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Myanmar’s border trade reaches $5.6 bln in first six months of FY

Myanmar’ trade with foreign countries through border posts reached US$5.6 billion as of 2 April in the current financial year 2020-2021, which started in October, according to the figures released by the Ministry of Commerce. During the period, the country’s export via land borders amounted to $3.7 billion while its import shared $1.9 billion.

This FY’s border trade down by over $264 million, compared to the same period of the last FY2020-2021 when it amounted to $5.9 billion, the Ministry’s figures said. Muse topped the list of border checkpoints with the most trade value of $2.5 billion, followed by Myawady with $729 million.

The country conducts border trade with neighbouring China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei borders, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed checkpoints, respectively.

From 1 October to 2 April of this FY, the country’s foreign trade has totalled over $7.8 billion while its sea trade valued at $4.1 billion, according to the Ministry’s report. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods, and others. In contrast, capital goods, intermediate goods and consumer goods are imported to the country.

Source: The Global New Light of Myanmar

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Fishery exports plunge to $448.6 mln in H1

Export earnings from the fisheries sector over the first half (1 Oct-2 Apr) of the financial year 2020-2021 touched a low of US$448.6 million, a decrease of $56.7 million from the year-ago period, according to statistics released by the Commerce Ministry. The figures stood at $505.37 million during a year-ago period. Myanmar’s fishery exports have slightly declined in H1, owing to the COVID-19 impacts and the current trade delay amid the political changes. At present, the frozen fish export market in Mon State came to a halt. Therefore, some fish are processed into dried fish for the domestic market. Saltwater fishing businesses this year might suffer loss, a fishing entrepreneur said.

The current political climate negatively affects the fish market. Political stability plays a crucial role in economic growth, including the fishery sector. Following the drop in exports, the prices of fish and prawn also drop in the domestic market. 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. Additionally, Food and Agriculture Organization (FAO) and 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 guidelines of WHO and FAO, 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 the People Republic of China (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 year2019-2020. 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. The foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates to ensure food safety. Fishery products must be sourced only from hatcheries compliant with GAqP to meet international market standards. 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 ones. If the country can boost processing technology, it will contribute to its economy. It will also earn more income for the stakeholders in the supply chain, stated Yangon Region Fisheries Department. 

Source: The Global New Light of Myanmar

Foreigners hold over 4.5 million shares in equity market so far

According to statistics released by the exchange, foreign investors have purchased 4,502,760 shares of four listed companies on the Yangon Stock Exchange (YSX) as of 9 March 2021. The Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. At present, shares of six listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd, and Ever Flow River Group Public Co., Ltd (EFR) — are available for local investors for trading. FMI, MTSH, TMH and EFR accepted foreign shareholding, and FPB is for block trade only. The foreign shareholding ratio of the companies on the exchange, except FMI, is less than one per cent.

The upper limit for FMI’s foreign shareholding amount is at 14 per cent, with 4,635,357 shares. The foreign investors are about to reach the limit for shareholding. Consequently, the status of buy order acceptance is suspended on 1 December 2020. As of 9 March 2021, foreigners hold 4,458,136 shares of FMI, 32,054 shares of MTSH, 5,445 shares of TMH and 7,125 shares of EFR. The SECM, under the Ministry of Planning and Finance, issued a notice on 12 July 2019, announcing that foreigners would be allowed to invest in shares listed on the YSX.  After opening bank and securities accounts, an investor can send buying/selling orders under the stock trading rules stipulated in the Trading Business Regulations, the SECM notified.

Last year, the senior executive manager of the Yangon Stock Exchange highlighted how foreign participation would entail better capital inflows and a long term and sustainable investment. It would also encourage good corporate governance and support market orientation, he added.
Regarding share trading, the foreign investors must strictly comply with the rules stipulated by the Central Bank of Myanmar. The security companies will monitor the daily trades of foreigners in keeping with the rules and regulations so that they do not exceed the limit set for each listed company.  Under Section 42 (a) of the Securities and Exchange Law and Section 4 of the Trading Participant Business Regulations, the YSX has granted trading qualifications to the following securities companies — Myanmar Securities Exchange Centre Co. Ltd. (MSEC), KBZ Stirling Coleman Securities Co. Ltd. (KBZSC), CB Securities Limited (CBSC), AYA Trust Securities Co. Ltd. (AYATSC), KTZ Ruby Hill Securities Co. Ltd. (KTZRH), and UAB Securities Limited (UABSC).

According to the stock exchange, investors have to send their buy or sell orders to the YSX through the securities companies who have been issued a license by the SECM as well as a trading qualification by the YSX. The YSX was launched four years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge.  Amid the COVID-19 crisis, Myanmar’s securities market has been able to continue operating without stopping trading. 

Source: The Global New Light of Myanmar

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Heightened coronavirus measures in China hurts watermelon exporters

As China is stepping up the coronavirus containment measures in the border areas, watermelon exporters are suffering. Some watermelon trucks are returning from the Myanmar-China North-East border checkpoint as the watermelon is not traded, and the truck drivers no longer bear the cost and tariff on the China border. Additionally, starting from 20 April 2021, the coronavirus test is mandatory for cross-border traders. Following the coronavirus cases on the border in Ruili of China to restrict border access at the Mang Wein checkpoint. Ruili-Kyalgaung river crossing is also closed. Furthermore, China imposed the lockdowns on Kyalgaung and Ruili cities. Kyinsankyawt and Wan Ding posts also restricted trading, truck drivers said. Around 400 trucks of watermelon and muskmelon previously entered China via Kyinsankyawt and Wan Ding posts.

For now, only a hundred trucks loaded with other goods are seen in the border area. Watermelon and muskmelon will be harvested up to May-end across the country, except Kayah and Chin states. Therefore, the cross-border fruit depots suggest that the growers harvest the watermelon depending on the market condition. As border post is sluggish amid the coronavirus resurgence, many watermelon trucks are stranded in Muse. Consequently, watermelon supply exceeds the demand, leading to possible market failure, Khwar Nyo Fruit Depot warned. A truckload of watermelon (855 variety) fetches 45,000-65,000 Yuan in mid-March. At present, watermelon price is drastically plunging, and it does not even cover the truck freight rate.

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, the UAE and Qatar, the association stated. 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. 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

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Maritime trade drops by $4.3 bln in H1

The value of Myanmar’s maritime trade over the first half (1 Oct-2 Apr) of the current financial year 2020-2021 sank to US$10 billion, a drastic drop of over $4.3 billion as against the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $4.06 billion, imports have registered at $6.116 billion. Compared to the same period in the 2019-2020 fiscal year, imports fell by $2.78 billion, while exports reported a decrease of $1.53 billion.

Meanwhile, the value of trade through the border this FY was estimated at $5.6 billion, a decrease of $264 million as against a year-ago period. 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 the trading time to contain the spread of the virus. For maritime trade, disruption in the logistic sector, the suspension of some ocean liners and the pandemic-induced container shortage scaled-down the maritime trade somehow.

The country’s total external trade touched a low of $15.78 billion, which plunged from $20.36 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion from an overall trade value of $36 billion in the last FY 2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products. At the same time, it imports capital goods, consumer goods, and raw industrial materials.  The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

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Myanmar-India border trade surges this FY

Border trade between Myanmar and India hit US$155 million as of 2 April in the current financial year 2020-21 ending September, said a statistical report of Myanmar’s Ministry of Commerce. The border trade during the period increased by $78.8 million compared with the same period of the previous fiscal year. Myanmar-India total border trade was shared by Myanmar’s export of $154 million and its import of $0.7 million.

Some of the border trade zones between Myanmar and India closed the border in March 2020 due to COVID-19, including the crossing between Tamu township and the Indian town of Moreh. However, the border trade resumed on 6 January as COVID-19 infections in the area have declined. Most India-Myanmar border trade passes through the Tamu crossing and the Reed crossing in Chin State. In contrast, a significant part of the bilateral trade is delivered through ships.

According to the Ministry of Commerce, the total trade volume from Tamu border trading post in FY 2020-2021 was $31.15 million, with exports valued at $30.76 million and importing $0.39 million. Total trade volume via the Reed border trade post in the same period was $124 million, with exports valued at $123.66 million and import of $0.34 million. Myanmar mainly exports to India fruits and vegetables, marine and forestry products while importing from India the medicines, electronic products, motorbikes, cotton yarn, non-alloy steel and other construction materials.

Source: The Global New Light of Myanmar

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Trade deficit sharply narrows in H1 on falling imports

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

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Man Wein border closure affects Muse trade

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

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Agro exports soar to $2.95 bln in current FY

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

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Myanmar-Thai border trade reached $1.9 bln in FY2020-21

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