Posts in category: TRADING

The import value of Myanmar pharmaceutical products was estimated at US$397.46 million in the nine months (October-June) of the current financial year 2020-2021, according to Myanmar Customs Department. Myanmar imports 90 per cent of medicine and medical products through foreign markets, the Myanmar Chambers of Commerce for Pharmaceutical & Medical Device (MCCPMD) stated. India is the main supplier for Myanmar. Also, it is imported by Bangladesh, China, Germany, Indonesia, Japan, the Republic of Korea, Malaysia, the Philippines, Singapore, China (Taipei), Thailand, the US and Viet Nam.

Most commonly prescribed drugs are available in the market. Only some are out of stock for now. At present, pharmaceutical import is regularly flowing. However, the prices of pharmaceuticals were up by 5 to 10 per cent owing to the Kyat depreciation in the local forex market. The COVID-19 related medical devices including surgical masks and pulse oximeters are highly demanded in the country amid the COVID-19 surging cases, a market observer said. The Trade Department granted a temporary import licence exemption for 92 HS code lines up to three months starting from 1 September, in a bid to facilitate the trade during the COVID-19 crisis.

The Ministry of Commerce also cut the red tape for imports of some pharmaceuticals which have been imported. The Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) is accelerating its effort to facilitate the inflow of essential medicines in the devastating time of the COVID-19 crisis, along with the related committees, departments concerned, traders and entrepreneurs. The federation formed a task force on 25 July 2021, with an aim to ensure adequate stock of essential medicine for prevention, control and treatment of the COVID-19 and have a smooth trade flow.

Source: The Global New Light of Myanmar

The Myawaddy-Mae Sot Friendship Bridge No. 1 on the Myanmar-Thailand border, which was closed for almost two years due to COVID-19 disease, will be reopened in early 2022. Mae Sot-Myawaddy on the Thai-Myanmar border from January 1, 2022; Chiang Mai – Tachileik The Ranong-Kawthaung border will be reopened with the Travel Bubble, according to the report. Chiang Mai, which connects Burma, including the Myawaddy-Mae Sot Friendship Bridge on the Myanmar-Thailand border; Foreign tourists will be allowed to visit Chiang Mai, Ranong and 43 districts.

The first wave of COVID-19 on the Myawaddy-Mae Sot Friendship Bridge No. 1 on the Myanmar-Thailand border; It has been closed since March 2020 due to the rapid spread of Corona virus. Friendship Bridge No. 1, which was closed to tourists for almost two years, will be reopened on June 1, 2022. It is good news. Moe Kyo, chairman of the Joint Action Committee for Myanmar Citizens (JACBA), said the socio-economic situation would improve.

The Friendship Bridge No. 1 in Htein Myanmar has been closed since March 2020 during COVID first wave. Starting from January 1, 2022, border gates, the bridges of friendship will be reopened. It is good news that the bridge will be reopened as everything will be fine. On January 1, 2022, five districts including Bangkok, Chonburi, Fitburi, Pakyut Sirikhan, Chiang Mai, will be reopened, and another 21 districts will open on January 15. It will also allow tourists to travel through 13 border crossings with Thailand and a total of 43 provinces. According to reports from Mae Sot, Thailand’s latest statement is likely to change over time due to COVID disease.

Source: Daily Eleven

Myanmar’s foreign trade was worth US$26.11 billion as of 20 August in the current financial year 2020-21, declining by nearly $7 billion when compared to the same period that of last FY, according to the Ministry of Commerce. The foreign trade value was $ 26.11 billion from 1 October to 20 August while the previous budget year saw $33.1 billion in the same period. Thus, there was a decline of $6.98 billion.

As Myanmar’s foreign trade was 33.1 billion in the last FY, export decreased by 18%, and imports decreased by 25% and trade volume decreased by 22%. During the past ten months, Myanmar’s export was worth over $13.03 billion whereas the country’s import was relatively low at $13.08 billion. In the first eight months of this FY, China topped the list of the 10 countries to which Myanmar exported goods most.

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. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

Source: The Global New Light of Myanmar

The value of Myanmar’s maritime trade over the ten months (1 October-20 August) of the current financial year 2020- 2021 sank to US$17.3 billion, which is a 25 per cent drop compared with the same corresponding period of last year. The figures plunged from $23.37 billion during the yearago period, according to the Ministry of Commerce. While maritime exports were valued at $7.2 billion, imports had registered at $10 billion. Compared to the same period in the 2019-2020 financial year, imports fell by $4 billion, while exports decreased to $2 billion. The maritime trade fell by $6.05 billion as of 20 August as against last year.

Meanwhile, the value of land border trade this FY was estimated at $8.79 billion, a decrease of $933 million as against a year-ago period. Myanmar witnessed a slump 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 logistics sector and COVID-19 impact on global shipping scaled down Myanmar’s maritime trading 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 $26 billion out of an overall trade value of $36 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 (February-June) this year after the draft limit is extended up to 10 metres with the new navigation channel accessing to inner Yangon River. Myanma Port Authority is ensuring smooth freight flow with non-stop operation during the public holidays.

Source: The Global New Light of Myanmar

Myanmar’s agricultural exports over the past ten months of the current financial year soared 25 per cent amid the closure of the major border post Muse triggered by the coronavirus impacts, indicated the Ministry of Commerce statistics. The agricultural exports rocketed to US$4.3 billion between 1 October and 20 August of the current financial year 2020- 2021, despite the downward trend in other export groups resulted from the tightened coronavirus containment measures in the border and increase in the container shipping cost. The figures reflect an increase of $877 million this FY. The agro exports topped $3.46 billion in the corresponding period of the 2019-2020FY, according to the trade figures released by the Ministry of Commerce.

The agricultural exports surged even though the main trade partner China shut down all the borders in the wake of the COVID-19 surge in Myanmar. The coronavirus pandemic impacted the foreign demand for other export groups: agricultural products, fishery, livestock, mineral, forest products, finished industrial goods and other goods. In the exports sector, the agriculture industry performed the best, accounting for 34 per cent of overall exports. The chief items of export in the agricultural sector are rice and broken rice, pulses and beans and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries.

Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand. The country requires specific export plans for each agro product, as they are currently exported to external markets based upon supply and demand. The G-to-G pact also ensures a strong market for the farmers. Contract farming systems, involvement of regional and state agriculture departments, exporters, traders, and some grower groups, are required in order to meet production targets, the Agriculture Department stated. The Commerce Ministry is working to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and erratic weather conditions.

Source: The Global New Light of Myanmar

The bilateral trade with the neighbouring Thailand, Myanmar’s major trading partner among ASEAN member countries, amounted to US$3.84 billion in the past nine months (October-June) of the current financial year 2020-2021, the statistics issued by the Central Statistical Organization under the Ministry of Planning and Finance indicated. Thailand has been Myanmar’s largest trade partner among the regional countries, followed by Singapore and Malaysia. Moreover, Myanmar’s exports mostly go to Thailand after the main trade partner outside region, China. The ministry reported that exports surpassed imports in trade with Thailand, with exports reaching over $2.442 billion and imports valued at over $1.399 billion.

Thailand accounted for 18.48 per cent of total trade in 2016-2017 FY with estimated trade value of US$4.6 billion, 19.17 pc in 2017- 2018 FY with trade value of $5.57 billion, 40.38 pc in 2018-2019 FY with $5.46 billion and over 40 pc in 2019-2020 FY with $5.117 billion respectively. Exports of natural gas from Taninthayi Region contributed to the enormous increase in border trade with Thailand in the previous years. The corn exports to Thailand has shown a significant increase since 2019, the Ministry of Commerce stated. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand.

It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, vegetable oil and food products from the neighbouring country. Myanmar is carrying out border trade with the neighbouring country Thailand through Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Meisei border areas respectively. Among them, Myawady handled the largest trade in border trade with Thailand, followed by Hteekhee. Nevertheless, the trading activity via border is sluggish amid the COVID-19 surge. Consequently, the trade via land border slightly declined in the current mini budget years of FY 2020-2021 as against last year. Apart from its main trade partner China, Myanmar’s external trade was mostly carried out with the regional trade partners.

Source: The Global New Light of Myanmar

The value of Myanmar’s aquaculture exports in the past ten months (Oct-July) dropped dramatically to US$640 million on account of the border trade restrictions by the neighbouring countries China and Thailand amid the COVID-19 crisis. Myanmar exported $750 million worth marine products to the external market in the corresponding period of last FY, the Ministry of Commerce’s data showed. Myanmar’s fishery exports declined over the past months, owing to the pandemic-induced restrictions in the border trade. The export will undoubtedly grow if the trade route is open, said an exporter from Muse border. The Myanmar Fisheries Federation (MFF) targets to earn over US$1 billion from aquaculture exports in the current financial year started from 1 October 2020, MFF stated.

Myanmar sends fish and marine products to external market through air, sea and land border. Myanmar exported 670,000 tonnes of fishery products to 45 countries in the past FY 2019-2020 ended 30 September, generating an estimated income of $850 million despite the difficulties triggered by the COVID-19 crisis. The figure reflected an increase of over $120 million registered in the FY 2018-2019, MRF’s dataindicated. The federation is endeavouring to fulfill the requirements of market. Resources are limited for wild caught fish exports as it looks forward to a long-term interests. The sector also helps develop the rural community and create jobs for local residents. Additionally, the government coordination and guidance play a vital role in the development of sector.

This sector also helped inject the economy of the country amid the COVID-19 impacts. Myanmar exports fisheries products, such as fish, prawns, and crabs, to over 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 the marine export earnings by developing fish farms which 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 130 cold-storage facilities in Myanmar. And 28 of them have been given green light to export to EU countries. Myanmar exported 340,000 tonnes of marine products worth $530 million in the 2013-2014 FY, 330,000 tonnes worth $480 million in the 2014-2015 FY, 360,000 tonnes worth $500 million in the 2015- 2016 FY, 430,000 tonnes worth $600 million in the 2016-2017 FY, 560,000 tonnes worth $700 million in the 2017-2018 FY, and over 580,000 tonnes in the 2018-2019 FY, the Ministry of Commerce’s data showed.

The federation has asked the government to tackle problems faced in the export of farm-raised fish and prawns through G2G pacts and ensure smooth freight movement between countries to bolster exports, according to the MFF. Myanmar’s economy is more dependent on agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP). More than 3.5 million people are relying on the sector. Its fishery production including shrimps and saltwater and freshwater fish are far better than the regional countries. If the country can boost processing technology, it will contribute to the country’s economy and earn more income for those stakeholders in the supply chain, Yangon Region Fisheries Department stated.

Source: The Global New Light of Myanmar

Export of over 238,600 tonnes of marine products from Taninthayi Region to Ranong Industriehafen in Thailand earned US$204.183 million during the 317 days up to 13 August of 2020-2021 Financial Year, according to Kawthoung District Fisheries Department. Fishermen operate fishing works at the Andaman Sea depending on climatic conditions. At present, 725 fishing trawlers from Dawei, Myeik and Kawthoung are at the sea for fishing. More than 1,400 trawlers from over 50 companies in Taninthayi Region are engaging in fishery sector. The Fisheries Department arranges the regular flow of marine product exportation with the promise of fishing trawlers which have exported marine products to Ranong Industriehafen to pay the relevant tax to the banks when these banks are opened. A total of 195 fishermen who sent marine products to Ranong marine product brokerage were vaccinated for prevention of COVID-19.

Moreover, the fishermen who are going to the sea have been examined for their health conditions. Afterwards, the fishermen IDs are issued to them in line with the prevention, control and treatment of the disease. Regularly, marine products flow into Yangon market while similar products are exported to Ranong Industriehafen. If a marine product market can be established in Myeik or Kawthoung for cutting the transport charge, control of water resources and earning more foreign exchange, Taninthayi Region will create job opportunities with improvement of socio-economic status of the local people. Local fishermen export marine products to Ranong of Thailand. If we can establish a marine product market, economic status of the region will improve. If the government sets up a fish auction market, foreign merchants will purchase the products from Myanmar. So, they can get tax from trading. Local fishermen will have the opportunities to directly send their stocks to the international market. Consequently, tourism industry will be booming.

In 2019-2020 FY, Myanmar earned US$252.832 million from export of 296,608 tonnes of marine products. So, we set the target to exceed the export volume in 2020-2021 FY, said Deputy Director of Kawthoung District Fisheries Department. The sea can be seen with many trawlers which are capturing cuttle-fish in October and November on a yearly basis. The Tatmadaw (Navy) seizes trawlers and motor schooners which came from other countries and hands them over to relevant departments. Meanwhile, the Fisheries Department supervises preventive measures for shortage of water resources at Myanmar water territory. In this regard, the department prohibits capturing of fish with poisons, fish mining and use of prohibited fishing equipment. In August, fishermen from Kawthoung sent marine products weighing ranging from 300 tonnes to over 800 tonnes to Ranong Industriehafen on a daily basis. Myanmar fishermen bagged US$252.832 million from export of 296,608 tonnes of marine products in 2019-2020 Financial Year and US$204.183 million from 1 September to 13 August in 2020-2021 FY. At present, they are striving for earning more foreign exchange from export of marine products in August and September.

Source: The Global New Light of Myanmar

Myanmar’s external trade between 1 October and 30 July in the current financial year 2020-2021 exceeded US$24.7 billion, according to the Ministry of Commerce. During the same period in the previous FY, the international trade stood at over $31 billion, according to data released by the ministry. During the past ten months, Myanmar’s export was worth over $12.45 billion whereas the country’s import was relatively low at $12.25 billion. Myanmar recorded a positive trade balance as of July-end.

Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened the border security and the border posts came to abrupt stop amid the COVID-19 surging in Myanmar. At the present time, the traders have transaction problem triggered by the restriction of the private banks. Furthermore, as the pandemic triggered the cargo shipping crisis, a market observer shared his opinion. 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. However, the suspended trade in the border checkpoints and the order cancel from the western countries amid the political changes exacerbate the export sector for now. The Ministry of Commerce is focusing on reducing trade deficit, export promotion and market diversification. The external trade stood at $36.73 billion in the 2019-2020 FY, $35.147 billion in the 2018-2019 FY, $18.728 billion in the 2018 six-month interim period, $33.578 billion in the 2017-2018 FY and $29.209 billion in the 2016-2017 FY respectively, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

Myanmar’s lower import nearly ten months (1 Oct-23 July) of the 2020-2021 financial year have resulted in a positive trade balance of US$353.644 million, according to data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined compared to the same corresponding period of FY 2019-2020. Nearly ten months, the country’s exports were estimated at $12.3 billion, imports were valued at $11.95 billion this FY. The external trade drastically sank t $24.26 billion from $30.37 billion recorded in the year-ago period. Myanmar’s trade gap was $1.5 billion in the year-ago period, according to data provided by the Ministry of Commerce.

“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 this year against the year-ago period. Both sea trade and border trade dropped. The neighbouring countries tightened the border security and restricted the trading in certain border areas. For maritime trade, disruption in logistic sector, spikes in container rates and banking restriction dragged down the trade. 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 much 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. Thecountry mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020 FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018 FY, $5.3 billion in the 2016-2017 FY, and $5.4 billion in the 2015-2016 FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar