Posts in category: TRADING

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

Myanmar has conveyed about 110,000 tonnes of rice to Bangladesh under the government-to-government pact, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade in 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.

Under 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 shipped about 110,000 tonnes of white rice to Bangladesh as of 28 November 2022. Furthermore, over 2,000 tonnes of rice are being loaded onto the ship for now. The remaining will be delivered before 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 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

MYANMAR’s external trade between 1 April and 18 November of the current financial year 2022-2023 tremendously edged up to US$21.468 billion, reflecting a significant increase of $3.9 billion from the year-ago period, according to the Ministry of Commerce. The figures surged from $17.55 billion in the corresponding period last year.

Myanmar’s export was worth over $10.427 billion whereas the country’s import was valued at $11 billion over the past seven and a half months. The border trade was up by $89.595 million, while the seaborne trade registered a significant rise of $3.8 billion. Myanmar exports agricultural produce, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. 

The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing trade deficit but export promotion, import substitution and market diversification. The external trade stood at $15.5 billion in the past mini-budget 2021-2022 (Oct-March) period and $29.58 billion in the 2020-2021 FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

Myanmar daily delivers clam, mollusc, snail and scorpion prawns produced by the Taninthayi Region to Thailand, according to the Ministry of Commerce. Seafood is popular in Thailand and it plays a major role in Thai cuisine. Tourists visiting Thailand also enjoy seafood. Therefore, the demand for popular Myanmar Shak (aka) clam, mollusc, snail and scorpion prawns is on the rise.

Myanmar sends over ten four-wheel truckloads of clams from Taninthayi to Thailand through the Mawtaung border and it fetches 91.94 Thai Baht per kilogramme. The clams are offered at a high price among the seafood. It is easy to digest. People enjoy clams by boiling, cooking or roasting them. Additionally, snails are also a popular food among seafood in the Myeik area, Taninthayi Region.

People cook sea snails in different cuisines including one with coconut milk. The snails are priced at 2.5 Thai Baht per kg. Approximately 300-500 kg of snails is daily delivered to Thailand through the Mawtaung border with three to five trucks. Furthermore, king prawn is highly demanded. The prevailing price of king prawns is 1,121.85 Thai Baht per kg. About 500 to 1,000 kilogrammes of scorpion prawns are exported to Thailand with eight to 12 four-wheel trucks every day. 

Source: The Global New Light of Myanmar

Myanmar’s trade gap widened to US$678.226 million between 1 April and 11 November of the current financial year 2022-2023 compared to the year-ago period. Higher exports and lower imports resulted in a trade surplus of $315.991 million in the corresponding period of the 2021-2022FY, according to data provided by the Ministry of Commerce. While exports were estimated at $10.072 billion, imports were valued relatively low at $10.751 billion over the past seven months.

Compared to the FY2021-2022, exports showed an increase of over $1.376 billion, while import value was up by $2.37 billion. Myanmar’s maritime trade value edged up to $16 billion over the past seven months from $12.29 billion recorded in the same period last year yet the country witnessed a small drop of $62.637 million in border trade as cross-border trade with the main trade partner China has not returned to normal amid the strict virus policy.

Myanmar exports agricultural produce, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic materials and supporting products for export promotion and import substitution. 

Source: The Global New Light of Myanmar

The Ministry of Commerce has granted an export licence for 191,700 tonnes of rice that will be shipped to Bangladesh according to the agreement between the two countries. As per the Memorandum of Understanding 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 kilogramme and 2788.56 Yuan per tonne. The Export/Import division of the Trade Department issued over 534 million Yuan worth 42 export licences for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade in 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. Under the MoU, Bangladesh’s Directorate General of Food and MRF 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 shipped over 20,000 tonnes of white rice to Bangladesh till 31 October 2022. The remaining will be delivered before the deadline. 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

Kyalgaung border post, which performed the majority of trade between Myanmar and China, has not resumed even after one and a half years, said U Min Thein, vice chair of Muse Rice Wholesale Centre.
China has restricted border access through the Muse-Kyalgaung (Mang Wein) border post between Myanmar and China amid the COVID-19 cases, since 30 March 2021. On 18 October, Myanmar’s officials and counterparts from Dehong, Yunnan Province negotiated the promotion of bilateral cross-border trade through a video conferencing.

“The Kyalgaung border crossing is yet to resume. We are ready for trade resumption,” said U Min Thein. 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 reopened 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, rubber, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with the use of about 70 trucks and building materials, electrical appliances, pharmaceuticals, fertilizers, household goods and industrial raw materials are imported into the country with the use of 30 trucks. Myanmar has opened five border trade zones with China; Muse, Lweje, Kanpaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through Muse land border, Ministry of Commerce’s data indicated.

Source: The Global New Light of Myanmar

The Ministry of Commerce released a directive (62/2022) dated 11 November 2022 regarding the import rules for electric vehicles (EV) in the pilot project. The importers must abide by the standards and import quota set by the national-level leading committee on development of electric vehicles and related business. The ministry stated that the importing companies must comply with the following facts if they do not hold business licences for showrooms in the pilot project to help support the electric vehicle and related businesses.

The companies must register with the Directorate of Investment and Company Administration whether it is a joint venture or wholly citizen-owned business. They must show the salescontracts with exporting companies. They have to be sought approval from a national-level leading committee on the development of electric vehicles and related business. There must be an EV warranty, spare parts availability, and service and maintenance of those vehicles.

The companies must seek permission from the MoC to register with the Road Transport Administration Department. The directive takes effect on the bus or motor van for the transport of ten or more persons including the driver and motor vehicle for personal use. They must be Battery Electric Vehicles (BEVs). The rules in the directive are effective between 1 January 2023 and 31 December 2023. Further amendments are to be made if necessary.

Source: The Global New Light of Myanmar

More than 60 traders signed a petition on 14 November to call for Yuan transactions in exports through the Muse border between Myanmar and China. Foreign Exchange Supervisory Committee notified the traders of the dollar payment for agricultural exports such as rice, corn, oil crops, beans and pulses, according to a directive dated 30 June. Yet, rice and broken rice exports are proceeding with Yuan at present. Rice and broken rice exports are given green light to proceed with Yuan as before.

However, transactions of rice and broken rice exports are found to be made only in US dollars in cross-border posts like the seaborne trade these days. That is why traders including rice and broken rice dealers signed a petition to request the authority to give the go-ahead for the Yuan payment in Muse border post. “At present, the official letter has not been released yet. The traders request them not to confirm the dollar payment for rice and broken rice in the border trade channel. Those exporters involved in banking, fishery and agricultural sectors joined this petition last Monday (14 Nov),” said a rice trader.

“Rice trade has not been good for two years at the Muse border with China. It has returned to the business at the present moment. If dollars are confirmed as cross-border payments, Muse trade is possibly to come to a halt. Consequently, the cons are expected to outweigh the pros. The traders are therefore begging for opposition to dollar payment,” said a rice trader. On 14 December 2021, the Central Bank of Myanmar released a notification that the use of Yuan or Kyat in the bilateral transaction was officially allowed in the border areas between Myanmar and China to boost bilateral cross-border trade, facilitate trading and bilateral transaction, increase the use of domestic currency in line with the objectives of the ASEAN Financial Integration. 

Source: The Global New Light of Myanmar