Posts in category: TRADING

MYANMAR trade deficit in goods with Singapore was estimated at US$10.72 billion in the past four years, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The value of Myanmar’s bilateral trade with Singapore topped $15.46 billion between the FY2016-2017 and the FY2019- 2020 (as of August). The CSO reported that imports surpassed exports in trade with Singapore in the past four years, with exports reaching over $2.37 billion and imports valued at over $13.09 billion.

Singapore is Myanmar’s second-largest trading partner in the region, after Thailand. It accounted for 10.56 pc of total trade in FY2016-2017 with an estimated trade value of $3.4 billion, 11.59 pc in FY2017-2018 with a trade value of $4.15 billion, 9.98 pc in the FY2018-2019 with $3.5 billion and 12.76 pc in the FY2019-2020 (Oct-August) with $3.64 billion respectively. Myanmar exports agricultural products such as broken rice, pulses, sesame seeds, onion, footwear, textiles and clothing, minerals, and other products to Singapore.

At the same time, it imports plastic, fuel oil, edible oil, transport equipment, chemical elements and compounds, wheat flour, pharmaceutical products, dairy product and consumer products. Next, Singapore is the top source of foreign direct investments into Myanmar in the incumbent government period, bringing in the capital of $10.9 billion by 124 Singapore-listed enterprises, according to data released by the Directorate of Investment and Company Administration (DICA). Singapore companies put investments into urban development, real estate, power and manufacturing sectors.

Source: The Global New Light of Myanmar

The prices of rice in the export market slightly decreased in October owing to the coronavirus impacts, as per data of Myanmar Rice Federation (MRF). In October, the export prices of white rice (low quality), broken rice and parboiled rice slipped compared to September’s rate. The prices moved in the range of US$330-415 per tonne of white rice depending on quality, $220-310 per tonne of broken rice and $440-485 per tonne of parboiled rice, indicating a slight decrease compared with the previous months.

Consequently, the price of low-quality rice, which is primarily exported to foreign countries, also dropped by K1,000-3,000 against last month’s rate in the domestic market. Following the coronavirus resurgence in Myanmar, high-quality rice (Shwebo Pawsan variety) was highly demanded in the domestic market. The domestic retail market in October saw a significant rise to K57,000 per 108-pound bag from K50,000 registered in September.

Ayeyawady Pawsan variety was priced K36,000 per 108-pound-bag in the domestic market last month, while low-quality rice fetched K21,500-23,700, MRF data showed. The export price of Myanmar’s rice is relatively lower than in other Asian countries such as Thailand and Viet Nam. Yet, the prices are higher than those market prices of India and Pakistan, MRF’s data showed. Next, the Ministry of Commerce, Myanmar Inspection and Testing Service (MITS), the authorized organization of the State and MRF implemented rice reserve scheme on 30 April. The state’s emergency rice reserve is to ensure food security, keep the price stable in the domestic market, continue to export them regularly and lessen the worries of the consumers during the COVID-19.

There is self-sufficiency in the domestic market, and people do not need to concern over the shortage of rice. A total of 321,771 bags (108 pounds per bag) from reserved rice have been sold between 10 July and 26 October 2020. MRF will sell up to 1 million bags of reserved rice. About 678,229 bags are left to sell, MRF data showed. Additionally, the volume of rice and broken rice exported between 1 and 16 October in the current financial year 2020-2021 reached 35,637 tonnes, worth over US$14 million, as per MRF’s data.

MRF expected to ship 2.4 million tonnes of rice, and broken rice in the last FY ended 30 September 2020. The country surpassed the export target, sending over 426,611 metric tons 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. A surge in rice shipping through sea trade was contributed to meeting year’s export target, MRF stated. Myanmar targets to export 4 million tonnes of rice and broken rice in the current financial year 2020-2021, stated U Aung Than Oo, vice president of Myanmar Rice Federation (MRF). Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, which was an all-time record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019. 

Source: The Global New Light of Myanmar

THE Department of Agriculture is enticing watermelon growers to turn to other crops which have market certainty, said U Win Hlaing Oo, head of Sagaing Region Department of Agriculture. The number of watermelon growers has dropped by 75 per cent due to price instability and transport difficulties. They are encouraging them to switch to other crops. As there is no contract farming of watermelon, the growers will definitely suffer a loss when the price drastically plunges.

The Agriculture Department is providing necessary technical assistance to the growers, yet it urges them to choose other crops which have the potential market. The watermelon cultivation is lucrative. However, large investment capital, market uncertainty and high quality standards of products set by the traders are posing difficulties to the growers, industry sources said. At present, China’s tightened border control amid the coronavirus pandemic is causing transport problems. With price instability and market uncertainty, coupled with the high quality standards, the growers have to struggle very hard. It is said that watermelon production has fallen by 60 per cent since the outbreak of COVID-19.

The Agriculture Department is demonstrating how to grow high yield wheat in Paukin area, in coordination with the Korea International Cooperation Agency. Their department is encouraging the growers to cultivate wheat while some are also planning to grow black bean and pigeon peas this winter. Watermelon prices jumped from around 1,300 to over 4,000 Yuan per tonne this year and about 20 to 30 truckloads of watermelons are daily sent to China at present.

Source: The Global New Light of Myanmar

The value of Myanmar’s bilateral trade with neighbouring country Thailand in maritime trade and border trade was estimated at US$18.865 billion in the past four financial years, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The ministry reported that exports surpassed imports in trade with Thailand in the past four years, with exports reaching over $10.731 billion and imports valued at over $8.13 billion. Between 2016-2017FY and 2019-2020 (as of August), Thailand has been Myanmar’s largest trade partner among the ASEAN states, followed by Singapore and Malaysia.

Thailand accounted for 14.45 pc of total trade in 2016-2017FY with an estimated trade value of US$4.6 billion, 15.54 pc in 2017-2018FY with a trade value of $5.57 billion, 15.55 pc in 2018-2019FY with $5.46 billion and 13.92 pc in 2019-2020FY (Oct-April) with $3.15 billion respectively. Exports of natural gas from Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous year. This year, corn exports to Thailand rose significantly compared with the earlier years, the Ministry of Commerce stated. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country.

Myanmar is carrying out border trade with the neighbouring country Thailand through Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Maese border areas respectively. Among them, Hteekhee performed the most extensive trade in border trade with Thailand, followed by Myawady. Nevertheless, the surge in coronavirus cases in Myanmar led Thailand to close the border areas. Consequently, the trade via land border sharply fell in the current FY 2020-2021. Apart from its leading trade partner China, Myanmar’s external trade was mostly carried out with the regional trade partners. Trade with countries in the European Union, however, remained uncompetitive, compared with regional trade partners. 

Source: The Global New Light of Myanmar

CHINA halted fisheries products imports through Muse land border effective 15 October, causing losses for Myanmar traders, industry sources
said. Myanmar traders export the frozen fish and live fish, crab, eel, long-finned eel and other fisheries products to China through Muse land
border. During the last financial year ending on September 30, a total of 128,067 tonnes of fisheries products, w3ith a total value of US$170.735 million, were exported through Muse. In the FY2018-2019, the figures stood at $128.429 million with 102,018 tonnes. Therefore, the export value saw an increase of $42.306 million, and the volume was up by over 26,048 tonnes in the past FY.

Ribbonfish, Katla, white pomfret, silver pomfret, yellow pike conger, white croaker, soldier croaker, yellow croaker, Ilish, loach, mackerel and pufferfish, and pink, white, Vannamei and Tigers prawn, dried shrimp, squid and salted fish are exported to China. Myanmar’s fish exports to China in June-August dropped. It was attributed to the fights in the Shan State during August and fishing banned season. During the early outbreak of COVID-19, trade flow was steady. During the exemption period of advanced income tax on exports, the export amount increased. At present, the export volume of live crab dropped by $5.966 million worth over 1,875 tonnes, and the export volume of live eel plunged by $6.929 million worth 1,735 tonnes compared to a year-ago period. However, the country saw an increase of 24.791 million (8,617 tonnes) in fish exports, $4.537 million (919.68 tonnes) in prawn exports, and $25.494 million (20,059 tonnes) in other fishery products exports against last year, data of the Fisheries Department (Muse) showed.

The suspension in fishery export does not concern with Chinese authorities. The trade is temporarily halted among the traders of China. Prawns exported to foreign countries, of which more than 4,000 tonnes of prawns are sent to the Japanese market. They notified the local traders of trade suspension in advance. On 5 October, China stopped frozen fish purchase and so did the crab and eel on 16 October. Only dried fish and prawn are flowing into China through its Mang Weing border. Chinese traders have not informed when they will be back into the business. The eels are stockpiled at the depot. Some even experience capital loss. Some local traders also stopped buying the eel. The trade will return to normal once trade with China is opened. For the time being, traders are facing loss. The eel fetched only K3,000-3,500 per vises (1.6 kg). The market primarily depends on China. The trade suspension in China side harms both the traders and those harvesting eel and shrimp. The local traders can only wait for the reopening of trade in China.

Source: The Global New Light of Myanmar

Myanmar trade deficit in goods with China was estimated at US$1.3 billion in the 11 months of the last financial year (Oct-Aug), the data released by the Ministry of Commerce indicated. The value of Myanmar’s bilateral trade with China in average trade and border trade topped $11.19 billion as of August in the past FY. The MoC reported that imports surpassed exports in trade with China, with exports reaching over $4.9 billion and imports valued at over $6.246 billion. This year, China has been stepping up border control measures to contain the spread of the Covid-19, causing traffic congestion in the border areas of two sides.

Next, the value of Myanmar’s bilateral trade with the neighbouring country China through maritime trade and border trade has registered approximately at US$46.247 billion in the incumbent government period, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The ministry reported that the imports outperformed the exports in trade with China over the past four years, with exports reaching over $21.363 billion and imports valued at over $24.8 billion. Between 2016-2017FY and 2019-2020 (as of August), China has been Myanmar’s largest trade partner beyond the regional states. Myanmar primarily exports rice, various types of peas, sesame seeds, corn, fruits and vegetables, dried tea leaves, fishery products, rubber, gem and animal products to China.

In contrast, machinery, plastic raw materials, CMP raw materials, consumer products and electronic tools flow into Myanmar. Myanmar mainly exports agricultural products to China through the border trade, which is often halted, on account of China clamping down on illegal goods. Myanmar merchants are facing difficulties in exporting goods to China through the legitimate channel as they find the tax levied by China is too high. 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 Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts.

Illegal trade is highly witnessed between Myanmar and China borders in the previous years. This year, traders sent the goods via legitimate trade route, and trading volume sharply fell, according to the Myanmar Rice Federation. The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s Ministry of Commerce is trying to boost exports of rice, broken rice, agro-products, fruits and fisheries to China through diplomatic negotiations. Myanmar is carrying out border trade with the neighbouring country China through Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung. Apart from its leading trade partner China, Myanmar’s external trade was mostly carried out with the regional trade partners. Trade with countries in the European.

Source: The Global New Light of Myanmar

The prices of sesame seeds significantly rose in October on the back of China’s strong demand, said traders from Mandalay market. The price of white sesame increased from over K1.5 million to K1.66 million per tonne compared to September’s rate, while brown sesame price also jumped to K1.45 million per tonne in October, which is nearly up by K200,000 per tonne against last month. The price of black sesame seeds is flat at over K2.7 million per tonne for the two consecutive months. Last year, sesame seeds were priced at K2.13 million per tonne for white sesame, K1.94 million per tonne for brown sesame and K3.6 million per tonne for black sesame, as per market data updated by Myantrade online. This year, the sesame prices drop by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts.

Consequently, the growers do not make a large profit this year, a trader from Mandalay market stressed. Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is the leading buyer of Myanmar sesame, which is also shipped to markets in Japan, South Korea, China (Taipei), UK, Germany, the Netherlands, Greece, and Poland among the EU countries. The EU markets prefer organic-farming sesame seeds from Myanmar, said an official from the Trade Promotion Department. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country. This year, Japan has not purchased Myanmar’s sesame yet.

Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the primary producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports was registered at over 96,000 tonnes, worth $130 million, in the financial year 2015-2016; $100,000 tonnes, worth $145 million, in the 2016-2017FY; 120,000 tonnes, worth $147 million, in the 2017-2018FY; 33,900 tonnes valued $43.8 million in the 2018 mini-budget period, and 125,800 tonnes, worth $212.5 million in the 2018-2019FY, the trade data of Central Statistical Organization indicated.

Source: The Global New Light of Myanmar

The value of Myanmar’s imports between 1 and 9 October in the current financial year 2020-2021 stood at US$341.7 million, reflecting a decrease of $150 million from $491.89 million registered in the year-ago period, according to data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups declined in the current FY. During the nine days of trading, the import value of capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts, was estimated at $118.29 million. The figure was $54 million lower than the same period in the previous FY. Meanwhile, Myanmar imported consumer products worth $80.66 million, including pharmaceuticals, cosmetics, and palm oil.

The imports of consumer products showed a decrease of $15.9 million compared with the same period in the previous FY. Typically, intermediate goods make up a large share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. In the current FY, imports of raw materials plunged to $113 million from $160.8 million registered during the year-ago period. During the same period, raw materials worth $29.68 billion were also imported for the Cut-Make-Pack (CMP) garment businesses, showing a decrease of $31.5 million compared with last year. Myanmar imported over $19 billion worth goods in the last FY2019-2020, showing an increase of $935.8 million compared to the FY2018-2019. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce.

The government is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution.
The Ministry of Commerce has adhered to its policy reform depending on the requirements of the State and people. Moreover, a series of trade liberalization and openness for policy development have been introduced for enhancing a more viable trade environment. The private sector plays a prominent role in Myanmar’s market-oriented economic system. The ministry is highlighting free and fair trade, ensuring product safety and quality goods and services. 

Source: The Global New Light of Myanmar

Trade conducted by Individual Trading Card (ITC) holders touched a low of K43 billion through the land border in the last financial year 2019-2020, according to the data released by the Ministry of Commerce. The trade value plunged from K59 billion registered in the FY2018-2019 as both export and import sharply fell in the last FY2019-2020. The Trade Department issued 88 cards in the October-September period of the FY2019-2020, and the cardholders conducted trade worth K43 billion. While imports exceeded K40 billion, exports were valued at just K3.25 billion.
The Myawady border recorded the highest trade value at K28 billion in the last FY, according to the Commerce Ministry. But, the figure only reflected imports as individual trading cardholders did not export goods through the Myawady gate.

The value of trade carried out by individual cardholders stood at K450 million at Tamu, over K10.8 million at Muse, K188 million at Tachilek, K39.4 million at Lwejel, K488 million at Kampaiti, over K2 billion at Kawthoung, K680.9 million at Reed, K7.7 billion at Mawtaung, K3.4 billion at Hteekhee, and K183 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); and K59 billion in the FY2018-2019.

Trading with the use of ITC is based on local currency. Hundreds of exports and imports items have been allowed for individual trading at the border checkpoints. The trade department has issued 1,775 cards so far intending to boost trade. People in business 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 will launch an online portal that will enable all paperwork and payments to be done digitally to facilitate trade in November. Administrative procedures such as applications and payments for export and import permits can be done online on the Myanmar Tradenet 2.0 portal, while the documents can also be issued digitally. These procedures had all beem done manually at the Department of Trade in the past.

Foreign countries are already using TradeNet 4.0. In Myanmar, they are just moving to Tradenet 2.0. They have to keep pace with their trading partners and this is also very helpful in reducing physical contact during the COVID-29 period. Myanmar can expect trade to raise once the online system is in place. In Tradenet 2.0 they have amended some of the existing policies in applying for and renewing export/import licenses. By going online, trades will no longer need to submit recommendations from the various departments, including the Department of Agriculture, Livestock Breeding & Veterinary Department and Food and Drug Administration, to the Department of Trade.

As all the documents can be accessed on the system, traders will not need to visit all the departments to obtain the required documentation for the process. All traders should update their details online before October 25. After that deadline, accounts with incomplete data will be removed from the system. The ministry will strive to launch Tradenet 2.0 in time despite the lack of staff working in the office during COVID-19.

Source: Myanmar Times