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June 18, 2019

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TRADING

Export revenue from Muse border trade drops

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Myanmar recently launched its updated National Export Strategy for 2020-2025. The Ministry of Commerce will be adding fruits and vegetables, gems and jewellery, handicrafts, processed food products and digital businesses as potential export sectors.

 Muse-China border trade, which is one of the biggest overland trading routes in Myanmar, has declined this year. Chinese imports decreased about US$ 600 million to just over $3 billion, according to the Ministry of Commerce.

Exports to China via Muse were just under US $2 billion, whilst imports represent half that volume at US$ 1.04 billion.  Both of these figures are down from last year, with the export number sitting at US$ 2.6 billion and imports at US$ 0.98 billion.

Source: Myanmar Times

Myanmar will continue export fish to Saudi Arabia after inspections

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After inspections are carried out by Saudi Arabia, Myanmar will be able to resume its fish export which had been suspended.

Saudi Arabia has sent the necessary checklists to Myanmar Fisheries Department on April to allow farmed fishes export from Myanmar said U Thet Naing, deputy director of the Quality Control and Research Division of Fisheries Department.

Saudi Arabia, which imports about 20,000 tonnes of marine products from Myanmar annually, had stopped buying rohu fish since April last year after bacteria was found on the same fish species imported from Vietnam.

Before the suspension, Myanmar exported 60 percent of river catfish to Saudi Arabia. U Thet Naing also said that Saudi officials will visit Myanmar and inspect the country’s fishery system is in accordance with their standard and has Good Aquaculture Practices (GAP).

Source: Myanmar Times

 

Myanmar to export farm fisheries to EU starting from May

Related imageMyanmar will be able to export farmed marine products to the European Union (EU) starting from the beginning of May, said U Thet Naing, deputy director of the Quality Control and Research Division of Fisheries Department.

The EU had only permitted imports of fish caught in the wild up to now. From next week onwards, this will expand to include seven farmed fish, two prawn and one crab species which are Rohu, Mrigal, Katla and Carfu fish species, river catfish, barbus fish, spotted prawn, white prawn and soft shell crab.

A total of 27 fish breeding farms which supply farmed fish to the factories that export marine products to the EU have been examined. These fish farms are located in Yangon Region, Ayeyarwady Region and Tanintharyi Region, said U Thet Naing.

Source: Myanmar Times

Myanmar to export green tea to Germany

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Organic green tea including 1.5 tonne of “Shwe Pi Oo” and “Moe”will be exported to Germany in September according to U Hla Baw, president of Pindaya Tea Cluster (PTC).

PTC has set the price of green tea at K15,000 per viss (1.6 kilogrammes) for sale to Germany; the current local price is around K12,000 per viss. On the eastern front, Palaung tea grower and sellers association is preparing to export green tea products to China.

The tea is named after the time of the harvest – “Shwe Pi Oo” is harvested during March and April , “Khar Kan” during May and June , “Moe” in July and September, and “Hnin Thit” in November and December.

Source: Myanmar Times

State Counselor, Thai Prime Minister Open 2nd Thai-Myanmar Friendship Bridge

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On Tuesday, the State Counselor and Thai Prime Minister Prayut Chan-o-cha opened a new bridge linking Mae Sot district in Thailand’s Tak province with Myanmar’s border city of Myawaddy. A second Mae Sot Boundary Post was also opened alongside the bridge.

Daw Aung San Suu Kyi said the bridge would promote cross-border trade, investment, tourism and cultural exchange.

Bilateral trade between Myanmar and Thailand stood at US$5 billion (7.7 trillion kyats) in fiscal 2017-2018, $4.3 billion in 2016-17, $4.8 billion in 2015-16, $5.7 billion in 2014-15, $5.6 billion in 2013-14, $4.7 billion in 2012-13, and $4.5 billion in 2011-12, according to the Ministry of Commerce. Thailand is Myanmar’s third-biggest source of foreign investment.

The bridge lies on the East-West Economic Corridor, part of the Mekong-Japan cooperation scheme, Tokyo’s grand infrastructure plan for the region. Within this plan, Myanmar sits on two major economic corridors: the East-West Economic Corridor connecting Vietnam’s Dong Ha City with Yangon’s Thilawa Special Economic Zone (SEZ) via Cambodia and Thailand, and the Southern Economic Corridor connecting central Vietnam, Cambodia and Thailand to the Dawei SEZ in southeastern Myanmar.

The plan aims to improve connectivity between Bangkok and Yangon along the East-West Corridor. The corridor will help businesses based in Bangkok extend their supply chains to Yangon (at the Thilawa SEZ). The Myanmar section of the East-West Corridor does not yet function as an international highway due to bottlenecks such as one-way stretches, a lack of paved roads, traffic difficulties in the rainy season and weight limitations.

According to the Japan International Cooperation Agency, Tokyo plans to shorten transport time by constructing three bridges in Karen and Mon states—the Gyaing-Kawkareik Bridge, the Gyaing-Zathabyin Bridge and the Atran Bridge—as part of the East-West Economic Corridor. These are expected to reduce the time needed to transport goods the 870 km from Thilawa to Bangkok to one-and-a-half days.

Source: The Irrawaddy

Myanmar aims to increase trade with South Korea

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Myanmar will raise efforts to boost trade with the Republic of Korea, said U Aung Soe, Permanent Secretary of the Ministry of Commerce (MOC) during an event to promote local agriculture exports to South Korea on February.

The event was hosted by the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and Korea Myanmar Research Association in Yangon.

Myanmar currently exports sesame, some marine products like soft shell crabs and fruits to South Korea, where demand for grain, beans and pulses and vegetables are also high in demand. As such, the two countries should raise trading of such agriculture products, said Professor Young-Jun Choi from Kyung Hee University in Korea.

In 2017-18, trade between Myanmar and South Korea totaled more than US$790 million. Myanmar exported over US$300 million worth of goods to South Korea and imported over US$495 million, according to the MOC.

Source: Myanmar Times

Muse rice depot to close during Chinese New Year

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The Muse rice depot will be closed for 12 days when merchants stop purchasing rice from Myanmar during the Chinese New Year.
“The Muse rice depot will be temporarily closed from 1 to 12 February. The export of rice will completely stop because there are no Chinese traders to purchase rice from Myanmar. They have already returned to their native regions. The only thing we can do is store the bags of rice at warehouses,” said U Min Thein, vice chairman of the Muse rice depots association.
“Myanmar mainly exports some agricultural products to China via the Muse border trade camp along the Myanmar-China border. During the Chinese New Year, exports of rice, sugar and corn, which are mainly exported to China, will be completely stopped”, he added.
Although there will be regular sales of rice in the market, the price of rice is likely to decline because of the three year imposition of taxes on exported rice by the European Union, said U Than Oo, secretary of the Bayintnaung commodity depot.
“There will be no sale in the market during the New Year holidays. On the other hand, the price of rice has been declining since Myanmar was faced with economic sanctions imposed by the EU. Therefore, the merchants are only storing rice by purchasing it at a lower price,” said U Than Oo.
The volume of rice exports has declined since October 2018 because of the intensified crackdown on Myanmar’s exported rice in China, according to the Myanmar Rice Federation.
From April to December 2018, Myanmar exported over 1.7 million tons of rice to China, a decrease of over 800,000 tons of rice compared to the same period last year, according to the official statistics released by the Myanmar Rice Federation.
Last year, Myanmar exported over 3.6 million tons of rice, nearly half of which were exported to China through the border gate.

Source: Global New Light of Myanmar

Areca nuts pile up at Indian border

Myanmar is facing a glut of areca, or betel nuts in border trading areas near India due to an influx of the product from Indonesia even as the Indian government continues to limit the import of agricultural goods from Myanmar, traders say.

Areca nuts were a major export to India via the Tamu border trading point in Sagaing Region, and the Rhi border trading point in Chin State, until India decided to close its border gates and crossings.

As part of a preferential trade agreement, India used to allow the tariff-free imports of areca nuts from Myanmar via the Tamu and Rhi trading gates.

However, a year ago, India imposed a tariff of 40 percent on the product after it said areca nuts from Indonesia were entering the country via Myanmar. As part of efforts to control the inflow of the product, the Indian government also began closing border crossings.

Since last May, the Indian government banned vehicles from crossing the Myanmar-India border bridge in Rih Khaw Dar which is part of the Rih trading route in Chin State.

Meanwhile, the Tamu border trade station in Sagaing Region has been closed for nearly two months, bringing trade to a halt said traders there.

“The situation is very bad. Due to the large quantities of nuts from Indonesia, the prices of our Myanmar nuts fall and transaction drop. Myanmar traders have to buy and sell to each other instead of across the border. Profits have dropped drastically as the India side is closed and transactions have totally stopped,” said a nut merchant in the Tamu border area.

Source: Myanmar Times

EU to restore tariffs on Myanmar rice imports

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EU investigations found that Myanmar’s Indica rice is causing economic damage to European producers and the custom duties will protect producers in the bloc.

The import duties will be gradually reduced over a period of three years. The rate will be at €175 (around US$200) per tonne in the first year, which will be lowered to €150 per tonne in the following year, and then to €125 per tonne in the third year.
The rise of low-price imports has resulted in serious damage to EU’s rice sector to a point where their market share in the EU dropped substantially from 61 percent to 29pc.
Source: Myanmar Times
Myanmar Petroleum Trade Association would not control fuel prices

Fuel prices in Myanmar have rocketed recently, but Myanmar Petroleum Trade Association (MPTA) would not control the fuel prices, according to Dr Win Myint, secretary of MPTA.

Changes in Myanmar’s fuel prices depend on the international fuel prices and dollar exchange rates, but association is selling fuel with suitable prices, according to Dr Win Myint. Petroleum businessmen have to compare the bank interest rate and profit before importing the fuel from abroad, and they are selling fuel with suitable price by comparing with global oil prices, he said.

Fuel prices in local market have increased over 12 percent in more than 2 months. In June, 1 liter of Octane 92 Ron was 870 Ks and it reached to 975 per 1 liter in September 11th, and premium diesel reached to 915 Ks per 1 liter.

Source: 7 Day News

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