Posts in category: TRADING

Myanmar generated US$235.477 million from mineral exports between 1 April 2022 and end-January 2023 in the current financial year, according to the Ministry of Commerce.

During the April-January period, the public sector performed mineral exports valued at $23.43 million whereas the private sector saw mineral exports worth $212.04 million.

The export items are gems and jewellery, gold, jade, pearl, diamond, lead, tin, tungsten, silver, copper, zinc, charcoal and other minerals. Myanmar earned $564.457 million from mineral exports between April and 27 January in the last FY2021-2022. Myanmar targets to achieve exports worth $15.5 billion and imports worth $14 billion in the 2022-2023 FY, the National Planning Law stated.

Source: The Global New Light of Myanmar

Truck drivers need to seek QR code-based Vehicle Pass permits beforehand on digital platforms in order to export goods in border trade, the Trade Department notified. The department launched an online system to issue vehicle passes with a view to facilitating the exports of various pulses, corn, sesame and peanut in the border channel. Consequently, those truck drivers who have received vehicle passes digitally in advance are allowed to pass the border point.

The drivers of those aforementioned goods are required to seek it ahead. This vehicle pass can be done on Myanmar Tradenet 2.0 portal. The applicants holding export licences have to fill in the classification of the vehicle in the Vehicle Monitoring System (htpps://vehicle.myanmartradenet.com). After screening the application, QR code-based Vehicle Pass will be issued. For those goods which do not need export licences, they can directly seek vehicle passes.

The trucks can pass the checkpoints with that QR code. Those drivers which fail to show the QR code are not entitled to leave. That system will start on a trial run between 1 and 10 February along Muse, Myawady and Chinshwehaw border. There will be no charges for it during the trial period. That system will be fully operational from 11 February. Each truck will be charged K5,000.

Source: The Global New Light of Myanmar

Myanmar’s natural gas export to China pocketed US$1.43 billion in 2022. Myanmar is listed among China’s largest gas importers. It ranked third after Turkmenistan and Russia. Natural gas extracted from the Shwe natural gas field located offshore from Rakhine State is exported to China through the cross-border Myanmar-China gas pipeline.

Approximately 12 billion cubic meters of natural gas are yearly exported to China through that pipe which was constructed with an estimated cost of $1 billion. The pipeline connects Rakhine, Magway, Mandalay, and Shan State to Yunnan Province, China. Furthermore, a 771-kilometre-long crude oil pipeline was constructed with the use of $1.5 billion.

It was designated to send 22 million tonnes of crude oil per year. South-East Asia Gas Pipeline Company Limited (SEAGP) is responsible for the operation of the Myanmar-China Gas Pipeline, while South East Asia Crude Oil Pipeline Company is in charge of the crude oil pipeline. Myanmar Oil and Gas Enterprise (MOGE) owns 7.36 per cent of shares in the gas pipeline project, whereas it holds 49.1 per cent of shares in crude oil pipeline projects.

Source: The Global New Light of Myanmar

Traders based at the China-Myanmar border said that since China is adjusting the level 2 for border trade, it has not reached the fruit sales field from Myanmar yet. According to a border-based trader, the customs system is also being updated on the Chinese side, and it is not yet known what will happen in the new system.

Trade is expected to improve after the Chinese New Year period, but prices have fallen slightly as fruits from Viet Nam and Laos have started entering the Chinese market, according to border reports. The 855 melons are priced at 3.6 yuan per kilogramme, Tangwan fruit is 3.6 yuan, and sweet melons are priced at 5 yuan per kilogramme. On 1 February 2023, 54 cars entered the Chinese fruit market.

China is starting to install a new system for border trade, and traders say it is still unclear what will happen. When the Chinese market just opened, melons and cucumbers from Myanmar fetched good prices, but after the price dropped due to the export of low-quality fruits, they are hoping to get good prices again after the New Year period. 

Source: The Global New Light of Myanmar

The trade volume between Myanmar and China reached up to US$2159.412 million between April 2022 and half of January 2023 in the financial year 2022-2023, according to the Ministry of Commerce. The export value was $1801.501 million and the import value was $357.911 million.

Myanmar conducts cross-border trade with China through such border posts as Muse, Lweje, Chinshwehaw, Kampaiti, and Kengtung and the trade volume through the Muse border alone amounted to 90 per cent of the total.

Between April 2022 and half of January 2023, Myanmar’s trade through Muse was valued at $1762.051 million. The trade values were registered at $105.735 million on the Lweje border and $215.603 million in Chinshwehaw. The Kampaiti border earned worth $66.416 million and the Kengtung border witnessed trade worth $9.607 million.

Source: The Global New Light of Myanmar

Myanmar has conveyed over 1.8 million tonnes of rice and broken rice at an estimated value of US$680 million between 1 April 2022 and 25 January 2023, according to Myanmar Rice Federation (MRF).

The export values were recorded at $82 million from 250,947 tonnes in April 2022, $51 million from 153,507 tonnes in May, $50 million from 146,094 tonnes in June, $66 million from 182,550 tonnes in July, $53 million from 156,893 tonnes in August, $37 million from 93,792 tonnes in September, $65 million from 163,189 tonnes in October, $106 million from 264,038 tonnes, $90 million from 228,445 tonnes in December and $79 million from 196,700 tonnes in January 2023, totalling $679 million from 1,836,154 tonnes in ten months in the current financial year 2022-2023.

The export volume hit the lowest in September and the highest in November. Myanmar has been exerting concerted efforts to grow 10 per cent yearly in the rice export sector. To raise foreign income, it has been prioritizing the exportation of high-grade rice and boosting export volume, MRF stated. Myanmar bagged over $700 million from approximately 2 million tonnes of rice export in the 2020-2021FY.

Source: The Global New Light of Myanmar

Trade activity at Muse border post has not returned to normalcy in post-Chinese New Year, with only 60 trucks loaded with export and import items flowing in and out of the zone, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. Before the Chinese New Year holidays, about 30 truckloads of rice and broken rice were sent daily to China through the Kyinsankyawt post. The number of trucks has declined to 10 at present. At present, Myanmar exports rice, broken rice, watermelon, sugarcane, corn, pulses, rubber and fishery products to China through Kyinsankyawt post with 40 trucks, and goods are brought in with 20 trucks. Trade is yet to return to normal.

“The CNY has just finished. So, trade has not returned to normalcy. The truck frequency is still less. The banks have not resumed their service. Moreover, the majority of the traders and employees engaged in the cross-border trade are on vacation. However, the trade activity commenced with some export items,” U Min Thein elaborated. Similarly, the Mang Wein border that was reopened in the pre-CNY sees only a small number of trucks, he added. However, only six-wheel trucks driven by Myanmar drivers are allowed to pass the Mang Wein crossing. Other trucks are still not given the green light. Additionally, other goods except for agricultural products (watermelon, muskmelon), minerals and fisheries products are allowed to be sent to China through that border.

Meanwhile, China gives the go-ahead to the imports of construction goods, electrical appliances, medical devices, industrial equipment, consumer goods, household goods and food products only through that border. Myanmar primarily conveys goods to China via the Muse border. Nonetheless, traders usually face challenges amid the policy changes in China triggered by the COVID-19 cases. China shut down the checkpoints linking to the Muse border in wake of the pandemic. Nantaw and Sinphyu border points were suspended on 1 April 2020 and Mang Wein was closed down on 30 March 2021. The remaining Kyinsankyawt and Panseng crossings were also restricted on 8 July 2021. Only the Kyinsankyawt crossing was reopened on 26 November 2021. Additionally, trade activity on the Mang Wein border, which performed the majority of trade, was reinstated on 14 January 2023. Furthermore, Nantaw and Sinphyu border points, major border crossings for people, resumed trade activity on 25 January.

Source: The Global New Light of Myanmar

The prices of new rice spiked in the domestic market, according to the Wadan Rice Wholesale Centre. On 20 January 2023, new Pawsan rice prices moved in the range between K61,000 and K80,000 per bag depending on the producing areas (Shwebo, Myaungmya, Dedaye, Pyapon and, Pathein). Three days after, the prices moved up to K63,000-84,000 per bag. Figures indicated an increase of K2,000-4,000 per bag within three days.

Similarly, the prices of low-grade rice stayed between K43,500-67,000 per bag depending on different varieties (Kyapyan, Emahta, Meedone, Ngasein) on 20 January. The prices touched a high of K45,500-70,000 per bag on 23 January, showing a steep rise of K1,000-4,000 per bag depending on different varieties. High demand for paddy in the market pushed up the rice prices.

Starting from 3 August 2022, Myanmar Rice Federation, Myanmar Rice Producers and Planters Association, Myanmar Rice Millers Association, and traders and brokers engaged in Wadan Rice Wholesale Centre and Bayintnaung Rice Wholesale Centre have been working together to offer fair prices for Shwebo Pawsan from K75,000-77,000 per bag and other rice varieties to the consumers at the Wadan Wholesale Centre.

The offer prices are K52,000-55,000 per bag of Pawsan from the Ayeyawady area, K55,000-60,000 per bag of Kyapyan, and K35,000-37,000 per bag of short-mature rice varieties (90 days) at the Wadan Rice Wholesale Centre. Each household can buy only one bag. Those traders and retailers are not entitled to buy them.

Source: The Global New Light of Myanmar

Trade activity at the Muse-Mang Wein crossing, which performed the majority of trade between Myanmar and China, resumed on 14 January 2023, said Vice-Chair U Min Thein of Muse Rice Wholesale Centre. It was closed down on 1 April 2020. Among the border points connected to Muse-Kyalgaung areas, only Mang Wein was reopened at 7 am Myanmar Standard Time on 14 January with the presence of the officials of the two countries. However, only six-wheel trucks driven by Myanmar drivers are allowed to pass the Mang Wein crossing. Other trucks are still not given the green light. Passengers are not entitled to pass it as well.

Additionally, other goods except for agricultural products (watermelon, muskmelon), minerals and fisheries products are allowed to be sent to China through that border. Meanwhile, China gives the go-ahead to the imports of construction goods, electrical appliances, medical devices, industrial equipment, consumer goods, household goods and food products only through that border, U Min Thein elaborated. The Mang Wein border allows Myanmar truck drivers to cross the border point, whereas the driver-substitution system is yet to be abolished at the Kyinsankyawt border although it was reopened on 26 November 2021. U Min Thein called for an end to the driver-substitution system at the Kyinsankyawt border to facilitate the cross-border trade between Myanmar and China.

At present, there is no responsibility and accountability if goods are damaged under the driver-substitution system. Therefore, Myanmar exporters choose short-haul driver services and bear high freight costs, traders engaged in the Muse border said. Myanmar daily delivers rice, broken rice, pulses, rubber, watermelon, fishery products, chilli pepper and other food commodities to China through the Kyinsankyawt border with about 100 trucks and building materials, electrical appliances, pharmaceuticals, fertilizers, household goods and industrial raw materials are imported into the country with 40 trucks. Myanmar has opened five border trade posts with China — Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through Muse, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

The value of Myanmar’s exports to the neighbouring countries through border trade showed a significant increase of US$735.6 million in the nine months (April-December) of the current Financial Year 2022-2023 compared with that in the corresponding period of 2021. The export through border trade reached over $4 billion during the April-December period which soared from $3.66 billion in the year-ago period, the Ministry of Commerce’s statistics indicated. Myanmar’s border trade totalled $6.044 billion this FY.

Usually, Myanmar’s exports outperformed imports in border trade, with export worth $4.4 billion and imports valued 1.643 million. Smooth transport plays a crucial role in trade. Transport barriers and traffic problems can hinder freight forwarding, and degrade the quality and weight on price. The departments concerned are prioritizing the smooth freight flow. The officials of the border posts are tackling difficulties and trading requirements for the supply chain including growers, traders and chambers associations to bolster the exports. The authorities are keeping in touch with the traders for trade facilitation and trade promotion.

Those efforts in border trade are contributing to the revenue of the State, the Ministry of Commerce stated. Myanmar has opened 17 border posts between Myanmar and the neighbouring countries; with China through Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung, with Thailand through Myawady, Kawthoung, Myeik, Hteekhee, Tachilek, Mawtaung and Meisei, with Bangladesh through Sittway and Maungtaw, with Laos through Kenglek and with India through Tamu and Reed. Of the Sino-Myanmar border posts, the Kengtung crossing showed a small decline.

Moreover, Myawady, Kawthoung and Mawtaung posts with Thailand also registered a drop while the trade with India via Reed fell sharply. The border trade with Bangladesh through Sittway plunged as well, the trade data indicated. The values of border trade stood at over $1.643 billion at Muse, $99.69 million at Lweje, $189.8 million at Chinshwehaw, $61.185 million at Kampaiti, $8.54 million at Kengtung, $113.4 million at Tachilek, $1.584 billion at Myawady, $162 million at Kawthoung, $92 million at Myeik, $1.956 billion at Hteekhee, $9.68 million at Mawtaung, $100.58 million at Sittway, $11.788 million at Maungtaw, $12.58 million at Tamu.

There is no trading record at Reed, Meisei and Kenglek border posts in the past nine months. Myanmar primarily exports rice, various types of beans, sesame seeds, corn, fruits and vegetables, dried tea leaves, fishery products, natural gas, rubber, gem, animal products and spice to the neighbouring countries, while it imports capital goods such as machinery and motorbikes, raw industrial goods such as CMP raw materials, cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products. 

Source: The Global New Light of Myanmar