Japanese retail giant Fast Retailing, owner of the Uniqlo casual clothing brand, has confirmed it is considering setting up a garment production unit in Myanmar as well as using suppliers there.

The company is planning to have a business partner in the country. "We're considering because the partner has, or is planning to have, a factory there," the spokesperson said.

The Fast Retailing spokesperson could not confirm the name of the supplier or business partners.

The move follows the EU's announcement to suspend sanctions against Myanmar for a year, to welcome and encourage the ongoing reform process in the country.

Last month, EU High representative for Foreign Affairs and Security Policy, Catherine Ashton, said: "The European Union welcomes the remarkable changes in Burma/Myanmar and has decided to open a new chapter in our relations. Now that the sanctions will be effectively suspended, we encourage trade and investment in the country."