Japan’s Hankyu Hanshin Express launches apparel logistics operation near Yangon

03, Mar. 2020

Photo by mentatdgt from Pexels
Photo by mentatdgt from Pexels

YANGON, NNA - Japanese logistics firm Hankyu Hanshin Express Co. started operation of its logistics center solely handling apparel products in Myanmar on Sunday in response to growing shipping demands.

Hankyu Hanshin Express will strengthen local business since apparel manufacturing plants have been transferred to Myanmar from China in the ongoing trade dispute with the United States. Apparel products are a pillar of Myanmar’s exports.

The three-story logistics center is located in Shwe Pauk Kan Industrial Zone, northern Okalapa in Yangon, about nine kilometers from the Yangon International Airport and some 25 kilometers from the Yangon Port, according to a statement released last Thursday.

The facility has a total floor space of 1,434 square meters. The center provides consistent import-export services including distribution processing, inventory control, inspection, customs clearance as well as collection and delivery.

Myanmar’s apparel industry has rapidly grown after the country became eligible for a generalized system of preferential duties that imposes no or minimum tariffs on products except weapons for exports to countries such as Europe, the United States, and Japan.

The export value of apparel products soared 6.7 times to $2.559 billion in fiscal 2017 from fiscal 2010, according to statistics. Major export destinations included the European Union, China, and Japan.

The new Yangon logistics center started operation with about 30 to 40 employees. “In addition to the market potential, a low wage encouraged us” to launch the logistics business in Myanmar, a spokesman at Hankyu Hanshin Express told NNA.

Hankyu Hanshin Express (Myanmar) Co., which opened in 2013, will consider launching the second apparel logistics center in the country. The Japanese logistics firm also seeks business opportunities in other Southeast Asian nations such as Cambodia, where the apparel industry has been growing.

About 500 companies are members of the Myanmar Garment Manufacturers Association. The trade group aims to export apparel products valued at $10 billion by 2024 under Myanmar’s 10-year export strategy since 2014, according to a report by Myanmar Times on Dec. 26, 2019.