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Myanmar export value exceeds $1,600 mln in Jan this FY

Myanmar average export value for January in the 2020- 2021 financial year reached US$824.38 million, and border export value reached $811.15 million, with total export value coming at $1,635.53 million as a result. Meanwhile, standard import value for the same period reached $1,581.94 million, and border import reached $399.68 million, reaching a total of $1,981.62 million.

As a result, Myanmar total trade value for January 2020-2021FY reached $3,617.15 million, creating a trade deficit of $346.09 million. From October to January of the current 2020-2021FY, Myanmar normal export value generated $2,978.58 million, and border export reached $2,681.65 million, totalling $5,660.23 million.

The average import value for the same period reached $4,721.97 million, and border import reached $1,167.60 million, totally bringing $5,889.57 million. Consequently, the total trade value of Myanmar for October to January of 2020- 2021FY reached $11,549.80 million, generating a trade deficit of $229.34 million, according to the monthly trade report by the Central Statistical Organization.

Source: The Global New Light of Myanmar

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Myanmar-Thailand border trade down by $360 mln as of 12 March

THE value of Myanmar’s bilateral trade with the neighbouring country Thailand through the land border has registered a decrease of US$360 million between 1 October and 12 March 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 $1 billion and imports valued at over $538.5 million, totalling $1.57 billion. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $1.9 billion. Following some traders tested positive for COVID-19, some border posts were temporarily halted last year.

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. Myanmar-Thailand friendship bridge No. 2 is also open for trading. The halt in trading undoubtedly harmed the traders and truck drivers from both sides, said a trader from Myawady. 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 October and May period in the 2019-2020FY, an official of the Ministry of Commerce said.

At present, Myanmar exports the corn to Thailand through Myawady and Tachilek land border. About 5,000-6,000 tonnes of corn are daily sent to Thailand through Myawady, while the Tachilek border does not regularly export. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff. Thailand imposed 73 per cent of tax on corn import to protect their growers’ rights if the corns are imported during the corn season of Thailand, following the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter. Myanmar intends to reach an export target of one million tonnes of corns to Thailand this year, said U Min Khaing, chair of the Myanmar Corn Industrial Association.

Additionally, exports of natural gas from the Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous years. This year, gas exports via the Hteekhee border drastically fell. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Maese. Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. The value of border trade stood at $162.4 million via Tachilek, $600.5 million via Myawady, $170 million via Kawthoung, $63.6 million via Myeik, $502.24 million via Hteekhee and $7.2 million via Mawtaung. Maese border post has not witnessed any trade yet. 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

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Myanmar rice export company buying less following transaction problem

ONLY a small number of rice export companies are purchasing the rice at present owing to the disruption in banking, said U Than Oo, secretary of Bayintnaung Rice Wholesale Centre. Since early February, the local private banks have shut down, disrupting banking. Consequently, export companies are buying less in the domestic market. The rice exports are currently conducted for the previous contract only. The brokers have started buying the summer rice crop. However, the number of buyers has sharply reduced. The banking disruption hinders a new deal.

Only the old contracts are being sorted out. Yet, the rice trade is not regular. What a main problem is the shipment with ocean liners. Additionally, the US dollar is appreciating against the Kyat. However, the farmers are paid lower than the actual market price and suffering losses, he added. Despite the gain in US dollar, the rice and paddy are priced lower in the domestic market. The prices should have been offered higher along with the high exchange rate. Moreover, the number of buyers is smaller in the meantime. Only the cash payment is accepted amid political changes. The farmers are also holding the stocks for now.

The informal money transfer system Hundi is available in border trade, whereas it cannot be done in maritime trade. In Sino-Myanmar border, exchanging Yuan is quite easy through a hundi agent. Similarly, the traders use hundi for exchanging Baht on the Myawady border with Thailand. Nevertheless, overseas trade with European and African countries is carried out with a letter of credit through banks. The disruption in banking poses difficulties to the maritime trade. The price of low-quality rice stands at K21,500 at present, with a slight decrease of K2,500 against the previous months, as per the domestic rice market. Bayintnaung rice wholesale centre, a primary market for rice exports via maritime trade, has been closed down since 11 February.

Source: The Global New Light of Myanmar

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Agro exports rise despite drops in other export groups

THE agricultural exports unexpectedly surge over the past five and a half months amid the private banks’ closure and reductions in other export groups. The agricultural exports have topped US$2.6 billion as of 12 March 2021 in the current financial year since 1 October 2020. The figures reflect a significant rise of $774 million this FY. According to the trade figures released by the Ministry of Commerce, the ago exports soared from $1.83 billion in the corresponding period of the 2019-2020FY. Myanmar’s agricultural exports rose regardless of the coronavirus’s impact on foreign
demand for other export groups and political instability. At present, some ocean liners suspended cargo transport from Myanmar in recent days. The cargo transport will double or triple if we conduct the trade with small ships.

It could harm the export sector somehow, according to Myanmar Mercantile Marine Development Association. However, Myanmar’s border trade with China is steadily conducted. Around 1,000 trucks are daily seen flowing in and out of the Muse, a central cross-border post between Myanmar and China, the traders said. Myanmar is daily shipping rice, broken rice, green grams, peanuts, various pulses and beans, onion, chilli, fishery products, consumer goods, watermelon and muskmelon to China with over 700 trucks. Meanwhile, building materials, electric appliances, medical devices, consumer goods, and fertilizer are imported daily with 200 trucks. Private banks’ closure forced the traders to turn to the operators running ‘hundi’, an informal money transfer system, to make transactions in the border trade. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports.

The agricultural industry’s chief export items 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. They are currently exported to external markets based upon supply and demand. Contract farming systems, regional and state agriculture departments, exporters, traders, and some grower groups are required to meet production targets, said an official from the Agriculture Department. 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

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Sino-Myanmar border trade rises by $218.85 mln: MOC reports

SINO-MYANMAR border trade has registered a rise of US$218.85 million between 1 October and 12 March in the current financial year 2020-2021 amid the political changes, according to the Ministry of Commerce. As of 12 March 2021, Myanmar’s exports to China through the land border were valued at $2.05 billion, while imports are worth $920.49 million. The value of Sino-Myanmar border trade in all five border posts touched over $2.97 billion in the current FY, which significantly soared from over $2.66 billion recorded in the year-ago period, the Ministry of Commerce’s data indicated.
The increase in trade is attributed to the extending trading hours at Muse Man Wein and Kyinsankyawt checkpoints.

Furthermore, Pan Hseng (Kyukok) and Wan Ding border posts also gave the green light to fruit trucks under the driver substitution system. This FY, border trade values totalled $2.34 billion through Muse border, $129.9 million via Lweje, $292.8 million via Chinshwehaw, $208 million via Kampaiti, and over $5.227 million via Kengtung. The Commerce Ministry’s data showed a rise in trade value through all those border posts. Muse is an important border in Myanmar and handles an enormous volume of trade. But at times, it has experienced a sharp drop in business on account of China clamping down on illegal goods, resulting in a halt in the trade of agricultural products. Moreover, the COVID-19 impacts slow the trade last year.

In a bid to contain the spread of coronavirus on the border, China banned border crossing. Shortly after that, about 50 drivers are allowed to pass the border under the driver substitution system. Those drivers are, however, tested every three days. As a result, China included them in the vaccination programme, covering more than 40 Myanmar truck drivers, said vice-chair of Muse rice wholesale centre. In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the relevant departments and the Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts.

The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s MOC is trying to boost exports of rice, broken rice, agro products, fruits and fisheries to China through negotiations. Around 1,000 trucks are daily seen flowing in and out of the Muse, a central cross-border post between Myanmar and China, U Min Thein said. Myanmar is daily shipping rice, broken rice, green grams, peanuts, various pulses and beans, onion, chilli, fishery products, consumer goods, watermelon and muskmelon to China with over 700 trucks. Meanwhile, building materials, electric appliances, medical devices, consumer goods, and fertilizer are imported daily with 200 trucks. Furthermore, Myanmar’s natural gas export to China is also conducted through the Muse-Ruili border.

Source: The Global New Light of Myanmar

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Myawady border trade rises above US$600 mln as of 12 March

THE border trade through Myawady between Myanmar and Thailand climbed up to US$600.5 million between 1 October and 12 March in the current financial year 2020-2021, reflecting an increase of $50.8 million as against a year-ago period. The trade through the Myawady border stood at $549.7 million in the corresponding period of the last FY 2019-2020. Myawady-Maesot border trade has remained mal, although Thailand ordered restrictions in Maesot, according to the Myawady Chamber of Commerce. Myawady border trade did not halt owing to the restriction orders by Thailand. Myanmar trucks cannot enter Maesot, but trucks from Thailand come and pick up the goods at Myawady post, the chamber stated. They experienced trade suspension via Myawady in October 2020.

The halt in trading undoubtedly harms the traders and truck drivers from both sides. It is good that trade does not stop at present, said a trader from Myawady. At present, the Myawady border does not have trade barriers except transaction problem triggered by the shutdown of the private banks, said the chair of Myanmar Corn Industrial Association. Trade is regularly flowing in and out of the country. What a problem is that we cannot claim income through a legitimate financial market during the meantime. Now, the trade is carried out through hundi operators. The closure of formal financial markets except the state-owned banks render the cash flow difficulties. Hundi business is weak to protect transactions and less secure. Additionally, they charge too much for services. Myanmar is currently shipping about 5,000-6,000 tonnes of corns to Thailand through the Myawady 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 a 73-per-cent tax on corn import to protect their growers’ rights if the corns are imported during the corn season of Thailand, as per the notification of the World Trade Organization regarding corn import of Thailand. The border trade between Thailand and Myanmar between 1 October and 12 March in the current FY plunged to US$1.57 billion from $1.9 billion registered in the year-ago period, according to data from the Ministry of Commerce. During the last year, Myanmar has increasingly exported corns to Thailand through the Myawady border gate.

Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border gates between Myanmar and Thailand during October and May period in the 2019-2020FY, an official of the Ministry of Commerce said. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Htikhee, Myeik, Mawtaung and Maese. The 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

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Myanmar exports plummet to $6.9 bln in current FY2020-2021

MYANMAR’S exports over the past five and half months of the current financial year 2020-2021 financial year touched a low to US$6.9 billion, reflecting a tremendous drop of over $1.5 billion compared with a yearago period of the previous FY, according to data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $8.4 billion, according to data released by the ministry. The pandemic deals a severe blow to the manufacturing, mineral and other service sectors as it shut down the events. Additionally, people demand only staple food. The drop in exports in natural gas, gems and jewellery, and CMP garments contributes to the slump in exports, the ministry stated.

Both sea trade and border trade dropped amid the coronavirus impacts and the transaction problem due to private banks’ closure. Of the seven export groups, agricultural exports increased $774 million against a year-ago period, while exports of other goods were also seen a slight rise. Meanwhile, exports of livestock, forest products, minerals, fishery products and finished industrial goods declined. Between 1 October and 12 March of the current FY, export values were registered at $2.6 billion for agro products, $15.9 million for livestock, $396.58 million for fishery products, $495.9 million for minerals, $59 million for forest products, $3.137 billion for manufactured goods, and $198 million for other goods.

The country’s export sector relies more on the agriculture and manufacturing sectors. At present, CMP garment exports drastically dropping since the western countries cancelled order following the COVID-19 impacts. The country’s export sector is likely to extend its drop due to the current political climate, an exporter shared his opinion. The Ministry of Commerce is focusing on export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment.

Source: The Global New Light of Myanmar

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MoPFI extends exemption period for withholding tax on exports

The Ministry of Planning, Finance and Industry has been exempting tax barriers for the businesses affected by the COVID-19 pandemic. The exemption period for withholding tax on exports will be extended up to 30 April 2021, according to its notification dated 19 March. The MoPFI earlier granted relief on a two per cent withholding tax on exports between 1 April 2020 and 31 March 2021. At present, the negative impacts of the pandemic are exacerbating, and so, the withholding tax will be extended until 30 April 2021.

Moreover, international trade transactions cannot be done during the meantime amid the closure of private banks. The Trade Department under the Ministry of Commerce notified on 3 March that exporters and importers do not require to seek licences for 37 HS code lines for exports and 72 lines for imports between 8 March and 9 April 2021 to facilitate the trade. Export items with licence exemption include onion, garlic, rice, broken rice, raw sugar, refined sugar, natural rubber and cotton.

While the exemption covers the following import goods; sliced fish (salmon and tuna), flour, soybean seed, palm oil, food commodity, cement, gasoline, diesel, pharmaceuticals, fertilizer and lubricant. However, tax cut and licence exemption will not tackle the trade slowdown amid the current political changes, an exporter shared his opinion. Regardless of maritime trade disruption, border trade with China and Thailand remained strong. Withholding tax exemption will help smooth border trade businesses, a trader from Muse said.

Source: The Global New Light of Myanmar

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Maritime trade drop by $3.76 bln in current FY

THE value of Myanmar’s maritime trade for the period between 1 October and 13 March in the 2020-2021 financial year sank to US$9.06 billion, a drastic drop of over $3.76 billion compared to the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $3.67 billion, imports were registered at $5.38 billion. Compared to the same period in the 2019-2020 budget year, imports fell by $2.4 billion, while exports decreased by $1.34 billion. Meanwhile, the value of trade through the border this FY was estimated at $4.99 billion, a decrease of
$66.65 million as against a year-ago period.

Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited the trading time to contain the spread of the virus. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders. Additionally, according to the Myanmar Mercantile Marine Development Association, some ocean liners suspended cargo transport from Myanmar. The halt of ocean liners will undoubtedly affect the maritime trade. The cargo transport will double or triple if we conduct the trade with small ships, said an official of the association.

The country’s total external trade reached $11.987 billion, which plunged from $14.3 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion from 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. At the same time, 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. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

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Myanmar mineral exports down by $555 mln over five past months

The value of Myanmar’s mineral exports has drastically fallen to US$495.9 million as of 13 March in the current financial year 2020-2021 since 1 October. It reflects a severe drop of $555 million against a year-ago period, the Ministry of Commerce’s data indicated. The mineral exports hit over $1 billion in the corresponding period of last FY. The coronavirus impacts 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. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, 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. However, after a period of two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. Within two years of implementing the Myanmar Mines Law, the Mines Department has approved more than 140 out of 3,000 proposed mining blocks. Many more blocks are to be granted the permit. The Myanmar Mines Law was enacted on 24 December 2015. However, the law came into force when the rules were issued on 13 February 2018. The ministry undertakes the screening process of the proposals for medium and largescale mining blocks.

As per the regulatory changes in 2018, regional and state governments are given the power to process applications for artisanal and small-scale mining blocks. Under the new regulations, foreign firms can invest in large blocks covering up to 500,000 acres (about 202,000 hectares). In contrast, local firms can invest in all kinds of blocks. Investors can seek a permit to mine minerals such as gold, copper, lead and tin. The licences cover prospecting, exploration, and production. Myanmar’s mineral exports have shown a marked increase in the previous 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. In the FY2018-2019, mineral exports were pegged at just $1.465 billion. Myanmar’s mineral products constitute 10 per cent of overall exports. About 80 per cent of mineral products are shipped to external markets through sea trade. At the same time, 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar