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The value of Myanmar’s maritime trade over the past eight and a half months (1 Oct-18 June) of the current financial year 2020-2021 sank to US$14 billion, which is a 25 per cent drop compared with the same corresponding period of last year. The figures plunged from $18.9 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports are valued at $5.8 billion, imports have registered at $8.243 billion. Compared to the same period in the 2019-2020 financial year, imports fell by $3.59 billion, while exports have registered a decrease of $1.29 billion.

The maritime trade fell by $4.89 billion as of 18 June as against last year. Meanwhile, the value of trade through the border this FY was estimated at $7.43 billion, a decrease of $806 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 the political changes. For maritime trade, disruption in the logistic sector and cargo shipping crisis triggered by the COVID-19 impacts scaled-down the maritime trade somehow.

The country’s total external trade over the past eight months touched a low of $21.48 billion, which plunged from $27 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion out of an overall trade value of $36 billion in the last FY2019-2020, the Ministry of Commerce’s statistics indicated. 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 for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

Muse border trade fell by half in June this year as against last year, said U Min Thein, vicechair of Muse Rice Wholesale Centre. After the detection of the coronavirus cases in the Sino-Myanmar border areas, Man Wein, a major border crossing between Muse and Kyalgaung areas, came to an abrupt halt on 30 March, the vice-chair of Muse Rice Wholesale Centre said. Traders have to send goods, including rice and broken rice, various pulses and beans, fishery products, onion, chilli and other export items to China via the Kyinsankyawt checkpoint due to the closure of the Man Wein post.

The freight transport through Mandalay-Muse route to China takes at least a month, causing delay and heavy traffic congestion. Consequently, the trade dropped 50 per cent in June 2021 compared to the same corresponding period of last year. The Man Wein border closure is possibly to be extended even after three months shutdown, Muse Rice Wholesale Centre stated.

Additionally, Man Wein border post is not available for now according to the negotiation with Shweli’s Foreign Affairs Department. The border post will resume the trade only after drawing up a detailed project report, the Trade Department (Muse 105th mile trade zone) stated. Once Chinese authorities notify the Trade Department of the reopening of the border post, the traders will be apprised of this. At present, Myanmar conducts border trade with China via five posts; Muse, Lwejel, Chinshwehaw, Kampaiti and Kengtung. Of them, Muse border post performed the best.

Source: The Global New Light of Myanmar

The COVID-19 pandemic triggered a cargo shipping crisis, hindering palm oil import, said U San Lin, chair of Myanmar Edible Oil Dealers’ Association. The cargo shipping disrupted the palm oil import. The resurgences of COVID-19 infections in India raised concerns and hit the shipping industry hard. Additionally, the bank-ing restrictions imposed difficulties to exporters and importers. At present, the domestic palm oil price has slightly declined, tracking the import price retreat, said U San Lin, chair of Myanmar Edible Oil Dealers’ Association. The price of palm oil fell to US$995 per tonne in the international market.

Consequently, it ranges K2,800-2,900 per viss (a viss equals 1.6 kg) in the domestic wholesale market. The oil palm trees produce fruits in abundance this time. The price is likely to be in the bull market up to October if any trade barrier will not occur. In early January 2021, production slump in importing countries Malaysia and Indonesia, caused by erratic weather conditions and the COVID-19 impacts, high imports by certain countries under tax reduction, a tax hike on exports in producing countries and the short storage of palm oil in those countries contributed to the rise in edible oil price.

The palm oil price stood at $1,055-1,200 per tonne in the foreign market. Myanmar Edible Oil Dealers’ Association issued a notice in January to import palm oil from foreign countries sustainably for self-sufficiency and distribute edible oil at a fair price to consumers. So it would ensure that there will be no edible oil shortage in regions and states when there is a rise in imported oil price. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. About 700,000 tonnes of cooking oil are yearly imported in order to meet the self-sufficiency in the domestic market.

Source: The Global New Light of Myanmar  

Trade volume between Myanmar and Thailand in the financial year 2020-21 hit a total of US$2.95 billion in total, Ministry of Commerce statistics shows. According to the Ministry, Myanmar’s exports to Thailand reached $2.06 billion while imports hit $895 million. Compared to the same period in the last FY, this year FY’s figures declined by $71 million. The bilateral border trade hit $3.02 billion last year.

The county mainly conducts border trade with Thailand through seven border checkpoints, Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei gates. From 1 October 2020 to 18 June 2021, the Myawady border gate topped with the most bilateral border trade value of $1.23 billion. Myanmar’s exports to Thailand were primarily agriculture and livestock products, and imports from Thailand were mainly non-alcoholic beverages, fabric and yarn, motorcycles and related parts, and construction material.

The bilateral trade between Myanmar and Thailand stood at $2.95 billion in FY2020-2021 (as of June), $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. Thailand is Myanmar second-largest trade partner and third-largest foreign investor.

Source: The Global New Light of Myanmar

The value of Myanmar’s imports between 1 October and 18 June in the current financial year 2020-2021 stood at US$10.84 billion, a sharp drop of $3.5 billion from $14.36 billion registered in the year-ago period, according to data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups declined in the current FY. The drop in foreign direct investment this year negatively affected the trade. Over the past eight and a half months of the current FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts were brought into the country.

Their import value was estimated at $3.77 billion. The figure was over $1.7 billion lower than those values registered in the same period of the previous FY. Meanwhile, Myanmar imported consumer products worth $2.3 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $162.7 million compared with the same period in the previous FY. Intermediate goods make up the second-largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials plunged to $3.66 billion from $4.78 billion registered during the year-ago period.

During the same period, raw materials worth over $1 billion were also imported for the Cut-Make-Pack (CMP) garment sector, showing a decrease of $524 million compared with the last budget year. At present, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is struggling due to the cancellation of the order from the European countries and suspension of trading by western countries amid the COVID-19. Therefore, import values of raw materials by CMP businesses have been dropping. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce. 

Source: The Global New Light of Myanmar

The import value of Myanmar pharmaceutical products was estimated at US$303.5 million in the seven months (Oct-Apr) of the current financial year 2020-2021, according to Myanmar Customs Department. Myanmar imports 90 per cent of medicine and medical products through foreign markets, the Myanmar Chamber of Commerce for Pharmaceutical & Medical Device (MCCPMD) stated.

India is the main supplier for Myanmar. Also, it is imported by Bangladesh, China, Germany, Indonesia, Japan, Republic of Korea, Malaysia, the Philippines, Singapore, China (Taipei), Thailand, US and Viet Nam. Trade has returned to normalcy after panic buying during the coronavirus pandemic.

Most commonly prescribed drugs are available in the market. Only some are out of stock for now. At present, pharmaceutical import is regularly flowing. However, the prices of pharmaceuticals were up by 5 to 10 per cent owing to the dollar appreciation. The Ministry of Commerce has cut the red tape for imports of some pharmaceuticals which have been earlier imported.

Source: The Global New Light of Myanmar

Man Wein border post is likely to remain closed in light of the COVID-19 consequences, said U Min Thein, vice chair of Muse Rice Wholesale Centre. In March-end, the coronavirus cases were detected in Shweli (Ruili) and Kyalgaung areas, prompting China to restrict border access from 30 March at the Man Wein checkpoint, which is a major border crossing between Myanmar and China. Man Wein border closure is possibly to be extended even after three months shutdown.

There is less possibility to reopen the Man Wein border post as the COVID-19 cases in Myanmar is surging. Additionally, Man Wein border post is not available for now according to the negotiation with Shweli’s Foreign Affairs Department. The border post will resume the trade only after drawing up a detailed project report, the Trade Department (Muse 105th mile trade zone) stated.

Following the closure of Man Wein post, the major export items such as rice, broken rice, various pulses, fishery products, onion and chilli are being delivered to China through Kyinsankyawt post, which is a major crossing for Myanmar’s fruit exports. However, shipping via Kyinsankyawt post caused traffic congestion and delay. Consequently, Myanmar is currently shipping rice and broken rice via the Bhamo-Lwejel route. During the first wave of the COVID-19, the driver-substitution system was practised in the border area, which helps lessen the impediments to the trade, yet the current restriction exacerbates the border trade, Muse Rice Wholesale Centre stated.

Source: The Global New Light of Myanmar