Posts in category: TRADING

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

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

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

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

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

THE COVID-19 free certificate, essential for fishery exports to
China, must be issued at the soonest as it can cause disturbance on trading, said general secretary U Win Kyaing of Myanmar Fisheries Federation (MFF). China authorities have given the go-ahead for fishery exports only with the presence of COVID-19 free certificate on products since last October. Consequently, fishery exports, including frozen fish, prawn, eel and crabs, cannot be exported to China via the land border. The Ministry of Health and Sports of Myanmar take all responsibility regarding COVID-19 and, there is no other institution which can guarantee the COVID-free status. Therefore, they need to tackle this process soon since failure to do so will directly harm the trade. The government needs to formulate a better policy for that as soon as possible, following the international standard.

The Federation stated that the exporters do not know where
to seek COVID-free certificate on fishery products. They need to follow the importing countries’ rules and regulation to enter their market. At
present, the COVID-19 free status on fishery exports is essential
for China. They still do not realize which department is responsible for the issuance. Earlier, the Fisheries Department took all responsibility regarding food safety on fishery products and granted certificate. The department is
now planning to deal with this to the utmost of its power during
the pandemic. However, when they look into Thailand’s Department of Fisheries, they are not authorized for this matter. Therefore, the Federation called for cooperation between the official departments concerned.

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 certificate. 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, US$254 million worth exports flowed into China. The Federation expects to reach fishery export target of US$1 billion in the current FY. Nevertheless, the fishery exports via land border have halted since October 2020, resulting in a $30 million drop in fishery export value during Q1 compared with a year ago.

Source: The Global New Light of Myanmar

According to data released by the Ministry of Commerce, trade conducted by Individual Trading Card (ITC) holders reached over K8.09 billion through the land border in the first quarter of the current financial year 2020-2021.
The Trade Department issued 17 cards in the October-December period this FY. Imports exceeded K6.46 billion, and exports were valued at just K1.6 billion. The Myawady border recorded the highest trade value at K5.3 billion, according to the Commerce Ministry. Nevertheless, the figure only reflected imports as individual trading cardholders did not export goods through the Myawady crossing.

The value of trade carried out by individual cardholders stood at K115 million at Tamu post, K116 million at Tachilek, K421 million at Kawthoung, K2.09 billion at Mawtaung and K14.2 million at Kengtung, as per data from the Commerce Ministry. Individual trades topped K737 million in the period from 21 November 2012 to 31 March 2013; exceeded K6.6 billion in the FY2013-2014; reached K9.37 billion in the FY2014-2015; stood at over K6.4 billion in the FY2015-2016; rose above K18.5 billion in the FY2016-2017; touched K45.9 billion in the FY2017-2018; K22.5 billion during the 2018 mini-budget period (April-September); K59 billion in the FY2018-2019 and drastically plunged to K43.32 billion in the FY2019-2020.

The individual traders who cannot establish their own company can trade with the ITC in the border area. However, trading volume is limited. The card validity is set only one year, and the cardholders need to extend the card at the respective border posts one month before the expiry date.
Trading with the use of ITC is based on local currency. Hundreds of exports and imports items have been allowed for individual trading via the border posts. The trade department has issued 1,792 cards so far intending to boost trade. Business people can trade goods worth K3 million per day using ITCs, and the Trade Department has permitted trade of up to K15 million per day over five days.

Source: The Global New Light of Myanmar

Myanmar rice’s export price hit a record high in 2020 as the local and foreign demand picked up. The global foreign demand surged this year amid the drop in global food production triggered by the coronavirus pandemic. Additionally, the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) gave more companies the green light to export rice to China. The domestic market also experienced the price gain, pointed out the exporters. Moreover, Myanmar regained rice market shares from certain countries on account of high quality and the price also remarkably increased in November and December 2020, according to Myanmar Rice Federation (MRF).

In 2020, the export prices of Myanmar white rice (low quality), broken rice and parboiled rice rose compared to the previous years’ rates. The prices moved in the range of US$375-485 per metric ton. The export price of Myanmar rice is relatively lower than the rates of Thailand and Viet Nam. Yet, the prices are higher than those of India and Pakistan’s market prices, MRF’s data showed. Following the coronavirus impacts in Myanmar, rice was highly demanded in the domestic market. The domestic retail market in 2020 saw a rise of K3,000-10,000 per 108-pound bag compared to 2019’s prices, said traders from Bayintnaung market. The rice prices last month for Pawsan varieties moved in the ranges of K38,000-57,000 per 108-pound-bag in the domestic market, while low-quality rice fetched K22,300-28,000, MRF data showed.

Myanmar exported 520,884 metric tons of rice and broken rice to foreign trade partners between 1 October and 18 December in the current financial year 2020-2021, generating an income of over US$196.5 million, as per MRF’s data. MRF expected to ship 2.4 million tonnes of rice and broken rice in the last FY (Oct 2019-Sep 2020). The country surpassed the export target, sending over 426,611 metric tonnes to neighbouring countries through border trade and over 2.15 million tonnes of rice and broken to foreign trade partners via maritime trade, totalling over 2.58 million tonnes.
Last year, Myanmar shipped rice to 66 foreign markets. China is the leading buyer of Myanmar rice, followed by the Philippines and Malaysia. Madagascar is the fourth-largest buyer and Poland, the fifth-largest buyer of Myanmar rice.

Meanwhile, Myanmar exported broken rice mostly to Belgium, followed by China, Senegal, Indonesia and the Netherlands. Broken rice was placed in 60 foreign markets. ASEAN countries constitute 18 per cent of Myanmar’s total rice exports with over 466,882 tonnes. In comparison, 30 per cent of total rice exports in Myanmar goes to China with over 775,884 tonnes, followed by African countries with 27 per cent after exports of around 706,302 tonnes. The European Union countries account for over 20 per cent of rice exports with over 514,523 tonnes while other countries represent five per cent of exports with over 122,786 tonnes. Next, Myanmar yearly produces 13 million tonnes of rice. There is self-sufficiency in the domestic market, and rice reserves have been stored in Yangon, Nay Pyi Taw and Mandalay. Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, which was a record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019.

Source: The Global New Light of Myanmar

Imports rose in the first three months of the current fiscal year to a trade deficit of more than $ 230 million, up more than $ 140 million from the same period last year, according to the Ministry of Commerce. In the three months from October 1 to January 1 of the 2020-2021 fiscal year, Myanmar’s exports were worth $ 3.685 billion, down more than $ 1.2 billion from the same period last year. Imports were worth $ 3.920 billion, down more than $ 1 billion from the same period last year. The trade deficit means that Myanmar imports more than it exports. In the first three months of the current fiscal year, Myanmar’s exports and imports were $ 234.525 million higher than exports. 

As a result, Myanmar’s trade deficit reached $ 234.525 million in the first three months of the current fiscal year. In the same period of the 2019-2020 fiscal year, the trade deficit was only $ 89.233 million, according to the Ministry of Commerce. Comparing the two periods, Myanmar’s trade deficit in the first three months of the current fiscal year was $ 145.289 million higher than the same period last year. The Union Minister for Commerce and Industry, said that while Myanmar was developing and implementing export strategies to boost exports, it was also trying to reduce the trade deficit as domestic demand could not be reduced due to domestic demand. In practice, domestic consumption has improved. 

In terms of investment, especially small and medium enterprises. Medium-sized businesses need raw materials. Livestock, for example, is on the rise. Chicken is very imported. In the past, soybean mills were allowed to import about 20,000 tonnes a year, but now up to 50,000 tonnes a year. This will not be reduced as the business here grows. Some have to import good fish, such as sausages, which cannot be produced here when traveling. Coconut oil does not reduce it. Diesel cannot be reduced. Medicine cannot be reduced and cosmetics cannot be reduced.

Source: Daily Eleven