Posts in category: TRADING

The total trade value at 18 border trade camps plummeted by US$848 million in this financial year, according to the Ministry of Commerce.
From 1 October 2020 to 15 January, the total trade value amounted to $2.7 billion, a decrease of $848 million compared with that of the same period last year. The total border trade value as of 15 January this FY includes $1.78 billion in export and $911 million in import.

Compared with that of last FY, the export earnings dropped by $518 million while the import value fell by $330 million. This time last year saw the border trade valued at $3.55 billion. 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. Myanmar has opened 18 border trade camps and conducts border trade with China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung borders.

The country carries out border trade with Thailand through Tachilek, Myawady, Kawthaung, Myeik, Hteekhee, Mawtaung and Maese borders. The cross-border trade camps between Myanmar and Bangladesh are Sittway and Maungtaw. In contrast, the country trades directly with India via Tamu and Reed borders. Among all the border crossings, the Muse border sees an enormous volume and value of border trade with an estimated value of more than $1.31 billion this FY followed by Hteekhee with $368 million and Myawady with $304 million. 

Source: The Global New Light of Myanmar

Department of Animal and Plant Quarantine of the General Administration of Customs of China-GACC informed the Embassy of the Republic of the Union of Myanmar in Beijing that China has allowed import of Myanmar fishery products only upon production of COVID-free certificate. The GACC mentioned in a statement that to ensure the safety and effective prevention of the spreading of the COVID-19 on the goods plays an important role, to set up an effective safety system by the companies registered to export edible aquatic animals to China following these guidelines, to implement the protection system, to give specific guidelines to check COVID-19 in edible aquatic animals exported to China. Besides, the companies registered to export edible aquatic animals to China need to halt the import process immediately and need to inform China when they found the suspected COVID-19 patients in their companies or if there is a risk of COVID-19 infection in the export products.

The suspended companies should resume the export process to China after confirming that they are safe. Also, China urges companies to work together for security and convenience regarding the export of edible aquatic animals to China. Therefore, the COVID-19 free certificates essential to fishery exports to China must be issued at as soon as possible because it can cause disturbance on trading, said General Secretary U Win Kyaing of the Myanmar Fisheries Federation (MFF). Since last October, China authorities have given a permit for fishery exports only upon production of COVID-19 free certificates on products. Consequently, fishery exports, including frozen fish, prawn, eel and crabs, cannot be exported to China via the land border. Although China earlier allowed Myanmar to export fishery products without having any certificates through regular trade, China did not allow importing without the COVID-free certificates.

However, MFF is not clear about which department is responsible for issuing COVID-19 clearance certificate for fishery products. It is a new order for the COVID-free certificates on fishery products. They are not clear as to who are legal authorities. Also, there are no guidelines to check the COVID-19 on the export products. The Federation has already submitted a report to the Ministry of Agriculture, Livestock and Irrigation through the Fisheries Department to screen fishery products and receive the COVID-19-free certificates. On 21 January, a coordination meeting was held in the meeting hall of the Ministry of Agriculture, Livestock and Irrigation in Nay Pyi Taw to respond to the impact of COVID-19 on the fisheries sector. At the meeting, Union Minister for Agriculture, Livestock and Irrigation Dr Aung Thu said that coordination would be made between the governments to engage the fishery products to the potential foreign markets.

The ministry will also call for coordination with the relevant departments, including the Myanmar fisheries federation, to issue the COVID-free certificates on Myanmar fishery products. China is the second-largest buyer of Myanmar’s fishery products. During the previous financial year 2019-2020, Myanmar shipped over US$850 million worth fishery products to external markets and among them, $254 million worth exports flowed into China. The Federation expects to reach fishery export target of $1 billion in the current FY. Myanmar has earned $278.378 million from the export of fishery products over three and a half months of this financial year between 1 October 2020 and 15 January 2021. The same period of the last FY saw $301.958 million. So, this year’s amount plunged into $23.580 million, according to official data of the Ministry of Commerce. Myanmar’s marine products mainly go to more than 45 countries, with Thailand being the largest exporter followed by China.

Source: The Global New Light of Myanmar

According to the Mandalay Region Cattle Exporters Association, China has been purchasing cattle from Myanmar on the black market. Chinese traders are buying cattle on black markets (Lweje, Chinshwehaw and Wa border areas). However, about 15,000 heads have stranded in Muse for shipment to China through a legitimate route. Chinese traders keep purchasing cattle through illegitimate channels via Lweje, Chinshwehaw and Wa border areas. They do not want cattle in Muse, which is a legitimate trade route. This action is like supporting the black market instead confirmed by the Chairperson of the Mandalay Region Cattle Exporters Association.

Around 2,000 heads of cattle are daily traded on black markets, he continued. As a result of this, some traders brought the cattle from Muse back to their home owing to the burden of high feedstuff cost and labour wages. However, some are still waiting for a positive outcome from the bilateral negotiation on cattle export, which will be held in January-end. Moreover, some intentionally stated that they would return to the original designated place but conduct illegal trade in border areas. Some traders from Muse turn to black-market instead of going back to home. Regarding cattle exports via Muse, the trading system needs to be changed. Failure to do so cannot avoid a similar event in future. Price manipulation and financial fraud problems will keep arising, said by Myanmar Livestock Federation’s vice-chair.

Such kind of problems will happen as they are carrying out trade in the border area without having trade agreement. They should have made the deal in advance like goat exporters. This can avoid the scam and goods stuck in the border area. The trade hub should have been in Mandalay or Shan State rather than Muse border. It’d be better if the department concerned grants licence for delivering goods to the border after trade deal. About 15,000 heads of cattle, owned by 150 companies, are now stranded in Muse border as China stopped purchasing cattle. The labour wages and feedstuff cost burden them. It costs K400,000-600,000 to take care of 100 heads of cattle every day. For legitimate trade, China permits live cattle import only after ensuring the cattle is free from 20 diseases including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates.

Therefore, the officials concerned from the two countries are negotiating this. Earlier, 1,500-2,000 heads of cattle were daily traded through Muse border. China halted cattle trade with China stepping up border control as precautionary measures for the COVID-19 and other reasons, the association stated. Additionally, Myanmar’s live cattle export relies heavily on the China market due to a reasonable price. However, Myanmar has other external markets such as Laos, Thailand, Malaysia, and Bangladesh.
The Ministry of Commerce grants a permit to each company for 100 cattle export, and the pass is valid for three months. The companies can be taken legal actions if they do not sell the cattle during a three-month period.
Live cattle export was allowed in late 2017, to eradicate illegal exports, creating more opportunities for breeders and promoting their interests.
Myanmar can yearly export around 500,000 heads of cattle beyond domestic consumption, the association stated.

Source: The Global New Light of Myanmar

The groundbreaking ceremony of the Agricultural Marketing Centre was held in Pobbathiri Township, Nay Pyi Taw yesterday morning. The ceremony was attended by the Union Minister for Agriculture, Livestock and Irrigation Dr Aung Thu, Deputy Minister U Hla Kyaw, Nay Pyi Taw Council member U Aye Maung Sein, Amyotha Hluttaw Representative U Maung Maung Swe, Ambassador of the Republic of Korea to Myanmar Mr Lee Sang-hwa, Chief Representative of KOICA Myanmar Ms Lee Youn Soo, the Permanent Secretary, Directors-General of the ministry and other relevant officials.

At the ceremony, Union Minister Dr Aung Thu said that the agricultural sector is a key factor in Myanmar’s economic development process. Establishing the Agricultural Marketing Centre and the Agricultural Products Processing Centre will benefit both agriculturalists and consumers, according to the Union Minister, who said that the cooperation among the government, private sector and agriculturalists is expected to greatly enhance the opportunities to compete in the international market.
During the ceremony, Ambassador Mr Lee Sang-hwa also delivered a congratulatory speech and KOICA Myanmar representative Ms Lee Youn Soo expressed thanks to all stakeholders.

The Agricultural Marketing Centre project, jointly carried out by the Korea International Cooperation Agency (KOICA) and the Ministry of Agriculture, Livestock and Irrigation, was begun in 2018 with US$8.37 million in financial aid from Korea. The Agricultural Marketing Centre will be built in Pobbathiri Township in Nay Pyi Taw and the Agricultural Product Processing Centre will be built in Heho in Shan State. The objective of establishing the two centres is to improve the market for agricultural products in major agricultural production areas, said Director-General Dr Ye Tint Tun. The centres will be able to provide efficient agricultural market information, and another benefit is that the agriculturalists’ organizations will be strengthened. They will help strengthen agricultural infrastructures and will work for issuance of certification. So, the centres will help fulfil the Agriculture Development Strategy (ADS).

Source: The Global New Light of Myanmar

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

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

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

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

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

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