Posts in category: TRADING

The COVID-19 pandemic affected the country’s exports in the past nine months (1 October-9 July) of the current financial year 2020-2021, with a drop of 13.5 per cent as against last FY. Myanmar’s exports over the past nine months touched a low of US$11.98 billion, reflecting a tremendous drop of over $1.87 billion compared with a year-ago period of the previous FY, according to data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $13.86 billion, according to data released by the ministry.

The pandemic deals a severe blow to the manufacturing, livestock, fishery, forest, mineral and other service sectors as it disrupted the transport, supply chain and logistics sectors and shut down the events. Additionally, most people demand only staple food. As a result of this, the export sees the growth in the agriculture sector only this year. Drop in the exports of natural gas, gems and jewellery and CMP garments are contributing factors to the slump in exports, the Ministry of Commerce’s statistics showed. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries restricted the border posts to contain the spread of the virus.

Pandemic-induced container shortage pushed up the freight rates in Myanmar, causing delays for exporters. Of the seven export groups, agricultural exports showed an increase of $953.74 million against a year-ago period whereas exports of livestock, forest products, minerals, fishery products and finished industrial goods drastically declined. Between 1 October and 9 July of the current FY, export values were registered at $4.1 billion for agro products, $17.37 million for livestock, $606 million for fishery products, $750 million for minerals, $101.6 million for forest products, $5.98 billion for manufactured goods, and $430.29 million for other goods. This year, Myanmar’s top export countries are listed China, Thailand, Japan, India, the USA, Spain, Germany, the UK, ROK and the Netherlands.

Source: The Global New Light of Myanmar

Thai-Myanmar border trade has registered a decrease of US$ 10 million between 1 October and 9 July in the current financial year, according to the Ministry of Commerce. Ministry of Commerce data shows that the value of Thai–Myanmar trade at all seven borders touched $3.26 billion in the current financial year, which plunged from $3.27 billion recorded in the year-ago period.

Myanmar delivers goods to Thailand through its sea routes, as well as land borders. Seven border trade camps are open between the two countries, including Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maesai. Apart from Tachilek and Myawady checkpoints, bilateral trade from the Myanmar-Thai-land borders decreased in relation to the same period of the last year.

The country exports agricultural, forest and animal products, minerals, manufactured goods and other miscellaneous products to neighbouring Thailand. Its imports include medicines, cosmetics, food and beverages, stationery, footwear, clothing, machinery and other commodities. The total trade between Myanmar and four neighbouring countries between 1 October and 9 July reached over $8.44 billion, decreasing by $392 million over the same period last year.

Source: The Global New Light of Myanmar

Export earnings from the fisheries sector over the nine months (1 October-9 July) of the current financial year 2020-2021 plunged to US$606 million, which is a significant decrease of $113 million from the year-ago period, according to statistics released by the Commerce Ministry. The figures stood at $719 million during a year-ago period. Myanmar’s fishery exports have slightly declined this year, owing to the COVID-19 impacts and the transport difficulty. The fishery exports through the Sino-Myanmar border have 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 fishery products, accounting for US$254 million out of overall fishery export value of $850 million in the past financial year2019-2020. At present, 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 Republic of China (GACC). Myanmar Fisheries Federation stated that only the G2G pact can tackle problems faced in the export of farm-raised fish and prawns and ensure smooth freight movement between countries to bolster exports. During the last FY2019-2020, MFF expected to earn more than $800 million from fishery exports and it reached a target. 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. Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP).

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. 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 fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY and 580,000 tonnes worth over $730 million in the 2018-2019FY, respectively, according to the Commerce Ministry. 

Source: The Global New Light of Myanmar

The State Administration Council has declared the public holidays from 17 to 25 July in order to conduct COVID-19 prevention, control and treatment activities effectively. During these public holidays, the Customs Department will continue offering services for the importation of medicine and medical equipment for COVID-19 treatment via sea, air and land borders, according to the department.

Myanma Port Authority and jetties will also keep running their operations not to occur delays in international trade flows. The allocation of berth for vessels will be made every other day starting 18 July. The Delivery Order (DO) will be granted on 20 and 22 July, and the people can contact the respective Shipping Agency Department, if necessary, said Myanma Port Authority.

The border trade camps will operate the import and export procedures as usual without suspending the operations during these public holidays. The Ministry of Commerce cooperates with the department concerned to facilitate the importation of COVID-19 preventive gears and other medical supplies in line with the SOP, according to the ministry.

Source: The Global New Light of Myanmar

Import of Oxygen Concentrators will be reduced by 5% commercial tax. According to the Ministry of Commerce, air imports will be allowed with SO and the border will be imported as soon as possible. Import of COVID-19 Preventive Drugs and Related Products Airlines The Ministry of Economy and Trade is coordinating with the line ministries to ensure the smooth import of medicines through the border routes, and medicines and related items are entering the country on a daily basis. Disposable mouthwash The FDA does not require non-medical use of nasal masks. The import of oxygen concentrators will be reduced by 5% (CT). 

Import by air will be allowed by SO. Imports from the border will be processed as soon as possible. Liquid Oxygen will be allowed to be imported from the border in accordance with the temporary import procedures of the Customs Procedures if the vehicles carrying Liquid Oxygen are imported with Rigid Body. Electricity approval will be required for the construction of Oxygen Plan. If it is built within an industrial zone, it will need an industrial zone approval. Companies wishing to import other vaccines, including the COVID-19 vaccine, must submit a seven-point application to the FDA.

The COVID-19 vaccine storage and distribution plan must also be submitted. The Risk Communication Management Plan must be submitted in advance regarding the upcoming COVID-19 vaccine. On July 12, 2021, the application for the Face Mask, Oxygen tank The import of oxygen machines was allowed as soon as possible. COVID-19 Prevention and Control Drugs; The Ministry of Commerce has announced that medical equipment and liquid oxygen will be allowed to be imported for three months without having to apply for an import license from July 12.

Currently, COVID-19 is spreading rapidly as a third wave, and the Ministry of Commerce and Industry has announced that all import and export licenses of COVID-19 immunization drugs and medicines must be applied for by July 12, 2021 to support the COVID-19 treatment process. On July 12, 27,200 kilograms of masks were imported at the Myawaddy border trade. 200 liters of oxygen, 200 liters; 25 pairs of Oxygen Concentrator (10 L); It was allowed to be imported immediately after the same day. Today, all applications are being granted immediately, and the Commerce / Commerce Department will announce the import of all Kovis accessories at 4 pm daily. There is no waiting because you are not allowed to import. Officials say it is not closed.

Source: Daily Eleven

The value of Myanmar’s bilateral trade with the neighbouring country Thailand through land border has registered a decrease of US$61.49 million between 1 October and 2 July of the current financial year 2020-2021 as against a year-ago period, the statistics issued by the Ministry of Commerce indicated. The ministry reported that exports surpassed imports in trade with Thailand this year, with exports reaching over $2.2 billion and imports valued at over $971 million, totalling $3.179 billion. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $3.241 billion. Following the COVID surge in Myanmar, some border posts are temporarily restricted, and at present, fruits and agricultural products such as cucumber, mango, tomato and vegetable, fishery products, building materials and other pharmaceutical-related goods and equipment can be traded.

During the last FY, Myanmar has increasingly exported corns to Thailand through the Myawady border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border posts between Myanmar and Thailand during the October and May period in the FY2019-2020, an official of the Ministry of Commerce said. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Maisai. Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. The value of border trade stood at $204 million via Tachilek, $1.35 billion via Myawady, $245 million via Kawthoung, $95.79 million via Myeik, $1.2 billion via Hteekhee and $12.3 million via Mawtaung.

Maisai border post has not witnessed any trade yet. At present, Myanmar exports corn to Thailand through Myawady and Tachilek land border. Only Tachilek and Myawady showed an increase in trade, while the remaining indicated a drop in trade as against last year. Additionally, exports of natural gas from the Taninthayi Region contributed to the enormous increase in border trade with Thailand in the previous years. This year, gas exports via the Hteekhee border drastically fell. Myanmar primarily exports 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

As the COVID-19 infections are spiking in Myanmar, China has shut down all the border posts since 8 July. Consequently, the border trade plunges by 17 per cent against last year, as per the Ministry of Commerce’s data. Sino-Myanmar border trade was registered a low of US$3.85 billion between 1 October and 2 July in the current financial year 2020-2021 amid the political instability and the COVID-19 surging. According to the Ministry of Commerce, the figures plummeted from $4.63 billion recorded in the year-ago period. As of 2 July 2021, Myanmar’s exports to China through land border were valued at $2.6 billion, while imports are worth $1.2 billion.

The Sino-Myanmar border trade showed a slump in both exports and imports. On 30 March, Man Wein, which is a major border crossing between Muse and Kyalgaung areas, was suspended owing to the COVID-19 cases. The traders have to send goods, including rice and broken rice, various pulses and beans, fishery products, onion, chilli and other export items to China via the Kyinsankyawt checkpoint due to the closure of the Man Wein checkpoint. Following up on the COVID-19 detection of the staff from Muse 105th mile trade zone, China closed down all the border posts. Wan Ding, Kyinsankyawt and Pan Hseng (Kyukoke) border posts came to an abrupt halt on 8 July.

In a bid to contain the spread of coronavirus on the border, China banned border crossing, causing the price hike for the agricultural input, cement and medical devices. This FY, border trade values totalled $2.948 billion through Muse border, $206.9 million via Lweje, $424.6 million via Chinshwehaw, $267.6 million via Kampaiti, and over $10 million via Kengtung. The Commerce Ministry’s data showed a drastic drop in the Muse border. Earlier, China practised a driver substitution programme, and those drivers were tested every three days. Myanmar exports agricultural products including rice, beans and corns, and fishery products such as crab, prawn, and others. 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 external trade between 1 October and 18 June in the current financial year 2020-2021 indicated a drastic plunge to US$22.6 billion, a sharp drop of over $6 billion compared with the corresponding period of the FY 2019-2020, according to the Ministry of Commerce. During the same period in the previous FY, the trade stood at $28.6 billion, according to data released by the ministry. Over the past nine months, Myanmar’s export was worth over $11.19 billion, which plunged from $13.6 billion registered a year-ago period. Meanwhile, the country’s import was valued $11.4 billion, showing a significant decrease of $3.6 billion compared with the last FY.

Both maritime 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, 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 much 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 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.

Source: The Global New Light of Myanmar

Yangon Region Gold Entrepreneurs Association (YGEA) submitted a proposal to the Central Bank of Myanmar (CBM) to allow payment by telegraph transfer (TT) system for gold and jewellery export and import transaction, said U Myo Myint, chairman of YGEA. Regarding this matter, the CBM and YGEA’s executive committee had a meeting online on 9 July. Presently, the gold export has stopped after the international remittance for a gold transaction was changed from TT system to Letter of Credit (LC). When the traders export gold and jewellery, we used to offer both TT and LC systems. Later, the authorities allowed only the LC system for gold export. It took about 1 month to send the goods.

Then, the money will be transferred by LC system when the goods arrived there. Further, the prices will not be steady as well. The traders are convenient with the TT system because there is no delay. So, they have requested the CBM for the resumption of the previous payment system (TT). The Trade Department, the Ministry of Commerce issued the notification on 12 August 2020 that the transaction for gold and jewellery export and import can be done only with the LC system. Myanmar is placed on the Grey List by the Financial Action Task Force (FATF). This inter-governmental body sets anti-money laundering standards. Therefore, the country needs to monitor the gold and jewellery exports and imports in order to ensure there is no illegal income.

Thus, the payment method was changed to LC as per the notification of the trade department. With the use of LC, payment can take about two months, cost banking service changes by two sides, and increase the charges for security matters in transportation. Consequently, gold trading in the international market has halted due to the unstable international gold prices daily. Besides, more than 10,.000 domestic goldsmiths have lost their jobs due to the suspension of the gold exports. The domestic gold market might recover if the continuation of the TT system is allowed. Gold and other pieces of jewellery are primarily purchased by Japan and the Republic of Korea, and other tourists also buy them, according to the association.

Source: The Global New Light of Myanmar

The import value of Myanmar pharmaceutical products was estimated at US$303.53 million in the seven months (Oct-Apr) 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 Chamber 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, Republic of Korea, Malaysia, Philippines, Singapore, China (Taipei), Thailand, US and Viet Nam. Trade has returned to normalcy after panic buying during the coronavirus pandemic. 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 dollar gains. The COVID-19 related medical devices including surgical masks and pulse oximeters are highly demanded in the country amid the COVID-19 surging cases. The Ministry of Commerce has cut the red tape for imports of some pharmaceuticals which have been earlier imported.

Source: The Global New Light of Myanmar