Daily Archives: April 20, 2021

MYANMAR’S trade gap has significantly narrowed to US$168.202 million in the first half of the current financial year 2020-2021 from just $1.29 billion registered in the corresponding period of the 2019- 2020FY, according to data provided by the Ministry of Commerce. The drastic drop in imports is a contributing factor to a decrease in trade deficit this year. Between 1 October and 2 April in the current FY, Myanmar’s external trade drastically plunged to $15.78 billion from $20.36 billion recorded in the year- ago period. While exports were estimated at $7.8 billion, imports were valued at $7.9 billion this FY. Compared to the FY2019-2020, exports showed a drop of over $1.7 billion, while imports fell by $2.85 billion. Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and limited trading time to contain the virus’s spread.

For maritime trade, disruption in the logistic sector, some ocean liners’ suspension, and the pandemic-induced container shortage somehow scaled down the maritime trade. The lack of money in circulation due to the closure of private banks decreases economic efficiency, an exporter stressed. Political uncertainties, reduced mobility derail the main contributors to the economy, and certain restrictions on banking, businesses’ operations, logistics, and network services, World Bank stated. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is endeavouring to boost export under World Trade Organization’s rules, enhance value-added production and competitiveness, reduce export barriers and provide trade financing services.

The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and import substitution Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018FY, $5.3 billion in the 2016-2017FY, and $5.4 billion in the 2015-2016FY, according to statistics released by the Central Statistical Organization. Under the National Planning Law for the Financial Year 2020- 2021, Myanmar intends to reach the export target of US$16 billion and import at $18 billion. The Ministry of Commerce has adhered to its policy reform depending on the State and people’s requirements. Moreover, a series of trade liberalization and openness for policy development have been introduced for enhancing a more viable trade environment. The private sector plays a prominent role in Myanmar’s market-oriented economic system. The ministry is highlighting free and fair trade, ensuring product safety and quality goods and services.

Source: The Global New Light of Myanmar

Myanmar’s Muse border trade came to a standstill following the closure of the Man Wein border checkpoint triggered by the detection of the coronavirus cases in the border area, according to the Muse Rice Wholesale Centre. A Myanmar citizen who tested positive for COVID-19 was found in Kyalgaung precious stone market on 29 March. It prompted China to restrict border access at the Man Wein checkpoint, a major border crossing between Muse and Kyalgaung areas. Over 180 trucks from Myanmar struck in Kyalgaung, Yunnan Province were allowed to depart on 11 April, said Muse traders. Man Wein post has been closed down since 12:30 pm of 30 March. Man Wein is the important cross-border pointbetween Myanmar and Ruili, China.

Following the detection of coronavirus case in Kyalgaung border, the Ruili-Kyalgaung river crossing is also closed. The coro-navirus tests and vaccination are now offered in Kyalgaung, Vice-Chair U Min Thein of the Muse Rice Wholesale Centre elaborated. Consequently, there is no trade flowing in and out of the country via the Muse-Man Wein border, and Myanmar’s Muse border came to a halt. Howev-er, Kyinsankyawt and Wan Ding posts give the green light to over 400 watermelon trucks. Before the Man Wein check-point closure, Myanmar daily sent about 2,000 tonnes of rice and 40,000 broken rice bags to China. This Man Wein post plays a pivotal role in trading between Myanmar and China.

Myanmar exports rice, broken rice, onion, chilli pepper, pulses and beans, food commodities and fishery products to China. In contrast, electrical appliance, equipment, medical device, household goods, construction materials and food products are imported into the country via Man Wein. Before the COVID-19 pandemic, about 500 trucks were daily flowing in and out of the Myanmar China border Man Wein. At present, Man Wein post remains closed amid the height-ened coronavirus containment measures. The closure of the Man Wein checkpoint wreaked havoc on the Muse trade. Trade value through the Muse land border plummeted to US$2.47 billion between 1 October and 2 April in the current financial year 2020- 2021 from $2.6 billion recorded in the corresponding period of last FY, the Ministry of Commerce’s data showed.

Source: The Global New Light of Myanmar

The agricultural exports have topped US$2.95 billion as of 2 April 2021 in the current financial year since 1 October 2020. According to the Ministry of Commerce, the figures reflect a significant rise of $809.8 million this FY, according to the trade figures released by the Ministry of Commerce. The agro exports were registered $2.14 billion in the corresponding period of the 2019-2020 FY. The agricultural exports unexpectedly surge regardless of the coronavirus’s impact on foreign demand for other export groups and political changes. At present, some ocean liners suspended cargo transport from Myanmar in recent days. The cargo transport will double or triple if people conduct the trade with small ships. It could harm the export sector somehow, according to Myanmar Mercantile Marine Development Association.

However, Myanmar’s border trade with China is steadily conducted. Around 1,000 trucks are daily seen flowing in and out of the Muse, a central cross-border post between Myanmar and China, the traders said. Myanmar is daily shipping rice, broken rice, green grams, peanuts, various pulses and beans, onion, chilli, fishery products, consumer goods, watermelon and muskmelon to China with over 700 trucks. Meanwhile, building materials, electric appliances, medical devices, summer goods, and fertilizer are imported daily with 200 trucks. The closure of private banks forced the traders to turn to the operators running ‘hundi’, an informal money transfer system, in order to make transactions in the border trade.

In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports. The chief export items in the agricultural industry 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. 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 must meet production targets, said an official from the Agriculture Department. The Commerce Ministry is working to help farmers deal with such challenges as high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions.

Source: The Global New Light of Myanmar

Bilateral border trade between Myanmar and Thailand reached over US$1.9 billion as of 2 April in the current budget year 2020-21, which started in October, according to the Ministry of Commerce. The country’s export to Thailand totalled $1.3 billion while its import shared $589 million during the period. Compared to the same period in the last FY, the financial year’s figures declined by $370. Myanmar mainly conducts border trade with neighbouring Thailand through seven border checkpoints — Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maese.

During the over sixmonth period, the Myawady land border topped with $729 million of bilateral trade. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate, coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country.

The bilateral trade between Myanmar and Thailand stood at $1.9 billion in FY2020-2021 (as of April), $5.1 billion in FY2019-2020, $5.5 billion in FY2018-2019, $2.9 billion in the mini-budget year of 2018 or transitional period from April to September this year, $5 billion in FY2017- 2018, $4.3 billion in the 2016-2017FY, $4.8 billion in the 2015-2016FY, $5.7 billion in the 2014-2015FY, $5.6 billion in the 2013-2014FY, $4.7 billion in the 2012- 2013FY, and $4.5 billion in the 2011-2012FY, according to the Myanmar Ministry of Commerce.

Source: The Global New Light of Myanmar