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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

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IMF projects muted growth for 2021 economy

by ECONOMY

Myanmar’s economy is expected to post muted growth this year due to the impact of COVID-19, but should rebound next year, the IMF said. In a statement, IMF projected this year’s growth to slow down to 0.5 percent, from a projected 3.2pc last year. The economic fallout will be felt by lower income groups, SMEs and those in conflict regions.

The economy is expected to recover next year, when it is projected to grow 7.9pc on strong base effects, IMF added, though it also said it expects poverty to go up. At the same time, permanent losses in medium-term output are expected, raising concerns of increased poverty. The IMF’s growth forecast is more pessimistic than that of the Asian Development Bank, which earlier this year projected Myanmar’s growth to have slowed to 1.8 pct in the fiscal year ending September 2020.

ADB expected the economy to bounce back to 6 pct this year. The IMF, in the statement, also announced that its executive board has approved the release of financial assistance amounting to SDR 258.4 million (US$372 million) to help Myanmar minimise the economic and social impacts of the pandemic. The IMF assistance will aid Myanmar’s COVID-19 policy measures aimed at minimising the pandemic’s economic and social impact while supporting the vulnerable.

Source: Myanmar Times

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Myanmar Trade Centre to open in Singapore

by TRADING

Myantrade has plans to open a Myanmar Trade Centre in Singapore in the near future to provide support for the country’s agricultural exports. Secretary of the Myanmar Fruit, Flower and Vegetable Producer and Exporter Association said the trade centre- which will be monitored closely by the Myanmar Embassy to Singapore – can help Myanmar expand its farming exports to the city-state. According to the Secretary, Singapore is one of Myanmar’s trading partners.

Singapore imports fruits such as Sein Ta Lone (mangoes) and muskmelons from Myanmar. Delivery time from Myanmar to Singapore is just a week. Singapore’s population is small so Myanmar cannot sell a lot to them but their consumption and spending power is high. This creates a market for Myanmar. Myanmar can export any fruit. It is good if Myanmar products can penetrate the market. Singapore is located close to Myanmar, so allowing to export products that have a short shelf life.

So, Grapes from Yamethin can be exported to Singapore’s market. Trade between Myanmar and Singapore was valued at more than US $3,900 million in the 2019-2020 fiscal year, with Myanmar exports exceeding $700 million. Singapore, meanwhile, is one of Myanmar’s largest investors, accounting for 45.85 percent of the country’s total foreign investment. The city-state has invested in the urban development, real estate, and energy and production sectors of Myanmar.

Source: Myanmar Times

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CMP garment exports drop by 25 per cent in Q1

by TRADING

MYANMAR’S garment export has dropped by 25 per cent as of the first quarter of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by European Union market, the Ministry of Commerce stated. Exports of garments manufactured under the
cut-make-pack (CMP) system were valued US$870 million in the past three months (Oct-Dec) in the current FY, according to the Ministry of Commerce’s data. The figures plunged from $1.2 billion in the corresponding period of the last FY2019-2020. Myanmar ’s garment industry faces challenges such as raw material supply disruption and cancellation of orders, CMP garment exporters said. At present, over 100 CMP garment factories temporarily shut down on the reason for the lack of raw materials and slump in demand due to the coronavirus negative impacts, leaving thousands of workers unemployed.

Sixty-four factories have been permanently closed down during the pandemic, compensating about 25,000 workers. The data does not include those factories that have not resolved worker payments, stated the Ministry of Labour, Immigration and Population. The Myanmar Garment Manufacturers Association (MGMA) and EuroCham Myanmar held virtual meetings on 7 January 2021, along with representatives from EU brands. They highlighted efforts to increase job creations in the garment factories, keep garment factory order from European buyers, improve skilled workers’ capacity, and upgrade the Myanmar Garment Human Resource Development Centre (MGHRDC) and strengthen relationships between employers and workers. Additionally, MGMA also proposed leading a working group including government officials, European Brands’ representatives and the related institutions, to transform CMP into the free-on-board(FoB) system.

Myanmar mainly exports the garments to Japan and European countries, especially Germany. The US has also purchased the garments made in Myanmar. Some western countries cancelled orders amid the pandemic. According to the Ministry of Commerce data, exports of garments manufactured under the cut-make-pack (CMP) system were valued US$4.798 billion in the last financial year 2019-2020. The export value of CMP garments was only $850 million in the 2015-2016FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar