Posts in category: TRADING

Trade at the Myanmar-Thai border has resumed after a two-week standstill. After 12 days of only following six vehicles to travel between Tachilieik, Shan State, and Mae Sai in Thailand as part of restrictions to contain COVID-19, both sides agreed on September 30 to resume trading as usual. Due to the pandemic, there will be a reshuffle of drivers and vehicles when passing between Myanmar and Thailand but there will no longer be other restrictions on the trucks from both sides.

Trade at Tachileik, the border town between Myanmar and Thailand, had come to a standstill after Thai authorities on September 17 imposed restrictions allowing just six vehicles from Myanmar to enter the Mae Sai trade post in Thailand. Myanmar drivers, who were also prohibited from passing though, had to switch places with Thai drivers at the border. The Thais had prohibited Myanmar drivers from entering through the border after cases began rising in Myanmar but neglected to discuss the restrictions with their Myanmar counterparts. The Myanmar side then reciprocated with similar measures, forcing Thai vehicles to register in Myanmar to transport goods.

Without any imports from Myanmar, Thai traders are estimated to have incurred up to THB1 billion in losses from September 17 to 29. Both sides have agreed to make bilateral discussions whenever there are cases at border areas involving public interests. The driver shuffle system will still be in place when using Thailand-Myanmar Friendship Bridge No.2 and trucks will commute between trade posts as usual. Small traders will also be eligible to travel on the No.2 Bridge with small vehicles without limitations.

Source: Myanmar Times

Myanmar is expected to export 2.5 million tonnes of rice and paddy in the 2019-2020 fiscal year, and more than 2.5 million tonnes of rice and paddy were exported more than 20 days before the end of the fiscal year, according to the Myanmar Rice Federation. In the 11 months from October 1 to September 11 of the 2019-2020 fiscal year, 2.531 million tonnes of rice and broken rice were exported, earning $ 774.891 million. During that period, it exported 1.583 million tonnes of rice to 66 countries, earning $ 517.1858 million. It earned $ 257.733 million from exporting about 950,000 tonnes of broken rice to 60 countries.

In the current fiscal year 2019-2020, up to 2.5 million tonnes of rice and broken rice can be exported. The 2019-2020 fiscal year will end at the end of September, just days before the end of the fiscal year. By the end of the fiscal year, more than 2.5 million tonnes of rice and broken rice had been exported. Myanmar exports both rice and broken rice through both seaborne and cross-border trade. In the first 11 months of the current fiscal year, seaborne trade accounted for more than two million tonnes of rice and broken rice, accounting for 84% of total exports. Over 400,000 tonnes of rice and broken rice were exported from border trade points, earning more than $ 120 million, accounting for 16 percent of total exports. Of the 66 rice exporters, China is the largest exporter of more than 540,000 tonnes. Of the 60 countries that exported broken rice, Belgium was the largest exporter, with more than 240,000 tonnes.

According to the annual acreage and yield of paddy in Myanmar, in the 2014-2015 financial year, 17722355 acres (over 17 million) were planted and 264233319 tons (over 26 million) were produced. In the 2017-2018 financial year, 17930294 acres (over 17 million) of paddy fields were planted and the yield was 25624492 tons (over 25 million), which is the lowest year in the last four years. In the 2018-2019 fiscal year, 17861055 acres (over 17 million) of paddy fields were planted and the yield was 27573589 tons (over 20 million), which is the highest paddy yield period in the five years from the 2014-2015 fiscal year to the 2018-2019 fiscal year.

Source: The Global New Light of Myanmar

The value of Myanmar bilateral trade with the neighbouring country China through maritime trade and border trade has stood at an estimated amount of US$42.29 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 $19.7 billion and imports valued at over $22.5 billion. Between 2016-2017FY and 2019-2020 (as of August), China has been Myanmar’s largest trade partner beyond the regional states. China accounted for 80.4 per cent of total trade in the FY2016-2017 with an estimated trade value of $6.28 billion, 78.8pc in the FY2017-2018 with a trade value of over $7.05 billion, 57.45pc in the FY2018-2019 with $5.9 billion and 58.7pc in the FY 2019-2020 (Oct-April) with $3.56 billion respectively.

Rice, various types of peas, sesame seeds, corn, fruits and vegetables, dried tea leaves, fishery products, rubber, gem and animal products are primarily exported to China. In contrast, machinery, plastic raw materials, CMP raw materials, consumer products and electronic tools flow into Myanmar. The border trade value ($22.8 bln) is relatively higher than the maritime trade value ($19.47 bln) in the bilateral trade between Myanmar and China. 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. 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 neighboring country China through Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung. Apart from its leading trade partner China, Myanmar is carrying out its external trade mostly 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

Myanmar’s exports of natural gas over the past ten months of the current financial year 2019-2020 amounted to US$2.97 billion, the Commerce Ministry’s data showed. The figures reflect a decrease of $264 million compared with the corresponding period of the 2018-2019FY when the gas export value was registered at $3.235 billion, the statistics released by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The drop in the value of exports is linked to the collapse of the global oil and natural gas prices, according to an expert. Natural gas is included in the list of major export items of Myanmar. About 10 per cent of the country’s total export earnings come from the sale of natural gas. There are 53 onshore blocks and 51 offshore blocks, totalling 104 blocks.

A total of 25 onshore blocks and 31 offshore blocks are operating under foreign investment. Natural gas extraction is being made at the Yadanar, the Ye Dagun, the Shwe, and the Zaw Tika offshore blocks as well as onshore drilling blocks. Yearly extraction is elevated to cubic feet in 670.36 billion from 600 billion this year, according to the fourth-year performance statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore from Rakhine State, was discovered in 2014. Natural gas extracted from the field is exported to China.

The Yadana natural gas project is being carried out by the TOTAL Company, with its pipeline supplying natural gas to Thailand. Natural gas is also extracted in Yedagon, located offshore from Taninthayi and discovered in 1992. The Zawtika Project in the Gulf of Mottama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagon is declining, and those projects will be halted in the coming years. Myanmar’s exports of natural gas in the previous financial year totalled $3.88 billion, as per Commerce Ministry data.

Source: The Global New Light of Myanmar

The value of Myanmar’s bilateral trade with neighbouring country Thailand in regular trading 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 $10.73 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 18.48 pc of total trade in 2016-2017FY with an estimated trade value of US$4.6 billion, 19.17 pc in 2017-2018FY with a trade value of $5.57 billion, 40.38pc in 2018-2019FY with $5.46 billion and 39.55pc 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. The surge in coronavirus cases in Myanmar led Thailand to close its border area in Maesai recently.

Only six trucks are now allowed on Tachilek-Maesai bridge per day after negotiations of the two countries, the Union of Myanmar Federation of Chambers of Commerce and Industry released the news on 16 September 2020. Besides Tachilek, Myanmar is carrying out border trade with the neighbouring country Thailand through 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. 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

Myanmar’s foreign trade volumes have reached about US$34 billion as of August, a month before the closing of fiscal 2019-20 on September 30. The country registered higher trading activity despite COVID-19. Exports hit US$16.9 billion, while imports have exceed US$17.6 billion, resulting in a trade deficit of around US$1.5 billion for the fiscal year. In comparison, Myanmar recorded a trade of around US$950 million in fiscal 2018-19, with total trade volumes surpassing US$31.9 billion for the period.

The bulk of exports comprised of finished and manufactured goods, followed by agriculture produce and mined resources and minerals. Imports comprised of capital goods such as equipment, vehicles and machinery, as well as other raw materials and commodities. The country’s top trading countries are China, Thailand, Singapore, Japan, Malaysia, India, the US, Indonesia, Korea and Vietnam. The government received 28pc of total export revenues, while the remaining income was generated by the private sector. Private businesses also contributed to the bulk of total imports.

Border trade has taken a hit in recent weeks through. Trade at Tachileik, Shan State, the border town between Myanmar and Thailand, recently came to a standstill now that Thai authorities are allowing just six Myanmar vehicles to enter Mae Sai in Thailand. The move was announced and made effective by Thai authorities on September 17 as part of measures to prevent the spread of COVID-19. Trade between Myanmar and China has also faced disruptions after Ruili was placed under lockdown on September 15 following the detection of COVID-19 in the city. Ruili is the major border crossing between China and Myanmar near Muse in Shan State.

Source: Myanmar Times