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Myanmar-Thailand bilateral border trade tops $3.7 bln this FY

by TRADING

Bilateral border trade between Myanmar and Thailand reached over US$3.7 billion as of 10 September in the present financial year 2020-2021 which started in October, the Ministry of Commerce’s trade data showed. The country’s export to Thailand totalled $2.44 billion while its import shared $1.29 billion during the period. This budget year’s figures decreased by $95 million, compared to the same period in the last fiscal year.

Myanmar mainly conducts border trade with neighbouring Thailand through seven border checkpoints—Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei gates. During the period, Myawady border gate topped with $1.79 billion trade. The country’s agricultural and fishery products are exported to Thailand while cosmetics, food products and machinery and raw industrial goods such as cement and fertilizers are imported.

The bilateral trade between Myanmar and Thailand stood at $3.7 billion in FY2020-2021 (as of September), $5.1 billion in FY2019- 2020, $5.5 billion in FY2018-2019, $2.9 billion in the mini-budget year of 2018 or transitional period from April to September this year, $5 billion in FY2017-2018, $4.3 billion in the 2016-2017FY, $4.8 billion in the 2015-2016FY, $5.7 billion in the 2014-2015FY, $5.6 billion in the 2013-2014FY, $4.7 billion in the 2012-2013FY, and $4.5 billion in the 2011-2012FY, according to the Myanmar Ministry of Commerce.

Source: The Global New Light of Myanmar

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Myanmar’s bilateral trade with Germany reaches $460 mln in past ten months

by TRADING

The value of trade between Myanmar and Germany from October to July of the current financial year 2020-2021 exceeded US$460 million, according to data of the Ministry of Commerce. Myanmar’s export to Germany surpassed its import, with $349.882 million worth of export and $110.79 million valued import, according to the statistics released by the Ministry of Commerce. Beyond the regional trade regime, Myanmar has established trade links with EU members.

Germany is the biggest trade partner of Myanmar in European Union, followed by Spain. The main export items are rice, pulses, tea leaf, coffee, garments on a Cut-Make-Pack basis and fisheries. Meanwhile, machinery, data-processing equipment, electrical and optical goods, chemical products, motor vehicles and parts and pharmaceutical products, cosmetics, food and beverages and consumer goods are imported into Myanmar.

Myanmar reinstated the EU’s Generalized Scheme of Preference starting from 19th July 2013. Myanmar can enjoy GSP for the export of fisheries, rice, pulses, agro products, bamboo and rattan finished products, forestry products, apparel and finished industrial goods. Trade value with Germany was registered at $823.7 million in the last FY 2019-2020, $821.5 million in the FY 2018-2019, $373 million in the past mini-budget period (April-September 2018), $584 million in 2017-2018 FY, $342 million in 2016-2017 FY and $153 million in FY 2015-16, respectively.

Source: The Global New Light of Myanmar

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Myanmar ships over 2.2 mln tonnes of corn to international trade partners this FY

by TRADING

Myanmar has exported more than 2.2 million tonnes of corn to foreign countries in the current financial year 2020-2021, said U Min Khaing, the chair of the Myanmar Corn Industrial Association said. Of 2.2 million tonnes, about 1.6 million tonnes of corn were delivered to Thailand, whereas the remaining corns were conveyed to China, India and Viet Nam. This year, the corn fetched a good price of US$260-270 per tonne.

It was priced only $200-230 per tonne during the year-ago period. Thailand gives the green light to corn imports through Maesot under zero tariff (with Form-D), between 1 February and 31 August. Thailand has granted tax exemption on corn imports between February and August. However, Thailand imposed a maximum tax rate of 73 per cent on corn import to protect the rights of their growers if the corn is imported during the corn season of Thailand.

During the last FY2019-2020, the country exported 2.2 million tonnes of corns to the external market, with an estimated value of $360 million, the Ministry of Commerce’s data showed. Myanmar is the second-largest exporter of corn among regional countries. At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. The country yearly produces 2.5-3 million tonnes of corn.

Source: The Global New Light of Myanmar

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According to the export / import route within four months, there were 49.62% of exports by sea, nearly 31% by land, 3% by air and more than 76% of import by sea

by TRADING

According to the export / import route within four months, there were 49.62% of exports, nearly 31 percent by land, 3 percent by air and more than 76 percent of import by sea, according to the Ministry of Planning and Finance. It is known that 58% of exports in one year are by sea; Nearly 18% by land, almost 4% by air and almost 80% by import by sea based on the export/import route, according to the Ministry of Planning and Finance. In the export / import route, from October to September of the 2019-2020 fiscal year, exports were 18.46% by land; 58% by sea; 3.71% by air and 19.83% by gas pipeline, according to the Export / Import Statistics Team.

From October to September of the 2019-2020 fiscal year, the imports were 16.54% by land, 78.95 % by sea and 4.51% by air. As of January of the 2020-2021 fiscal year, China was the largest importer of Myanmar with over US $ 2024 million; Singapore is worth more than $ 990 million and Thailand more than $ 700 million, according to the Ministry of Commerce. In the four months to January of the 2020-2021 fiscal year, the largest imports to Myanmar were from China at $ 2,024.80 million; $ 990.90 million from Singapore; $ 700.46 million from Thailand; 368.98 million from Indonesia; $ 358.41 million from Malaysia; $ 229.32 million from India; $ 179.60 million from South Korea; $ 158.88 million from Japan; Vietnam imported $ 158.61 million and the United States $ 96.28 million, according to the Ministry of Commerce.

In the four months to January of the 2020-2021 fiscal year, China topped the list of Myanmar’s top 10 exporters with $ 2,275.54 million, followed by Thailand with $ 919.72 million, $ 341.70 million to Japan; $ 309.59 million to India; $ 263.23 million to the United States; $ 157.57 million to Spain; $ 142.91 million to Germany; $ 140.85 million to the UK; $ 116.361 million to South Korea; It exported $ 112.93 million to the Netherlands, according to the Ministry of Commerce. The main priority areas of the National Export Strategy 2020-2025 are agro-based food production; Textile and clothing sector; Industry and electronics; Fisheries sector; Forest products; Digital products and services; Logistics services; Quality management sector; Trade Information Services and innovation and entrepreneurship.

Source: Daily Eleven

CBM sells $144.8 mln in past eight months

by ECONOMY

The Central Bank of Myanmar (CBM) sold US$144.8 million at its auction rate in the past eight months from February to 15 September, according to the CBM. According to monthly sales of US dollars from February to 15 September 2021, the CBM sold $6.8 million in February, $12 million in April, $24 million in May, $12 million in June, $39 million in July and $28 million in August. But, there is no sale in March. In September, the CBM reportedly sold $15 million on 13 September while $8 million on 15 September at the foreign currency auction rate.

The CBM is carrying out an auction for foreign exchange to reduce the fluctuation of foreign exchange rates in a short-term period and fulfil the needs of foreign exchange reserves. Rules and directives have been set out for the CBM’s auctions. Following these rules and directives, the CBM is trading the foreign currency through three State-owned banks, 19 local private banks and 13 foreign banks, which are holding authorized dealer-AD licences. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April.

The rate fluctuated between K1,585 and K1,730 in May and it moved to the maximum of K1,595-1,620 in June. The rate stood at K1,625-1,645 in July. In 2020, the exchange rate moved in the range of K1,465-1,493 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, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, 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

YGEA sets daily gold trading limit

by ECONOMY

Yangon Region Gold Entrepreneurs Association (YGEA) curbed the amount of gold that investors can trade, and permits only 10 ticals for daily trading. In recent days, some received purchase orders without physical gold in the domestic gold market. As a result of this, YGEA urged its members to regulate trade in order to deal with market volatility. To regulate unsustainable rally in the domestic gold market, the association called for the members to make gold transactions with only immediate payment, avoid the verbal transactions over calls and halt trading outside the Yangon region, according to YGEA. The price of the precious yellow metal was valued at K1,828,000 per tical (0.578 ounce, or 0.016 kilogramme) on 20 September, while the gold price hit US$1,745 per ounce in the international gold market.

The exchange rate on the US dollar was around K1,970 on 17 September. The price of pure gold metal hit fresh new peaks in the recent days and it reached the highest of K1,900,000 per tical on 11 September tracking the dollar gains on Kyat in the forex market. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price was registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an alltime highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May.

The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June). It fluctuated between K1,562,300 (26 July) and K1,587,000 (K1,587,000). Last month, the price of gold reached the lowest of K1,572,800 (3 August) and the highest of K1,698,000 (31 September), the gold traders said. According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar

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Myanmar’s foreign trade value drops by $7.39 bln this FY

by TRADING

Myanmar’s foreign trade value hit over US$27.151 billion till 3 September in the current financial year 2020-21, declining by $7.39 billion when compared to the same period of last FY, according to the Ministry of Commerce. The foreign trade value was $27.151 billion from 1 October 2020 to 3 September 2021, while the previous FY saw over $34.55 billion in the same period. During these periods, there was a decline of over $7.39 billion.

During 10 months of this FY, China topped the list of the 10 Myanmar’s exported countries with $4,408.30 million, followed by Thailand with $2,548.12 million, the Ministry’s figures said. In 2019-2020 FY, Myanmar exported goods worth US$3,985.06 million to China, US$2,091.81 million to Thailand, US$673.87 million to Japan, US$485.50 million to India, US$434.67 million to the US, US$261.71 million to Germany, US$245.75 million to the UK, US$233.48 million to Spain, US$203.72 million to the Netherlands and US$198.29 million to South Korea, according to the data from the commerce ministry.

The value of Myanmar’s trade with China through maritime and sea trade channels totalled over $12.13 billion in October and September of the 2019-2020 financial year, including $5.4 billion worth of exports and $6.7 billion for imports, according to data released by the Ministry of Commerce. China is Myanmar’ largest trading partner and its second-largest source of investment. Business centres will be established in Myanmar and China to promote trade and investment, according to the Ministry.

Source: The Global New Light of Myanmar

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Japan ranks Myanmar third-largest export country this FY

by TRADING

The value of trade between Myanmar and its development partner Japan exceeded over $1.049 billion in the current FY and Japan is placed as Myanmar’s third-largest export partner, the Ministry of Commerce’s data showed. Myanmar’s exports to Japan in the past ten months (October-July) of the current financial year 2020-2021 touched about US$768 million while import was valued at only $281.4 million, according to the data of the Ministry of Commerce.

Myanmar’s export items to Japan are garments, marine products, rice, black sesame, green gram, rubber and other products. In return, it imported machines and machine equipment, electronic equipment, fertilizers, chemical products, medicines, automobiles, and other products. Bilateral trade values have registered $1.92 billion in the last FY2019-2020, $1.89 billion in the FY2018-2019, $1 billion in the 2018 mini-budget period, $1.92 billion in the 2017-2018FY, $2 billion in the 2016-2017FY and $1.84 billion in the 2015-16FY, respectively.

This FY, three enterprises from Japan were approved to make initial investments of $518 million into the country, according to the data of the Directorate of Investment and Company Administration (DICA). Japan has made up over 34.7 per cent of total FDI in the Thilawa Special Economic Zone. The Japan International Cooperation Agency (JICA) offers loans such as ODA loans and two-step loans intending to bring about socio-economic development in Myanmar.

Source: The Global New Light of Myanmar

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Myanmar imports surpass exports in trade with Singapore this FY

by TRADING

The value of Myanmar’s imports exceeded exports in bilateral trade with Singapore in the past ten months (Oct-July) of the current fiscal year 2020-2021, with exports reaching over $181.4 million and imports valued at over $2.34 billion, according to the data from the Ministry of Commerce.

Myanmar trade deficit in goods with Singapore was estimated at US$2.158 billion in the past ten months (Oct-July) of the current financial year 2020-2021, the ministry’s statistics indicated. Singapore is Myanmar’s second largest trading partner in the region, after Thailand. In the current FY, the value of Myanmar’s bilateral trade with Singapore in normal trade and border trade topped $2.5 billion.

Myanmar exports agricultural products, footwear, textiles and clothing, minerals, and animal products to Singapore, while it imports plastic, fuel oil, capital goods, para-finished goods, consumer products, metals, and chemicals. Myanmar’s bilateral trade with Singapore was registered at $3.5 billion in the last fiscal year 2018-2019, $1.99 billion in the 2018 mini-budget period, $3.83 billion in the 2017-2018 FY, $2.96 billion in the 2016-2017 FY, and $3.69 billion in the 2015-2016 FY.

Source: The Global New Light of Myanmar

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200 companies struck off register due to absence of AR in Sept: DICA

by INVESTMENT

A total of 200 companies was struck off the register this month as they fail to submit annual return (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). The DICA has notified any registered company which fails to submit its AR on MyCO are to be suspended. The DICA found that 200 companies failed to restore their statuses within six months of suspension under Section 430 (f) of Myanmar Companies Law in September. The companies were struck off the registration during the period from 6 to 13 September respectively. Also, 500 companies were also struck off in July and August, according to the DICA’s notifications.

All registered companies need to file AR on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to the Section 97 of the law. According to the Section 266 (a) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements (G-5) simultaneously. All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending, as per Section 53 (a-1) of the Myanmar Companies Law 2017. As per DICA’s report, more than 16,000 companies were suspended for failure to submit AR forms within the due date. Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns.

The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days of receiving the notice, the system will show the company’s status as suspended. Companies can restore their statuses only after shelling out a fine of K50,000 for AR fee, K100,000 for restoration of the company on the register, and K100,000 for late filing of documents, totalling K250,000. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the registration, according to the DICA notice. The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017. The number of companies registered on the online registry system, MyCO, topped more than 2,000 in the first half of this year. Earlier, MyCO received more than 1,000 applications from new companies every month. At present, 100 per cent of the applicants are using the online registration platform, according to data provided by the DICA.

Source: The Global New Light of Myanmar