Weekly Business News from Myanmar

The exclusive interview with U Aung Htoo, Deputy Minister of Commerce of the reform programme undertaken by the government and the improvements of starting up business in Myanmar
Deputy commerce minister U Aung Htoo spoke to The Myanmar Times in Nay Pyi Taw about the National League for Democracy-led administration’s latest efforts to improve the country’s business environment. U Aung Htoo is the senior official in charge of improving Myanmar’s ease of doing business ranking. In an extensive interview, he explained the reform programme undertaken by the government, such as improvements in starting up a business, access to electricity and credit, obtaining construction permits, and dealing with insolvency. Myanmar was ranked 171st among 190 countries by the World Bank’s Ease of Doing Business Ranking 2019. The country aims to be among the top 100 countries by 2020-21 and among the top 40 by 2035-36. “The vice president [U Myint Swe] made a commitment that during this five year term, the ranking of Myanmar will be improved from 177 [in 2014] to under 100. This is a big job,” he told this paper.
The chili price in the markets in Mandalay doubled from the level recorded during the same period of last year
The price of chili in the markets in Mandalay has risen sharply prompting many farmers to plant the crop, according to the Global New Light of Myanmar. The price of chilies from Pyawbwe, Yamethin, Tatgone, and Kyaukse townships has doubled from the level recorded during the same period of last year, according to sellers in the Mandalay market.
Marketnext Event was hold in Yangon with the main to help farmers for taking opportunities and to be beneficial from the rapid transformation of the rural economy in Myanmar
Along with the achievement of Value Chains for Rural Development project, the #MarketNext event together with high-level officials from the U.S Embassy, officials from the trade associations, farmers and other Myanmar partners was successfully held in Yangon on Tuesday. The U.S Government supported for the growth in Myanmar coffee, Ginger, Soy, Sesame and Melon sectors under the five-year project from 2014-2019 aiming to help farmers for taking opportunities and to be beneficial from the rapid transformation of the rural economy. U.S. Ambassador to Myanmar, H.E. Scot Marciel said “We goanna keep working the support of agriculture sector here, because is so important for about 70% of the population here. And the really important thing for us is the reason we do this project is because we wanna help people to improve their lives. And this project has helped Myanmar people, who are already really hard working, get that are organize, get that are assess to financing and technologies and the results to be able to produce more consistently, high quality products and earn more money for the families.”
Vice President called for public – private cooperation to promote sugar and marine products industries in line with the existing laws and regulations
Vice President U Henry Van Thio suggested the state-departments and the private sector to work together in promoting sugar and marine products industries in line with the existing laws and regulations. The development for these sectors was discussed at the Ministry of Agriculture, Livestock and Irrigation in Nay Pyi Taw yesterday. Vice President U Henry Van Thio who is leading the Steering Committee for Farmers Rights, Protection and Promoting of Interests, made an opening remark at the coordination meeting which was also attended by Union Ministers Dr Aung Thu, U Win Khaing and Dr Than Myint; Deputy Ministers U Hla Kyaw and U Aung Htoo; the permanent secretaries, the directors-general and the representatives from Myanmar Sugar and Sugarcane Products Entrepreneurs Association and Myanmar Fisheries Federation.
Myanmar Agro Exchange Public Lt (MAEX) is striving to be listed at the Yangon Stock Exchange (YSX)
Myanmar Agro Exchange Public Lt. (MAEX), which builds and operates Da Nyin Gone Fruit, Vegetable and Fruit Wholesale market, said it has prepared all the requirements to be listed at the Yangon Stock Exchange (YSX). “With the help from lawyers, we have prepared 18 points, that we needed to complete. We are closely watching the YSX’s progress to list our company. Then, we will file at the YSX to become a listed company,” U Aung Kyi, CEO of MAEX, said. According to YSX regulations, a company must have at least two years of profit history before it can be listed on the stock exchange. MAEX has provided financial records for the last three years. The company earned K74 million net profit in 2016 Fiscal Year, K330 million in 2017 Fiscal Year, and K440 million in 2018 Fiscal Year.
Hong Kong listed company, VPower Group won Myanmar’s emergency power projects tender
Hong Kong-listed VPower Group said its consortium with Myanmar’s Zeya & Associates had been provisionally awarded four of the five emergency power projects tendered by the energy ministry in June. The consortium said it won three projects that would use imported liquefied natural gas in Rakhine’s Kyaukphyu, Yangon’s Thanlyin and Thaketa, totalling 900 megawatts. It also secured a 20MW project that would use gas supplied by the government in Kyun Chaung. Letters of acceptance for each of the projects have been issued by the Ministry of Electricity and Energy’s Electric Power Generation Enterprise, VPower said in a statement. “All the projects are expected to commence commercial operation in the first half of 2020.” The consortium still needs to negotiate terms of the contract - including the power purchase agreement - with the government. Industry consultants suggest these negotiations will be challenging, given the tough terms set down by the ministry.
Yangon Region Government is planning to sell land in three phases with the purpose of setting up industrial businesses and public housing in Yangon
Plots of land owned by the Yangon Region government will be sold in three phases for the purpose of setting up industrial businesses and public housing, said U Than, the Joint Secretary of the Yangon City Development Committee (YCDC). “The land management committee will sell over 500 plots of land in Hlinethaya, Shwepyitha, and four Dagon townships in Phase 1; over 180 plots from Myaungtagar Industrial Zone will be sold in Phase 2; and, over 9,000 acres, which were previously marked as agricultural zone, in East Dagon and Dagon Seikkan townships will be put on sale in Phase 3,” said U Than. “Over 500 land plots, which will be sold in Phase 1, are not newly developed or designated by the regional government. Instead, they are plots that remained undeveloped when new townships were created in Hlinethaya, Shwepyitha, and four Dagon townships. Urban and housing projects have still not been implemented on the plots.
UK aided DaNa Facility and Myanmar Young Entrepreneurs Association (MYEA) launched the Inclusive Business Challenge in Yangon to raise awareness the enterprises with social impact
The UK-aided DaNa Facility and Myanmar Young Entrepreneurs Association (MYEA) launched the Inclusive Business Challenge last week to raise the awareness of “inclusive business” in Yangon. The challenge aims to recognise companies that develop scalable and innovative business models that are able to bring about social impact. It is also endorsed by the Steering Group for Inclusive Business/Impact Investing, a public-private initiative set up in April this year to promote related business practices. “MYEA has long been supporting the introduction of inclusive businesses and social impact in Myanmar. Our Impact Investment Committee stands ready to continue this support and spread the inclusive business message around the country,” said U Aung Thura, president of the MYEA.
The new e-commerce website officially launched and this platform would bring the huge potential of growth in Myanmar
A new e-commerce website called Spree.com.mm has officially launched, and will sell electronic appliances, household items, travel kits, fashion products, child products, food, and sporting products. The e-commerce platform will provide new competition to the Alibaba-backed Shop.com.mm which currently dominates the local e-commerce market. Users can make purchase items using various payment methods like Visa, Mastercard, MPU, KBZ Pay, and Wave Money. Products will be delivered by Spree.com.mm’s door-to-door service. The CEO of Spree.com.mm, U Zeyar Tun, said: “Our focus is to find buyers for the product on our platform, and we want to offer products to buyers at the most reasonable price.”
Myat Myittar Mon Company is striving to expand into the business of importing, storing and distributing aviation fuel
Myat Myittar Mon Company, which imports petrol and operate petrol stations in Myanmar, wants to expand into the business of importing, storing and distributing aviation fuel, or jet fuel, its managing director, U Win Myint, told The Myanmar Times. The company has already sent proposals to the Minister of Transport and Communication and Department of Civil Aviation. If approved, Myat Myittar Mon Co will join National Energy Puma Aviation Services (NEPAS) and Golden Myanmar Airlines Public Company in the Myanmar aviation fuel sector. U Win Myint said that Myat Myitta Mon’s main reason for wanting to expand into aviation fuel is to break a monopoly long held by NEPAS. “We think there should be fair competition in the local aviation fuel market. If there is more competition, then consumers will be able to enjoy more reasonable prices and better quality of service,” he said.