percent in August. Factory owners and workers say the move has already triggered falling orders, particularly in footwear and bag production.

“Because of the US tariff hike, some factories have already closed, while others are cutting overtime or reducing staff. Workers are worried that owners may leave,” said Ma Ei, spokesperson for the Federation of General Workers Myanmar (FGWM).

The closures so far involve Chinese-owned factories in Shwepyitha’s War Tayar Industrial Zone, Hlaing Tharyar’s Mya Sein Yaung Zone, and Shwe Lin Ban Zone, according to labor groups.

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Employing nearly 800,000 workers, Myanmar’s Cutting, Making, and Packaging (CMP) sector is already grappling with numerous challenges, including international sanctions following the 2021 coup, power outages, fuel shortages, and foreign currency controls that require export earnings to be converted at a fixed rate far below the market rate.

A factory owner in Hlaing Tharyar said orders had dropped by 10 to 20 percent compared with previous seasons

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Factory owners in Yangon have also complained about junta restrictions on imports, which have affected the availability of raw materials.

A worker from Hlaing Tharyar said overtime had disappeared.(…) ur wages have dropped, and some workers have been laid off,” she said.

The Myanmar Garment Manufacturers Association (MGMA) reported in August that 56 of its 589 member factories had suspended operations.