Yangon’s Thilawa Port to receive larger ships

by LOGISTICS

The Myanmar Port Authority will permit larger ships with drafts of up 10 meters to call at the Thilawa Port in Yangon this month, according to its latest announcement. This is expected to enable more containerized cargo throughput at the port and encourage higher volumes of trade. About 95 percent of Myanmar’s trade is conducted by sea. In the last fiscal year, cargos worth over US$10.4 billion was exported and US$15.6 billion was imported via the maritime route.

Yangon’s two main ports, Thilawa and the Port of Yangon, are located along the Yangon river where container vessel sizes are restricted due to sandbars located along the navigation channel. Yangon port is located in downtown Yangon while Thilawa Port is located 16km further downstream. Thilawa Port, which has a draft of 10 meters, is able to handle vessels of up to 20,000 tonnes, or 2000 TEUs in capacity. Up until early this year, only vessels with drafts of up to nine meters were permitted to call at the port. Yangon Port has a draft of nine meters and can handle vessels of up to 15,000 tonnes, or 1500 TEUs.

The number of vessels to Yangon is expected to rise now that larger vessels will be permitted to call at Thilawa. According to an analysis by ocean consultancy Royal Haskoning, based on draft levels and hours of high tide, Thilawa Port can accommodate up to 4,380 annual vessel calls. With an annual vessel call of 2,483 in fiscal 2015-16, this implies that Port of Yangon volumes could be limited by channel capacit when the vessel calls increase. With an estimated maximum 4,380 calls and an average of 1,200 TEU exchange per call, the navigation channel can potentially accommodate up to 5.3 million TEU annually, according to Royal Haskoning.

Source: Myanmar Times

China-ASEAN Expo opens, featuring digital economy

by ECONOMY

The 17th China-ASEAN Expo and China-ASEAN Business and Investment Summit Kicked off on November 27,2020 highlighting booming digital economy cooperation and the implementation of a recently signed major trade pact. Themed “Building the Belt and Road, strengthening digital economy cooperation,” this year’s expo aims to deepen cooperation in trade, the digital economy, science and technology, health, and other fields. Chinese President Ci Jinping called for cultivating a closer community with a shared future for China and the Association of Southeast Asian Nations (ASEAN) when addressing via video the opening ceremony.

With an exhibition area of 104,000 square meters, the expo has 5,400 booths in Nanning, capital of south China’s Guangxi Zhuang Autonomus Region. More than 1,500 enterprises from home and aboard will participate virtually in the four-day event, according the organizers. The expo will also host 11 high-level forums and more than 160 economic and trade promotion activities. This year is designated as the China- ASEAN Year of Digial Economy Cooperation. Strengthening digital economy cooperation was the common call of ASEAN leaders at the opening ceremony. China is one of the countries that are at the forefront in developing infrastructure and is an important partner of ASEAN in promoting the digital economy in the region.

This year’s expo also highlights the Regional Comprehensive Economic Partnership (RCEP), the world’s biggest trade pact, which was signed earlier this month by 15 Asia-Pacific countries including ASEAN’s 10 member states and China. It was a massive move for regional economic integration, multilateralism and free trade. The expo features a “Belt and Road” exhibition area, and enterprises from RCEP countries including Japan, the Republic of Korea, Australia and New Zealand have participated in the event, according to Wang Lei, secretory- general of the expo’s secretariat.

High-level dialogue conducted during the expo will promote greater participation from RCEP members in the construction of the Belt and Road, said Wang, adding that the expo will help integrate the market advantages and resources of the 10 ASEAN members with the capital and technical advantages of other RCEP members. The RCEP will also provide a solid foundation for an open, inclusive, and rules-based global trade environment. Xu Ningning, executive president of the China – ASEAN Business Council, said that opening up the markets of the 15 countries to each other will bring about new changes and closer regional cooperation.

Source: Myanmar Times

Trading-Sector

External trade falls by $1.5 bln as of 20 November

by TRADING

Myanmar’s external trade between 1 October and 20 November in the current financial year 2020-2021 touched a low of US$3.7 billion, a sharp drop of $1.5 billion compared with the corresponding period of the 2019-2020FY, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $5.23 billion, stated the ministry’s data.
As of 20 November 2020, Myanmar’s export was worth $1.6 billion, which plunged from $2.69 billion registered a year-ago period. Meanwhile, the country’s import was valued $2.07 billion, showing a decrease of $470 million compared with the last FY.

The decrease in Myanmar’s foreign trade was attributed to the drop in exports and imports in the current FY amid the COVID-19 crisis. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, it imports 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.

Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar has already surpassed the total trade value target of $34 billion for the last FY, said an official from the ministry. Last FY2019-2020, Myanmar’s external trade reflected an increase of $1.5 billion compared with the FY2018-2019 as it increased from over $35 billion to $36.6 billion. Under the National Planning Law for the 2020-2021 budget year, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. 

Source: The Global New Light of Myanmar

Myanmar-Korea Friendship Bridge (Dala) Project 20 per cent completed

by CONSTRUCTION

The Myanmar-Korea Friendship Bridge (Dala), which crosses the Yangon River and will link Lanmadaw Township to Dala Township in Yangon Region, is under construction, and about 20 per cent of all the construction works have been completed, according to the bridge construction project committee’s office. Construction works are underway to build a high-quality bridge in line with Korea’s quality control in construction. Moreover, they are making efforts to ensure the safety of the workers involved in the construction project. They look forward to the completion of the bridge by October 2022.

The first section of the Myanmar-Korea Friendship Bridge (Dala) Project in Dala Township has been carried out by Myat Noe Thu Construction Company. The second section of the project in Lanmadaw Township has been carried out by Shwe Taung Construction Company. Chinese technological company CCEC is carrying out the third section of the project, which involves the construction of the two towers in the middle of the river and a cable suspension bridge, according to the Department of Bridge.

The total length of the Myanmar-Korea Friendship Bridge (Dala) is 6,144 feet. The bridge will have a four-lane road, with each measuring 4m in width. The total expenditure for the bridge is US$157.833 million. The project has been funded by South Korea’s EDCS loan at an interest rate of 0.01 per cent. The main contractor of the project is South Korea’s GS Engineering Group, according to the Department of Bridge. 

Source: The Global New Light of Myanmar

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YRIC endorses $3.5 mln worth 3 proposals, creating over 1,200 jobs

by INVESTMENT

The Yangon Region Investment Committee has endorsed three foreign enterprises from China and Singapore in the manufacturing sector, with an estimated capital of US$3.5 million, in the first two months (Oct-Nov) of the current financial year. Those enterprises will create over 1,200 jobs. They will execute manufacturing of bags, footwear and garments on a Cutting, Making, and Packing (CMP) basis, YRIC stated. Between 1 October and 30 September of the previous financial year 2019-2020, Yangon Region stood at the first place with 137 foreign enterprises (with a capital of $308.768 million), followed by Bago Region with 18 foreign projects ($72.645 million) at the second place and Ayeyawady, with nine at the third place ($19.614 million).

Additionally, foreign direct investments also flow into Taninthayi Region from two projects worth $1.397 million, Magway Region from two worth $0.991 million, Mon State from two worth $1.664 million, Mandalay Region from one business valued $4.6 million, Sagaing Region from one worth $3 million, Kachin State from one worth $1 million, Shan State from one worth $4.13 million and Nay Pyi Taw Council from one valued $5.862 million. In the last FY, the respective investment committees of Kayah, Kayin, Rakhine and Chin states did not endorse any foreign enterprises at all, the DICA stated. The region and state investment committees endorsed a total of 175 foreign enterprises with an estimated capital of $423.671 million in the last FY.

The endorsed enterprises are to be engaged in the manufacturing, hotels and tourism, power, agricultural and other services sector. Of them, the majority of the investment goes into the manufacturing sector, followed by other services sector and hotels and tourism sector. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of 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 are arriving in the region. To aim at making the verification of investment projects simple, Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million. 

Source: The Global New Light of Myanmar

ANANAS

Pineapple growers call for legitimate trade channel for export

by TRADING

Myanmar’s pineapple exports are blockaded due to the lack of the Phytosanitary Certificate (PC) issued by Myanmar’s Agriculture Department which is required for export to China, according to northern Shan State Pineapple Producers and Exporters Association. Myanmar’s pineapple has penetrated to China market. Yet, the trade halted as there is no G-to-G agreement between Myanmar and China. Myanmar has sent samples of avocado and its products to 40 countries. Thailand’s buyers also eyed Myanmar’s pineapples. However, a memorandum of understanding (MoU) matters in international trade to ease the trade barrier. MyanTrade under the Ministry of Commerce officially linked with buyers. The Agriculture Department is responsible for issuing the PC.

There is potential crop production as opium poppy substitution in the northern Shan State area. It will bring job opportunities for the local people. About 60,000 tonnes of pineapples are yearly produced from over 20,000 acres in the north of Shan State. For now, the growers are experiencing financial hardships as they cannot sell them out of the country during the COVID-19 crisis. Myanmar’s pineapples have reached markets of Beijing and Shanghai, China, for seven years. China daily demanded around 2,000 tonnes of pineapples. Earlier, they directly came to the farm to buy the pineapples.

A tonne of pineapple fetched K240,000. We do not even need to go to Muse to seek buyers. So, we are desperate for the legal trade pact. Hsipaw and Lashio mainly produce corn, watermelon and pineapples. Watermelon has both legal and illegal trading routes. If the government do not initiate the move for pineapple exports within three years, the growers will shift from pineapples to other crops for sure. At present, the growers are interested in pineapples as the sample of pineapples to five international markets reaped the excellent results. The dehydrated pineapple also attracts the buyers. However, capital is necessary as our factory can produce only the sample and still cannot manage a commercial scale.

Additionally, the northern Shan State is referred to as the brown area of the country owing to the armed groups. We do not see any NGO in the area. Only the US Agency for International Development (USAID) visited the place. The pineapple is grown across the country. The northern Shan State area produces the quality pineapple. The samples of dehydrated pineapple have been sent to the US, Dubai, Singapore, Germany and Japan. They gave good feedback. A tonne of dehydrated pineapple is worth K12 million. China is the leading buyer of Myanmar’s pineapples, and it has banned importation since 16 June 2019, for the lack of PC. Earlier, 50 per cent of pineapple production is consumed locally, and the remaining goes to China. Myanmar yearly exports nearly 40,000 tonnes of pineapples to China. Last year, pineapple grower groups from northern Shan State lost over K700 million worth 25,000 tonnes.

This year, there are about 35,000 acres of pineapples across the country; with 55 per cent in Hsipaw Township, 17 in Lashio, nine in Tangyan, six in Hsihseng, and 13 in Namsang and other townships. The pineapples are abundant during its harvest season (July and August). If the trade channel is still suspended this year, growers will suffer more losses, the association stated. Furthermore, pineapple growers want this sector to be listed on the priority sector of the COVID-19 Fund of the government. Also, the government’s long-term loan for pineapple paste, juice and vinegar businesses are required.

Source- The Global New light of Myanmar

Finnfund

Finland-backed fund invests in Myanmar microfinance sector

by INVESTMENT

Finfund, which invests in responsible and profitable businesses in developing countries, has injected US$5.5 million in Early Dawn Microfinance Co., Ltd, the third largest microfinance company in Myanmar in terms of client outreach. The financing will support Early Dawn’s expansion in Myanmar’s underserved townships and peri-urban areas. Finnfund gets its funding from the State of Finland and the private capital markets, as well as retained earnings from its investments. All profits get recycled into new projects that drive sustainable development.

The state-owned fund makes 20-30 new investments worth €200 million- €250 million each year. At the end of 2019, Finnfund’s portfolio comprised 183 projects in 52 countries worth €957 million. This is its third investment in the microfinance sector in Myanmar, where almost 70 percent of the population lacks access to formal financial services. Early Dawn provides group loans to low-income women, and more recently expanded to extend individual loans to small businesses.

During the investment process, they have been impressed by Early Dawn’s commitment to responsible and sustainable conduct of business. Under instructions from the government, the lender has also rescheduled repayments and restructured loans to help borrowers survive the pandemic. Finnfund also favours businesses that advance gender equality. Almost all of Early Dawn’s clients are women, while 66pc of senior management and 60pc of board members are female.

Source: Myanmar Times

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Myanmar targets US$1B in marine exports for fiscal 2020-21

by TRADING

Myanmar expects to export up to US$1 billion worth of marine products in fiscal 2020-21 notwithstanding disruptions as a result of COVID-19, said U Wai Lin Maung, Director General of the Department of Fisheries under the Ministry of Agriculture, Livestock and Irrigation. This is around 17 percent higher than in fiscal 2019-20, when the country raked in US$853 million in marine exports, a 20-year high at the time.

Myanmar is expecting higher overseas demand for its fisheries and marine products with Saudi Arabia having lifted a 2018 ban on fisheries imports. Myanmar’s marine products are mainly exported to Thailand, China and Europe. However, as these are perishable products, more cooperation between the related ministries is needed to manage internal transport and storage and minimize delays at the ports both in Myanmar as well as overseas, U Wai Lin Maung said.

Last month, Saudi port authorities seized and detained 30 containers of Myanmar fisheries worth US$80,000 each due to confusion over customs and policies. U Wai Lin Maung added that his department will support local aquaculture farmers and fishermen facing difficulties to avoid disruptions.

Source: Myanmar Times

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KB Bank Myanmar to begin operations in December

by SERVICES

South Korea’s largest housing finance bank, KB Bank, has announced that it will formally launch KB Bank Myanmar in December. KB Bank was one of the seven foreign banks to be awarded a license to operate in Myanmar by the Central Bank of Myanmar in April this year. With a license in place, it will bring in a large amount of foreign direct investment into Myanmar, KB Bank stated.

The bank plans to sell advanced financial products in the country, offer financial support to domestic businesses and SMEs, real estate and infrastructure finance, and other new instruments and services. Three of the Korea-based KB Financial Group subsidiaries now provide financial services in Myanmar, including KB Bank, KB Kookmin Card (KB Card) and KB Microfinance. The bank has already received a license to operate, the KB Card has been in Myanmar since 2017, and is awaiting final approval for its 2018 license application to operate as a non-banking financial institution in Myanmar.

The KB Card, once approved, will offer care hire purchase facilities to customers, besides instalment based loans for purchase of mobile phones and high-end home appliances. It plans to expand through a network of branches in Yangon, Mandalay and Nay Pyi Taw. KB Microfinance has been operating in Myanmar since 2017 through its 21 branches in various states and divisions in the country. It has been lending funds for homes and small businesses to the local people.

Source: Myanmar Times

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Natural gas exports top $3.5 bln last FY

by TRADING

MYANMAR’S exports of natural gas in the past financial year 2019-2020 amounted to US$3.5 billion, the Commerce Ministry’s data showed. The figures plunged from $3.88 billion registered in the FY2018-2019, as per Commerce Ministry data. Natural gas is included in the list of major export items of Myanmar. Over 10 per cent of the country’s total export earnings
come from the sale of natural gas.

There are 53 onshore blocks and 51 offshore blocks, totaling 104 blocks. A total of 25 onshore blocks and 31 offshore blocks are operating under foreign investment. Natural gas extraction is being made at the Yadana, Yedagun, Shwe, and Zawtika offshore blocks as well as onshore drilling blocks. Yearly extraction is elevated to cubic feet in 670.36 billion from 600 billion this year, according to the fourth-year performance statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore from Rakhine State, was discovered in 2014. Natural gas extracted from the Natural gas export of Myanmar has fetched US$3.5 billion in the past financial year.

The Yadanar natural gas project is being carried out by the TOTAL Company, with its pipeline supplying natural gas to Thailand. Natural gas is also extracted in Yedagun, located offshore from Taninthayi and discovered in 1992. The Zawtika Project in the Gulf of Moattama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagun is declining, and those projects will be halted in the coming years.

Source: The Global New Light of Myanmar