Posts in category: TRADING

The trade volume between Myanmar and Thailand in financial year 2020-21 hit a total of US$3.36 billion in total, Ministry of Commerce statistics showed. According to the ministry, Myanmar’s exports to Thailand reached $ 3.2 billion while imports hit $2.1 billion. This FY’s figures are increased by $33 million, compared to the same period in the last FY.

Myanmar mainly conducts border trade with neighbouring Thailand through seven border checkpoints namely Tachileik, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei gates. Among those trade points along the Myanmar-Thailand border, Myawady-Mae Sot route is the most important, carrying about 70 per cent of trade between two countries. As of 23 July of this FY, Myawady border checkpoint topped with $1.49 billion of bilateral trade.

In Myanmar, most of the goods mainly imported from Thailand are raw materials for manufacturing, and construction material. So, the transportation route is import for two countries’ economies and businesses. 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’s maritime trade reached US$ 1.57 billion as of 23 July in the current financial year 2020-21 which started in October, according to the Ministry of Commerce. The country’s export through maritime routes hit $ 6.58 billion while its import reached $ 9.11 billion during the period from 1 October to 23 July this year. Compared to the same period in the 2020-21 fiscal year, imports fell by $3.96 billion, while exports reported a decrease of $1.66 billion.

Total external trade value saw a significant drop of $5.6 billion compared to the same period of last FY. Both maritime trade and border trade dropped amid the coronavirus impacts. The country currently has nine ports involved in the sea trade. Yangon Port is the main gateway to Myanmar’s maritime trade and includes Yangon inner terminals and the outer Thilawa Port.

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 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 mini budget 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. Meanwhile, the country’s total foreign trade registered over $12.31 billion as of 23 July this 2020-21 FY, of which its border trade registered over $5.7 billion.

Source: The Global New Light of Myanmar

Export earnings from the fisheries sector nearly ten months (1 Oct-23 July) of the current Financial Year 2020-2021 plunged into US$626.59 million, according to the statistics released by the Commerce Ministry. Myanmar’s marine product exports have dramatically declined this year, owing to the COVID-19 impacts and the transport difficulty. Although some offshore and inshore trawlers started to go fishing from 15 July, they are battered by the high cost of fuel oil and fishing equipment and supplies. Additionally, the exporters companies pull down the price. The domestic fish industry flounders due to COVID-19 pandemic. The coronavirus pandemic shut down the wedding, donation events, festivities and restaurants. It also imposes difficulties on transportation. The restrictions caused slump in fish consumption in local market.

Moreover, the marine product exports through 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. China was the second largest buyer of Myanmar’s marine products, accounting for US$254 million out of overall marine product export value of $850 million in the past financial year 2019-2020. At the present time, China shut down the border areas in wake of the COVID surge in Myanmar. The fishery sector is dependent on maritime trade only. Food and Agriculture Organization (FAO) and World Health Organization (WHO) issued guidelines to ensure food safety during the COVID-19 pandemic in April, 2020.

The permitted companies are advised to carry out food safety plans, follow the guidelines of WHO and FAO, formulate the safety management system and suspend the exports if any suspicious foodborne virus or virus infection risk are found in the products. The export is likely to resume once the products meet food safety criteria set by the General Administration of Customs of the People’s Republic of China (GACC). The Myanmar Fisheries Federation stated that only G2G pact can tackle problems faced in the export of farm-raised fish and prawn, and ensure smooth freight movement between countries to bolster exports. During the last FY 2019-2020, MFF expected to earn more than $800 million from marine product exports against the target. Myanmar exports marine products such as fish, prawn, and crab to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and the countries in the European Union.

The MFF is making concerted efforts to increase the marine product export earnings by developing fish farms which meet international standards and adopting the advanced fish farming 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, the marine 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. Myanmar’s economy is more dependent on agricultural sector to a large extent.

Also, fisheries sector contributes a lot to the national gross domestic product (GDP). Its marine product 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. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. 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 580,000 tonnes worth over $730 million in the 2018-2019 FY respectively, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

The value of export to Viet Nam in the past seven months (October-April) of the current financial year 2020-2021 exceeded US$150 million while import was valued at only $25 million, according to the data of the Ministry of Commerce. The value of trade between Myanmar and Viet Nam totalled $375.35 million in the current FY.

Myanmar’s export items to Viet Nam are base metal, pulses, rice, broken rice, rubber, cigarette, garment, maize, tobacco and other products, whereas it imports electrical equipment and apparatus, transport equipment, plastics, mechanical appliances, paper, paperboard, fertilizers, pharmaceuticals, cotton fabric, artificial and synthetic fabrics, woven fabrics, cotton fabric, chemical elements and compounds, dairy product and other products.

Bilateral trade with Viet Nam grew year over year, however the global pandemic affected the trade. Viet Nam is listed as the eighth largest trade partner of Myanmar, with an estimated capital of $2.224 billion as of June 2021, according to statistics released by the Directorate of Investment and Company Administration.

Source: The Global New Light of Myanmar

According to the Ministry of Commerce, 133 tonnes of Bowser oxygen was delivered, 32 tons with liquid oxygen tank, 22813 home oxygen machines, 135942 Test Kit Covid-19 vaccine supplies, including five 183-tonne oxygen generators, have been imported in August. Currently, with the rise in the third wave of Covid-19 outbreaks across the country, there is an urgent need for oxygen-related drugs for Covid-19 immunization control so that Ministry of Commerce is coordinating with the relevant ministries to import from sea ports and border trade points without delay.

From 12 to 29 July, 670 tons of Oxygen (Bowser), 517 tons with liquefied petroleum gas; 53,875 home oxygen generators; 306,078 test kits, 869 tons of masks; five Oxygen Plants; Covid-19 vaccine supplies, including five oxygen generators have been imported, according to the Ministry of Commerce. On July 20, the International Airport; Maritime ports and border trade ports and Muse; Chin Shwe Haw Myawaddy Tachileik 76 companies from Mawtaung, 51 vehicles with 43 tons of Oxygen (Bowser); 29 tons of liquid oxygen tank; Four Oxygen Generators 3978 Home Oxygen Concentrators; 20,000 test kits; 55 tons of masks were imported.

On July 19, eighty-four companies from Muse, Chin Shwe Haw, Myawaddy, Tachileik the Mawtaung border trade points sold 57.24 tonnes of Oxygen (Bowser) vehicles; 36.040 tons with liquid oxygen tank; 25,590 tons with liquefied petroleum gas; 5053 Home Oxygen Concentrator; , 500 test kits and 75,546 kg of masks were imported, according to the Ministry of Commerce. The Ministry of Commerce has allowed the import of Covid-19 protective equipment and liquid oxygen, which require a license, without the need for a license. Import of Oxygen Concentrators is also allowed to be imported quickly with a 5% commercial tax exemption without the need to apply for an import license with the approval of the Food and Drug Administration.

Source: Daily Eleven

The Ministry of Commerce and Industry said that Yangon International Airport and three border trade points in Muse, Myawaddy and Chin Shwe Haw imported 12128 domestic oxygen generators, including Covid-19 vaccines and accessories on 1 August.

5822 Oxygen Concentrators are importet from Yangon International Airport, including 15,000 test kits, and five Bowser vehicles , seven tons of 95-liter oxygen tank; 6,306 home oxygen concentrators, 40 tons of masks were imported from Muse, Myawaddy and Chin Shwe Haw trading points. The above items were imported by 36 buses from 23 companies.

Currently the third wave of Covid-19 disease nationwide and the rate of infection rises, so does the urgent need for oxygen-related drugs for the prevention and control of Covid-19. It is being coordinated with the relevant ministries to import from sea ports and border trade points without delay. According to the Ministry of Commerce,49 million liters of liquid oxygen, 6,505 home oxygen concentrators and 290 tons of masks have been imported from border trade points from 12 to 18 July.

Source: Daily Eleven

Myanmar’s import plunge in the past nine months (1 October-9 July) of the 2020-2021 financial year has resulted in a trade surplus of US$363.9 million, according to data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade, although trade value decreased compared to the same corresponding period of FY2019-2020. Over the past nine months, the country’s exports were estimated at $11.98 billion, and imports were valued at $11.6 billion this FY. The external trade drastically plunged to $23.6 billion from $29.2 billion recorded in the year-ago period. Myanmar’s trade gap was $1.47 billion in the year-ago period, according to data provided by the Ministry of Commerce.

Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts this year. Both sea trade and border trade dropped amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and restricted trading in certain border areas. For maritime trade, disruption in the logistic sector, spikes in container rates and banking restrictions 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 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- 2019 FY, $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

The price of rice in the domestic market is quite stable as the warehouses and the wholesale centres are temporarily shut down amid the COVID-19 surge. High-quality rice is demanded in the domestic market and the price moves in the range of K36,000-42,000 per bag depending on different varieties. The low-quality rice is priced between K21,500 and K33,000 per bag. The price has remained unchanged in recent days and trade is nearly halted as the COVID-19 cases are spiking in the country. Yangon market sees low supply from Pyapon, Mawgyun, Dedaye, Kungyangon, Wakhema, Kawhmu, Twantay, Myaungmya, Kyaiklat, Laputa and Shwebo areas. Next, Border trade disruption led to a sluggish market yet the flat price occurs in the border export market.

The prices of white rice varieties range US$375 to 405 per metric ton, the price of glutinous rice price was priced $600-610 per MT and the broken rice fetched $300-335 per MT depending on the different varieties and quality, according to Myanmar Rice Federation (MRF). The volume of rice and broken rice exported in the nearly eight months (1 October-28 May) of the current financial year 2020-2021 was estimated at over 1.14 million metric tons, generating US$546.6 million income, the Ministry of Commerce reports. The country shipped $576.28 million worth of 1.958 million tonnes of rice and broken rice in the same corresponding period of last FY.  Myanmar exported 802,000 tonnes of rice and 601,000 tonnes of broken rice, totalling 1.14 million tonnes.

The export volume in the past eight months showed a decrease of over 500,000 tonnes as against last FY. At present, rice shipment to European countries is declining. However, Myanmar is mostly delivering rice and broken rice to China, Malaysia, the Philippines and Bangladesh and shipping broken rice to China, Indonesia, Belgium, Senegal and The Netherlands. The market cools down for now due to the transport difficulties triggered by the COVID-19 impacts and Kyat depreciation. China Customs granted licences to 47 Myanmar companies on 26 February 2021 to legally export the rice to China through the Muse land border this year.

The authorized companies for rice export to China increased this year as against last year. However, the permitted volume of rice for exports has not been confirmed yet, Muse Rice Wholesale Centre stated. Moreover, China banned all the border posts on 8 July as Myanmar is battling against the exploding pandemic. As a result of this, the agricultural exports dropped dramatically. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops. Weather changes affected irrigation water resource availability on agriculture, MRF stated.  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 value of export to Japan in the past seven months (October-April) of the current financial year 2020-2021 touched about US$582.2 million while import was valued only at $231.87 million, according to the data of the Ministry of Commerce. The value of trade between Myanmar and its development partner Japan exceeded over $817 million in the current FY. Myanmar’s export items to Japan are garments, marine products, rice, black sesame, green grams, rubber and other products.

In return, it imported machines and machine equipment, electronic equipment, fertilizers, chemical products, medicines, automobiles, and other products. Bilateral trade values have registered $1.92 billion in the last FY2019-2020, $1.89 billion in the FY2018-2019, $1 billion in the 2018 mini-budget period, $1.92 billion in the 2017-2018FY, $2 billion in the 2016-2017FY and $1.84 billion in the 2015-16FY, respectively.

This FY, three enterprises from Japan were approved to make initial investments of $518 million into the country, according to the data of the Directorate of Investment and Company Administration (DICA). Japan has made up over 34.7 per cent of total FDIs in the Thilawa Special Economic Zone. The Japan International Cooperation Agency (JICA) offers loans such as ODA loans and two-step loans intending to bring about socio-economic development in Myanmar.

Source: The Global New Light of Myanmar

The total border trade value exceeded US$7.65 billion, down over 693 million compared with the same period last year, according to the Ministry of Commerce. During the period, the country’s export via land borders amounted to $4.98 billion while its import shared $2.66 billion.

This financial year’s border trade decreased by over $693 million compared to the same period of the last budget year 2020-2021, when it amounted to 8.34 billion, the ministry’s figures said. The trade volume at Muse border trade on the China-Myanmar border exceeded $2.92 billion, down over $638 million compared with the same period last year.

Myanmar has opened 18 border trade camps and conducts border trade with neighbouring China through Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maese checkpoints, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed land borders, respectively. Myanmar’s major export items are farm, animal, marine, forest, mining, CMP and other products. Myanmar mainly imports capital goods, industrial raw materials, personal goods and CMP raw materials.

Source: The Global New Light of Myanmar