Soap, detergent powder and toothpaste imported through the Myawaddy border have been suspended

Myawaddy Trade Zone OSS Customs Department has sent the instructions to business owners to suspend import of Thai-made soap and toothpaste into the domestic market through Myawaddy on the Myanmar-Thailand border starting from 4 June,2021.

The Department of Commerce direct to reduce foreign exchange, and to protect the market competition, thus among the imports that are allowed to be imported from the border areas (ITC) card, imports of soap, detergent powder and toothpaste has been instructed to suspend according to the notification on (4-6-2021). The Department of Commerce has temporarily banned imports of four food stuffs including varieties of soft drinks, coffee mixes and condensed milk made in Thailand, from border crossings since May 1,and direct to import only by sea.

About 50 percent of the Myawaddy border traders say, among Thai imports into the domestic market, assorted soft drinks, coffee tea mix; and condensed milk to reduce foreign exchange; among the imports that are allowed to be imported from the border areas (ITC) card to protect the market competition on the products, importation of soap, detergent powder and toothpaste will be suspended from (4-6-2021). The suspension of four Thai-made food items across the border has hurt traders at the Myawaddy border, as well as boosted domestic consumption.

Source: Daily Eleven


MGMA reports 564 factories actively running, 177 inactive as of May

The Myanmar Garment Manufacturers Association (MGMA) reported in May newsletter that 564 factories are inactively running the business, and 177 has no operation. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes a majority of the foreign investment with 302 factories. The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestsellers starts to resume new orders. Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, Germany Embassy Yangon’s Facebook posted.

Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis. It contributes. to the country’s GDP to a certain extent. Myanmar’s garment export exceeded US$1.4 billion in the first five months (Oct-Feb) of the current financial year 2020-2021, according to the data released by the Ministry of Commerce. Myanmar’s manufacturing sector has recorded an accelerated downturn owing to the factory closure triggered by the coronavirus pandemic and the political changes. The exports of finished industrial goods drastically fell to US$4.43 billion over the first half (1 Oct-21 May) of the current financial year 2020-2021, an extreme drop of $1.69 billion compared with the corresponding period of the previous FY, according to the Ministry of Commerce.

As per figures provided by the ministry, the exports of finished goods totalled $6.13 billion during the same period in the 2019-2020 FY. The IHS Markit Myanmar Manufacturing Purchasing Manager’s Index, a composite single-figure indicator of manufacturing performance, signalled the sharpest deterioration in manufacturing business conditions in May. The higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, causing constraint to complete the order. It can do more harm to the foreign investment sector if the problem is still not resolved. According to HIS Markit’s statement, the PMI measures the output, new orders, performance, delays in the manufacturing process and stocks of both inputs and finished goods. More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with an employment of over 400,000 workers. However, a third of garment industry workers are out of jobs in difficult times.

Source: The Global New Light of Myanmar


Japan-based ACECOOK instant noodle production to be suspended temporarily from end of June due to difficult access to raw materials and cash flow problems

Japan-based ACECOOK Myanmar Co., Ltd, which operates in the Thilawa SEZ, announced that it will be suspended from the end of June due to financial problems and difficulties to access to raw materials. ACECOOK Myanmar Co., Ltd has been distributing healthy and delicious instant noodles to the people of Myanmar since 2014. Due to the current situation in Myanmar, ACECOOK Myanmar Co., Ltd has difficulty in obtaining raw materials, difficulties in manufacturing; ACECOOK Myanmar Co., Ltd will immediately suspend the production and distribution of instant noodles from June 30, 2021 due to cash flow problems.

Therefore, starting from June 1, 2021, all office activities will be suspended and the social network (ACECOOK Myanmar Facebook Page) will no longer be able to reply to messages and answer phone calls. As of March 2021, there are 96 factories operating in Thilawa SEZ Zone A. There are a total of 122 operations in Zone B, with a total of 122, according to the Myanmar Special Economic Zone Central Committee. About $ 1.4 billion in foreign investment has flowed into the Thilawa SEZ in five years, according to the Directorate of Investment and Company Administration (DICA).

From the 2016-2017 fiscal year to the end of December 2020, up to 60 investment companies from 18 countries have invested in the Thilawa SEZ. The total investment of these projects is $ 1.382 billion. During that period, Japan invested the largest amount in the Thilawa SEZ with $ 447.367 million. Singapore is the second largest investor with $ 415.423 million. Thailand is the third largest investor with $ 175.588 million. The foreign investment in Thilawa SEZ is mainly in six sectors, including manufacturing, trade, other services, transportation, hotel and tourism and real estate.

Source: The Global New Light of Myanmar