H&M Supplier Exit Costs 3,000 Jobs in Yangon

The Irrawaddy

More than 3,000 garment workers in Yangon face unemployment at the end of this month after Chinese‑owned Teng Hui Myanmar announced it will shut down operations in Hlaing Tharyar Township.

The company, which has run five factories for 13 years, said the closure was triggered by a decline in orders from its main buyer, H&M. The Swedish fashion giant revealed in 2023 that it would gradually cut Myanmar from its supply chain under military rule.

Management informed staff of the closure and compensation plan on Wednesday, promising payouts based on years of service. Workers, many of whom earn around 10,000 kyats a day — less than US$3 — say they are devastated and fear they will struggle to find new jobs. Videos shared on TikTok show employees in factory uniforms posting farewell messages.

Myanmar’s garment industry has been battered by political instability, labour shortages and frequent power outages since the 2021 coup. Global brands have faced mounting pressure to withdraw from the country over widespread labour abuses, with the International Labour Organization sanctioning the regime for detentions, torture of union members and forced conscription.

While rights groups argue foreign companies should boycott Myanmar’s garment sector, others warn that such moves only deepen the hardship for workers already caught between economic collapse and military repression. For those leaving Teng Hui, the closure is not just the end of a job but the loss of a fragile lifeline in a country still gripped by crisis.

-2026-09-06