Monthly Archives: March 2021

The value of Myanmar’s mineral exports has drastically fallen to US$495.9 million as of 13 March in the current financial year 2020-2021 since 1 October. It reflects a severe drop of $555 million against a year-ago period, the Ministry of Commerce’s data indicated. The mineral exports hit over $1 billion in the corresponding period of last FY. The coronavirus impacts led to the slump in mineral exports this FY. The heightened COVID-19 measures also shut down the events like gem emporium and expo last year, a trader said. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, according to the Ministry of Natural Resources and Environmental Conservation.

Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016. However, after a period of two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. Within two years of implementing the Myanmar Mines Law, the Mines Department has approved more than 140 out of 3,000 proposed mining blocks. Many more blocks are to be granted the permit. The Myanmar Mines Law was enacted on 24 December 2015. However, the law came into force when the rules were issued on 13 February 2018. The ministry undertakes the screening process of the proposals for medium and largescale mining blocks.

As per the regulatory changes in 2018, regional and state governments are given the power to process applications for artisanal and small-scale mining blocks. Under the new regulations, foreign firms can invest in large blocks covering up to 500,000 acres (about 202,000 hectares). In contrast, local firms can invest in all kinds of blocks. Investors can seek a permit to mine minerals such as gold, copper, lead and tin. The licences cover prospecting, exploration, and production. Myanmar’s mineral exports have shown a marked increase in the previous FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period, according to data from the Ministry of Commerce. In the FY2018-2019, mineral exports were pegged at just $1.465 billion. Myanmar’s mineral products constitute 10 per cent of overall exports. About 80 per cent of mineral products are shipped to external markets through sea trade. At the same time, 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar

EXPORT earnings from the fisheries sector during the period between 1 October and 5 March in the financial year 2020-2021 touched a low of US$380.65 million, a decrease of $47.8 million from the year-ago period, according to statistics released by the Commerce Ministry. The figures stood at just $428.457 million during a year ago period. Myanmar Fisheries Federation (MFF) expected to earn more than $800 million from fishery exports in the FY2019-2020, and it reached a target. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union.

Myanmar’s fishery exports have slightly declined over the past months, owing to the COVID-19 impacts and the current trade delay amid the political changes. Additionally, the Food and Agriculture Organization (FAO) and the World Health Organization (WHO) issued guidelines to ensure food safety during the COVID-19 pandemic in April 2020. The permitted companies are advised to carry out food safety plans, follow the WHO Fishery exports plunge to $380.65 mln in 2020-2021FY and FAO guidelines, formulate the safety management system, and suspend the exports if any suspicious foodborne virus or virus infection risk are found in the products. They can resume the exports once the products meet food safety criteria set by the General Administration of Customs of China’s People Republic (GACC).

China is the second-largest buyer of Myanmar’s fishery products, accounting for US$254 million out of the overall fishery export value of $850 million in the financial year 2019-2020. The federation expects to reach a fishery export target of US$1 billion in the current FY2020-2021. The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes that meet international standards and adopting advanced fishing techniques. To ensure food safety, the foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates. To meet international market standards, fishery products must be sourced only from hatcheries that are compliant with GAqP.

The MFF works with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Processors can screen fishery products for food safety at ISO-accredited laboratories under the Fisheries Department. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY, 580,000 tonnes worth over $730 million in the 2018-2019FY and $847.5 million, according to the Commerce Ministry.

An MFF official said the federation had asked the government to tackle problems faced in exporting farm-raised fish and prawns through G2G pacts and ensuring smooth freight movement between countries to bolster exports. Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP). Its fishery production, including shrimps and saltwater and freshwater fish, is far better than the regional countries. If the government can boost processing technology, it will contribute to the country’s economy and earn more income for those stakeholders in the supply chain, Yangon Region Fisheries Department stated.

Source: The Global New Light of Myanmar

MYANMAR’S trade with foreign countries through land borders reached over US$4.84 billion as of 5 March in the current financial year (FY) 2020-2021, which started on 1 October, according to the figures released by the Ministry of Commerce. From 1 October to 5 March of 2020-2021FY, the total border trade value amounted to $4.836 billion, a decrease of $86 million compared with that of the same period last FY when it amounted to $4.92 billion.

The country’s export via land borders amounted to $3.12 billion while its import shared $1.72 billion during the period. Muse topped the list of border checkpoints with the highest trade value of $2.28 billion, followed by Myawady with $549 million. The country conducts border trade with neighbouring China through Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maese crossings, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border posts, respectively.

From 1 October 2020 to 5 March of this FY, the country’s foreign trade totalled over $4.84 billion, while its sea trade valued $8.71 billion, according to the ministry. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufactured goods and others while capital goods, intermediate goods and consumer goods are imported to the country.

Source: The Global New Light of Myanmar

ABOUT 1,300 trucks of watermelon are now stranded in the Muse 105th-mile zone, and 700 trucks pass the cross-border route between Myanmar and China. Consequently, watermelon supply exceeds the demand, leading to possible market failure, Khwar Nyo Fruit Depot warns. About 250 trucks of watermelon daily enter the Kyinsankyawt checkpoint. In comparison, about 100 trucks loaded muskmelon are flowing into Pan Hseng and Wan Ding every day. There is no market equilibrium. Furthermore, a transport delay affects the quality of the fruits.

As a result of this, the traders are encouraged to keep market balance and maintain the quality, Khwar Nyo Fruit Depot stated. China shut down the post on 25 and 28 February without a specific reason, resulting in 1,300 watermelon trucks stranded in the 105th-mile zone. A truckload of watermelon (855 variety) fetches 45,000-65,000 Yuan at present. Myanmar’s watermelon market earlier relied only on China. Myanmar shipped 45 tonnes of seedless watermelon to the Dubai market in December 2020 and January 2021.

After the country achieves success in the Dubai market, Myanmar plans to expand its market to Hong Kong SAR, UAE, and Qatar. On 5 January 2021, 105th mile Fruit Wholesale Centre released a statement that the number of watermelon and muskmelon trucks for exports is to be set to govern the market. During the previous financial year, the growers and the traders suffered the loss due to the price instability and transportation difficulties triggered by the COVID-19. Watermelon and muskmelon will be harvested up to Mayend across the country, except Kayah and Chin states. Myanmar yearly exports over 800,000 tonnes of watermelon and about 150,000 tonnes of muskmelons to China, the association stated.

Source: The Global New Light of Myanmar

The agricultural exports unexpectedly surge over the past five months even though traders face transaction problems due to the closure of private banks. The agricultural exports have topped US$2.49 billion as of 5 March 2021 in the current financial year since 1 October 2020. The figures reflect a significant rise of $765.74 million this FY. The agro-exports soared from $1.72 billion in the corresponding period of the 2019-2020 FY. According to the trade figures released by the Ministry of Commerce.

Myanmar’s agricultural exports rose regardless of the coronavirus’s impact on foreign demand for other export groups and political instability. Private banks’ closure forced the traders to turn to the operators running ‘hundi’, an informal money transfer system, to make transactions in the border trade. At present, some ocean liners suspended cargo transport from Myanmar in recent days. The cargo transport will double or triple if we conduct the trade with small ships. It could harm the export sector somehow, according to Myanmar Mercantile Marine Development Association.

In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports. The agricultural sector’s top export items are rice and broken rice, pulses and beans, and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro-products are also shipped to other countries. Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand.

The country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. Contract farming systems, regional and state agriculture departments, exporters, traders, and some grower groups are required to meet production targets, said an official from the Agriculture Department. The Commerce Ministry is working to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions. 

Source: The Global New Light of Myanmar

Sino-Myanmar border trade has registered a rise of US$227.37 million between 1 October and 5 March in the current financial year 2020-2021 amid the political changes, according to the Ministry of Commerce. As of 5 March 2021, Myanmar’s exports to China through the land border were valued at $1.9 billion, while imports are worth $897.8 million. The value of Sino-Myanmar border trade via all five border posts touched over $2.89 billion in the current FY, which significantly soared from over $2.66 billion recorded in the year-ago period, indicated the Ministry of Commerce’s data. The increase in trade is attributed to the extending trading hours at Muse-Man Wein and Kyinsankyawt checkpoints. Furthermore, Pan Hseng (Kyukok) and Wan Ding border posts also gave the green light to fruit trucks under the driver substitution system.

This FY, border trade values totalled $2.28 billion through the Muse border, $123.3 million via Lweje, $274.936 million via Chinshwehaw, $204.8 million via Kampaiti, and over $5 million via Kengtung. The Commerce Ministry’s data showed a rise in trade value through all those border posts. Muse is an essential border in Myanmar and handles an enormous volume of trade. But at times, it has experienced a sharp drop in trade on account of China clamping down on illegal goods, resulting in a halt in the trade of agricultural products. Moreover, the COVID-19 impacts slow the trade last year. In a bid to contain the spread of coronavirus on the border, China banned border crossing. Shortly after that, about 50 drivers are allowed to pass the crossing under the driver substitution system. Those drivers are, however, tested every three days.

As a result of this, China included them in the vaccination programme, covering more than 40 Myanmar truck drivers, vice-chair of Muse rice wholesale centre said. In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the related departments and the Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts. The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s MOC is trying to boost exports of rice, broken rice, agro-products, fruits and fisheries to China through negotiations. Myanmar exports agricultural products, including rice, beans and corns, and fishery products such as crab, prawn, and others. Furthermore, Myanmar’s natural gas export to China is also conducted through the Muse-Ruili border. The raw CMP materials, electrical appliance and consumer goods are imported into the country.

Source: The Global New Light of Myanmar

The value of Myanmar’s bilateral trade with the neighbouring country Thailand through the land border has registered a decrease of US$452 million between 1 October and 5 March of the current financial year 2020-2021 as against a year-ago period, the Ministry of Commerce-issued statistics indicated. The ministry reported exports surpassed imports in trade with Thailand this year, with exports reaching over $985.6 million and imports valued at over $454 million, totalling $1.4 billion. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $1.89 billion. Following some traders tested positive for COVID-19, some border posts were temporarily halted last year.

At present, fruits and agricultural products such as cucumber, mango, tomato and vegetable, fishery products, building materials and other pharmaceutical-related goods and equipment can be traded. Myanmar-Thailand friendship bridge No. 2 is also open for trading. The halt in trading undoubtedly harmed the traders and truck drivers from both sides, said a trader from Myawady. During the last budget year, Myanmar has increasingly exported corns to Thailand through the Myawady border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border posts between Myanmar and Thailand during October and May period in the FY2019-2020, an official of the Ministry of Commerce said.

At present, Myanmar exports the corn to Thailand through Myawady and Tachilek land borders. About 5,000-6,000 tonnes of corn are daily sent to Thailand through Myawady, while the Tachilek border does not regularly export. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff. Thailand imposed 73 per cent of tax on corn import to protect their growers’ rights if the corns are imported during the corn season of Thailand as per the World Trade Organization notification regarding corn import of Thailand, said a corn exporter.

Myanmar intends to reach an export target of one million tonnes of corns to Thailand this year, said U Min Khaing, chair of the Myanmar Corn Industrial Association. Additionally, exports of natural gas from the Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous years. This year, gas exports via the Hteekhee border drastically fell. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Htikhee, Myeik, Mawtaung and Maese.

Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. The value of border trade stood at $159.27 million via Tachilek, $549.48 million via Myawady, $159.8 million via Kawthoung, $62.565 million via Myeik, $501.97 million via Hteekhee and $6.9 million via Mawtaung. Maese border post has not witnessed any trade yet. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring country. 

Source: The Global New Light of Myanmar

THE total border trade value exceeded US$4.16 billion in the first five months of the current financial year, up over $19 million compared with the same period last year, according to the Ministry of Commerce. Till 19 February of 2020-21FY, the total border trade amounted to $4.16 billion, up to $19 million compared with the last year’s figure of $4.14 billion.

The entire border trade value included $2.88 billion in export and $1.28 billion in import. The trade volume at Muse border trade on the China-Myanmar border exceeded $2.18 billion, down over $208 million compared with the same period last year. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others to foreign trade partner countries.

In contrast, capital goods, intermediate goods and consumer goods are imported into the country. Myanmar has opened 18 border trade camps. The country conducts border trade with neighbouring China through Muse,
Lweje, Kampaiti Chinshwehaw and Kengtung, with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maese gates, with Bangladesh via Sittwe and Maungtaw, and with India through Tamu and
Reed border crossings respectively.

Source: The Global New Light of Myanmar