Posts in category: TRADING

The Trade Department under the Ministry of Commerce has been issuing import/export licences at the border trade zone and between 1 and 18 December, a total of 514 licences were granted at the Muse trade zone for Sino-Myanmar cross-border trade, the Ministry of Commerce stated.

Import/export and related business licences can be done through Myanmar Tradenet 2.0 and three licences for exports and 511 for imports of machines and parts, tangerine, stationery, pesticide and other commodities were issued in those days.

To facilitate the National Single Window system, have a single entry in trading and digitize the licensing system and related businesses, the Trade Department under the Ministry of Commerce has officially started the Myanmar Tradenet 2.0 portal from 1 November 2020. The trade value at Muse 105th-mile trade zone totalled U$S1.535 billion, comprising exports worth $1.35 billion and imports worth $182.493 million.

Source: The Global New Light of Myanmar

According to the Government-to-Government pact between Myanmar and Bangladesh, Myanmar has conveyed over 150,000 tonnes of white rice to Bangladesh, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027. In accordance with the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh.

As per the sales contract, Myanmar has exported approximately 15,000 tonnes of white rice to Bangladesh as of 19 December 2022. The remaining will be delivered by the deadline. As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. In line with the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilogramme and 2788.56 Yuan per tonne.

The Export/Import division of the Trade Department issued 42 export licences worth over 534 million Yuan for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

Trade activity at Muse-Mang Wein crossing point, which performed the majority of trade between Myanmar and China, is expected to resume after the upcoming Chinese New Year in 2023, said U Min Thein, vice chair of Muse Rice Wholesale Centre. China has restricted border access through Mang Wein border point amid the COVID-19 cases since 30 March 2021. This being so, it was about one year and nine months that the trade at Mang Wein was suspended. The border checkpoint is yet to be reopened. Since April 2022, China has shut down the Ruili-Kyalgaung crossing point and it was eased on 10 December 2022.

Following the reopening of Kyalgaung border, the checkpoints linking to Kyalgaung crossing point in Muse trade post (Nantaw, Sinphyu and Mang Wein) are likely to be reopened soon, traders engaged in Muse border forecast. “On 10 December, Kyalgaung crossing point was reopened. Both people from Shweli (Ruili) and Kyalgaung are free to pass the point. It raised expectations of traders for the reopening of Mang Wein, Nantaw and Sinphyu checkpoints. Speculation about resumption of cross border trade at those points is going around,” U Min Thein said.

On 18 October, Myanmar’s officials and counterparts from Tathong, Yunnan Province negotiated the promotion of bilateral cross-border trade and reopening of Mang Wein checkpoint through a video conferencing. Prior to the pandemic, Kyalgaung was the busiest and biggest trade post and it performed the highest trade in the China-Myanmar border. Those traders involved in Muse trade zone are relying on the Ruili city. There is a direct trade channel to Ruili through Kyalgaung point so the traders have a smooth transport. This route brings easier and better access to Ruili from Muse border post. Only when the Kyalgaung border post is reopesned can the trade boost, traders elaborated.

China shut down all the checkpoints linking to Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November 2021. Myanmar daily delivers rice, broken rice, pulses, rubber, watermelon, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with about 100 trucks and building materials, electrical appliances, pharmaceuticals, fertilizer, household goods and industrial raw materials are imported into the country with 40 trucks. Myanmar has opened five border trade posts with China; Muse, Lweje, Kanpaiti, Chinshwehaw and Kengtung. Majority of the trade is carried out through Muse post, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

The value of trade with Myanmar’s main trade partner China through maritime and sea trade channels crossed US$5 billion in the first seven months (April-October) of the 2022-2023 financial year, comprising exports worth $1.995 billion and imports valued at $3.082 billion, according to statistics released by the Ministry of Commerce. Myanmar primarily exports agri-products to China through the five land borders (Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung.

However, trade in agricultural products was frequently stopped on account of China clamping down on illegal trade on land borders. Furthermore, China stepped up border control measures to contain the spread of COVID-19, hindering border trade in the previous years. At present, although China eased coronavirus restrictions, only the Kyinsankyawt crossing out of the Sino-Myanmar land borders linking to the Muse post are reopened.

The value of bilateral trade with China stood at $4.3 billion in the 2021-2022 mini-budget period, $9.82 billion in the 2020-2021FY, $12 billion in the 2019-2020FY, $11.36 billion in the 2018-2019FY, $6 billion in the past mini-budget period, $11.78 billion in the 2017-2018 financial year and $10.8 billion in the 2016-2017FY respectively. Rice, beans and pulses, corn, fruits and vegetables, fishery products, rubber, chilli peppers and other food commodities are exported to China, whereas machinery, plastic raw materials, consumer products and electronic appliances flow into Myanmar. 

Source: The Global New Light of Myanmar

According to the government-to-government pact between Myanmar and Bangladesh, Myanmar has conveyed over 140,000 tonnes of white rice to Bangladesh, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year. In line with this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar yearly between 2022 and 2027. In accordance with the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh.

As per the sales contract, Myanmar has exported a total of 143,225 tonnes of white rice by 19 ships to Bangladesh as of 12 December 2022. The remaining will be delivered by the deadline. As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. Following the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilo and 2,788.56 Yuan per tonne.

The Export/Import division of the Trade Department issued 42 export licences worth over 534 million Yuan for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes yearly between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

Myanmar’s exports significantly grew by about 15 per cent in the eight months of the current financial year 2022-2023 from the corresponding period of last year. Between 1 April and 2 December of the current FY2022-2023, Myanmar’s exports soared to US$11.17 billion from $9.7 billion in the year-ago period. The figures reflected a sharp increase of over $1.44 billion compared with a year-ago period, according to data from the Ministry of Commerce.

The negative pandemic consequences dealt a severe blow to the agriculture, livestock and mineral sectors during the past mini-budget period.  As China eases some virus rules and regulations, the export sees a slight increase in the agriculture sector this FY. At present, the CMP garment sector raises its head again after the vaccination programme to the factory workers as well. Of the seven export groups, fisheries, mineral and other exports showed a decrease compared to the year-ago period.

The values of export were registered at $2.37 billion for agro products, $18.2 million for livestock, $491.2 million for fishery products, $205 million for minerals, $97.14 million for forest products, over $7.65 billion for manufactured goods, and $320.35 million for other goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing trade deficit, export promotion, import substitution and market diversification.

Source: The Global New Light of Myanmar

The Myawady Border Trade Zone under the Department of Trade notified that import licence application can be made as long as there are export earnings in the bank account of applicants, except for goods that are not allowed to be imported via the Myanmar-Thai land borders. According to the Export/Import Bulletin 10/2022, export earnings and other incomes including salary and wage remittances of Myanmar nationals in other countries will be allowed to use in the importation of commodities.

Therefore, importers will have to use the proceeds to make payments for imports through their respective banks. Among the land borders with neighbouring Thailand, the Myawady border trade zone, which imports most goods to the domestic market, made trading worth US$1,494.796 million in over eight months from 1 April to 2 December of this financial year, stated the Ministry of Commerce.

Among these, imports from Thailand were worth $978.878 million. The cross-border trade accumulated $1,654.481 million year on year with $938.591 million worth of imports from Thailand. Therefore, there was a decrease of $199.972 million year on year while imports increased by $40.287 million, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

According to the Government-to-Government pact between Myanmar and Bangladesh, Bangladesh has been purchasing Myanmar’s white rice. The country has shipped rice directly from Pathein Industrial City since 2 November 2022. Between 1 and 8 December, 5,260 tonnes of rice were loaded onto the two ships in the second batch and the MCL-12 ship carrying 2,650 tonnes of rice departed in the morning of 8 December 2022 from the Ayeyawady International Industrial Port AIIP in Pathein Industrial City, Ayeyawady Region to Bangladesh.

Earlier, Myanmar conveyed rice to Bangladesh through Yangon Port and Thilawa terminals. In the first batch from 2 to 22 November 2022, 10,565 tonnes of Aemahta rice (five-per-cent broken) were shipped by four ships directly from Pathein city to Bangladesh. The country delivered 2,610 tonnes of rice by MCL-19 ship on 1 December and 2,650 tonnes of rice by the MCL-12 ship on 8 December in the second batch, totalling 5,260 tonnes. On 7 December, the MCL-18 ship arrived at the   Ayeyawady International Industrial Port and further exports are to be undertaken.

Myanmar’s white rice direct delivery from Ayeyawady Region to Bangladesh accumulated 15,825 tonnes, with 10,565 tonnes in the first batch and 5,260 in the second batch. “The main export item from Pathein Port is rice. If Bangladesh buys corn in addition to rice, there is an adequate supply of corn in the region. Myanmar has indicated readiness to export corn depending on the market demand. The rice shipment for the second batch has finished. We plan to export agricultural products from Ayeyawady Region to foreign trading partners. For the initial stage, efforts are being made to complete the rice shipment first,” said U Tun Tun, deputy director of the Ayeyawady Region Consumers Affairs Department.

Earlier, the second batch of rice shipment was slated for the second week of December. However, Myanmar managed to ship the rice in the first week to Bangladesh as rice outputs from Ayeyawady Region increased.  All the stakeholders involved in a supply chain including the Ayeyawady Region Government, departments concerned and private businessmen are being exerted to meet the rice demand of Bangladesh to ship them directly from the region. The direct rice shipment from Ayeyawady Region, Myanmar’s rice bowl, to the foreign markets brings about economic opportunities for rice millers, farmers and traders and employment opportunities for local communities.

Source: The Global New Light of Myanmar

Myanmar has imported over 500 tonnes of pharmaceutical products worth US$ 10.5 million via maritime trade, according to the Ministry of Commerce.

The products were reportedly imported from Australia, Bangladesh, Brazil, the People’s Republic of China, Cyprus, Ecuador, Germany, India, Indonesia, the Republic of Ireland, Italy, Japan, South Korea, Malaysia, the Netherlands, Pakistan, Spain, the Philippines, Singapore, Portugal, Thailand, the US and Viet Nam during the period from 19 to 25 November.

About 120 tonnes of pharmaceutical products worth $ 1.371 million were imported from the border trade. More than 100 tonnes were imported from Thailand and over 15 tonnes from the People’s Republic of China, it is learnt.

Source: The Global New Light of Myanmar

The value of border trade via the Myawady border post between 1 April and 25 November hit US$1.456 billion, according to the statistics released by the Ministry of Commerce. The figures showed a drastic drop of $148.545 million recorded in the corresponding period last year. The trade policy changes and political instability in the border areas resulted in an extreme fall in export to Thailand. The border trade between Myanmar and Thailand through Myawady, Tachilek, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei amounted to $3.452 billion, which is an increase of $451.342 million from the year-ago period.

Myanmar sent agricultural products (chilli pepper, onion, rice powder, turmeric, dried lily buds, coffee bean, green gram, rubber, cinnamon, macadamia nuts in shell, plum from Bago and peanuts), fishery products (anchovy, clam, hilsa, crab, shrimp and other fish) and finished industrial goods on a Cutting-Making and Packaging basis (men’s sweaters, women’s shirts and other clothes) on 27 and 28 November through Myawady border trade zone to Thailand.  Onions, rice powder, chilli pepper, coffee beans, peanut, rubber, green gram and fishery products are the main export items to Thailand.

Thailand’s demand for Myanmar’s kitchen groceries has risen as it resumed the tourism businesses in the post-COVID period and the restaurants and food businesses widely used them. Fishery products are directly sent to Bangkok, Thailand, through Mae Sot. The fast and fresh delivery service is the priority. About 33-34 trucks are leaving for Thailand. The authorities are inspecting the goods onboard with the lists in the declaration form. The cloth rolls, construction materials, industrial raw materials, pharmaceuticals, motorcycle parts, footwear, clothes, fruits, food products, cosmetics, gas, lubricants, household goods, foodstuff, bicycles, stationery, auto parts, tiles, feedstuff, fertilizer and electronic devices are imported with 161 trucks. A batch was exchanged for K67 in early November and K79 at the end of November. The exchange rate fluctuation influenced the import volume.

Source: The Global New Light of Myanmar