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New ASEAN-led trade deal to boost Myanmar manufacturing sector

by MANUFACTURING

The newly formed ASEAN- led global trading bloc, Regional Comprehensive Economic Partnership (RCEP), could boost the Myanmar manufacturing sector, according to the research and advisory firm Oxford Business Group. Myanmar could capitalize on the 15- country trade bloc, the biggest in the world, to grow its manufacturing base, the research group said. Peter Crowhurst, the chief executive officer of the British Chamber of Commerce Myanmar, told OBG that “local, regional and indeed global manufacturers who wants to be active in the ASEAN market place are taking advantage of the opportunities in Myanmar”. The Myanmar economy is very young, it is agriculturally based and overall manufacturing is in its infancy.

Crowhurst noted that Myanmar has a lower cost base, a growing infrasture and a receptive government that is seeking to strengthen and diversity its economy. The fresh overwhelming mandate the ruling National League for Democracy received during the November 8 polls would give impetus for more reforms that would enable the country to take advantages of the RCEP. With the new government under the direction of Daw Aung San Suu Kyi, now is the time to build and strengthen capabilities of the respective ministries to support the effective and balances implementation of RCEP. During the last five years, international business invested over US$6 billion in 711 manufacturing businesses in Myanmar.

Similarly during those five years, firms mostly from Japan and Singapore invested US$1.1 billion in 50 businesses in Myanmar special economic zones. Manufacturing sector attracted the most foreign investments during the from 2016 to 2020 with $7.4 billion according to Directorate of Investment and Company Administration. The RCEP was signed on November 15 on the sidelines of the ASEAN summit. The signatories are the 10-country ASEAN, China, Japan, South Korea, Australia and New Zealand. The new trading bloc represents around 30 percent of the world’s population, 30pc of global gross domestic product and about 28pc of the international trade. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Source: Myanmar Times

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China-Southeast Asia (Myanmar) International Trade Digital Expo

by EVENT

To promote the economic and trade exchanges between China and Southeast Asian countries, enhance Lancang-Mekong cooperation, deepen the comprehensive strategic partnership between China and Myanmar, and alleviate the negative impact of the COVID-19 epidemic on international economic and trade cooperation, China Council for the Promotion of International Trade (CCPIT) will exhibit the China-Southeast Asia (Myanmar) International Trade Digital Expo online from December 2 to 11, 2020 in collaboration with China Chamber of International Commerce (CCOIC)

Date: 2-11 December 2020

Host: China Council for the Promotion of International Trade

Organizer: China Chamber of International Commerce

Contact address: myanmarexploring123@gmail.com

Website: http://southeasia.ccpit-expo.com

Teleconference

2020 Yeoju-Yangpyeong South East Asian Online Trade Mission

by EVENT

Date: 4 December 2020 (Friday)

Time: 9:00AM-12:00PM (Morning Session) , 1:00 PM- 5:00PM (Afternoon Session)

“2020 Yeoju-Yangpyeong South East Asian Online Trade Mission” 8 participated Korean Companies want to do joint businesses with local partners in Myanmar through this online business meeting

Place: 1607 A, 16th Floor, Time City Office Tower 2

Contact address: myanmaricc2013@gmail.com

Organizer: Myanmar International Consulting Cooperation

New Myanmar economic recovery and reform plan to include agriculture improvements

by ECONOMY

The government is drafting plans to reform the agriculture sector in line with the Myanmar Economic Recovery and Reform Plan (MERRP), which is now being drafted, according to the Ministry of Agriculture, Livestock and Irrigation (MOALI) in a November 18 statement. While the plan has yet to be finalized and made official, MOALI understands it includes a framework for agricultural development and reform. This aligns with MOALI’s aim is to develop more high quality agriculture, livestock and fisheries products to raise exports and stabilize prices. It also plans to raise investments in value-added food industries and carry out reform programs across the industry. The ministry will work to strengthen linkages between farmers and food producers.

Funds will be channeled into improving domestic logistic infrastructure and storage facilities, while work will be done to clarify farmers’ land rights, accelerate contract farming and hire purchase ways for agricultural equipment. Key to reform is finding and fostering new private sector business opportunities in the agriculture sector, Paul Pleva, Office Director, Economic Growth, USAID Burma, said during the International Market Opportunities for Myanmar Agricultural Products webinar last week. USAID is ready to support upgrades and where they exist, build on existing contacts and relationships, such as those established in the US, Germany, Japan and Netherlands to improve trade. USAID supports agriculture because strong economic links between communities promotes social cohesion.

In the previous year, Myanmar exported agriculture products worth US$3.7 billion, according to the Ministry of Commerce. The government is drafting the MERRP after a recent review of the COVID-19 Economic Relief Plan (CERP), which was rolled out on April 27, as the CERP was implemented as a short term response plan to mitigate the immediate impact of COVID-19 on households and businesses, the MERRP as an extension of the CERP will set out a recovery plan aimed at rebuilding the Myanmar economy over the longer term. The new plan will focus on macroeconomic and financial stability and priorities growth strategies that are sustainable for the economy in the long run, such as investments in energy sources that are renewable. It will also include support for agriculture, infrastructure that boosts connectivity as well as human capital and innovation.

Source: Myanmar Times

Construction ministry discusses announcement of preferred bidder for elevated expressways project in Yangon

by CONSTRUCTION

Union Minister for Construction U Han Zaw presided over the 4th meeting of the leading committee on construction of elevated expressways and outer ring road in Yangon yesterday afternoon. The Zoom meeting was also participated by the committee members and Union Ministers U Thant Sin Maung, U Win Khaing, U Soe Win, its secretary Deputy Minister Dr Kyaw Lin, departmental heads and officials from Nay Pyi Taw, and Yangon Region Chief Minister U Phyo Min Thein and Regional Minister for Electricity, Industry, Transport and Communication Daw Nilar Kyaw from Yangon.

The phase (1) of elevated expressway project will have a total length of 27.5 kilometre at an estimated cost of US$800 million. The International Finance Corporation (IFC), the member of the World Bank, is working as the consultant group for the project. The IFC has evaluated the technical and financial proposals from the 10 companies which passed

The meeting discussed cooperation of relevant ministries in the project. The elevated expressway project will be implemented by the Ministry of Construction and the Yangon Region Government under the public-private partnership system. The phase (1) of the 27.5-km long project will include a 19-km long four-lane way in the eastern part of the city, 6-km long four-lane way from east to west and 2.5-km long two-lane way connecting to Yangon International Airport to reduce traffic congestion in the city.

Source: The Global New Light of Myanmar

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Import of sesame and raw peanuts threatens domestic prices

by TRADING

Mandalay wholesales of sesame seeds and raw peanuts have raised objections to a company’s application for a permit to import these two products, saying this must not be allowed since it will place downward pressure on domestic prices and impact local farmers. U Chun, Chair of the Mandalay Wholesale Center, met with executive members, merchants dealing in sesame seeds, beans and pulses, and edible oil millers on November 16 to discuss the issue of import and re-export of sesame seeds and raw peanuts on CMP (cut, make, pack) basis by the company in question.

The imports and re-exports under CMP will be tax exempt and prices will therefore, be cheap. Myanmar peanuts are mostly exported to China and with competition from cheap imports, the local prices will drop. If this happens, the farmers will be badly affected. However, should they export to other countries, then there is no problem. Sesame seeds and raw peanuts from China, India, Vietnam and Africa are already cheap, and with no taxes, the prices will be even lower, and hence, capture market share from local producers. Myanmar’s sesame seeds are pricier because of their superior quality, being organically produced with natural fertilizers, with good potential of higher demand and better prices in international markets. The country’s produce is exported to niche markets like Japan and the EU.

Local peanuts have a better taste and prices are 100 Yuan more than peanuts from China, and 200 Yuan more than Indian peanuts. Current prices of sesame seeds have dropped by K20,000 per bag of 45 viss, and peanut prices by K300 per viss, during this week. Such price fluctuations can be damaging for local growers. Past experience has shown how re-exports adversely impact domestic prices. The re-export of sugar had led to a drop in its price from K1400 per viss to K800. Zero taxes for imports, if they are re-exported, makes this option lucrative though it harms local growers’ interests. At this stage it is important to protect local farms and ensure price stability.

Source: Myanmar Times

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SMEs will be able to connect to the global manufacturing network

by MANUFACTURING

The 15 members of the RCEP will have more business opportunities, and Myanmar’s small and medium enterprises will be able to connect to the global manufacturing network, according to the Ministry of Investment and Foreign Trade. Than Aung Kyaw, Director-General of the Department of Foreign Economic Relations said. The Regional Comprehensive Economic Partnership (RCEP) is for the 10 ASEAN members and its six dialogue partners: China, Japan Korea India It is a free trade agreement between Australia and New Zealand. The agreement, which includes developed countries, will provide better trade and investment opportunities for Myanmar’s exports as it seeks to revive Myanmar’s economy beyond COVID-19.

According to state-run newspapers, the technology and assistance required for the transition to a technology-based digital economy, especially in the post-COVID-19 period, will be available in accordance with the terms of the Economic and Technological Cooperation Chapter of the Convention. The RCEP is comprised of 10 ASEAN member states and six dialogue partners: Australia, China, India, Japan, South Korea and New Zealand are negotiating a Regional Comprehensive Economic Partnership (RCEP) agreement, which began in 2013. RCEP accounts for almost half of the world’s population, accounting for 42.2% of the global economy; It is expected to become one of the world’s largest trade groups, accounting for 29.1 percent of world trade and 32.5 percent of global foreign investment.

According to the Ministry of Investment and Foreign Trade, Myanmar’s participation in the RCEP will increase Myanmar’s exports to a market that accounts for about half of the world’s population with duty-free access. The RCEP is intended to be a more modern, comprehensive, high-quality and mutually beneficial free trade agreement than the current ASEAN Free Trade Agreement. Myanmar’s participation in the Regional Comprehensive Economic Partnership (RCEP) will provide opportunities for Myanmar’s exports to more than half of the world’s population with duty-free access, and the agreement will also increase investment from signatories to Myanmar.

Source: Daily Eleven

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Going Digital Webinar

by EVENT

Date: 22 November 2020 ( Sunday), 10 A.M

Panelists:

  • U Thaung Tin ( Founder & Chairman, Knowledge Management Dedication (KMD)Co.,Ltd, Vice President, UMFCCI)
  • Dr. Tun Thura Thet (Founder & CEO Myanmar Information Technology Co. Ltd Vice President Myanmar Computer Federation)
  • U Aung Kyaw Moe (Founder & Group CEO , 2c2p)

Moderator: Daw Thiri Yadanar Kyaw (Founder & CEO, T Capital Limited
Executive Member, YRYEA)

Contact address: MYEA and YRYEA Facebook Live

Organizer: YRYEA- Yangon Region Young Entrepreneurs Association

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Myanmar exports over 160,000 tonnes of rice as of 6 November

by TRADING

THE volume of rice and broken rice exported between 1 October and 6 November in the current financial year 2020-2021 reached 163,413 metric tons, worth over US$60.67 million, according to an announcement from the Myanmar Rice Federation (MRF). Maritime trade constitutes 54.9 per cent of rice exports, generating $33 million from over 89,764 tonnes of rice, while border trade accounts for around 45 per cent of the total rice exports. Rice
exports through the land border have generated an estimated income of $27.55 million from over 73,649 tonnes of rice. Myanmar’s rice is shipped
to 26 foreign countries in October 2020. MRF expected to ship 2.4 million tonnes of rice, and broken rice in the last FY ended 30 September 2020.

The country surpassed the export target, sending over 426,611 metric tons to neighbouring countries through border trade and over 2.15 million tonnes of rice and broken rice to foreign trade partners via maritime trade, totalling over 2.58 million tonnes. A surge in rice export through sea trade was contributed to meeting year’s export target, MRF stated. Myanmar targets to export 4 million tonnes of rice and broken rice in the current financial year 2020-2021, said U Aung Than Oo, vice president of Myanmar Rice Federation (MRF). Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, which was an all-time record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019. Yangon gold merchants seek large-scale trading permit around 100 trucks of watermelons and muskmelons could pass through Kyin San Kyawt border checkpoint. The inspection at China’s checkpoint takes longer for drivers beginning from 16 November, and only 50 trucks can enter border crossing. If around 200 watermelon/muskmelon trucks enter the Muse land border, the traffic congestion will worsen.

Muse depot traffic control is monitoring the trucks at its upmost, said the owner of Khwar Nyo Fruit Depot. The prices of watermelon move in the range of 4,500-6,000 Yuan per tonne on 17 November, while muskmelon is priced 4,000-5,800 Yuan per tonne. The COVID-19 resurgence in Myanmar directly affected the border trade, and some truck drivers have tested positive for the coronavirus. As China is tightening the border security to contain the spread of COVID-19, it caused the delay in trade. Earlier, trading was conducted in Muse border. The COVID-19 conditions blocked Chinese traders to come. As China has been stepping up border control measures to contain the spread of the COVID-19, the driver substitution policy has been exercised on Muse, Mang Weing and Kyalgaung border route, said chair of Muse-Namkham Chamber of Commerce. Myanmar exports more than 800,000 tonnes of watermelons and 150,000 tonnes of muskmelons every year. Workers load sacks of rice onto a truck in Yangon.

Source: The Global New Light of Myanmar

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Myanmar will strive to implement RCEP trade deal, says State Counsellor

by INVESTMENT

The Regional Comprehensive Economic Partnership (RCEP) agreement will bring investments into Myanmar and create jobs but is expected to heighten competition for small enterprise, business people say. The RECP, the world’s largest free trade agreement, was signed by Myanmar and 14 other Asia-Pacific countries on Sunday. It covers the 10 member states of the Association of Southeast Asian Nations (ASEAN), of which Myanmar is part of, as well as the People’s Republic of China, Japan, South Korea, Australia and New Zealand. The deal represents around 30 percent of the world’s population, 30pc of global GDP and about 28pc of international trade.

Myanmar will try its best to implement the RECP provisions, said State Counsellor Daw Aung San Suu Kyi. U Than Aung Kyaw, director genereal of Foreign Economic Relations Department, said the RECP will play a key role in establishing free trade areas and will boost reforms in e-commerce, government procurement and intellectual property rights. The Union of Myanmar Federation of Chambers of Commerce and Industry’s (UMFCCI) vice president U Maung Maung Lay said the deal will bring about more attractive tax rates for businesses, benefit consumers and pave the way for globalization. Living standards will improve and there will be more competitive measures. It will reduce corruption and create more job opportunity. There will be a better supply chain and prices of products will be cheaper for high import volume. Myanmar needs to support small enterprises to develop and become more competitive, or else outside players will dominate the local market.

Myanmar’s manufacturing capacity and worker skills need to improve and have a good environment. Get rid of red tapes and welcome businesses with red carpet. The RECP programme could also be a timely remedy to support Myanmar’s recovery from the COVID-19 shock next year, facilitating trade and investments. The economics shock from COVID-19 has dealt a heavy blow to an already difficult situation for tourism, food and beverage and retail businesses, which had been hit by lower tourist arrivals caused by the northern Rakhine crisis. But foreign investment approvals in the fiscal year ending September 30 recorded the highest amount over the past five years.

Producers in Myanmar will also have access to bigger markets under the RCEP deal. But the business environment and e-services need to catch up. The government’s special car import licenses for officials, announced in September, has come under attack by business groups and opposition politicians for undermining Myanmar’s FDI environment and hurting automotive investors. According to the RCEP, Cambodia, Laos and Myanmar will enjoy special arrangements regarding tax and customs reductions. Member countries covered by RCEP will have to reduce 65pc of customs for all goods, but the three frontier economies will only need to lower 30pc. After 10 years, the other countries will have to reduce customs taxes to 80pc in total but it will only apply to Myanmar in 15 years’ time.

Source: Myanmar Times