DEPLOY Founder Dr. Bernice Pan with a long track record in industry and academic research, was asked to comment on the recent coup in Myanmar and the potential impact this may have on the global supply chain sourcing.
"While fashion brands have sourcing options, manufacturers make big, long term investments. That means the coup will be a big red alarm for garment manufacturing groups, especially given the recent history of military rule in Myanmar".
"It is likely that in the next two to three years, those who can shift, will shift to other countries. There are other countries in Southeast Asia that are a little more stable, such as neighbouring Bangladesh" Pan says. She predicts that Vietnam would benefit less from Myanmar losing trade. This is because in her view Vietnam tends to produce higher quality, more expensive products, and so is more a direct competitor with China than with low cost Myanmar."