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CMP garment exports worth $3.74 bln in Oct-July

by MANUFACTURING

Exports of garments manufactured under the cut-make-pack (CMP) system were valued US$3.74 billion in the period between 1 October and July-end in the current financial year 2019-2020. Myanmar’s manufacturing sector is primarily concentrated in CMP garments and textiles, which contribute to the country’s GDP to some extent. The garment sector is among the prioritized sectors driving up exports. The CMP garment industry has emerged as a promising one, with preferential trade from Western countries. The majority of Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into the free-on-board (FoB) system. Following the negative impacts caused by the COVID-19 on the garment industry, some CMP garment factories have shut down on the reason for the lack of raw materials, leaving thousands of workers unemployed.

The COVID outbreak and spread hit the labor-intensive businesses so severely, the Directorate of Investment and Company Administration (DICA) stated. However, foreign direct investments flow into many types of businesses, including garment enterprises. The foreign investors are not bothered by the disputes between employers and employees and the closure of some CMP businesses during the meantime. Of the investment proposals, the manufacturing and labor-intensive industries are prioritized by the commission. Myanmar Investment Commission is endeavoring to accept investment projects in manufacturing masks, pharmaceuticals and others which can contribute to the fight against the coronavirus in the country at the soonest. Supply chain disruptions and cancelling customer orders following the coronavirus outbreak hurt the global textile industry. Similarly, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is bracing for downward trend because of the cancellation of order from the European countries and suspension of the trade by western countries amid the pandemic.
At present, all the garment factories have been temporarily closed due to the coronavirus resurgence.

The export value of CMP garments was only $850 million in the 2015-2016 financial year, but it has tripled over the last 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. It tremendously grew to $4.6 billion in the 2018-2019FY. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US. With demand from foreign trade partners growing, imports of CMP raw materials are rising year by year. Since an outbreak like COVID-19 might happen in the future, it is necessary to prepare for a sufficient supply of raw materials. The public and private sectors will cooperate in setting up the supply chain on our own sources, including weaving, knitting, dyeing, and sewing factories. The MGMA has more than 700 members, and garment factories in Myanmar, employing more than 500,000 workers. Investors prefer to invest in countries with inexpensive labor, such as Myanmar.

Source: The Global New Light of Myanmar

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Tourism firms should be recognized for complying with COVID-19 guidelines

by HOTEL & TOURISM

Local tourism businesses that have complied with COVID-19 safety guidelines issued by the Ministry of Health and Sports should be officially recognized for doing so, State Counsellor Daw Aung San Suu Kyi said during the celebration of World Tourism Day 2020 held on September 25. Vice president U Henry Van Thio suggested that firms in the travel industry focus on community-based tourism packages to capture new demand when the industry resumes again.

As such, being recognized as safe and compliant with the government measures will be advantageous for firms when the tourism industry resumes again. With international flights suspended and the global tourism industry likely to take anywhere between two and eight years to recover, based on the World Trade Organization’s forecast, Myanmar can no longer rely on foreign tourists to boost the industry tourism entrepreneurs agreed with the vice president’s suggestion to leverage on domestic and community-based tourism in Myanmar.

“During this period, the tour companies are facing their most challenging times. Some tour firms have even changed their business lines for survival”, said U Naung Naung Han, chair of Myanmar Tourism Entrepreneur Association. The number of tourists to Myanmar has declined by 65 percent since the first half of the year, data showed.

Source: Myanmar Times

B2B E-Summit 2020

by EVENT
  • 14 Oct at 09:00 - 18 Oct at 17:00
  • Public · Hosted by Myanmar B2B TV, Htet Zan Linn and Myanmar B2B Management Magazine
  • Online event https://summit.myanmarb2b.com.mm/

မင်္ဂလာပါ Myanmar B2B Management Magazine ရဲ့ ၈ နှစ်ပြည့် နှစ်ပတ်လည်အခမ်းအနားကို မကြာမီကျင်းပတော့မှာဖြစ်ပါတယ်။
ယခုနှစ်မှာတော့ COVID-19 ကြောင့် အခမ်းအနားကို အွန်လိုင်းကနေ “B2B E-Summit 2020” အနေနဲ့ ကျင်းပသွားမှာပါ။
ဒီနှစ်မှာတော့ ထူးခြားတဲ့အစီအစဉ်အနေနဲ့ B2B Magazine မှာ မျက်နှာဖုံးရှင်အဖြစ်ဖော်ပြခံထားရတဲ့ စီးပွားရေးလုပ်ငန်းရှင် ‘အယောက် ၈၀’ ရဲ့ ဟောပြောသင်ကြားမှုတွေကို
ထုတ်လွှင့်တင်ဆက်ပေးသွားမှာဖြစ်ပါတယ်။
မြန်မာပြည်ရဲ့ထိပ်တန်းစီးပွားရေးလုပ်ငန်းရှင်နဲ့ ပရော်ဖက်ရှင်နယ် အယောက် ၈၀ ကနေ သူတို့လေ့လာထားတဲ့သီအိုရီတွေ၊ ဖြတ်သန်းလာတဲ့ အတွေ့အကြုံတွေကို မတူညီတဲ့ခေါင်းစဉ်တွေနဲ့ ဟောပြောသင်ကြားပေးသွားမှာဖြစ်ပါတယ်။
အောက်တိုဘာလ ၁၄ ရက်မှ ၁၈ ရက်နေ့အထိ ၅ ရက်တိုင်တိုင် ကျင်းပသွားမယ့် “B2B E Summit 2020” ကို တက်ရောက်ဖို့လည်း အားလုံးကို ဖိတ်ခေါ်ပါရစေခင်ဗျ။

Dollar exchange rate continues slumping despite CBM purchase of $12.7 mln within 4 days

by ECONOMY

THE US dollar exchange rate keeps falling in the local forex market. However, the Central Bank of Myanmar (CBM) purchased US$12.7 million in the auction market within four days, forex market data showed. In a bid to keep the exchange rate stable, the CBM purchased 1.8 million dollars on 21 September, 3.3 million dollars on 22 September, 3.8 million dollars each on 23 and 24 September at an auction market rate.

The CBM has purchased $30.9 million in the auction market between 1 and 24 September. Despite the CBM’s purchase, a dollar touched a low of K1,312 at the opening time on 24 September. The instability in the exchange rate posed difficulties to those stakeholders engaged in the agriculture and livestock supply chains including farmers, traders and exporters. That is why the stable exchange rate is vital of importance for the businesses. At present, the local forex market sees the weak sentiment amid the coronavirus outbreak and the trade disputes between the US and China, the business experts shared their opinions.

This year, the exchange rate moved in the range of K1,456-1,493 in January, K1,436- 1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385- 1,412 in June, K1,367-1,410 in July and K1,335-1,390 in August. Last year, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527- 1,565 in September, K1,528- 1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

Myanmar-China trade exceeds $40 bln in incumbent government period

by TRADING

The value of Myanmar bilateral trade with the neighbouring country China through maritime trade and border trade has stood at an estimated amount of US$42.29 billion in the incumbent government period, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The ministry reported that the imports outperformed the exports in trade with China over the past four years, with exports reaching over $19.7 billion and imports valued at over $22.5 billion. Between 2016-2017FY and 2019-2020 (as of August), China has been Myanmar’s largest trade partner beyond the regional states. China accounted for 80.4 per cent of total trade in the FY2016-2017 with an estimated trade value of $6.28 billion, 78.8pc in the FY2017-2018 with a trade value of over $7.05 billion, 57.45pc in the FY2018-2019 with $5.9 billion and 58.7pc in the FY 2019-2020 (Oct-April) with $3.56 billion respectively.

Rice, various types of peas, sesame seeds, corn, fruits and vegetables, dried tea leaves, fishery products, rubber, gem and animal products are primarily exported to China. In contrast, machinery, plastic raw materials, CMP raw materials, consumer products and electronic tools flow into Myanmar. The border trade value ($22.8 bln) is relatively higher than the maritime trade value ($19.47 bln) in the bilateral trade between Myanmar and China. Myanmar mainly exports agricultural products to China through the border trade, which is often halted, on account of China clamping down on illegal goods. Myanmar merchants are facing difficulties in exporting goods to China through the legitimate channel as they find the tax levied by China is too high.

In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the relevant departments and Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts. Illegal trade is highly witnessed between Myanmar and China borders in the previous years. This year, traders sent the goods via legitimate trade route, and trading volume sharply fell. The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s Ministry of Commerce is trying to boost exports of rice, broken rice, agro-products, fruits and fisheries to China through diplomatic negotiations. Myanmar is carrying out border trade with the neighboring country China through Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung. Apart from its leading trade partner China, Myanmar is carrying out its external trade mostly with the regional trade partners. Trade with countries in the European Union, however, remained uncompetitive, compared with regional trade partners.

Source: The Global New Light of Myanmar

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Myanmar extend int’l flight suspension until October 31

by HOTEL & TOURISM

The Department of Civil Aviation (DCA) has released an announcement on September 24 notifying all international airlines that the previous temporary measures, dated 26 August, have been extended until 31 October 11:59 pm.

The decision was made by the COVID-19 prevention committee in order to continue to effectively control the importation of COVID-19 to Myanmar through air travel. The extension comes after the country began to experience a high resurgence in COVID-19 cases, currently ranking fifth in ASEAN.

The country formally stopped all international commercial flights from landing since March 30, a week after the first cases of COVID-19 were detected. This is the fourth time the measures have been extended. The department first announced on April 12 that measures will be extended until April 30, second one until August 31 was announced on July 28, and the third one until September 30 on August 26.

Source: Myanmar Times

Natural gas exports top $2.97 bln in Oct-July

by TRADING

Myanmar’s exports of natural gas over the past ten months of the current financial year 2019-2020 amounted to US$2.97 billion, the Commerce Ministry’s data showed. The figures reflect a decrease of $264 million compared with the corresponding period of the 2018-2019FY when the gas export value was registered at $3.235 billion, the statistics released by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The drop in the value of exports is linked to the collapse of the global oil and natural gas prices, according to an expert. Natural gas is included in the list of major export items of Myanmar. About 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, totalling 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 Yadanar, the Ye Dagun, the Shwe, and the Zaw Tika 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 field is exported to China.

The Yadana 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 Yedagon, located offshore from Taninthayi and discovered in 1992. The Zawtika Project in the Gulf of Mottama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagon is declining, and those projects will be halted in the coming years. Myanmar’s exports of natural gas in the previous financial year totalled $3.88 billion, as per Commerce Ministry data.

Source: The Global New Light of Myanmar

Third tranche of JICA two-step loans for SMEs approved in Myanmar

by ECONOMY

The Japan International Cooperation Agency (JICA) will disburse ¥15 billion (K190 billion) in funds under an emergency two-step loan program to help small and medium size enterprise (SMEs) in Myanmar, said JICA loan project director at the Myanmar Economic Bank. This is also the third tranche of funds distributed under the program. They are preparing to approve phase 3 of the loan agreement with JICA.

JICA’s loan has a term of 40 years at an interest rate of 0.01 percent. The funds will be distributed to state-owned and local banks, which the repackage the funds into individual loans to borrowers. Under phase 1 the program, a total of K99 billion was distributed in 2018 via 10 local banks in 2018. Phase 3 was approved by parliament in August. A borrower is allowed a maximum loan of K500 million at an interest rate of 5.5pc if there is sufficient insurance coverage, or between 6pc-10pc with lower or no insurance coverage.

The loans are repayable to the banks in five years. In the past, 80pc of the loan amount had to be allocated for fixed capital purposes, while the remaining 20pc was for working capital. Due to the current COVID-19 circumstances though, borrowers are allowed to use the latest tranche of loans solely for working capital purposes. New businesses which are less than a year old and businesses with lower income levels are free to apply for the loans.

Source: Myanmar Times

Myanmar-Thailand trade reaches $18.86 bln in past 4 years

by TRADING

The value of Myanmar’s bilateral trade with neighbouring country Thailand in regular trading and border trade was estimated at US$18.865 billion in the past four financial years, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The ministry reported that exports surpassed imports in trade with Thailand in the past four years, with exports reaching over $10.73 billion and imports valued at over $8.13 billion. Between 2016-2017FY and 2019-2020 (as of August), Thailand has been Myanmar’s largest trade partner among the ASEAN states, followed by Singapore and Malaysia. Thailand accounted for 18.48 pc of total trade in 2016-2017FY with an estimated trade value of US$4.6 billion, 19.17 pc in 2017-2018FY with a trade value of $5.57 billion, 40.38pc in 2018-2019FY with $5.46 billion and 39.55pc in 2019-2020FY (Oct-April) with $3.15 billion respectively.

Exports of natural gas from Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous year. This year, corn exports to Thailand rose significantly compared with the earlier years, the Ministry of Commerce stated. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country. The surge in coronavirus cases in Myanmar led Thailand to close its border area in Maesai recently.

Only six trucks are now allowed on Tachilek-Maesai bridge per day after negotiations of the two countries, the Union of Myanmar Federation of Chambers of Commerce and Industry released the news on 16 September 2020. Besides Tachilek, Myanmar is carrying out border trade with the neighbouring country Thailand through Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Maese border areas respectively. Among them, Hteekhee performed the most extensive trade in border trade with Thailand, followed by Myawady. Apart from its leading trade partner China, Myanmar’s external trade was mostly carried out with the regional trade partners. Trade with countries in the European Union, however, remained uncompetitive, compared with regional trade partners.

Source: The Global New Light of Myanmar