SINGAPORE—Western retailers are increasingly divided over whether to buy clothes made in Myanmar, a country that had emerged as one of the world’s fastest-growing garment exporters before the military staged a coup last year.
European retailer Primark, which bought garments such as raincoats and parkas from 25 factories in Myanmar, said last month it would exit, citing difficulties in ensuring the safety and rights of workers who make the clothing. Its decision follows the departure of other European brands, including Aldi South Group, C&A and
PLC.
On the other hand, companies such as
Hennes & Mauritz AB, Zara-owner
and Uniqlo-parent
Fast Retailing Co.
are staying. An H&M spokeswoman said there are “contradictory considerations and different perspectives as to whether trade with Myanmar should continue or not” and that the company has no plans to leave. The brand was “mindful of the fact that many people in Myanmar rely on international companies for their livelihood,” she said.
A worker making a shirt with the help of a sewing machine in Yangon, Myanmar.
Photo:
Taylor Weidman/Bloomberg News
Inditex and Fast Retailing didn’t provide comment. Inditex said in July it is working closely with suppliers in Myanmar and is committed to protecting human rights.
At the heart of the debate lies a tough choice: take advantage of Myanmar’s low wages and preserve jobs that benefit the country’s poor or leave because of labor abuses that some workers and rights groups say have worsened under military rule. The dilemma reflects a riskier global environment for business overall. Hundreds of Western businesses have paused or stopped operations in Russia, for instance, since it invaded Ukraine.
A September report by the London-based Ethical Trading Initiative, which interviewed 3,120 Myanmar garment workers, alleged labor violations including excessive overtime work and verbal, physical and…
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