Posts in category: TRADING

Trade volume between Myanmar and Thailand in the 2021 minibudget year (October-March) hit a total of US$72.67 million in total, according to the Ministry of Commerce. Compared to the same period of the 2020-2021FY, this minibudget year’s figures declined by $76 million. The bilateral border trade hit $148.78 million last year.

The country’s export to Thailand reached $32.19 million, while imports hit $40.48 million, Ministry of Commerce statistics show. The county mainly conducts border trade with Thailand through seven land borders – Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei. From 1 October 2021 to 8 October 2022, Myawady border point topped the trade with $55.9 million, followed by Kawthoung with $7.99 million and Myeik with $5.9 million.

Among three border trade checkpoints along the border between Myanmar and Thailand, the Myawady-Mae Sot route is the most important, carrying around 70 per cent of trade between the countries. Myanmar’s export 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 materials. Thailand is Myanmar’s secondlargest trade partner and third-largest foreign investor. Meanwhile, Myanmar is conducting border trade with neighbouring India, China and Bangladesh via a total of 16 border checkpoints.

Source: The Global New Light of Myanmar

Export of fishery products from Sittway to Bangladesh, which was suspended almost three months due to the skyrocketing infection rate of the COVID- 19 disease, has resumed since 18 October, opening up business opportunities for fish farmers and entrepreneurs. In the 2019-2020 financial year, 7,093.413 metric tons of freshwater fish worth US$ 6.318million were imported through this border.

As the COVID-19 cases were on the rise, exports from Rakhine State to Bangladesh were suspended from 15 July 2021, while 5,010.7 metric tons of freshwater fish worth $ 4.760 million were shipped to Bangladesh. Through two border trade posts in Rakhine State, Myanmar mainly exports onion, tamarind, dried plum, dried fish and freshwater Rohu fish, and about 70 per cent of the export value of Rakhine State is the freshwater Rohu fish.

The regional government of Rakhine State has made efforts to reopen two suspended trade posts in Rakhine State and it was allowed to reopen under the COVID-19 rules and regulations by the State Administration Council on 12 October 2021. Following the coordination meeting of the Ministers of the Rakhine State government, officials from relevant departments and the Rakhine State Chamber of Commerce and Industry, border trade camps have been opened since 14 October with amended regulations to revive the border trade.

Fishing vessels from Yangon have arrived in Sittway on 17 October and the Rakhine State Fisheries Department has conducted necessary screenings. Beginning 18 October, 44.80 metric tons of freshwater Rohu fish worth $ 53,904 were exported to Bangladesh. Reopening of the border trade camps in Rakhine State is benefiting fish farmers in Yangon and Ayeyawady regions whose farms were affected amid a surge in the COVID-19 outbreak, in addition to generating foreign income for the country and opening business opportunities to fish farmers, entrepreneurs, and residents.

Source: The Global New Light of Myanmar

THE value of Myanmar’s mineral exports drastically sank to US$895.6 million last FY2020- 2021, reflecting a drop of $975 million, the Ministry of Commerce’s data indicated. The mineral exports hit over $1.87 billion in FY2019-2020. The coronavirus related disruptions led to the slump in mineral exports this FY. The heightened COVID-19 measures also shut down the events like gem emporium and expo last year, a trader said. Additionally, Lonekhin, Phakant, Mawlu and Mawhan gem and jade mining in Kachin State will be temporarily suspended from 1 October 2021 to March end 2022 to support sustainable resource extraction, and ensure safe and efficient operation of jade and gems mines, according to Myanma Gems Enterprises.

So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, mostly in Mandalay and Sagaing regions, according to the Ministry of Natural Resources and Environmental Conservation. Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016, but after two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. The Myanmar Mines Law was enacted on 24 December 2015, but the law came into force when the rules were issued on 13 February 2020.

Under the new regulations, foreign firms can invest in large blocks which cover up to 500,000 acres (about 202,000 hectares), while local firms can invest in all kinds of blocks. Investors can seek a permit to mine for minerals such as gold, copper, lead and tin. The permits cover prospecting, exploration, and production. Myanmar’s mineral exports have shown a marked increase in the FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period, according to data from the Ministry of Commerce. Oil and natural gas are included in the list of major export items of Myanmar. About six per cent of the country’s total export earnings come from the sale of natural gas. About 80 per cent of mineral products are shipped to external markets through sea trade, while 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar

Myanmar’s external trade between 1 October and 30 September in the financial year 2020-2021 indicated a significant down to US$ 29.58 billion, a sharp drop of over $ 7.15 billion compared to that of the last year, according to the Ministry of Commerce. During the same period in the previous FY, the trade stood at $36.73billion, according to data released by the ministry.

Over the past months, Myanmar’s export was worth over $14.93 billion, which plunged from $17.68 billion registered a year-ago period. Meanwhile, the country’s import was valued $14.66 billion, showing asignificant decrease of $19.05 billion compared with the last FY. 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 focusing on reducing the trade deficit, export promotion and market diversification. The external trade stood at $36.73 billion in the 2019- 2020FY, $35.147 billion in the 2018-2019FY, $18.728 billion in the 2018 six-month interim period, $33.578 billion in the 2017- 2018FY and $29.209 billion in the 2016-2017FY, respectively, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

The value of Myanmar’s aquaculture exports in the financial year 2020-2021 (October-September) dramatically dropped to US$784.889 million, showing a decrease of 8.6 per cent compared to the previous FY2019-2020, as per the statistics released by the Ministry of Commerce. The figures fell short of $74 million to reach the value recorded during the year-ago period. Myanmar shipped $858.95 million worth of fishery products to the external market in the corresponding period of last FY. Myanmar Fisheries Federation (MFF) is attempting to grow fishery export regardless of the COVID-19 disruption on maritime trade, closure of land borders and fuel oil price instability. Despite the open season of offshore fishing, Myanmar’s fishery export industry is facing a series of challenges such as the oil price hike, surge in container shipping rate, the closure of border posts, disruption on maritime trade and the COVID-19 negative impacts.

Consequently, it will harm the export sector somehow in the long term. “If the border posts resume the trade activity, the trade will go smoothly. The closure of the border posts is triggered by the COVID- 19 threats. The cross-border between Myanmar and Bangladesh is still open for trade. The federation is planning to export fishery products to Bangladesh. Myanma Port Authority is also ensuring smooth freight flow with non-stop operation. The federation is attempting to tackle these fishery export hurdles,” said Dr Toe Nanda Tin, senior vice-president of the MFF. The price of fish fell by half. The high input cost such as fishing net, oil price posed another burden for the industry, coupled with the devaluation of Kyat in the forex market, Mawlamyine Commodity Centre stated. The marketable fish products, especially fish, shrimp, eel and crab from Taninthayi and Ayeyawady regions and Rakhine state are primarily exported to foreign markets.

The federation is turning to the Bangladesh market with export potentials. MFF is working together with the stockholders in the supply chain to have sustainable export growth The fishery exports through the Sino-Myanmar border has ground to a halt following the consequences and safety measures on the imported seafood amid the COVID-19 pandemic, traders stressed. Myanmar’s fishery export was experiencing a downturn due to the import restrictions triggered by the detection of the COVID-19 on fish imports in China. Chinese market constitutes about 65 per cent of Myanmar’s fishery exports. China accounted for US$254 million out of overall fishery export value of over $850 million in the past financial year 2019-2020. At present, China shut down the border areas in the wake of the COVID surge in Myanmar. Myanmar Fisheries Federation stated that only a G2G pact can tackle problems being faced in the export of farm-raised fish and prawns and ensure smooth freight movement between countries to bolster exports.

Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes that meet international standards and adopting advanced fishing techniques. To ensure food safety, the foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates. To meet international market standards, fishery products must be sourced only from hatcheries that are compliant with GAqP. The MFF is working with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Processors can screen fishery products for food safety at ISO-accredited laboratories under the Fisheries Department. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar.

Source: The Global New Light of Myanmar

The total border trade value at 18 border trade camps exceeded US$9.7 billion this 2020-21 financial year (FY), according to the Ministry of Commerce. During the period, the country’s export via land borders amounted to $6.49 billion, while its import shared $3.2 billion.

From 1 October to 24 September of the 2020-21FY, the total border trade value amounted to $9.69 billion, down $832 million compared with the same period last year. The country conducts border trade with neighbouring China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei checkpoints, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border crossings, respectively.

Muse trade camp in the Myanmar-China border reached $3.8 billion, down $1.02 billion compared with the same period last year. Myanmar mainly exports agricultural products, animal products, as well as forest products, minerals, fishery products and manufactured goods, among other things, while capital goods, raw industrial materials and consumer products are imported into the country.

Source: The Global New Light of Myanmar

Myanmar generated US$661.4 million income from exports of rice and broken rice in the past eight months (October-August) of the financial year 2020-2021, according to the Myanmar Customs Department. Border trade disruption led to a sluggish market and the export price dropped. The prices of white rice varieties range from US$340-355 per MT depending on the different varieties and quality, according to the Myanmar Rice Federation (MRF). This year, rice shipment to European countries is declining.

However, Myanmar is delivering rice and broken rice to China and Bangladesh. The market cools down for now owing to the transport difficulties amid the closure of the border posts. The prices of rice last month for Pawsan varieties moved in the ranges of K38,000-57,000 per 108-pound-bag in the domestic market, while low-quality rice fetched K22,300-28,000, MRF data showed. The price indicated a gradual increase. Furthermore, as per the 2020 rice price data, the price of staple rice usually increases in the rainy season.

Consequently, the price gain is seen as expected during the monsoon season of this year, a trader stated. MRF and its affiliated associations sold the rice at a fairer price in Yangon Region, starting from 14 September 2021. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops as per MRF. Weather changes affected irrigation water resource availability in agriculture. Consequently, the export figures showed a drop of 300,000 tonnes of rice in exports this year. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes. 

Source: The Global New Light of Myanmar

The border trade through Myawady between Myanmar and Thailand climbed up to US$1.9 billion between 1 October and 24 September in the financial year 2020- 2021, reflecting an increase of $705.47 million as against a year-ago period. The trade through Myawady border stood at over $1.19 billion in the corresponding period of last FY2019-2020. Myawady-Maesot border trade remains normal amid the COVID-19 restrictions, according to the Myawady Chamber of Commerce. We have experienced trade suspension via Myawady in October 2020. The halt in trading undoubtedly harms the traders and lorry drivers from both sides. It is good that trade does not stop at the present time, said a trader from Myawady.

At present, Myawady border does not have trade barriers except for transaction problem, as per the Myanmar Corn Industrial Association. Myanmar is currently shipping thousands of tonnes of corn to Thailand through the Myawady land border every day. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff. Myanmar corn exports were exempted from tax between February and August. Thailand imposed 73 per cent of tax on corn import to protect the rights of their growers if the corn is imported during the corn season of Thailand, in accordance with the notification of World Trade Organization regarding corn import of Thailand.

During last budget year, Myanmar has increasingly exported corns to Thailand through the Myawady land border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border crossings between Myanmar and Thailand during October and May period in the FY2019-2020, said an official of the Ministry of Commerce. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Meisei. Majority of the border trade with Thailand is conducted via Myawady. Myanmar primarily exports corn, natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring country.

Source: The Global New Light of Myanmar

The value of Myanmar’s maritime trade over the eleven months (1 October-24 September) of the financial year 2020- 2021 sank to US$19.54 billion, which is a 24 per cent drop compared with the same corresponding period of FY2019-2020. The figures plunged from $25.8 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $8 billion, imports were registered at $11 billion. Compared to the same period in the 2019-2020 financial year, imports fell by $4 billion, while exports registered a decrease of $2 billion. The maritime trade fell by $6.27 billion as of 24 September as against last year.

Meanwhile, the value of trade through the border this FY was estimated at $9.69 billion, a decrease of $832.7 million as against a year-ago period. Myanmar witnessed aslump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and the political changes. For maritime trade, disruption in the logistic sector and the impact of COVID-19 on global shipping scaled-down Myanmar’s maritime trade somehow. The country’s total external trade over the past ten months touched a low of $26.1 billion, which plunged from $33 billion recorded in a year-ago period.

Myanmar’s sea trade generated $29.24 billion out of an overall trade value of $36.3 billion in the last FY2019-2020, 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 the Yangon inner terminals and the outer Thilawa Port. Yangon inner terminal and the outer Thilawa Port received over 152 larger ships of above 30,000 DWT (Deadweight tonnage) in the past five months (Feb-June) this year after the draft limit is extended up to 10 meters with the new navigation channel accessing to inner Yangon River.

Source: The Global New Light of Myanmar

The Department of Commerce has announced that the import of foreign vehicles will be suspended to reduce the use of foreign currency. The aftermath of the COVID-19 outbreak has led to business delays.

 The statement said that the import of passenger vehicles will be suspended from October 1 in order to reduce the use of foreign currency in connection with the import of goods due to the country’s declining exports.

Imports from motor vehicle sales centers and showrooms, and the issuance of individual import permits for individual employees who have been approved by the relevant departments for those who have been awarded the Good Civil Servant Badge, Good Military Service and Police Badge badges. The statement also said that the right to open a new car sales center has been suspended from October 1.

Source: Daily Eleven