Myanmar manufacturing sector attracts $11 million from China in Q1 (April-June)

Seven Chinese enterprises brought in US$11.112 million into Myanmar’s manufacturing sector in Q1 (April-June) of the current financial year 2022-2023, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar drew foreign direct investments of $21.99 million in the first quarter. All the investments pumped into the manufacturing sector only. In addition to over $11 million investments by Chinese companies, two enterprises from Hong Kong SAR put $5.7 million and Japan invested an estimated capital of $3.1 million into the manufacturing sector in the past three months.

The existing enterprises from China (Taipei) also increased $2 million investments in the manufacturing sector. The manufacturing enterprises and businesses that need a large labour force of the local community are prioritized in creation of job opportunities, 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 programme for the workers, as per the HIS Markit’s September report.

In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar. Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging 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

Ux2ccW5p-01-sskm-1024x683

Export ban on Myanmar edible oil crops lifted following regular global palm oil export

Exports of Myanmar’s edible oil crops will resume as the world’s top palm oil exporters return to normalcy, according to the Trade Department under the Ministry of Commerce. Last April, the world’s top palm oil exporter Indonesia, which is one of the main oil suppliers to Myanmar, declared an export ban on cooking oil export to reduce the domestic shortage. Consequently, Myanmar temporarily suspended exports of oil crops (peanut and sesame) in order to have oil self-sufficiency. At present, the top exporters restarted cooking oil exports. This being so, Myanmar’s export ban on oil and oil crops is to be reversed.

The export reference prices will be determined in line with the rate in international seaborne trade, according to a notification dated 5 July 2022 released by the Trade Department. As a result of this, oil crops (peanuts and sesame seeds) are to be allowed for export according to the rules and regulations. On 30 June, Foreign Exchange Supervisory Committee notified the traders of the export earnings for agricultural products including oil crops to be paid in dollars. Starting from 4 July, the financial transactions for the corn, beans and oil crops have been made in dollars at the border posts between Myanmar and China.

On 14 December 2021, the Central Bank of Myanmar released a notification that the use of Yuan or Kyat in the bilateral transaction was officially allowed in the border areas between Myanmar and China to boost the bilateral cross-border trade, facilitate the trading and bilateral transaction, and increase the use of domestic currency, following the objectives of the ASEAN Financial Integration. After export earnings were earlier s`et to be paid in dollars instead of yuan, the official exchange rate against the US dollar was set at K1,850. At present, the dollar was valued at over K2,000 in the unofficial FX market, indicating a large gap in the currency exchange rate. Therefore, we have to observe the impacts on the agricultural products from this action, traders said. Moreover, exports of oil crops and cooking oil are exempted from the export licence, yet starting from 1 August, traders need to seek an export licence for those export items, according to a notification of the Trade Department on 23 May.

Source: The Global New Light of Myanmar

2022_4$largeimg_312552641

Broken rice export to China fetches high price

Broken rice export to China is making a handsome profit and does a roaring trade, said U Min Thein, vice-chair of the Muse Rice Wholesale Centre. The current market price of broken rice in the Muse area is K36,000 per 50-kilogramme bag. “The broken rice export is thriving. The broken rice is offered at K36,000 per bag in Muse (120 Yuan),” he added.

The foreign and domestic demand elevated broken rice prices. Meanwhile, the price of rice is estimated at K45,000 per 50-kilogramme bag. At present, approximately 10,000 bags of rice and broken rice are delivered to China through the Muse border. About 60,000 bags of rice and broken rice were earlier exported to China per day through the Muse border.

Between 1 April and 30 June in the 2022-2023 Financial Year, Myanmar conveyed over 550,000 tonnes of rice and broken rice to external markets. Of them, over 510,000 tonnes of rice were shipped to foreign markets through the sea trade and over 33,000 tonnes of rice sent to the neighbouring countries through land borders. Myanmar generated an income of over US$700 million from export of about two million tonnes of rice in the 2020-2021 Financial Year.

Source: The Global New Light of Myanmar

20190424_155332-mk-scaled

2,400 companies struck off register due to AR absence in H1

A total of 2,400 companies have been struck off the register during the H1 period (January-June) as they fail to submit annual returns (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). During the H1 period, 400 companies each in January, February, March and June, 300 in April and 500 in May did not file annual returns on MyCO respectively, totalling 2,400 companies which failed AR submission, according to DICA. The DICA has notified any registered company which fails to submit its AR on MyCO is to be suspended, under section 430 (F) of the Myanmar Companies Law, according to the DICA’s notification.

The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 under the Myanmar Companies Law 2017. All registered companies need to file AR on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation) under Section 97 of the law. Under Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements (G-5) simultaneously. All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending under Section 53 (A-1) of the Myanmar Companies Law 2017.

Nonetheless, many companies were suspended for failing to submit AR forms within the due date. Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns. The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days after receiving the notice, the system will show the company’s status as suspended. Companies can restore their status only after shelling out a fine of K50,000 for the AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents, totalling K250,000. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the register, according to the DICA notice.

Source: The Global New Light of Myanmar

CBM releases lists exempted from exchange regulations

The Central Bank of Myanmar released a list exempted from exchange regulations. The Foreign
Exchange Supervisory Committee held a meeting regarding Notification 12/2022 of the CBM issued in April. The list included the Woori Bank Representative Office and foreign accounts at the Myanma Foreign Trade Bank, Panjab National Bank, Yangon Representative Office, China National Oil Corporation (Myanmar Branch), Thilawa and Dawei SEZs management committee companies, Kyaukpyu SEZ Development Committee and Kyaukpyu SEZ Deep Seaport Company. The companies with ten per cent and above foreign investment, foreign direct investment and businesses in SEZs are also exempted from the exchange regulations.

Source: The Global New Light of Myanmar

triodoshippo_heroImageDesktop

Private investment called to develop six new hydropower projects

The Department of Hydropower Implementation of the Ministry of Electric Power have invited open tenders to develop six new hydropower projects with private investment. The ministry invited hydropower
companies interested in the project to be implemented in Phone In Kha, Kasan Ye, Namhmeseng, Nam Kan, Nam Tabat (Kayah) and upper Hsedawgyi.

The statement added that interested companies need to conduct feasibility reports. Tender forms will be on sale until 8 August and bids must be submitted by 18 November. Details of the tender announcement form are available at moee.gov.mm.

In Myanmar, there are 27 hydropower plants with a capacity of 10 MW and 35 plants under 10 MW. These plants produce more than 3,000 MW. It is learned that project developers can take at least three years to study the ground conditions of the project area, geological conditions, rainfall, water flow rate, water storage potential, and amount of electricity to be produced.

Source: The Global New Light of Myanmar

usdollar

Instructions made to use US dollars for border trade

The Foreign Exchange Supervisory Committee released a statement saying to use only US dollars to
trade rice, bean, corn and edible crops at Myanmar’s border trading points on 2 July. Previously, the authorities allowed Myanmar kyats instead of yuan and baht at China and Thai border trade camps and now they instructed traders to use only US dollars starting this month. The action aims to harmonize the fixed export prices and trade via the sea route, the statement said. “We have to trade as per the reference exchange rates of the Central Bank of Myanmar.

When we export to Asian countries, we have to deposit the export earnings within 45 days, and within 90 days if we export to other countries,” said U San from the Bayintnaung Wholesale Centre. Moreover, four offices of the Myanma Economic Bank and private banks were opened at Kokang Self-Administered Zone and Chinshwehaw border with the help of CBM due to the proposals of Chinshwehaw border trade points and chambers of commerce, according to Kunlong-Hopan-Chinshwehaw-Laukkai border trade chambers of commerce.

The offices of the Myanma Economic Bank, Myanma Apex Bank, AYA Bank, KBZ Bank, and United Amara Bank will be established at the Wamgli hotel hall on the Chinshwehaw border and the banking entrepreneurs can make enquiries. The yuan account opening and payment for imports/exports using yuan can be made at these offices on 4 July. The exporting earnings received from border trade must be deposited at CBM’s reference rate of K1,850 and those who fail to do so will be blacklisted and licences will be revoked. The dollar was used in border trading previously and the current system is only for the sea route trade payment system. If the CBM grants the needed dollars in full, the business persons can operate their businesses properly, said U San from the wholesale centre.

Source: The Global New Light of Myanmar

95560c944fae4fe494b6acb839e0da3b

China will play a constructive role in the interests of the people of Myanmar

MoI Union Minister U Maung Maung Ohn gives the speech at the opening ceremony of the training.
AMBASSADOR of the People’s Republic of China to Myanmar Chen Hai presented two million doses of
COVID-19 vaccines, which were donated to Myanmar, to Deputy Prime Minister and Minister for Foreign Affairs and International Cooperation of Cambodia, Special Envoy of the ASEAN Chair Mr Prak Sokhonn on 30 June at his residence. The ambassador made the remarks in an interview regarding the donation of the COVID-19 vaccine to Myanmar as follows: – Through efforts of the government and individuals from various fields, Myanmar’s COVID-19 disease prevention and control efforts have been successful and the COVID-19 disease prevention situation has been controlled domestically.

Myanmar is a neighbouring country and China has provided effective assistance to prevent and control the disease. China has provided more than 50 million COVID-19 vaccines to Myanmar, and two million more vaccines were successfully presented to the ASEAN Special Envoy to Myanmar. Last winter, the situation of COVID-19 cases became severe in Myanmar, and China provided Myanmar with relief supplies to China’s border areas and border crossings, as well as Oxygen cylinders and fluids, were helped to reach Myanmar as soon as possible. Not only the Chinese government but also Myanmar-based Chinese companies have donated to monasteries and charities during their project implementations. The Chinese government has sent medical experts to help prevent and control COVID-19 in Myanmar.

China and Myanmar are connected by mountains, and it is a mutually supportive community. China is proud of Myanmar’s success in COVID-19 disease prevention and control measures. China will continue to cooperate in disease prevention and control measures, taking the need for friends of Myanmar into account while there is little transparency in the global COVID-19 pandemic. The two countries are also stepping up cooperation in the prevention and control of the virus, and one of the important activities is the Sino-Myanmar joint venture between China and Myanmar to produce Chinese Sinopharm COVID-19 vaccines in Myanmar. It is seen that the vaccines produced in Myanmar are effective. In the ‘Myancopharm’ vaccine, Myan is Myanmar and co refers to COVID, and pharm is Sinopharm, which indicates the deepening of Sino-Myanmar cooperation.

The Chinese Embassy will co-operate in the joint production of the COVID-19 vaccine from start to finish, and the Ministry of Industry and the Ministry of Health are proud to see the results of the two countries’ cooperation in medicine. Experts in China are reviewing the Myanmar vaccine to improve the quality of the vaccine, which is still being vaccinated and is guaranteeing public health. We have also raised the standard of the pharmaceutical industry in Myanmar and would like to discuss other industrial cooperation issues from the joint venture with Myanmar friends. Through this, the living standards of the people will be improved and there will be benefits for economic rehabilitation. COVID-19 is a global catastrophe and is affecting both countries. Under the leadership of the Communist Party of China, China has adhered to the COVID-19 policy and is working to prevent and control the disease, ensuring China’s economic stability and development.

China is confident that it will successfully achieve the economic development goals set out in the beginning. China will work with Myanmar to prevent and control the disease and will do its utmost to help Myanmar’s economic recovery. We, the diplomats, live in Myanmar and share the common feelings of the people affected by COVID-19 disease. The disease cannot stop the bilateral cooperation, and China has been continuously cooperating in various fields by reviewing the needs of Myanmar people’s living and economic difficulties. As agriculture is a major factor in the country’s development, China is the largest importer of agricultural products and fishery products from Myanmar, and efforts are being made to facilitate cross-border trade in the control of COVID-19 disease in the border areas of the two countries. Due to insufficient power generation in Myanmar, we will continue to pay attention to cooperation in the electric power sector.

China wishes for the better development of its neighbour and strives for further cooperation between the two countries. The donated COVID-19 vaccine will be available in all parts of the country where needed, and one of China’s hopes is that all aid will be available to all Myanmar people. COVID-19 vaccines have also been provided in border areas of Myanmar bordering China’s Yunnan province, and efforts have been made to increase disease control. Now that Myanmar has been able to control the COVID-19 virus, it is one of the 10 least affected countries in ASEAN, according to a government release. We need to be aware of the risk of recurrence of the disease if we come in contact with the international community, and we will continue to cooperate in disease prevention activities while maintaining the control outcome. He said China would play a constructive role in the interests of the people of Myanmar and wished Myanmar peace.

Source: The Global New Light of Myanmar

Myanmar hosts 7 th Mekong-Lancang Cooperation Foreign Ministers’ Meeting in Bagan

Myanmar hosted the 7 th Mekong-Lancang Cooperation Foreign Ministers’ Meeting on the morning of 4 July 2022 at Aureum Palace Hotel in Bagan. The meeting was co-chaired by U Wunna Maung Lwin, Union
Minister for Foreign Affairs of the Republic of the Union of Myanmar and Mr Wang Yi, State Councilor and
Foreign Minister of the Peoples’ Republic of China. Mr Prak Sokhonn, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Cambodia, Mr Saleumxay Kommasith, Deputy Prime Minister and Minister of Foreign Affairs of Lao PDR, Mr. Don Pramudwinai, Deputy Prime Minister and Minister of Foreign Affairs of Thailand and Mr Bui Thanh Son, Foreign Minister of Viet Nam attended the meeting.

During the meeting, the Ministers reviewed the work done in the past and discussed the future direction of the cooperation. They also exchanged views on the ways and means to address the current challenges. At the meeting, Union Minister U Wunna Maung Lwin stated that collective efforts with solidarity under the Mekong-Lancang Cooperation framework would be the best means to address current and future challenges as per the theme of the meeting; “Solidarity for Peace and Prosperity”. He also mentioned having close cooperation for the prevention and control of infectious diseases including COVID-19 for regional health security and thanked China for the assistance rendered to Myanmar in the fight against COVID-19.

The Minister stressed prioritizing the cooperation for the economic revitalization and support of the “Global Development Initiative” of China as it effectively responds urgent needs of the Mekong-Lancang region. He highlighted the importance of regional peace and stability as a basis for sustainable development, and support the “Global Security Initiative” of China. The Union Minister pointed out the need to enhance cooperation in the area of non-traditional security including suppression of transnational crime, illicit drug production and trafficking, illegal weapon trafficking and anti-terrorism. He also supported the establishment of the Mekong-Lancang Disaster Management Cooperation Mechanism for the improvement of the disaster risk reduction capacity of six member states.

He also touched upon the other areas of cooperation such as water resources, agriculture, production capacity, power generation and renewable energy. In the meeting, Mr Wang Yi, State Councilor and Foreign Minister of the Peoples’ Republic of China discussed the future directionunder the Mekong-Lancang Cooperation which includes promoting strategic leadership for sustainable development, expanding agriculture cooperation, to promoting green development, to enhancing cooperation on digital innovation and strengthening people-to-people exchanges. The State Councilor also explained the plan for future cooperation under the MLC framework including the plans to enhance cooperation in agriculture, water resources, digital economy, space cooperation, human resources and public health.

The Foreign Ministers of Mekong countries also discussed the matters to be included in the future work of Mekong-Lancang Cooperation. The meeting issued the Joint Press Communique’ and four thematic statements in the areas of agriculture, disaster management, custom, and mutual learning among the peoples of the Mekong-Lancang region. After the meeting, all Foreign Ministers of Mekong-Lancang Cooperation attended the opening ceremony of the “Mekong-Lancang Cooperation National Coordination Unit Building” built at the premises of the Ministry of Foreign Affairs, Nay Pyi Taw. The two Co-chairs, Foreign Ministers of Myanmar and China, also made a Joint Press Conference on the outcomes of the meeting. Mekong-Lancang Cooperation was established in 2016 with an aim to assist regional efforts to achieve sustainable inclusive development and narrow development gaps in the region while promoting peace and prosperity. Cambodia, China, Laos, Myanmar, Thailand and Viet Nam are the members of the Mekong-Lancang Cooperation.

Source: The Global New Light of Myanmar

Yangon Port handles 306 cargo ships in H1

A total of 306 cargo ships docked at Yangon Port in the first half of 2022 (Jan-June), according to the Myanma Port Authority. The shipping lines have planned to extend ranges of services starting from May in order to facilitate exports and imports. The cargo ships are increasingly entering the terminals in Yangon. The number of cargo ships entering Yangon Port stood at 49 in January, 48 in February, 50 in March, 52 in April, 54 in May and 53 in June respectively.

The turnaround time at the port was designated approximately three days, under the instruction of the Myanma Port Authority and the cooperation of the ocean liners, exporters and importers. Therefore, the arrival of the ships has increased. The Myanma Port Authority and Yangon inner terminals are providing services to ensure the fast and reliable freight handling and withdrawal of the containers in order for trade flow to return to normalcy. Earlier, the larger ships had draft problems preventing their sailing on the Yangon River. The draft extension is up to 10 meters with the new navigation channel accessing the inner Yangon River.

The value of Myanmar’s maritime trade between 1 April and 24 June of the current financial year 2022-2023 surged to US$5.9 billion. The figure reflected an increase of US$1.49 million as against last FY. Sea trade rose from $4.4 billion recorded during the year-ago period, the statistics of Myanmar Customs Department showed. Exports through sea trade were valued at $2.49 billion, imports were registered at $3.4 billion. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while 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 to Myanmar’s maritime trade, and includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar