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Myanmar’s foreign trade soars to $5.5 bln over past two months

MYANMAR’s external trade between 1 April and 3 June of the 2022-2023 Financial Year tremendously rose to US$5.5 billion, reflecting a sharp increase of $546 million as against the year-ago period, according to the Ministry of Commerce. The figures surged from $4.96 billion in the corresponding period last year. Myanmar’s export was worth over $2.65 billion whereas the country’s import was valued at $2.85 billion over the past two months.

The border trade dropped owing to transportation difficulties amid the COVID policy and political changes, with a decrease of $542 million as against the year-ago period. However, the maritime trade registered a significant rise of $1.08 billion during the April-May period. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while 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 focusing on reducing the trade deficit, export promotion, import substitution and market diversification. The external trade stood at $15.5 billion in the past mini-budget 2021-2022 (October-March) period and $29.58 billion in the 2020-2021FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

Manufacturing sector only source of FDI in past two months

Foreign direct investments were pumped into the manufacturing sector only in the past two months (April-May) of the 2022-2023 financial year, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Seven enterprises from China, Hong Kong SAR and Japan put estimated capital of US$13 million into the manufacturing sector in the past two months. The existing enterprises from China (Taipei) also increased $2 million in investments in the manufacturing sector.

The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to the Myanmar Investment Commission. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination program for the workers, as per the I HS Markit’s September report.

In a bid to boost factory productivity with a healthy and nutritious workforce in the garment industry, Mobile Medical Check to garment workers took place from 9 to 13 May 2022 in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar. Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping the estimated capital of $202.667 million. 

Source: The Global New Light of Myanmar

A strategic roadmap for the revival of Myanmar’s tourism sector (2021-2025) has been drawn up: MoHT Union Minister

A strategic roadmap for Myanmar tourism recovery (2021-2025) has been drawn up that includes 18 strategies and 93 actions in the post-COVID-19 pandemic, and the current, medium and longterm implementation plans will be implemented according to this policy, said Union Minister for Hotels and Tourism Dr Htay Aung at the 34th Joint Commission for East Asia Pacific and South Asia held by the World Tourism Organization. The Ministry of Hotels and Tourism is working to develop Myanmar’s tourism industry, and since 2011, Myanmar’s tourism industry has grown rapidly.

According to compiled statistics, in 2019, more than 4.36 million tourists arrived. However, due to the COVID-19 pandemic, only 0.9 million passengers arrived in 2020 and only 0.13 million in 2021. The Union Minister said that Myanmar’s tourism industry, like other countries, was affected by the COVID-19 crisis, and is trying to recover as soon as possible. Efforts are being made to turn pandemic challenges into opportunities to become more resilient and revitalize tourism in line with the changing potential of the tourism industry. He added that Myanmar has set policies for the systematic and long-term development of tourism.

Enchanting Myanmar Health and Safety Protocols (HSP) certification for the health and safety of hotels and tourism-related industries to build tourism trust in Myanmar is being provided at the region/state level, national and international levels, and the Barrier Free Tourism Plan 2022-2025 is being drawn up to include all in the tourism industry. Furthermore, tourism awareness activities are being carried out to increase the capacity of those involved in tourism. The Union minister said at the meeting that foreign tourists are allowed to stay in accordance with the rules of COVID-19 as domestic and international flights are being reopened and visa services are resumed currently. The meeting was chaired by the Maldives, vice-chaired by Malaysia and held together with the Maldives Tourism Golden Jubilee ceremony. The meeting was attended by Tourism Ministers from member countries of East Asia and the Pacific and South Asia, senior officials and representatives from partner organizations. In line with this meeting, the World Summit on Community-Based Tourism will be held on 15 and 16 June.

Source: The Global New Light of Myanmar

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Tachilek trade camp earns $2.590m in export in last week of May

The Tachilek trade camp on the Myanmar-Thai border earned $5.476 million in trade exporting $2.590 million worth of products and importing $2.886 million worth of products between 21 and 27 May, according to the data of the Ministry of Commerce.

The figures showed a decrease of $0.296 million in exports and $0.153 million in imports compared to the previous week and the trade volume dropped about $0.143 million. The export volume declines in the coffee bean, rubber, tea leaf, dried ginger and other products and the import volume of finished metal products, construction materials, electricity supplies, oil and gas, iron sheet, tire and inner tube are high.

The country earned more $2.386 million in exports and $1.910 million in imports when compared to the same period of the previous year and the trade volume rose to $4.296 million, according to the Tachilek trade camp. 

Source: The Global New Light of Myanmar

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Export price of Seintalone mango to China plunges

Export prices of the Seintalone mango to China dropped to about 130 yuan per 16-kilogramme basket at maximum and 60 yuan at minimum, said Sai Khin Maung from the Khwanyo fruit wholesale centre. The price of Seintalone mangoes touched a high of 160 yuan per basket at the beginning of the season.
“Those Seintalone mangoes from Yaksawk, Pinphyit, Pindaya, Taungtalone and Taungni Pa-O areas in southern Shan State fetched high price this year. The price hit the maximum of 160 yuan at the beginning of the harvest season. The price went down to the maximum rate of 130 yuan and the minimum of 60-70 yuan per basket,” he said. At present, Seintalone from Katha and Htigyaing areas are increasingly flowing into the market. Yet, transport delays and weak points in handling perishable commodities make some mangoes spoil and rot faster.

This way, the price plummeted, he elaborated. Only a small volume of Shwehintha mango variety is left to be shipped for now. The price is around 100 yuan and below. Additionally, China’s Seintalone mango will enter the market in the last week of June. It is hard for Myanmar mango to acquire market share. Therefore, the traders are advised to observe the market thoroughly before shipment, Sai Khin Maung expressed his opinion. “Market share for Myanmar’s mango will shrink owing to the entry of China’s Seintalone mango at the end of June. Traders have to closely observe the market condition. Quality and weight evaluate the price. If fresh mango meets quality criteria, they will be offered high price in China’s market,” he added.

Mango growers slashed agricultural input costs and caused quality degradation during this mango season. Therefore, some mango had postharvest diseases such as stem-end rot and black spot in the fruit. Consequently, Seintalone mango received a lower price in China due to poor quality, and some traders cannot cover the general cost. Although there are about 200 mango varieties in Myanmar, Seintalone, Shwehintha, Padamyar Ngamauk, Yinkwe and Machitsu varieties are primarily and grown. The foreign market prefers Seintalone varieties. Ayeyawady Region possesses the largest mango plantation acres, having about 46,000 acres. Bago Region is the second-largest producer with 43,000 acres and Mandalay has 29,000 acres of mango. There are over 24,000 acres in Kayin State, over 20,400 acres in Shan State and over 20,000 acres in Sagaing Region, according to the association. 

Source: The Global New Light of Myanmar

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2.2 million students received 1st dose of COVID-19 vaccines

A total of 2,225,955 students aged from 5 to 12 years old in basic education schools were vaccinated for the first time from 2 to 10 June upon opening of the schools, according to the Ministry of Health.

As a result, 61.47% of the target group has been vaccinated. The COVID-19 vaccine, given to students between the ages of 5 and 12, is a Sinopham vaccine, the same dose given to adults.

According to the statement, the Ministry of Health will continue to vaccinate school-age children between the ages of 5 and 15 once they have been vaccinated. In Myanmar, approximated population for students aged 5 to 12 is about 3.62 million, and out-of-school children aged 5 to 15 is about one million.

Source: The Global New Light of Myanmar

Myanmar Industrial Port provides services for 25-35 cargo ships every month to facilitate trade

In order to facilitate exports and imports, Myanmar Industrial Port (MIP) is reportedly handling 25 to 35 cargo ships per month. Myanmar delivers agriculture and livestock products, finished industrial goods and other goods to external markets via the sea trade. The smooth transition of cargo ships and containers is contributing to the mechanism of economic development. There are five important terminals of Yangon Port and two Thilawa terminals in maritime trade in Yangon. International trade depends on 90 per cent of the sea trade during the COVID-19 pandemic.

Myanmar’s government endeavoured to ensure trade facilitation and maritime trade returned to normalcy through a concerted effort. MIP is providing 24-hour services for six ocean liners including Myanmar Five Star Line, with over 700 staff and over 200 wage labourers. MIP gave the go-ahead for export cargo with the necessary documents from Myanma Port Authority. Then, the Customs Department proceeded to the screening process for exports. For the imports, cargo unloaded from ships is temporarily piled up and the owners can withdraw them after the tax payment.

“MIP is delighted with its 24-hour nonstop service to ensure the fast and reliable cargo handling and withdrawal of the containers under the supervision of Myanma Port Author- ity. Three X-ray machines scan the goods and the goods can be withdrawn once they pass the Myanmar Customs. If we move the screening process of exports to Dry Port, it would handle more containers up to nearly 1,000 from over 500. It will increase revenues and make trade faster. That kind of constructive approach in line with global standards in maritime and port will bring about the benefits to the State”, said an official of MIP.

A 20-feet container is allowed to keep at MIP for seven days with daily container service charges of US$2-4. If they remain stranded at the Port for one year, they will be publicly auctioned off. Those containers unclaimed at the Port can wreak havoc on the cargo handling process and trade flow. Myanmar Port Authority and Myanmar Customs Department are implementing a plan to clear those abandoned containers through public auction at Yangon Port terminals. Between January and December 2021, MIP handled over 2,110,000 (20-40 feet) containers and over 307,000 Twenty-foot Equivalent Units. It provided safe and fast cargo loading and unloading services for 230 cargo ships. 

Source: The Global New Light of Myanmar

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Official cattle export channel to China suspended for over 18 months

Myanmar’s cattle export to China stopped for over one and a half years, said U Soe Naing, chair of the Mandalay Region Cattle Exporters Association. The official market of Myanmar’s live cattle export to China has been suspended since late 2020. “The official market came to an abrupt stop in late 2020. Myanmar has halted the live cattle trade. China does not give the green light for live cattle trade,” said U Soe Naing.
Nonetheless, the black market of live cattle is booming in border areas. The cattle seen in China’s border areas originate from Myanmar. The cattle are daily traded on the black market.

For legitimate trade, China permits live cattle import only after ensuring the cattle are free from 20 diseases including foot and mouth disease, along with vaccination certificates, health certificates, and farming registration certificates. Those import criteria do not matter on the black market. Myanmar’s live cattle export relies heavily on the China market due to a good price although Myanmar has other external markets such as Laos, Thailand, Malaysia and Bangladesh. The authorities concerned need to regulate the market and coordinate the needs to generate revenue and increase the income of the cattle farmers and traders. Live cattle export was allowed in late 2017, with a view to preventing illegal exports, creating more opportunities for breeders and promoting their interests.

According to the 2018 cattle census, there are 11.5 million heads of cattle in the country, with 1.8 million buffaloes and 9.7 million cows and bulls, according to the Ministry of Agriculture, Livestock and Irrigation. Additionally, about 1.1 million cattle are mature enough to be placed on the market per year. About 400,000 cattle are required for local consumption, while the remaining are sent to export markets. The Ministry of Agriculture, Livestock and Irrigation will also strive for investments in dairy farming and value-added production businesses. Myanmar shipped US$360 million worth of animal products including cattle to the external markets in the 2018-2019 financial year. The value of animal product exports dropped by $100 million in the 2019-2020 financial year as against a year-ago period, following the negative impacts of the COVID-19.

Source: The Global New Light of Myanmar

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Myanmar to export 2 mln metric tons of rice this FY

Myanmar exports about 200,000 tonnes of rice per month and expects to export two million metric tons during this financial year by cooperating with partner organizations, according to the Myanmar Rice Federation (MRF). The value-added rice is mainly exported to the European market. Although there is no impact on foreign exchange, it affects the rice export to a little extent and so officials make arrangements to overcome certain challenges. Myanmar exports rice to the EU, China, some ASEAN countries and Bangladesh.

There is broken rice demand for export, and the bran and broken rice are provided for the local livestock industry and breweries. Myanmar’s broken is exported to the EU and China most and also to Bangladesh. It still needs to maintain the local demand and export volume. In 2021, the country faced difficulties in currency circulation but this year the situation is better than last year and it hits the rice and farming development sector.

The MRF and rice merchants carried out arrangements regarding trade flows, maintaining a balance between the areas that have the surplus and where are in need and leftover rice in regions to achieve stable rice and broken rice market in July and August. As the local rice price was high at K30,000 per bag for high fertilizer prices, transport charges and a decline in rice mill operations. The prices of broken rice and sticky rice were also on the rise and so the officials made arrangements to gain a stable rice market in the monsoon. The MRF is making efforts to ensure rice and broken rice export, local consumption and a stable market and expects to export two million metric tons this financial year, according to the federation.

Source: The Global New Light of Myanmar

KBZ bank reoperates ATMs in four cities, including Yangon

The Kanbawza Bank announced on 9 June that cash can be withdrawn at 47 KBZ ATMs in four cities, including Yangon. In Yangon, a maximum amount of K300,000 per week can be extracted from the ATMs located at the Kamayut Branch-1-2U, Sule Pagoda Road Branch, Kyaukmyaung Market M-1, 9th-Mile (U3), KTL-M-2, MICT Park Branch (U2), U Wisara Road, Junction City Branch, Sakura Residence, City Mart 6th-Mile, Ocean 9th-Mile, Ocean East Point, Yankin Centre and Super One Kyaikkasan and Hledan Centre. In addition, customers can also withdraw cash from their MPU Debit (ATM card), or by the mBanking Cardless Withdrawal at designated KBZ ATMs in Mandalay, Nay Pyi Taw and Taunggyi. The announcement also said that the list of the expanded ATMs which can issue cash will be announced in a timely manner. Currently, 15 places in Yangon, ten places in Mandalay, 13 places in Nay Pyi Taw and nine places in Taunggyi are set to withdraw cash from ATMs.

Source: The Global New Light of Myanmar