unnamed (1)

External trade falls by $2.4 bln as of 8 Jan

Myanmar’s external trade between 1 October and 8 January in the current financial year 2020-2021 touched a low of US$8.23 billion, a sharp drop of $2.437 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. According to data released by the ministry during the same period in the previous FY, trade stood at $8.2 billion. Over the Q1, Myanmar’s export was worth over $4 billion, which plunged from $5.16 billion registered a year-ago period.

Meanwhile, the country’s import was valued $4.228 billion, showing a decrease of $1.27 billion compared with the last FY. 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. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods while importing capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. Under the National Planning Law for the financial year 2020-2021, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. The Ministry of Commerce is focusing on reducing the trade deficit, 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

corn_dry_sun_epa

1 mln tonnes of corn expected to export to Thailand this year

Myanmar intends to reach the export target of one million tonnes of corns to Thailand this year, said by the chair of Myanmar Corn Industrial Association. Myanmar will be allowed for corn export between February and August, under zero tariff, as Thailand has corn requirements. Thailand needs 2 million tonnes of corn as per its market data. They , however, do not know their purchase volume. Last year, Thailand partners asked if Myanmar corn suppliers can provide 3 million tonnes during negotiation with the association. We cannot tell the exact volume. Nevertheless, about 1 million tonnes of corns are possibly to flow into Thailand.

This year, Myanmar’s corns are demanded by Viet Nam, India, Malaysia and Laos. Typically, we expect to export 1 million tonnes of corns to Thailand. Yet, the market condition depends on the price, he continued.
At present, Myanmar’s corns are primarily shipped to India. It is also sent to Viet Nam and Laos. The illegal outflow of corns to China via northern Shan State is also reported. As a result of this, the corn export volume of Thailand market is directly related to the market price. Myanmar traders will ship the corns to foreign markets which offer a high price, regardless of trade routes (sea or border), the association chair affirmed. Additionally, China is purchasing Myanmar’s corn that substituted opium poppy cultivation, under a quota system.


The prevailing export price of corn stands at above US$250 per tonne. Corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons- winter, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corns. Myanmar exported 2.2 million tonnes of corns to the foreign market in the past financial year 2019-2020 ended 30 September, with an estimated value of $360 million, the Ministry of Commerce’s data showed. With the growing local corn consumption, Myanmar’s corn export to foreign markets is expected to reach 1.6 million tonnes in the current FY2020-2021 (Oct-Sep), the association state.

Source: The Global New Light of Myanmar

unnamed

Rakhine border trade centres set to resume operation

The Maungdaw and Sittwe border trade centres in Rakhine State are set to reopen after several months of closure said the chair of the Rakhine State Federation of Chamber of Commerce and Industries. These centres – which facilitate trade with Bangladesh – will resume operations once they receive permission from the Central Committee on Prevention, Control and Treatment of COVID-19.

The state government has agreed in principle to reopen the Maungdaw and Sittwe border trade centres. It is heard that they are currently seeking permission from the central committee. Both traders and department officials plan to resume border trading once the central committee gives approval. They expect the relevant authorities to enforce restrictions at the centres once trade is allowed. It is also heard that they will only permit a specified number of ships and boats a week.

Myanmar exports agricultural products – such as onions and ginger – and various freshwater products to Bangladesh. According to the Ministry of Commerce, trade in the Sittwe border trade centre totalled US$736.81 million in the 2019-2020 fiscal year, of which $432.547 million was accounted for by exports. The Maungdaw border trade centre, meanwhile, recorded a total trade amount of $11.554 million in the same period.

Source: Myanmar Times

image_6483441 (3)

Mandalay mango producers eye online market trend

Producers, wholesale centres and merchants are working to sell mangoes online in the upcoming season, according to U Kyaw Soe Naing, the Secretary of Myanmar Mango Market and Technology Development Association (Mandalay).

According to the Secretary of Myanmar Mango Market and Technology Development Association (Mandalay), the new trend will develop if the producers guarantee the quality of the fruit on the online market. At present, 30 per cent of the mango market is getting into the online platform during the outbreak of COVID-19.

Some advantages of the online market include no brokerage fee or service charges between the consumer and the producer and possible direct payment between them. However, the consumers will have to mention the size of the fruit they want to purchase, and the sellers will need to ensure the quality of their product.

Source: The Global New Light of Myanmar

WireAP_650f06888bd446329a60db67cc18235d_16x9_992

Myanmar Trade Centre to open in Singapore

Myantrade has plans to open a Myanmar Trade Centre in Singapore in the near future to provide support for the country’s agricultural exports. Secretary of the Myanmar Fruit, Flower and Vegetable Producer and Exporter Association said the trade centre- which will be monitored closely by the Myanmar Embassy to Singapore – can help Myanmar expand its farming exports to the city-state. According to the Secretary, Singapore is one of Myanmar’s trading partners.

Singapore imports fruits such as Sein Ta Lone (mangoes) and muskmelons from Myanmar. Delivery time from Myanmar to Singapore is just a week. Singapore’s population is small so Myanmar cannot sell a lot to them but their consumption and spending power is high. This creates a market for Myanmar. Myanmar can export any fruit. It is good if Myanmar products can penetrate the market. Singapore is located close to Myanmar, so allowing to export products that have a short shelf life.

So, Grapes from Yamethin can be exported to Singapore’s market. Trade between Myanmar and Singapore was valued at more than US $3,900 million in the 2019-2020 fiscal year, with Myanmar exports exceeding $700 million. Singapore, meanwhile, is one of Myanmar’s largest investors, accounting for 45.85 percent of the country’s total foreign investment. The city-state has invested in the urban development, real estate, and energy and production sectors of Myanmar.

Source: Myanmar Times

DSC_5283-0-720x477

CMP garment exports drop by 25 per cent in Q1

MYANMAR’S garment export has dropped by 25 per cent as of the first quarter of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by European Union market, the Ministry of Commerce stated. Exports of garments manufactured under the
cut-make-pack (CMP) system were valued US$870 million in the past three months (Oct-Dec) in the current FY, according to the Ministry of Commerce’s data. The figures plunged from $1.2 billion in the corresponding period of the last FY2019-2020. Myanmar ’s garment industry faces challenges such as raw material supply disruption and cancellation of orders, CMP garment exporters said. At present, over 100 CMP garment factories temporarily shut down on the reason for the lack of raw materials and slump in demand due to the coronavirus negative impacts, leaving thousands of workers unemployed.

Sixty-four factories have been permanently closed down during the pandemic, compensating about 25,000 workers. The data does not include those factories that have not resolved worker payments, stated the Ministry of Labour, Immigration and Population. The Myanmar Garment Manufacturers Association (MGMA) and EuroCham Myanmar held virtual meetings on 7 January 2021, along with representatives from EU brands. They highlighted efforts to increase job creations in the garment factories, keep garment factory order from European buyers, improve skilled workers’ capacity, and upgrade the Myanmar Garment Human Resource Development Centre (MGHRDC) and strengthen relationships between employers and workers. Additionally, MGMA also proposed leading a working group including government officials, European Brands’ representatives and the related institutions, to transform CMP into the free-on-board(FoB) system.

Myanmar mainly exports the garments to Japan and European countries, especially Germany. The US has also purchased the garments made in Myanmar. Some western countries cancelled orders amid the pandemic. According to the Ministry of Commerce data, exports of garments manufactured under the cut-make-pack (CMP) system were valued US$4.798 billion in the last financial year 2019-2020. The export value of CMP garments was only $850 million in the 2015-2016FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019FY, according to the Commerce Ministry.

Source: The Global New Light of Myanmar

26675-1484738457

Corn powders exported to Thailand via Myawady despite pandemic

Although the coming into and going out of the border areas are restricted because of the pandemic, corn powders are still exported to Thailand through Myawady trade zone, according to the Myanmar Corn Traders. Although Thailand has set a time limitation and export volume for import of corn, there is no restriction imposed on corn powder. Good Agricultural Practice (GAP) certificate has not been requested yet for export of corn powder to Thailand. Still, export requires attaching of a Phytosanitary certificate and the country of origin (CO) form. Similarly, these certificates must be produced in the export of maize. Myawady trade zone also scrutinizes and issues the Form-D to enable export of corn and corn powder.

Myanmar traders are exporting corn and corn powders to Mae Sot, Thailand, through Myawady border trade zone. Thailand traders refine the imported corn powder to re-export to Malaysia, China and Laos. The price of grained corn (FOB) exported to Thailand through Myawady border trade zone is sold for 7 or 8 baht per kilo while the corn powder is sold for US$220 per tonne. According to the corn traders, the prevailing price of grain corn in Myawady market is 8.5 or 9 baht per kilogramme. The high-quality FOB corns are sold for 8 or 10 baht per kilogramme (K480 or K485 per viss). Only maize with moisture content below 14.5 and 15) sells well in the trade market, the corn traders said Myanmar could export the corn to Thailand by attaching Form-D between 1 February and 31 August.

After that time, Thailand will impose 73 per cent of tax on corn import as per the notification submitted to the World Trade Organization (WTO). Myanmar exported 2.2 million tonnes of corn to the foreign market in the past FY 2019-2020, with an estimated value of $ 360 million, the Ministry of Commerce’s data showed. Corn is cultivated in Shan State, Myingyan and Taungtha, Sagaing region and other regions along the Ayeyawady River.
The highest quality corns that are demanded from Thailand are produced from the areas along the Ayeyawady River. Myanmar has three corn seasons — winter, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corn. Myanmar primarily exports corn to Thailand and China market. They are also shipped to Malaysia and Laos. 

Source: The Global New Light of Myanmar

Fishery exports cross $700 mln

Fishery export prices to Thailand plunge by 50 per cent

MYANMAR fishery products’ export price to leading buyer Thailand slumped by 50 per cent, said U Win Kyaing, general secretary of Myanmar Fisheries Federation (MFF). Myanmar mainly ships mackerel fish to Thailand through Kawthoung-Ranong border. It fetched 100-120 baht per kilo last year, and the price sharply fell to 50-55 baht per kilo. Thailand did not stop trading, yet the offering price drastically dropped. During a bear market, the income generated by fishery products also decreased. Surprisingly, the market experienced a 50 per cent drop.

At present, the country is primarily conducting border trade with Thailand’s neighbouring country through those border posts; Kawthoung-Ranong, Mawtaung in Myeik, Hteekhee in Dawei and Myawady. Thailand has shut down the border with Hteekhee and Mawtaung. The central trading post (Kawthoung-Ranong) is still open for trading. However, to contain the spread of COVID-19, Myanmar traders cannot enter Thailand’s side, and the trading occurred only at the pier. Kawthoung-Ranong generated an income of US$250 million out of total fisheries export value with Thailand at $318 million in the previous financial year2019-2020, MFF stated.

Thailand is the primary buyer of Myanmar’s fisheries
products. Last FY, Myanmar shipped $318 million worth fisheries products to Thailand, while the total fishery exports stood at $850 million. The federation expects to reach fishery export target of $1 billion in the current FY2020-2021. Nevertheless, the fishery exports touched a low of $242.352 million between 1 October 2020 and 1 January 2021, which plunged from $261.994 million registered a year-ago period. The figures reflected a decrease of $19.6 million over the Q1 of the current FY compared with the last FY2019-2020, the Ministry of Commerce’s data showed. Myanmar’s fisheries products are exported to 45 foreign countries, and Thailand is the primary buyer of the fisheries products, followed by China.

Source: The Global New Light of Myanmar

chinese-border-in-shan-state

Sino-Myanmar trade boosted as Manwain border post opened 24 hours

The flow of trade between China and Myanmar has improved significantly after opening Manwain border checkpoint for 24 hours, which is essential to the border trade, according to Muse-Namhkam Merchant Association.
Border authorities from both sides have agreed on opening the Muse-Manwain trading post for 24 hours on a 10-day trial basis starting from 5 to 14 January to speed up the trade flow between the two countries delayed during the pandemic period. Before opening the Manwain crossing for 24 hours, more than 200 trucks with cargo entered China daily. After opening, over 400 trucks are crossing between China and Myanmar at Manwain checkpoint daily.

Now, the flow of trade is faster than earlier. The trucks that have been waiting for many days to enter China at Muse 105th Mile are also entering China these days said by the Muse-Namhkam Merchant Association Chairperson. Myanmar primarily exports watermelon, muskmelon, rice, broken rice, green gram, sugar and other agricultural products, and it imports electrical equipment, machinery, motorcycles, motorcycle accessories, fertilizers and construction materials. According to a trader, it would be better if we could open the crossing for 24 hours because it would be beneficial to the entrepreneurs and the people.

The rental charges of the trucks will also drop. Also, the flow of trade will be faster. But, we need to assign the departmental staff mainly, and they will be busy during these days. On the Myanmar side, the truck rental charges drop by 40 per cent. However, both counties will have to take responsibility for the truck drivers’ safety and ensure that they comply with COVID-19 guidelines during the trial period. In the trial period, the Manwain border crossing will be open for 24 hours until 14 January. Further coordination will be conducted between the two countries. The authorities will extend the opening hours or allow entry or exit for 12 hours of MST.

Source: The Global New Light of Myanmar

unnamed

CMP raw materials import plunges to $476 mln over past 3 months

IMPORTS of raw materials by CMP (cut-make-pack) businesses has touched a low of US$476.3 million as of 1 January in the current financial year 2020-2021 since October 2020, which fell from $581.34 million registered in the previous FY2019-2020, according to the Ministry of Commerce. The figures reflected a decrease of $105 million, the Commerce Ministry’s data indicated. In October of FY2020-2021, the country exported $203.95 million worth garments to foreign countries. The figure plunged from $384 million registered in October of the 2019-2020FY. At present, over 100 CMP garment factories temporarily shut down on the reason for the lack of raw materials and slump in demand due to the coronavirus negative impacts, leaving thousands of workers unemployed. Sixty-four factories have been permanently closed down during the pandemic, compensating about 25,000 workers.

The data does not include those factories that have not resolved
worker payments, the Ministry of Labour, Immigration, and Population stated. The coronavirus impacts badly batter the labour-intensive enterprises, indicated the Directorate of Investment and Company Administration. The MGMA and EuroCham Myanmar held virtual meetings on 7 January 2021, along with representatives from EU brands. They highlighted efforts to increase job creations in the garment factories, keeping garment factory order from European buyers, improving skilled
workers’ capacity, and upgrading the Myanmar Garment Human
Resource Development Centre (MGHRDC) and strengthening
relationships between employers and workers. Additionally, MGMA also proposed leading a working group including government officials, European Brands’ representatives and the related institutions, to transform CMP into the free-on-board (FoB) system.

Myanmar mainly exports the garments to Japan and European countries, especially Germany. The US has also purchased the garments made in Myanmar. Some western countries cancelled orders amid the pandemic. Therefore, we need to focus on market diversification. Myanmar Garment Manufacturers Association (MGMA) requested the ministries to deal with changing and cancelling orders to keep the business alive. Myanmar’s garment factories have been complying with the COVID-19 health guidelines, and the buyers recognized this. If the factories can prevent from spreading the virus, it will not affect the production, MGMA General Secretary shared her opinion at the virtual conference held on 11 December 2020.

Under the EU Myan Ku Fund, they have now distributed K5.2 billion in support across 67,810 payments to unemployed garment factory workers as of 12 October. Workers in all the states and regions of Myanmar
have received this financial assistance, said Team Leader for EU Myan Ku
Fund. Next, foreign direct investments flow into many types of businesses, including garment enterprises. The foreign investors are not bothered by the disputes between employers and employees and some CMP businesses’ closure during the mean times, the Myanmar Investment Commission stated. Of the investment proposals, the manufacturing and labour-intensive businesses are prioritized by the commission. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US.

The garment sector is among the prioritized sectors driving up exports. The CMP garment industry has emerged as a promising one, with preferential trade from Western countries. Myanmar’s garment factories operate under the CMP system, and those engaged in this industry are striving to transform CMP into the free-on-board (FoB) system. As the factories cannot enter into a contract for FoB, Own Design Manufacturing (ODM) and Own Business Manufacturing (OBM), the income is limited, according to the MGMA. According to the Ministry of Commerce data, exports of garments manufactured under the cut-make-pack (CMP) system were valued US$4.798 billion in the last financial year 2019-2020. Although the sector is facing hardships because of the cancellation of order from the European countries and suspension of Western countries’ trade amid the pandemic, export values rose in the previous FY (1 October 2019-30 September 2020).

The export value of CMP garments was only $850 million in the 2015-2016FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period (from April to September). It tremendously grew to $4.6 billion in the 2018-2019FY, according to the Commerce Ministry. Since an outbreak like COVID-19 might happen in the future, it is necessary to prepare for a sufficient raw materials supply. The public and private sectors will cooperate in setting up the supply chain on our sources, including weaving, knitting, dyeing, and sewing factories. The MGMA has more than 500 members, and garment factories in Myanmar, employing more than 400,000 workers. Investors prefer to invest in countries with inexpensive labour, such as Myanmar.

Source: The Global New Light of Myanmar