"Uniqlo owner joins clothiers exiting Myanmar" 30 March 2023

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Fast Retailing is the latest to exit Myanmar, removing partners in that country from its list of garment and processing factories. The company behind the Uniqlo casual wear chain had outsourced production of jackets and shirts for GU, another of its brands. But that relationship will end with products for the 2023 fall-winter season, the retailer said.

The termination is expected to have limited impact on Fast Retailing, which has over 430 manufacturing partners worldwide in such countries as China and Vietnam.

Ryohin Keikaku, the Japanese operator behind Muji household goods stores, also plans to end sourcing of down jackets and other items from Myanmar by August.

Marks & Spencer announced last year it would exit by March, saying the company does not "tolerate any human rights abuses within any part of our supply chain."

Primark, an Irish fast fashion retailer, also has said it is leaving Myanmar. Given the worsening situation, "we believe our only option is to begin working towards a responsible exit from the country," the company said.

Workplace conditions remain unaddressed under military rule. The daily minimum wage for factory workers has stayed at 4,800 kyat ($1.68 at market exchange rate) since 2019. A report from the U.K.'s Ethical Trading Initiative -- a consortium of businesses, labor unions and nongovernmental organizations -- said trade unionists cannot safely bargain with employers. [...]

Clothing exports are growing amid the weaker kyat. The EU, Japan and the U.S. all recorded the highest imports from Myanmar last year -- a combined $4.7 billion -- since the 2011 beginning of political reforms in the country. [...]