Posts in category: TRADING

The value of Myanmar’s maritime trade between 1 October and 17 December of the current mini-budget period 2021-2022 soared to US$4.75 billion according to the Ministry of Commerce. The figure reflected an increase of $449 million as against last FY. Sea trade rose from $4.3 billion during the year-ago period according to the Ministry of Commerce. While maritime exports were valued at $1.7 billion, imports had registered $2.5 billion.

Compared to the same period in the 2020-2021 financial year, imports fell by $34.6 million, while exports registered an increase of $484 million. Meanwhile, the value of trade through the border this FY was estimated at $1.25 billion, which plunged drastically from $2.207 billion registered last FY. Myanmar’s sea trade generated $19.8 billion out of an overall trade value of $29.5 billion in the FY2020-2021, the Ministry of Commerce’s statistics indicated.

Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods and raw industrial materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade and includes Yangon inner terminals and outer Thilawa Port. Yangon inner terminals and the outer Thilawa Port received over 152 larger ships of above 30,000 DWT (deadweight tonnage) in the past five months (February-June) this year after the draft limit is extended up to 10 metres with the new navigation channel accessing to inner Yangon River.

Source: The Global New Light of Myanmar

As watermelon trucks heading to China is facing long queues, most of the watermelons turned bad. Only one in five trucks are left undamaged with quality watermelon, said U Sai Khin Maung from the Khwanyo Fruit Depot. A kilogramme of watermelon is priced at 6-7 Yuan at present. “The news of watermelon fetching a good price is spreading on the social network. It is real that the traders receive 6-7 Yuan per kilo. However, we cannot expect how many quantities remained in good condition. About 20-tonne truckloads of watermelons are left unhurt out of 5-6 trucks in the previous days. Such an unfortunate event will happen again upon the prolonged delay triggered by the driver-substitution system at the border.

We cannot predict anything in the difficult times of the COVID-19 pandemic. If the price drops, the warehouse owners will suffer great loss amid the high transportation charges,” U Sai Khin Maung stressed. The market will raise its head only after reducing delays in China sides, getting entry permits for Myanmar shorthaul drivers to the market beyond Chinese drivers and cutting the red-tape and trade barriers in Myanmar sides, he continued. Additionally, the Muse 105th mile fruit centre notified on 16 December that watermelons of inferior quality and rotten ones will be rejected by Chinese counterparts and quality plays a pivotal role in trade. Furthermore, the truck drivers must get vaccinated two times and they must present the vaccination certification to the authorities, according to the centre. Quality deterioration occurred owing to a 20-days wait.

On 9 December, some watermelon trucks out of 26 in the first batch entered the market and four truckloads of watermelon were sold at 90,000 Yuan, the Khwanyo Fruit Depot stated. The watermelons can be offered a higher price for better quality, U Sai Khin Maung elaborated. He urged the exporters to figure out the queue times rather than the price. In addition to COVID-19 restriction measures, Chinese customs regulations resulted in delays. That is why both the growers and traders have to carefully observe the market conditions before harvesting. During the COVID-19 pandemic, trade facilitation is unlikely to happen according to China’s trade policy. Trade will go back to normality after China eases the rule and restriction measures for COVID-19. Kyinsankyawt border post between Myanmar and China, which was previously closed down from 8 July, has been reopened starting from 26 November on a trial run.

Source: The Global New Light of Myanmar

The Myanmar-Thailand border trade has increased by US$195.1 million between 1 October and 10 December this mini-budget year of 2021-2022FY, according to the Ministry of Commerce. The country’s export to neighbouring Thailand reached $545.09 million, while its import shared $319.53 million.

During the corresponding period of the FY2020-2021, Myanmar- Thailand border trade touched a high of $669.52 million. The country mainly conducts border trade with Thailand through seven land borders Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei. From 1 October 2021 to 10 December 2022, the Myawady checkpoint topped with the most bilateral border trade value of $478.69 million.

Myanmar’s exports to Thailand were primarily agriculture and livestock products, and imports from Thailand were mainly non-alcoholic beverages, fabric and yarn, motorcycles and related parts, and construction material. Thailand is Myanmar’s second- largest trade partner and third-largest foreign investor.

Source: The Global New Light of Myanmar

Myanmar delivered 20 truckloads of tissue banana to China through Kanpaiti border post following the reopening of the border post, Kachin State Fruits and Vegetables Producers and Exporters Association stated. Kanpaiti border post, which has been shut down for over four months, was reopened on 15 December. Chinese authorities shut down all the Sino-Myanmar border posts amidst the COVID-19 impacts on 11 July. After a series of negotiation between Myanmar government and Chinese counterparts, the border post resumed its operation again.

Myanmar conveyed more than 20 truckloads of tissue banana to China, said U Gam Aung, secretary of the association. Myanmar exporters had to seek approval first from Kachin State government and then, they exported them to China as per instruction of the stategovernment, he continued. “Our company had requested Kachin State government to operate 20 trucks for cargo transport. Other respective companies also asked the government to grant permit for export. The government had given the go-ahead to seven out of 20 trucks so far,” he added.

Myanmar truck drivers and assistants have to take a rapid COVID-19 test twice at Washaung and Kanpaiti checkpoints as a mandatory. The driver substitution system is practised in China’s side, said a businessman. There is a short haul transport service in China. After they unload the goods, they return the trucks to Myanmar drivers. Myanmar drivers cannot enter China market at the moment, said an exporter. Myanmar primarily sent tissue banana to China via Kanpaiti, whereas the consumer goods, building materials and agricultural inputs are imported into the country. The initial agreement covers 500 trucks from Myanmar for Sino-Myanmar border trade via Kanpaiti posts.

Source: The Global New Light of Myanmar

The value of trade between Myanmar and China via the Muse land border as of 10 December 2021 of the current mini-budget period (October 2021-March 2022) reflected a drastic drop of US$896.4 million as against the year-ago period owing to the border trade suspension, as per the Ministry of Commerce. The value of Muse border trade touched a low of US$197.37 million over the past month amid the COVID-19 impacts. The figures plummeted from $1.09 billion recorded in the year-ago period, according to the Ministry of Commerce.

As of 10 December, Myanmar’s exports to China through the Muse land border were valued at $193 million, while imports are worth $4 million. The trade showed a slump in both exports and imports compared to the corresponding period of last year. The border posts next to Muse are Nantaw, Sinphyu, Mang Wein, Kyinsankyawt-Wamting and Panseng-Wamting posts. Earlier, China shut down all the border posts amidst the COVID-19 negative consequences. At present, some border checkpoints are operating trade activities on a trial run. Myanmar can now convey the watermelon to China by Chinese trucks when they unloaded their goods in Myanmar.

However, quality is of vital importance as Chinese authorities will not allow the fruits of inferior quality for import, the Muse fruit commodity depot stated. Additionally, China’s new Customs Regulation and mandatory quarantine process posed some hurdles in the border market. Traders cannot expect trade facilitation according to the changes in China’s policy during the COVID-19 pandemic. Myanmar exports agricultural products, including rice, beans and corn, and fishery products such as crab, prawn, etc. Furthermore, Myanmar’s natural gas export to China is also conducted through the Muse-Ruili border. The raw CMP materials, electrical appliances and consumer goods are imported into the country.

Source: The Global New Light of Myanmar

Myanmar’s foreign trade value has seen a decrease by nearly US$322 million over the past two months of the current mini-budget period as both export and import decline, according to the official report of the Ministry of Commerce. From 1 October to 26 November in the 2021-22 financial year, the foreign trade value was $4.309 billion, whereas the same period of the last FY saw $4.632 billion.

This year saw a drop of over $321.862 million compared to the same period of last year. This mini-budget year, the export value was over $2.206 billion with a decline of over $113 million, while the import value hit $2.102 billion with a decrease of over $208 million. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, CMP raw materials and consumer goods.

According to the annual data released by the commerce ministry, the country’s foreign trade value was $18,045.929 million in the 2012-2013FY, $27,714.826 million in the 2015- 2016FY, $29,209.607 million in the 2016-2017FY, $33,578.052 million in the 2017-2018FY, $18,728.815 million in the 2018 mini- budget year and $35,147.012 million in the 2018-2019FY. Agro-based food production, textile and clothing, industry and electronics, fisheries production, forestry production, digital production and services, logistics services, quality management, trade information services and innovation and entrepreneurship sectors are the main priority areas of the National Export Strategy (NES) 2020-25.

Source: The Global New Light of Myanmar

Myanmar has been exporting seafood from Rakhine State to the international markets beyond domestic consumption and an annual export of the marketable soft-shell crab is estimated at over 600 tonnes. The soft-shell crabs from Rakhine State are delivered to the US, Australia, Japan, Hong Kong and the countries in Europe. The crab processing companies produce 15 tonnes per month and approximately 200 tonnes per year in Rakhine State. The crabs are sent to cold storage facilities in Hlaingthaya Industrial Park for good packaging. They are conveyed to Europe and other foreign trade partners. The prices of soft-shell crab are worth around 7 US$dollars per kg. Rakhine State seafood exporters ships a full container load of sliced fish, processed squid and ready-made shrimp cake to Australia, France and Hong Kong SAR every two months.

The exports of soft-shell crabs by the companies in Thandwe city earned US$2.5 million in the 2018- 2019 financial year, $3.8 million in the 2019-2020 FY and $4.66 million in the 2020-2021FY. The soft-shell crab cultivation businesses are found in Ponnagyun and Taungup townships, employing over 1,200 residents. If there is an adequate electric supply in those townships, food processing companies can boost the quality of the products, increase job opportunities and generate revenue. Consequently, it will reduce the production cost as well. The hard-shell crabs are primarily supplied by Pyapon, Bogale, Myaungmya and Labutta townships in Ayeyawady Region and Kyauktan, Kayan and Thongwa in Yangon Region and townships in Rakhine State. They are mostly sent to Chinese and Thai markets. “Rakhine is the main producer of fishery products.

If there is better infrastructure, it will bring about the development in the socio-economy of the state. There is a shortage of power supply in Rakhine State so it has a barrier to make value- added products. We can add core product offerings through value-adds. Over 600 tonnes of soft-shell crabs are placed in European markets. RakhineState Department of Fisheries also focus on the aquaculture to help protect the endangered species population,” said U Thet Oo, head of the department. The department has been implementing the hatcheries for fish, shrimp and soft-shell crab. The companies purchase 80 g sized crabs from Sittway, Ponnagyun, Minbya, Taungup, Yanbye, An and Manaung townships and after 45 days of cultivation, the soft shell crabs are ready to place on market. They are processed in Thandwe cold stroage and cold storage plants in Hlaingthaya Industrial Park in Yangon and they are transported to external market through cold chain. A company usually breeds about 400,000-500,000 crabs in the pond. The Department of Fisheries set three-month offseason for catching crabs between February and April in ordedr to protect the local species.

Source: The Global New Light of Myanmar

From January 1, only foodstuffs registered with the General Administration of Customs (GACC) of China will be allowed to be imported legally. According to Article 249, from January 1, 2022, China will only allow the import of food items from companies registered with the GACC, Decree No.248 issued by the General Administration of Customs of China (GACC). Food to China Exporters from Myanmar who are exporting / want to export agricultural and livestock products can register their business in China (GACC) through trade associations; Competent Authority is responsible for direct and indirect applications from companies and product groups.

The Food and Drug Administration (FDA) of the People’s Republic of China (PRC) has urged the remaining exporters to register with the Food Exporters’ Registration and Certification Commission for timely registration, as registration of these businesses must be registered with the General Administration of Customs (GACC) by December 31, 2021. Myanmar to export food to China Exporters are required to provide registration information in China, Myanmar Embassy in the Bureau of Import and Export Food Safety (GACC) of the General Administration of Customs; A letter was sent to Beijing regarding the matter.

The accuracy of the application for registration in China; Compliance with the law; The relevant authority or producers of food will be responsible for the quality of the food. Businesses registered to submit to China need to be strictly supervised by the relevant authorities to comply with the relevant regulations. If the registered entities are found to be non-compliant, the relevant authorities should take effective action in accordance with the provisions of Article 22 of the Registration Regulations. In the fiscal year 2020-2021, Myanmar was the largest exporter of 10 countries with $ 4,905.80 million, followed by Thailand with $ 3,172.26 million, according to the Ministry of Commerce.

Source: Daily Eleven

The value of Myanmar’s imports between 1 October and 26 November of the current mini-budget period 2021-2022 (October-March) plummeted to US$2.1 billion, which reflects a drop of $208 million compared to the year-ago period, the Ministry of Commerce’s data indicated. The import value stood at US$2.3 billion last FY2020- 2021. The imports of capital goods declined last month, while the other import groups (consumer, intermediate goods, and CMP businesses) witnessed a slight increase.

Last month, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts were brought into the country. Their import value was estimated at $396.34 million. The figure was over $412 million lower than those values registered in the same period of the previous FY. Meanwhile, Myanmar imported consumer products worth $514.6 million, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $13.3 million compared with the same period in the previous FY.

Intermediate goods make up the largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials climbed up to $873.4 million from $695.7 million registered during the year-ago period. During the same period, raw materials worth over $318.3 million were also imported for the cut-make-pack (CMP) garment sector, showing an increase of $39.9 million compared with last FY. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce.

Source: The Global New Light of Myanmar

Myanmar’s lower import nearly two months of the current mini-budget period (October 2021-March 2022) resulted in a positive trade balance of US$103.9 million, according to the data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined in comparison with the same corresponding period of the 2020-2021 financial year. Between 1 October and 26 November, the country’s exports were estimated at $2.2 billion, imports were valued at $2.1 billion this FY.

The external trade drastically sank to $4.3 billion from $4.6 billion recorded in the year-ago period. “This is a positive balance of trade. A trade surplus is harmful only when the government uses protectionism,” a trader points out. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed a drop in border trade amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and restrict trading in certain border areas.

Myanmar exports agricultural products, 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 material and supporting products for export promotion and import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020FY, $1.14 billion in the 2018-2019FY, $1.3 billion in the previous mini- budget period (April-September 2018), $3.9 billion in the 2017-2018FY, $5.3 billion in the 2016-2017FY and $5.4 billion in the 2015-2016FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar