MoEE, TPMC company sign power purchase agreement for LNG to Power Project

by ENERGY

MINISTRY of Electricity and Energy signed a power purchase agreement in Nay Pyi Taw for the 365 MW LNG to Power Project to be implemented by TTCL Power Myanmar Co., Ltd in Ahlon Power Plant, Yangon Region, yesterday afternoon. Union Minister U Win Khaing, Deputy Ministers U Khin Maung Win and Dr Tun Naing, Permanent Secretary U Than Zaw and departmental officials attended the ceremony. President & CEO for TTCL
Power Myanmar Co., Ltd. Mr Hironobu Iriya, Managing Director Ms Suratana Trinratana and officials, attended the ceremony through videoconferencing. The Union Minister said his Ministry is making efforts
to generate more electricity from all available sources from the country, including imported LNG, as the electricity demand increased.

The Ahlone LNG to Power Combined Cycle Power Plant project, invested by TTCL Co., Ltd is one of the three major projects that the Ministry issued Notice to Proceed (NTP) to companies. The Ahlone LNG project was launched in 2018 and TTCL Co., Ltd carried out the feasibility study, environmental impact assessment, LNG feasibility and gas pipelines, including land ownership for the project during the two-year preparation period. The Union Minister added the coordination with companies and all stakeholders for the PPA contract due to the nature of the project that is different from other conventional projects. According to the schedule in the PPA contract, TTCL Company will need to complete the commercial operation of the project within the next three years. The company has extensive experience in Japan with LNG power generation and the construction of an inland LNG Terminal and Regasification Unit.


The Union Minister said that necessary equipment such as natural gas pipeline and transmission line would be built in Yangon area and the company needs to follow not only international rules and regulations but
MoEE, TPMC company sign power purchase agreement for LNG to Power Project also domestic rules and regulations at all stages of construction and operation. Managing Director for Electric Power Generation Enterprise (EPGE), Ministry of Electricity and Energy U Than Naing Oo and Managing Director for TTCL Power Management Co., Ltd Ms Suratana Trinratana
signed the Power Purchase Agreement (PPA). This is the first long-term
LNG project in Myanmar using inland LNG Terminal and Regasification Unit, and it is a reliable project due to its stable LNG supply. With the use
of Combined Cycle Technology, electricity generation can be improved, and the environmental impacts can be minimized. Upon successful completion of this project, according to the PPA, it will be able to supply and distribute electricity to the Yangon Region, especially to provide more stable electricity.

Source: The Global New Light of Myanmar

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YRIC endorses $12.7 mln worth seven proposals in four months(Oct-Jan)

by MANUFACTURING

The Yangon Region Investment Committee (YRIC) has endorsed four foreign enterprises from China, Japan, Singapore and Hong Kong SAR in the manufacturing sector, with an estimated capital of US$12.7 million, in the four months (Oct-Jan) of the current financial year 2020-2021. Additionally, one domestic enterprise is also given the go-ahead, with the capital of K2.9 billion. Those enterprises are to create over 3,700 jobs.

They will execute manufacturing of bags, footwear, underwear and garments on a Cutting, Making, and Packing (CMP) basis and production of pulses and beans, and production and distribution of fish sauce, YRIC stated. Between 1 October and 30 September of the previous financial year 2019-2020, Yangon Region attracted FDI of $308.768 million from 137 foreign enterprises. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis.

To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands, and Seychelles arrive in the region. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals. The initial investment does not exceed K6 billion, or $5 million.

Source: The Global New Light of Myanmar

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Groundbreaking ceremony of Agricultural Marketing Centre held in Nay Pyi Taw

by TRADING

The groundbreaking ceremony of the Agricultural Marketing Centre was held in Pobbathiri Township, Nay Pyi Taw yesterday morning. The ceremony was attended by the Union Minister for Agriculture, Livestock and Irrigation Dr Aung Thu, Deputy Minister U Hla Kyaw, Nay Pyi Taw Council member U Aye Maung Sein, Amyotha Hluttaw Representative U Maung Maung Swe, Ambassador of the Republic of Korea to Myanmar Mr Lee Sang-hwa, Chief Representative of KOICA Myanmar Ms Lee Youn Soo, the Permanent Secretary, Directors-General of the ministry and other relevant officials.

At the ceremony, Union Minister Dr Aung Thu said that the agricultural sector is a key factor in Myanmar’s economic development process. Establishing the Agricultural Marketing Centre and the Agricultural Products Processing Centre will benefit both agriculturalists and consumers, according to the Union Minister, who said that the cooperation among the government, private sector and agriculturalists is expected to greatly enhance the opportunities to compete in the international market.
During the ceremony, Ambassador Mr Lee Sang-hwa also delivered a congratulatory speech and KOICA Myanmar representative Ms Lee Youn Soo expressed thanks to all stakeholders.

The Agricultural Marketing Centre project, jointly carried out by the Korea International Cooperation Agency (KOICA) and the Ministry of Agriculture, Livestock and Irrigation, was begun in 2018 with US$8.37 million in financial aid from Korea. The Agricultural Marketing Centre will be built in Pobbathiri Township in Nay Pyi Taw and the Agricultural Product Processing Centre will be built in Heho in Shan State. The objective of establishing the two centres is to improve the market for agricultural products in major agricultural production areas, said Director-General Dr Ye Tint Tun. The centres will be able to provide efficient agricultural market information, and another benefit is that the agriculturalists’ organizations will be strengthened. They will help strengthen agricultural infrastructures and will work for issuance of certification. So, the centres will help fulfil the Agriculture Development Strategy (ADS).

Source: The Global New Light of Myanmar

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External trade falls by $2.4 bln as of 8 Jan

by TRADING

Myanmar’s external trade between 1 October and 8 January in the current financial year 2020-2021 touched a low of US$8.23 billion, a sharp drop of $2.437 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. According to data released by the ministry during the same period in the previous FY, trade stood at $8.2 billion. Over the Q1, Myanmar’s export was worth over $4 billion, which plunged from $5.16 billion registered a year-ago period.

Meanwhile, the country’s import was valued $4.228 billion, showing a decrease of $1.27 billion compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited the trading time to contain the spread of the virus. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods while importing capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. Under the National Planning Law for the financial year 2020-2021, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. The Ministry of Commerce is focusing on reducing the trade deficit, export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment.

Source: The Global New Light of Myanmar

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Discussion of the economic situations and the impact of ongoing COVID-19 on various ASEAN countries, including Myanmar

by MANUFACTURING

According to the Myanmar Garment Manufacturers Association (MGMA), various ASEAN countries, including Myanmar, are discussing the economic situation and impact of the garment industry due to the ongoing COVID-19 in their countries. ASEAN Federation of Textile Industries (AFTEX) Indonesia Laos Malaysia Singapore Philippines Thailand The ASEAN Economic Community (AEC) and the ASEAN Economic Community (AEC) have agreed to increase cooperation in various fields. COVID-19 conditions and effects; International investment conditions. They also discussed the export and import conditions of garment industries in various countries and their cooperation with their governments.

Central executives and executives of the Myanmar Garment Manufacturers Association (MGMA) also discussed Myanmar’s export and import situation in 2020. During COVID-19, MGMA provided services for member factories. They also discussed the assistance provided by the Myanmar government to garment factories. According to the Position Paper released by the Myanmar Garment Manufacturers Association, 114 factories were closed or temporarily closed during COVID-19, and currently only 606 are in operation, 90 percent of which are mainly export-oriented. Difficult access to raw materials in the garment industry. Decreased or suspended orders and late or non-receipt of payments. Some companies go bankrupt.

According to a survey conducted by the Myanmar Garment Industry, most of the orders are pending until July, with only 30 per cent of members receiving orders from September. However, the garment sector was affected by the economic situation in the countries with the highest orders. When it comes to export orders, they have become more of a problem than buying from other countries. Currently, Myanmar’s largest exporter is Japan. Germany is second. In terms of blogging, the 28-nation EU has the most. The US is buying now. However, Korea, not as many as Japan, given the domestic situation in Korea, its economy is declining. There is also the fear of COVID. So when those countries have limited access to their offices, they also have limited access to Myanmar. It is also noted that the highest number of cases of corona virus are the countries order from Myanmar, so that the economic impact and challenges of Myanmar were a challenge.

Source: Daily Eleven

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Application of import/export permits more secure with Trade Net 2.0

by SERVICES

The application of export and import permits online via Myanmar Trade Net 2.0 is secure and can help curb corruption , said the director general at the Ministry of Commerce can be applied online and security systems are in place to protect the user and applicants mentioned during a press conference on Trade Net 2.0. Trade Net 2.0 assists paperless trade – the digital trade.

It partly assists in implementing our e-government system. Data can be securely shared between government agencies and information leakage will not occur. Moreover, it is also mentioned that import and export permits can be applied anywhere at anytime, as long as internet service can be accessed. There is no contact between businesspeople and departments at all. They have also planned to improve security of the the system.

In the banking sector, even if the end user’s account is breached, the culprit will not be able to carry our (transactions) without a One Time Passcode according to the deputy director. The system however does not allow for the application of special permits. These will still have to be applied for in person. There are currently 3,430 people registered with Myanmar Trade Net 2.0. A total of 756 cards related to export and import and 1,617 import permits have been processed with the online system.

Source: Myanmar Times

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Myanmar’s first textile-based industrial zone to be established in Sagaing

by MANUFACTURING

Eastern Development International (Myanmar) and Dongzhan Textile Group, a Chinese company, are set to jointly develop a textile industrial cluster worth over US$371 million in Sagaing Region. The two companies will work with the private sector on all stages of construction of the project, making it the first textile-based industrial zone in Myanmar. The project is designed to include two phases: construction of factories and the installation of machinery in those factories. Phase 1 will include the construction of 12 new garment related factories, knitting fabric factories, dyeing and printing factories, and down and feather factories; and residential buildings for employees. Eight of these factories will be located at No.3 Textile Factory Branch (Sagaing) while the remaining four factories, including a waste water treatment system, thermal power plant, will be set up at No. 3 Textile Factory (Sagaing). Phase 2 will include the construction of five garment related factories, embroidery factory, carton factory, and polyester wadding factory.

An international textile supermarket will also be created in Sagaing. The project is proposed to be operational for an initial term of 20 years. Following the expiration of its initial 20-year term, it could be extended twice for a further term of five years for each renewal. The project is scheduled to begin in the financial year 2020-2021 and is expected to be completed in the financial year 2029-2030. It will also benefit stakeholders across the textile value chain (small and medium-sized enterprises, employees, fashion designers) by making available locally produced raw materials for textile and garment sectors, and creating entrepreneurial opportunities. It is anticipated that the imported volume of raw materials across the textile value chain will be reduced, and export earnings using locally-produced raw materials will be increased. Establishment of a textile-based industry cluster will reduce transportation cost; using a common infrastructure, resource and labour pool advantage; and speed up the learning process leading to internationally competitive and commercially sustainable textile industry.

The garment industry in Myanmar has grown significantly over the past five years. Myanmar’s garment exports have been increasing yearly, especially since 2013, when the EU granted goods from the Southeast Asian country preferential access to its market. Myanmar is also implementing the National Export Strategy (NES), under which there will be measures like the transition of cut-make-pack (CMP) garment system into free-on-board (FOB) system, adoption of bonded warehouse system and establishment of special textile and garment zone for boosting export. Myanmar launched a national level textile policy with the help of German global development organization GIZ to promote the country’s textile industry, attract investment by inviting foreign trade partners, build the necessary infrastructure and reduce imports. At present, some garment factories shut down due to lack of raw material, and thousands of workers became unemployed.

Some garment factories in Myanmar have reduced working hours and cut jobs, and some factories have not received orders from abroad amid the ongoing coronavirus pandemic. Myanmar’s CMP garment sector earns about US$300 million, annually and the country will get US$3 billion if it can manage to shift from the CMP system to the free-on-board (FOB) system. Myanmar’s manufacturing sector is largely dependent on the CMP garment and textile exports. The total export earnings from Myanmar’s garment and textile industry are expected to reach US$10 billion by 2024, according to the Myanmar Garment Entrepreneurs Association. The CMP garment sector contributes to over 20 per cent to the country’s exports.
Thousands of Myanmar people are employed in garment, textile, footwear and accessories factories across the country. Additional tens of thousands indirectly work in the industry through logistics and transport services. Myanmar earned some US$850 million from CMP garment exports in the financial year 2015-2016, US$2 billion in FY2016-2017, US$2.5 billion in FY2017-2018, US$4.6 billion in FY 2018-2019 and US$4.28 billion in FY2019-2020.

Source: The Global New Light of Myanmar

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1 mln tonnes of corn expected to export to Thailand this year

by TRADING

Myanmar intends to reach the export target of one million tonnes of corns to Thailand this year, said by the chair of Myanmar Corn Industrial Association. Myanmar will be allowed for corn export between February and August, under zero tariff, as Thailand has corn requirements. Thailand needs 2 million tonnes of corn as per its market data. They , however, do not know their purchase volume. Last year, Thailand partners asked if Myanmar corn suppliers can provide 3 million tonnes during negotiation with the association. We cannot tell the exact volume. Nevertheless, about 1 million tonnes of corns are possibly to flow into Thailand.

This year, Myanmar’s corns are demanded by Viet Nam, India, Malaysia and Laos. Typically, we expect to export 1 million tonnes of corns to Thailand. Yet, the market condition depends on the price, he continued.
At present, Myanmar’s corns are primarily shipped to India. It is also sent to Viet Nam and Laos. The illegal outflow of corns to China via northern Shan State is also reported. As a result of this, the corn export volume of Thailand market is directly related to the market price. Myanmar traders will ship the corns to foreign markets which offer a high price, regardless of trade routes (sea or border), the association chair affirmed. Additionally, China is purchasing Myanmar’s corn that substituted opium poppy cultivation, under a quota system.


The prevailing export price of corn stands at above US$250 per tonne. Corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons- winter, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corns. Myanmar exported 2.2 million tonnes of corns to the foreign market in the past financial year 2019-2020 ended 30 September, with an estimated value of $360 million, the Ministry of Commerce’s data showed. With the growing local corn consumption, Myanmar’s corn export to foreign markets is expected to reach 1.6 million tonnes in the current FY2020-2021 (Oct-Sep), the association state.

Source: The Global New Light of Myanmar

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Rakhine border trade centres set to resume operation

by TRADING

The Maungdaw and Sittwe border trade centres in Rakhine State are set to reopen after several months of closure said the chair of the Rakhine State Federation of Chamber of Commerce and Industries. These centres – which facilitate trade with Bangladesh – will resume operations once they receive permission from the Central Committee on Prevention, Control and Treatment of COVID-19.

The state government has agreed in principle to reopen the Maungdaw and Sittwe border trade centres. It is heard that they are currently seeking permission from the central committee. Both traders and department officials plan to resume border trading once the central committee gives approval. They expect the relevant authorities to enforce restrictions at the centres once trade is allowed. It is also heard that they will only permit a specified number of ships and boats a week.

Myanmar exports agricultural products – such as onions and ginger – and various freshwater products to Bangladesh. According to the Ministry of Commerce, trade in the Sittwe border trade centre totalled US$736.81 million in the 2019-2020 fiscal year, of which $432.547 million was accounted for by exports. The Maungdaw border trade centre, meanwhile, recorded a total trade amount of $11.554 million in the same period.

Source: Myanmar Times

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Mandalay mango producers eye online market trend

by TRADING

Producers, wholesale centres and merchants are working to sell mangoes online in the upcoming season, according to U Kyaw Soe Naing, the Secretary of Myanmar Mango Market and Technology Development Association (Mandalay).

According to the Secretary of Myanmar Mango Market and Technology Development Association (Mandalay), the new trend will develop if the producers guarantee the quality of the fruit on the online market. At present, 30 per cent of the mango market is getting into the online platform during the outbreak of COVID-19.

Some advantages of the online market include no brokerage fee or service charges between the consumer and the producer and possible direct payment between them. However, the consumers will have to mention the size of the fruit they want to purchase, and the sellers will need to ensure the quality of their product.

Source: The Global New Light of Myanmar