rtak9kpTURBXy8xYzYwNTNjZjc4MzhiNmE1NTFhMmU3MzhjNmI0YTE1MC5qcGeSlQM0AM0CuM0BiJMFzQMUzQG8gaEwAQ

In November 2020, the second wave of COVID-19 closed car showrooms and car factories, leaving no brand new car sales and production

In November 2020, the second wave of the COVID-19 epidemic closed car showrooms and manufacturing plants in Myanmar, leaving no brand new car sales or production, according to regional car sales and production data released by the ASEAN Automotive Federation. The ASEAN market as a whole saw sales of 256,158 new cars in November 2020, down 13.9 percent from the same period last year, with Myanmar down 100 percent. In 2017, 8225 brand new cars were sold in Myanmar, more than 97% more than in 2016. In 2018, there were 9,299 vehicles compared to the same period in 2017. Sales increased by 113% to 17,524 vehicles in 2018.

In the Myanmar market, 4,392 vehicles were sold in 2019 compared to 2018, with 21,916 new cars (an increase of 25.1%). In January 2020, 2034 new cars; In February, 2,286 vehicles; 1979 were sold in March, and showrooms closed in April due to the first wave of COVID-19. 1253 in May; 1985 in June; 2258 vehicles in July; In August, 2,238 vehicles were sold. Due to the second wave of COVID-19, only about half of the showrooms opened in September, selling only 1,112 units, and closed again in October and November. In 2016, 4,168 new cars were sold in Myanmar. In 2018, more than 17,000 new cars were sold, and in 2019, nearly 22,000 new cars were sold. 

Myanmar is an emerging market for the sale and production of new cars, and growth is expected to continue year on year. Despite the continuous growth of new car production in Myanmar, as well as the growth of new car sales, car assembly production declined during the COVID-19 period. In January 2020, 1,459 vehicles; 1388 in February; In March, 1214 units were produced, and in April, the first wave of COVID-19 shut down car factories. 703 in May; 1313 vehicles in June; In July, 1,438 vehicles; In August, 1,558 vehicles were produced. Due to the second wave of COVID-19, the plant was operational for about half a month in September, producing only 1,587 units, and in October and November, the second wave of COVID-19 shut down car factories. 

Six ASEAN countries, including Myanmar, are involved in the production of new car assemblies. Myanmar will increase by more than 320% in 2017; In 2018, it will be close to 150 percent. In 2019, it increased by more than 24%. The Asean market as a whole saw 325,242 new car assemblies in November 2020, down 4.6 percent from the same period last year, and Myanmar was down 100 percent from the same period last year. The number of new cars assembled in Myanmar in 2017 was 4,930, an increase of 3,788 units from 2016, an increase of 328%. In 2018, 12,292 cars were assembled, an increase of 7,362 from the previous year, an increase of 149%. In 2019, 15,496 cars were assembled, an increase of 3,204 from the previous year, an increase of 26%.

Source: Daily Eleven

myanmar_c

Chinese traders buying Myanmar cattle on black market

According to the Mandalay Region Cattle Exporters Association, China has been purchasing cattle from Myanmar on the black market. Chinese traders are buying cattle on black markets (Lweje, Chinshwehaw and Wa border areas). However, about 15,000 heads have stranded in Muse for shipment to China through a legitimate route. Chinese traders keep purchasing cattle through illegitimate channels via Lweje, Chinshwehaw and Wa border areas. They do not want cattle in Muse, which is a legitimate trade route. This action is like supporting the black market instead confirmed by the Chairperson of the Mandalay Region Cattle Exporters Association.

Around 2,000 heads of cattle are daily traded on black markets, he continued. As a result of this, some traders brought the cattle from Muse back to their home owing to the burden of high feedstuff cost and labour wages. However, some are still waiting for a positive outcome from the bilateral negotiation on cattle export, which will be held in January-end. Moreover, some intentionally stated that they would return to the original designated place but conduct illegal trade in border areas. Some traders from Muse turn to black-market instead of going back to home. Regarding cattle exports via Muse, the trading system needs to be changed. Failure to do so cannot avoid a similar event in future. Price manipulation and financial fraud problems will keep arising, said by Myanmar Livestock Federation’s vice-chair.


Such kind of problems will happen as they are carrying out trade in the border area without having trade agreement. They should have made the deal in advance like goat exporters. This can avoid the scam and goods stuck in the border area. The trade hub should have been in Mandalay or Shan State rather than Muse border. It’d be better if the department concerned grants licence for delivering goods to the border after trade deal. About 15,000 heads of cattle, owned by 150 companies, are now stranded in Muse border as China stopped purchasing cattle. The labour wages and feedstuff cost burden them. It costs K400,000-600,000 to take care of 100 heads of cattle every day. For legitimate trade, China permits live cattle import only after ensuring the cattle is free from 20 diseases including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates.

Therefore, the officials concerned from the two countries are negotiating this. Earlier, 1,500-2,000 heads of cattle were daily traded through Muse border. China halted cattle trade with China stepping up border control as precautionary measures for the COVID-19 and other reasons, the association stated. Additionally, Myanmar’s live cattle export relies heavily on the China market due to a reasonable price. However, Myanmar has other external markets such as Laos, Thailand, Malaysia, and Bangladesh.
The Ministry of Commerce grants a permit to each company for 100 cattle export, and the pass is valid for three months. The companies can be taken legal actions if they do not sell the cattle during a three-month period.
Live cattle export was allowed in late 2017, to eradicate illegal exports, creating more opportunities for breeders and promoting their interests.
Myanmar can yearly export around 500,000 heads of cattle beyond domestic consumption, the association stated.

Source: The Global New Light of Myanmar

Myanmar’s first-ever Yangon Waste to Energy Plant generates 760 kW of electricity daily

Myanmar’s first-ever Yangon Waste to Energy Plant has been built with minimal environmental impact, and the plant generates 760 kilowatts of electricity per day, according to the Yangon City Development Committee (YCDC). In May 2015, the Pollution Control and Cleaning Department of YCDC cooperated with the JFE Engineering, which is commissioned by the Tokyo Metropolitan Government, to build the plant. The plant is located on 15 acres of land near Hlawkar Road in Shwepyitha Township, Yangon, and the project cost US$16 million. The plant uses the heat generated by burning the garbage (waste) to generate electricity. Since 7 April 2017, the plant received about 60 tonnes of waste from Mingaladon Township. It incinerated the waste, generating 760 kilowatts of electricity daily.

Out of the 760 kilowatts, about 400 kilowatts of electricity have been used to operate the plant and the remaining 360 kilowatts are fed into YESC’s National Grid. The Yangon Waste to Energy Plant employs 91 workers including officials, engineers and garbage collection workers. For annual maintenance, the plant usually stops its operations for about 40 days a year, said by a member of the YCDC. It is the first-ever Waste to Energy Plant in Myanmar, and air pollution will be kept to a minimum. The air pollution indicators are in line with international air pollution standards. The Waste Yard can handle about 200 tonnes of waste in three days. However, the plant can only incinerate 60 tonnes of waste a day. Hence, the plant handles only 60 tonnes of waste from Mingaladon Township.

In fact, Yangon produces about 2,500 to 2,700 tonnes of garbage daily, so we are working hard to build more Waste to Energy Plants to generate more electricity. They wanted to send their engineering staff to Japan to receive technological training there. But it would be more expensive to send our staff to Japan. So, they brought in Japanese experts to work in the plant and to help their staff gain technological knowledge. Over the past four years, the skills and knowledge of their staff have improved significantly. Garbage collection workers are always on duty in the stinking factory environment, so they are constantly encouraging them to be motivated. Only then, they will be able to work in the plant for the long term. Up to 90 per cent of the waste can be disposed of at the Yangon Waste to Energy Plant, and 10 per cent of the waste is properly disposed of at Kyu Chaung Cemetery in Shwepyitha Township, according to YCDC.

Source: The Global New Light of Myanmar

MoEE, TPMC company sign power purchase agreement for LNG to Power Project

MINISTRY of Electricity and Energy signed a power purchase agreement in Nay Pyi Taw for the 365 MW LNG to Power Project to be implemented by TTCL Power Myanmar Co., Ltd in Ahlon Power Plant, Yangon Region, yesterday afternoon. Union Minister U Win Khaing, Deputy Ministers U Khin Maung Win and Dr Tun Naing, Permanent Secretary U Than Zaw and departmental officials attended the ceremony. President & CEO for TTCL
Power Myanmar Co., Ltd. Mr Hironobu Iriya, Managing Director Ms Suratana Trinratana and officials, attended the ceremony through videoconferencing. The Union Minister said his Ministry is making efforts
to generate more electricity from all available sources from the country, including imported LNG, as the electricity demand increased.

The Ahlone LNG to Power Combined Cycle Power Plant project, invested by TTCL Co., Ltd is one of the three major projects that the Ministry issued Notice to Proceed (NTP) to companies. The Ahlone LNG project was launched in 2018 and TTCL Co., Ltd carried out the feasibility study, environmental impact assessment, LNG feasibility and gas pipelines, including land ownership for the project during the two-year preparation period. The Union Minister added the coordination with companies and all stakeholders for the PPA contract due to the nature of the project that is different from other conventional projects. According to the schedule in the PPA contract, TTCL Company will need to complete the commercial operation of the project within the next three years. The company has extensive experience in Japan with LNG power generation and the construction of an inland LNG Terminal and Regasification Unit.


The Union Minister said that necessary equipment such as natural gas pipeline and transmission line would be built in Yangon area and the company needs to follow not only international rules and regulations but
MoEE, TPMC company sign power purchase agreement for LNG to Power Project also domestic rules and regulations at all stages of construction and operation. Managing Director for Electric Power Generation Enterprise (EPGE), Ministry of Electricity and Energy U Than Naing Oo and Managing Director for TTCL Power Management Co., Ltd Ms Suratana Trinratana
signed the Power Purchase Agreement (PPA). This is the first long-term
LNG project in Myanmar using inland LNG Terminal and Regasification Unit, and it is a reliable project due to its stable LNG supply. With the use
of Combined Cycle Technology, electricity generation can be improved, and the environmental impacts can be minimized. Upon successful completion of this project, according to the PPA, it will be able to supply and distribute electricity to the Yangon Region, especially to provide more stable electricity.

Source: The Global New Light of Myanmar

DSC_0682-72-720x477

YRIC endorses $12.7 mln worth seven proposals in four months(Oct-Jan)

The Yangon Region Investment Committee (YRIC) has endorsed four foreign enterprises from China, Japan, Singapore and Hong Kong SAR in the manufacturing sector, with an estimated capital of US$12.7 million, in the four months (Oct-Jan) of the current financial year 2020-2021. Additionally, one domestic enterprise is also given the go-ahead, with the capital of K2.9 billion. Those enterprises are to create over 3,700 jobs.

They will execute manufacturing of bags, footwear, underwear and garments on a Cutting, Making, and Packing (CMP) basis and production of pulses and beans, and production and distribution of fish sauce, YRIC stated. Between 1 October and 30 September of the previous financial year 2019-2020, Yangon Region attracted FDI of $308.768 million from 137 foreign enterprises. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis.

To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands, and Seychelles arrive in the region. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals. The initial investment does not exceed K6 billion, or $5 million.

Source: The Global New Light of Myanmar

Dr-Aung-Thu-1

Groundbreaking ceremony of Agricultural Marketing Centre held in Nay Pyi Taw

The groundbreaking ceremony of the Agricultural Marketing Centre was held in Pobbathiri Township, Nay Pyi Taw yesterday morning. The ceremony was attended by the Union Minister for Agriculture, Livestock and Irrigation Dr Aung Thu, Deputy Minister U Hla Kyaw, Nay Pyi Taw Council member U Aye Maung Sein, Amyotha Hluttaw Representative U Maung Maung Swe, Ambassador of the Republic of Korea to Myanmar Mr Lee Sang-hwa, Chief Representative of KOICA Myanmar Ms Lee Youn Soo, the Permanent Secretary, Directors-General of the ministry and other relevant officials.

At the ceremony, Union Minister Dr Aung Thu said that the agricultural sector is a key factor in Myanmar’s economic development process. Establishing the Agricultural Marketing Centre and the Agricultural Products Processing Centre will benefit both agriculturalists and consumers, according to the Union Minister, who said that the cooperation among the government, private sector and agriculturalists is expected to greatly enhance the opportunities to compete in the international market.
During the ceremony, Ambassador Mr Lee Sang-hwa also delivered a congratulatory speech and KOICA Myanmar representative Ms Lee Youn Soo expressed thanks to all stakeholders.

The Agricultural Marketing Centre project, jointly carried out by the Korea International Cooperation Agency (KOICA) and the Ministry of Agriculture, Livestock and Irrigation, was begun in 2018 with US$8.37 million in financial aid from Korea. The Agricultural Marketing Centre will be built in Pobbathiri Township in Nay Pyi Taw and the Agricultural Product Processing Centre will be built in Heho in Shan State. The objective of establishing the two centres is to improve the market for agricultural products in major agricultural production areas, said Director-General Dr Ye Tint Tun. The centres will be able to provide efficient agricultural market information, and another benefit is that the agriculturalists’ organizations will be strengthened. They will help strengthen agricultural infrastructures and will work for issuance of certification. So, the centres will help fulfil the Agriculture Development Strategy (ADS).

Source: The Global New Light of Myanmar

unnamed (1)

External trade falls by $2.4 bln as of 8 Jan

Myanmar’s external trade between 1 October and 8 January in the current financial year 2020-2021 touched a low of US$8.23 billion, a sharp drop of $2.437 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. According to data released by the ministry during the same period in the previous FY, trade stood at $8.2 billion. Over the Q1, Myanmar’s export was worth over $4 billion, which plunged from $5.16 billion registered a year-ago period.

Meanwhile, the country’s import was valued $4.228 billion, showing a decrease of $1.27 billion compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited the trading time to contain the spread of the virus. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods while importing capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. Under the National Planning Law for the financial year 2020-2021, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. The Ministry of Commerce is focusing on reducing the trade deficit, export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment.

Source: The Global New Light of Myanmar

A-garment-worker-at-a-Burmese-factory-triplepundit.com_

Discussion of the economic situations and the impact of ongoing COVID-19 on various ASEAN countries, including Myanmar

According to the Myanmar Garment Manufacturers Association (MGMA), various ASEAN countries, including Myanmar, are discussing the economic situation and impact of the garment industry due to the ongoing COVID-19 in their countries. ASEAN Federation of Textile Industries (AFTEX) Indonesia Laos Malaysia Singapore Philippines Thailand The ASEAN Economic Community (AEC) and the ASEAN Economic Community (AEC) have agreed to increase cooperation in various fields. COVID-19 conditions and effects; International investment conditions. They also discussed the export and import conditions of garment industries in various countries and their cooperation with their governments.

Central executives and executives of the Myanmar Garment Manufacturers Association (MGMA) also discussed Myanmar’s export and import situation in 2020. During COVID-19, MGMA provided services for member factories. They also discussed the assistance provided by the Myanmar government to garment factories. According to the Position Paper released by the Myanmar Garment Manufacturers Association, 114 factories were closed or temporarily closed during COVID-19, and currently only 606 are in operation, 90 percent of which are mainly export-oriented. Difficult access to raw materials in the garment industry. Decreased or suspended orders and late or non-receipt of payments. Some companies go bankrupt.

According to a survey conducted by the Myanmar Garment Industry, most of the orders are pending until July, with only 30 per cent of members receiving orders from September. However, the garment sector was affected by the economic situation in the countries with the highest orders. When it comes to export orders, they have become more of a problem than buying from other countries. Currently, Myanmar’s largest exporter is Japan. Germany is second. In terms of blogging, the 28-nation EU has the most. The US is buying now. However, Korea, not as many as Japan, given the domestic situation in Korea, its economy is declining. There is also the fear of COVID. So when those countries have limited access to their offices, they also have limited access to Myanmar. It is also noted that the highest number of cases of corona virus are the countries order from Myanmar, so that the economic impact and challenges of Myanmar were a challenge.

Source: Daily Eleven

import

Application of import/export permits more secure with Trade Net 2.0

The application of export and import permits online via Myanmar Trade Net 2.0 is secure and can help curb corruption , said the director general at the Ministry of Commerce can be applied online and security systems are in place to protect the user and applicants mentioned during a press conference on Trade Net 2.0. Trade Net 2.0 assists paperless trade – the digital trade.

It partly assists in implementing our e-government system. Data can be securely shared between government agencies and information leakage will not occur. Moreover, it is also mentioned that import and export permits can be applied anywhere at anytime, as long as internet service can be accessed. There is no contact between businesspeople and departments at all. They have also planned to improve security of the the system.

In the banking sector, even if the end user’s account is breached, the culprit will not be able to carry our (transactions) without a One Time Passcode according to the deputy director. The system however does not allow for the application of special permits. These will still have to be applied for in person. There are currently 3,430 people registered with Myanmar Trade Net 2.0. A total of 756 cards related to export and import and 1,617 import permits have been processed with the online system.

Source: Myanmar Times

textile9_264203

Myanmar’s first textile-based industrial zone to be established in Sagaing

Eastern Development International (Myanmar) and Dongzhan Textile Group, a Chinese company, are set to jointly develop a textile industrial cluster worth over US$371 million in Sagaing Region. The two companies will work with the private sector on all stages of construction of the project, making it the first textile-based industrial zone in Myanmar. The project is designed to include two phases: construction of factories and the installation of machinery in those factories. Phase 1 will include the construction of 12 new garment related factories, knitting fabric factories, dyeing and printing factories, and down and feather factories; and residential buildings for employees. Eight of these factories will be located at No.3 Textile Factory Branch (Sagaing) while the remaining four factories, including a waste water treatment system, thermal power plant, will be set up at No. 3 Textile Factory (Sagaing). Phase 2 will include the construction of five garment related factories, embroidery factory, carton factory, and polyester wadding factory.

An international textile supermarket will also be created in Sagaing. The project is proposed to be operational for an initial term of 20 years. Following the expiration of its initial 20-year term, it could be extended twice for a further term of five years for each renewal. The project is scheduled to begin in the financial year 2020-2021 and is expected to be completed in the financial year 2029-2030. It will also benefit stakeholders across the textile value chain (small and medium-sized enterprises, employees, fashion designers) by making available locally produced raw materials for textile and garment sectors, and creating entrepreneurial opportunities. It is anticipated that the imported volume of raw materials across the textile value chain will be reduced, and export earnings using locally-produced raw materials will be increased. Establishment of a textile-based industry cluster will reduce transportation cost; using a common infrastructure, resource and labour pool advantage; and speed up the learning process leading to internationally competitive and commercially sustainable textile industry.

The garment industry in Myanmar has grown significantly over the past five years. Myanmar’s garment exports have been increasing yearly, especially since 2013, when the EU granted goods from the Southeast Asian country preferential access to its market. Myanmar is also implementing the National Export Strategy (NES), under which there will be measures like the transition of cut-make-pack (CMP) garment system into free-on-board (FOB) system, adoption of bonded warehouse system and establishment of special textile and garment zone for boosting export. Myanmar launched a national level textile policy with the help of German global development organization GIZ to promote the country’s textile industry, attract investment by inviting foreign trade partners, build the necessary infrastructure and reduce imports. At present, some garment factories shut down due to lack of raw material, and thousands of workers became unemployed.

Some garment factories in Myanmar have reduced working hours and cut jobs, and some factories have not received orders from abroad amid the ongoing coronavirus pandemic. Myanmar’s CMP garment sector earns about US$300 million, annually and the country will get US$3 billion if it can manage to shift from the CMP system to the free-on-board (FOB) system. Myanmar’s manufacturing sector is largely dependent on the CMP garment and textile exports. The total export earnings from Myanmar’s garment and textile industry are expected to reach US$10 billion by 2024, according to the Myanmar Garment Entrepreneurs Association. The CMP garment sector contributes to over 20 per cent to the country’s exports.
Thousands of Myanmar people are employed in garment, textile, footwear and accessories factories across the country. Additional tens of thousands indirectly work in the industry through logistics and transport services. Myanmar earned some US$850 million from CMP garment exports in the financial year 2015-2016, US$2 billion in FY2016-2017, US$2.5 billion in FY2017-2018, US$4.6 billion in FY 2018-2019 and US$4.28 billion in FY2019-2020.

Source: The Global New Light of Myanmar