Smart Myanmar organizes business matchmaking factory visits for EU buyers

Smart Myanmar organizes business matchmaking factory visits for EU buyers

IMG_9702International interest in Myanmar’s garment sector is rapidly increasing. To promote sustainable product sourcing, as well as socially responsible business practices and investment, the SMART Myanmar initiative links interested buyers from the European Union with Myanmar producers in relevant sectors.

SMART Myanmar's activities are up and running this year. SMART is a European Union-funded three-year initiative that will help small and medium enterprises in Myanmar’s garment sector produce sustainable garments and enter the EU market.

Factories in Myanmar are incentivized to participate in the SMART Myanmar initiative because they gain access to new potential international buyers. Participating factories also benefit from a suite of technical assistance services designed to increase productivity in each factory and inform them on international compliance standards and efficiency practices. Ensuring compliance with European production standards is beneficial for Myanmar producers because it gives them access to a wider network of potential customers.

Among the efforts to date have been the periodic factory visits, facilitated by SMART Myanmar, wherein international buyers are taken to factories with production specialties of particular interest to their business. The most recent series of factory visits occurred in March, 2014. Two different groups of buyers from the EU toured over a half dozen garment factories selected by SMART Myanmar. This follows on several factory visits coordinated in early 2014, as well as in late 2013.

Mr. Michiel Stapper, Managing Director of the Dutch shape-wear company Zense Accessories BV, visited three factories to explore production possibilities. Mr. Stapper said near the end of the trip: "Out of all the factories we visited, we would potentially like to start with one factory first and see how things go. Definitely there is potential out there and I’m glad I've planned to visit Myanmar".

Interested buyers from the EU have a host of factors to evaluate when conducting site visits. SMART Myanmar simplifies their search by allowing them to target factories producing the garment items relevant for their specialties. Also, the focus of the factory visits is on those companies which either already achieve EU compliance standards, or are on a clear pathway to achieving compliance. Indeed, those factories who have not yet achieved EU compliance standards are, in fact, ideal participants for SMART Myanmar, as the value of socially & environmentally responsible business practices becomes extremely tangible when they are confronted with the prospect of new customers from the EU market.

Several EU participants in the SMART Myanmar factory tours came from Germany. Naturana Dölker GmbH & Co. KG is a medium-sized enterprise in operation since 1917. Naturana specializes in lingerie, swimwear and mens undergarments, as well as cotton nightwear for both men and women. Ms. Maier-Gorthner, head of imports for Naturana concluded: "We have seen several factories in two days with the excellent help of the SMART Myanmar team. We saw and had a meeting with a couple of factories we can potentially work with. Two of them could be interesting and we intend to develop for the beginning one article with each supplier to make a first trial order. We are confident of building up a good business connection with them.”

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