Gap is first US retailer to enter Myanmar

Retail brand Gap has announced it plans to produce clothing in Myanmar, making it the first American retailer to enter Myanmar since the country began its transition to democracy three years ago.

Two factories in Myanmar’s commercial capital Yangon are reportedly producing vests and jackets for the company’s Old Navy and Banana Republic brands. A statement by the US embassy said the garments will be ready for sale in the US in summer.

Gap said it will produce its garments at factories owned by a South Korean company.

Garment exports from Myanmar, which had hit a high of US$850 million in 2001, plunged after the US imposed sanctions against the country’s former military junta more than a decade ago.

However, economic reforms in recent years have generated hopes of an investment boom in resource-rich Myanmar with a population of about 60 million people. US firms including drinks manufacturers Coca-Cola and Pepsi and car makers Chevrolet and Ford have established a sales presence in the country.

Exports to Myanmar soared from US$9.8 million in 2010 to US$145.7 million in 2013. American imports from Myanmar have also grown, from zero in 2012 to US$30.1 million last year.