Impact on Myanmar’s garment industry

The 7.7-magnitude earthquake that struck Myanmar on March 28 has caused widespread disruption to the country’s garment industry, a vital sector for both the local economy and global fashion supply chains. Many factories, particularly those located in industrial zones near Yangon and Mandalay, have reported structural damage, power outages, and halted operations. This has led to significant delays in production and order fulfilment, affecting international brands that rely on Myanmar as a key sourcing destination.

Factory workers, many of whom are women supporting their families, have been severely impacted. With buildings rendered unsafe and transportation infrastructure damaged, thousands are unable to return to work. In some areas, temporary shelters have been set up for displaced workers, but access to basic necessities remains limited. The disruption has also raised concerns about wage continuity and job security for the workforce, which numbers in the hundreds of thousands.

Myanmar’s garment sector, which has grown rapidly over the past decade due to competitive labour costs and trade agreements, now faces an uncertain future. Industry experts warn that without immediate support and long-term recovery plans, the country risks losing its position in the global apparel market. Australian retailers and fashion brands sourcing from Myanmar may experience supply chain interruptions, prompting a reassessment of sourcing strategies and ethical responsibilities.

Local manufacturers are working to assess the full extent of the damage, but early estimates suggest that recovery could take months, if not longer. The earthquake has not only disrupted production but also exposed the vulnerability of the industry’s infrastructure to natural disasters. This has sparked discussions around the need for more resilient and sustainable practices in garment manufacturing across the region.

Appeal for international financial support

In response to the devastation caused by the earthquake, the Myanmar Garment Manufacturers Association (MGMA), in coordination with several local and international partners, is urgently appealing for financial assistance from the global community. The association has emphasised that immediate funding is critical to stabilise the industry, support displaced workers, and begin the process of rebuilding damaged infrastructure.

MGMA has reached out to international donors, development agencies, and fashion brands with sourcing ties to Myanmar, urging them to contribute to a coordinated relief fund. The appeal highlights the dual humanitarian and economic crisis facing the country, where thousands of garment workers are now without income or safe housing, and factories are unable to resume operations without substantial repairs and support.

Australian fashion retailers and sourcing companies are among those being called upon to provide emergency funding and logistical support. Given Australia’s growing engagement with ethical sourcing and corporate social responsibility, MGMA hopes that Australian stakeholders will respond with solidarity and practical assistance. The association has proposed several avenues for support, including direct donations, wage subsidies for affected workers, and contributions to rebuilding efforts.

“We are not just asking for charity,” said a spokesperson for MGMA. “We are asking our partners to stand with us in a time of crisis, to help us protect the livelihoods of workers and ensure the continuity of a vital industry.”

To facilitate transparency and accountability, MGMA is working with international NGOs to establish a monitored fund that will channel resources directly to affected factories and workers. The association has also committed to providing regular updates on how funds are used, ensuring that donors can track the impact of their contributions.

In addition to financial aid, MGMA is encouraging technical support from international experts to help assess structural damage, improve factory safety standards, and develop disaster preparedness strategies. These efforts aim not only to address the immediate aftermath of the earthquake but also to build a more resilient garment sector for the future.

As the situation continues to evolve, the need for swift and coordinated international support remains urgent. MGMA’s appeal underscores the interconnectedness of global supply chains and the shared responsibility of industry stakeholders to support recovery in times of crisis.

Collaborative efforts by industry organizations

In the wake of the earthquake, a number of industry organizations have come together to coordinate relief and recovery efforts for Myanmar’s garment sector. The Myanmar Garment Manufacturers Association (MGMA) is working closely with both domestic and international partners, including the Confederation of Trade Unions Myanmar (CTUM), the European Chamber of Commerce in Myanmar, and several global fashion brands, to ensure a unified response to the crisis.

These collaborative efforts are focused on three key areas: immediate humanitarian relief, restoration of factory operations, and long-term industry resilience. Joint task forces have been established to assess damage across industrial zones, prioritise aid distribution, and identify factories most in need of structural repairs. This coordinated approach is helping to avoid duplication of efforts and ensure that resources are allocated efficiently.

Australian stakeholders, including ethical sourcing organisations and fashion retailers, have also been invited to participate in these collaborative platforms. By joining working groups and contributing to shared recovery plans, Australian companies can play a direct role in supporting the garment workers and manufacturers they rely on. This includes providing input on worker welfare initiatives, supply chain continuity strategies, and sustainable rebuilding practices.

“This is a moment for the global fashion industry to come together,” said a representative from a European fashion consortium involved in the relief efforts. “We are seeing unprecedented cooperation between brands, unions, and manufacturers to protect the people who make our clothes.”

In addition to financial contributions, several international fashion brands have pledged to maintain their sourcing commitments in Myanmar, helping to stabilise the industry and prevent further job losses. These brands are working with MGMA and local NGOs to ensure that their continued presence supports ethical labour practices and contributes to the recovery process.

Training programs and technical workshops are also being developed through partnerships with international development agencies. These initiatives aim to equip factory managers and workers with the skills needed to rebuild safely and sustainably. Topics include earthquake-resistant construction, emergency preparedness, and mental health support for affected workers.

By fostering collaboration across the supply chain, industry organizations hope to not only address the immediate challenges posed by the earthquake but also lay the groundwork for a more resilient and equitable garment sector in Myanmar. The involvement of Australian partners in these efforts is seen as a vital component of a truly global response.

Impact on Myanmar’s garment industry

The 7.7-magnitude earthquake that struck Myanmar on March 28 has sent shockwaves through the country’s garment sector, a vital pillar of its economy and a key player in the global fashion supply chain. With factories damaged, logistics disrupted, and thousands of workers displaced, the impact has been immediate and deeply felt across the industry.

Myanmar has long been a go-to destination for fashion brands seeking ethically produced, cost-effective garments. The country’s garment industry employs over 700,000 workers—more than 90% of whom are women—making it not only an economic engine but also a critical source of empowerment for women in the region.

Many of the factories supplying to Australian and international labels are located in the central and southern regions, areas that bore the brunt of the quake. Initial assessments suggest that at least 30% of production facilities have sustained structural damage, with some rendered completely inoperable. Power outages and transportation breakdowns have further stalled operations, delaying shipments and threatening seasonal deliveries.

“We’ve had to halt production entirely in two of our partner factories,” said a sourcing manager for an Australian womenswear label. “Our priority now is the safety of the workers and assessing how we can support them through this.”

For many Australian fashion brands that rely on Myanmar for their collections—particularly for basics, knitwear, and tailored pieces—this disruption is more than a supply chain hiccup. It’s a wake-up call about the fragility of global sourcing networks and the human cost behind the clothes we wear.

• Over 200 factories reported partial or full shutdowns
• Estimated 150,000 workers temporarily out of employment
• Delays expected in Autumn/Winter 2024 deliveries

As the industry grapples with the immediate aftermath, the resilience of Myanmar’s garment sector—and the women who power it—will be tested like never before.

Call for international financial assistance

The Myanmar Garment Manufacturers Association (MGMA), in collaboration with several international partners, is urgently calling for financial assistance to stabilise the country’s garment sector in the wake of the devastating earthquake. With over 150,000 workers temporarily out of employment and more than 200 factories either partially or fully shut down, the need for immediate support is critical—not just for infrastructure recovery, but for the livelihoods of the predominantly female workforce that underpins the industry.

Australian fashion brands, many of which source a significant portion of their collections from Myanmar, are being encouraged to step up. MGMA has proposed a coordinated relief fund aimed at providing emergency wages, rebuilding damaged facilities, and restoring essential services like electricity and transport. The association is also working with ethical sourcing bodies to ensure that aid reaches the most vulnerable workers, many of whom are now without income or housing.

“This is not just about rebuilding factories—it’s about protecting the women who make our clothes,” said an Australian fashion consultant involved in the relief coordination. “We have a responsibility to support the hands behind our garments.”

Several Australian labels have already pledged contributions, with some redirecting marketing budgets and launching limited-edition capsule collections to raise funds. Industry insiders are also urging fashion consumers to support brands that are actively participating in the relief efforts, reinforcing the message that ethical fashion extends beyond production practices—it includes standing by your makers in times of crisis.

• MGMA seeking AUD million in emergency funding
• Funds to cover wage subsidies, factory repairs, and logistics restoration
• Australian brands encouraged to join global relief coalition

For the Australian fashion market, this moment presents both a challenge and an opportunity—to reaffirm its commitment to ethical sourcing and to stand in solidarity with the women who help bring our collections to life.