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October 16, 2019

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Individuals’ border trade totals nearly 40 mln USD in Myanmar in FY 2018-19

Related imageMyanmar’s border trade using Individual Trading Cards (ITCs) totaled over 59 billion kyats (39.3 million U.S. dollars) in the fiscal year 2018-2019 which ended in September, according to figures from MOC.

During the period, 163 ITCs were permitted by the ministry and its export value through border gates amounted to over 9.38 billion kyats (6.25 million U.S. dollars) while import value was 49.6 billion kyats (33.1 million U.S. dollars).

From Oct. 1, 2018 to Sept. 30, 2019, Myawady border gate registered the highest trade using the ITCs with capital of 32 billion kyats (21.3 million U.S. dollars). Since FY 2012-2013, the ministry issued 1,687 ITCs and its total trade value amounted to over 169.2 billion kyats (112.8 million U.S. dollars), the ministry’s figures showed.

Source: Xinhua

New bridge boosts Thai-Myanmar ties

Related imageBilateral border trade between Thailand and Myanmar is expected to flourish after the second Thai-Myanmar Friendship Bridge becomes fully operational, starting from Oct 30. Niyom Wairatpanich, vice-chairman of the Thai Chamber of Commerce, said the bridge is vital to boost border trade between the two countries, increasing trade flow and logistics services through Mae Sot.

Thailand’s border trade with Myanmar totalled 193 billion baht last year, up 4.9% from a year before. Border trade through Mae Sot amounted to 80 billion baht in 2018. For the first eight months, Thailand-Myanmar trade accounted for 18.3% of total border trade volume, totalling 55.0 billion baht, a 4.27% decrease. Exports made up 47.1 billion baht, down 14.6%, with imports worth 7.88 billion, up 6.63%. The top five exports through Mae Sot were energy drinks, motorcycles, diesel oil, mobile phones with components, and dried betel nut, while the top five imports were corn, live cows and buffaloes, old slabs, and transformers.

With the new friendship bridge, the border trade value via Mae Sot is expected to top 100 billion baht in 2020. Exports from Thailand are likely to increase by more than 30% once the new bridge is open. Mae Sot contributes a major share — up to 60% — of total border trade between Thailand and Myanmar, followed by Mae Sai and Ranong-Kaw Thaung checkpoints.

Source: Bangkok Post

Mung bean prices recover on back of China demand

Image result for mung beansRecent demand from China has stopped the fall in price of mung beans, which had spiralled downwards after India suspended purchases, and the trade of mung beans is picking up again in Mandalay, said traders.

At the moment, traders who have stored mung beans are selling their stocks in the market. These days, the price of mung beans has risen again due to demand from China. The price of mung beans plunged from K75,000 for three baskets in January, when India began buying mung beans as part of its agreement to purchase 150,000 tons, to K68,000 in August, when India stopped purchases, according to traders.

This year, India had announced that it would import 150,000 tons of mung beans and 200,000 tons of pigeon peas. Although Myanmar’s mung bean production has declined this year, the country could have produced over 300,000 tons of mung beans.

Source: Global New Light of Myanmar 

Myanmar rubber exports surpass target for current fiscal; touch $250 mln

Related imageMyanmar exported over 190,000 tons of rubber, worth around US$250 million, to its trade partners in the past 11 months, surpassing the targeted volume of 170,000 tons for the current fiscal year, according to figures released by the Ministry of Commerce.

The increase in earnings in the current fiscal was pegged at $60 million. About 150,000 tons of rubber was shipped to foreign markets in the 2017-2018FY, and Myanmar had raised its export target to 170,000 tons for the 2018-2019 FY. The target was increased because the production acreage increased up to 800,000 this year. According to the Myanmar Rubber Planters and Producers Association (MRPPA), there are over 1.63 million acres of rubber plantations across the country, of which, latex is produced on 700,000 acres last year.

China accounts for 70 per cent of Myanmar’s rubber exports. Singapore, Indonesia, Malaysia, Viet Nam, South Korea, India, and Japan also purchase rubber from Myanmar. At present, rubber prices are ranging between US$1,500 and $1,700 per ton, depending on the rubber variety (Ribbed Smoked Sheets, or RSS, 1,2,3, 4, and 5). Rubber prices can vary depending on the dollar rate, global crude oil prices, and the global political climate.

All stakeholders in the rubber supply chain are making concerted efforts to produce profitable quality rubber. The MRPPA has also called for rubber zones in the producing regions and states, in addition to main producer Mon State. At present, the rubber law is still being drafted. The government and rubber associations are endeavouring to set up a central rubber market after the rubber law comes into effect. Rubber is primarily grown in Mon and Kayin states and Yangon, Bago, and Taninthayi regions.

Source: Global New Light of Myanmar 

Illegal import through border threatens existence of small, medium enterprises

Image result for illicit tradeMyanmar has exposed illegal import worth of 12.99 billion kyats (8.65 million U.S. dollars) from September 2018 to July 2019, according to the Private Sector Development Committee (PSDC) Sunday. The exposure was made following the formation of Illegal Trade Control and Prevention Groups by the PSDC, led by Myanmar Vice President U Myint Swe.

Illegal import through the border was threatening the existence of small and medium enterprises. In order to increase cooperation between union level departments to reduce the rising global illicit trade environment index due to illegal trade, the Illegal Trade Eradication Steering Committee was also formed to effectively eradicate such illegal trade countrywide.

As of Aug. 9 during 2018-19 fiscal year, Myanmar’s trade volume reached 30.04 billion U.S. dollars, in which the private sector shared 25.1 billion U.S. dollars or 84 percent. As of the end of July 2019, 1,779 foreign investments worth of 81.25 billion U.S. dollars poured into Myanmar, while 1,605 local investments injected 19.05 trillion kyats (12.69 billion U.S. dollars) into the country.

Source: Xinhua

Trade Dept introduces Myanmar Tradenet 2.0 in public workshop

Image result for Myanmar tradeTHE Department of Trade introduced Myanmar Tradenet 2.0 during a workshop on E-trade Opportunities and Challenges in Myanmar at the UMFCCI in Yangon on August 23, 2019.

Myanmar Tradenet 2.0 will assist the National Single Window system and is scheduled to launch in early 2020. It will allow merchants to apply for import and export licenses, withdraw them and make payments from anywhere with an internet connection.

Myanmar Tradenet has been around for some time and this iteration is an upgrade. The Ministry of Commerce began providing an online system for licensing processes and trade facilitation services in 2004, and it has been upgrading their systems annually. It became fully online in 2016, however if all relevant departments can work online, for providing verification in some instances, then everything would be much smoother.

Source: Global New Light of Myanmar

Over $100m earned from export of 400,000 tons of broken rice in 10 months

Image result for Rice exportMyanmar exported over 400,000 tons of broken rice worth over US$100 million to 36 countries over the past 10 months with 50 percent of the total tonnage going to Belgium, according to Myanmar Rice Federation.

From October 1, 2018 to August 2 this year, 400,689 tons of broken rice was exported to 36 countries earning US$107.147 million. Belgium alone imported nearly 190,000 tons of broken rice from Myanmar worth US$50.547 million, accounting for over 47 percent of the total export. Likewise, 68,000 tons of broken rice worth over US$18 million was exported to Indonesia, over 25,000 tons worth US$6 million to China, nearly 23,000 tons worth US$5 million to the Netherlands, and over 20,000 tons worth over US$5 million to the UK.

An official from the Ministry of Commerce said Myanmar exported over 1.97 million tons of rice and broken rice worth about US$600 million in over 10 months of this fiscal year from October 1 to August 2. This year saw a fall of over US$350 million as the total tonnage fell by over 820,000 tons. China and EU, major rice export markets, purchased less rice from Myanmar this year.

Source: Eleven Media 

Myanmar to ship 10 tons of tea leaves to Germany

Image result for tea leavesAs Myanmar is seeking foreign markets for its tea leaves, about 10 tons of green and dry tea leaves will be exported to Germany soon, said Chairwoman Daw Nyo Nyo Sein of Myanmar Tea Procedures Association. Majority of tea leaves are grown in northern and southern Shan State, and distinguished into various categories based on taste and quality for local markets, while organic tea leaves are aimed for foreign buyers.

Germany has agreed to purchase 10 tons of tea leaves, and the delivery is expected near future. Myanmar has exported organic raw tea leaves to the United States from 17 to 20 tons every year. The price for Myanmar tea leaves ranges from US$6 to $10 per kilogram based on the quality.

Daw Ru Par, director of Yathar Wady Company in Mandalay, said “We received positive feedback on tea leaves from foreign customers. We are informing at the foreign trade shows that green tea leaves can also be consumed in addition to drinking. As 90 per cent components in tea leaves benefit for health, we have to guarantee for its quality along the supply change from raw to finished products.

Source: Global New Light of Myanmar 

First overland barter-trade agreement signed

Image result for Rice export MuseAn agreement for overland barter trade has been signed on July 25, between Mandalay Rice Development Company (MRDC) and Kunming Green Color Trade Co., Ltd from China’s Yunnan province. Under this, the former will trade 100,000 tonnes of rice – stored in Muse or newly harvested rice – to the latter for an equivalent in other trade goods starting next month. Myanmar long-grain rice, which is very hard to sell due to high tariffs in European countries, will be prioritised.

MRDC managing director U Sai Kyaw said both companies would be the intermediaries for goods to be traded under the barter system. “Chemical fertilisers, construction material, electric appliances and agricultural machinery manufactured from Yunnan province can be imported with a 5 percent discount on the market price,” he said, adding that both sides were now awaiting the green light from their respective governments to start trading.

He said interested companies can import goods from China in partnership with MRDC while any company interested in selling their rice produce can also partner it. The barter arrangement is expected to benefit local traders and balance trade. Due to volatile import tariffs imposed on Myanmar goods by the Chinese authorities, traders often resort to smuggling goods across the border. This, in turn, leads to frequent border checks and trade bans, which disrupts trade and results in losses.

Source: Myanmar Times 

Rubber export earnings increase by over 61 million USD

Related imageDuring over nine months of this fiscal year, Myanmar earned over 220 million US dollars from the exports of over 0.17 million tons of rubber, according to an official of the Commerce Ministry. From October 1 to July 5 of 2018-2019 fiscal year, the rubber export earnings hit 225.189 million US dollars. Last year, the export earnings from exports of 135,982 tons of rubber reached 163.777 million USD. This year, the rubber export earnings increased by over 61.412 million USD and the rubber export volume, by over 40,582 tons.

Rubber is mainly grown in Mon and Kayin State. It is also grown in Yangon, Bago and Tanintharyi Regions. There are nearly 500,000 acres of rubber plantations in Mon State and nearly 270,000 acres in Kayin State. The country produces about 200,000 tons of rubber a year. More than 90 per cent of rubber are exported and the remaining eight per cent, are for domestic use. Myanmar mainly exports rubber to China, according to the Myanmar Rubber Growers and Producers Association. Myanmar also exports rubber to Malaysia, Singapore, Indonesia, South Korea, Japan, Taiwan and India.

Source: Eleven Media 

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