Weekly Business News from Myanmar

E-commerce, BarLoLo.com allowed individuals and business owners in Myanmar to buy and sell items in an easy and efficient manner to extend their reach and promote inclusive growth
Poor road infrastructure and rampant illicit trade have long prevented small businesses in Myanmar from reaching out to the wider consumer market. But an e-commerce start-up is determined to break these barriers and promote economic inclusion by providing an online platform for those sellers and merchants. In other words, it is to make e-commerce work for the many, not the few. BarLoLo.com (BarLoLo) is a Yangon-headquartered online marketplace which allows individuals and business owners in Myanmar to buy and sell items in an easy and efficient manner. In particular, it focuses on creating a platform which works for small merchants in local communities and those living in second and third tier cities. The company’s mission is about connecting merchants with buyers across the country by technology, empowering local merchants to extend their reach and promoting inclusive growth. This vision strikes a chord with the government’s latest priorities, as the commerce ministry recently committed to developing e-commerce as a means to boost trade and create jobs.
Research shows that Dawei SEZ may make local communities worse off
Research shows that the scaling up and regularisation of trade and investment through Dawei Special Economic Zone has a risk to narrow, restrict, or reduce economic spaces or practices in which women predominate, pushing women towards precarious positions in labour hierarchies. Dawei Development Association (DDA), affected community members and EarthRights International launched a new report together titled “Communities in the Balance: Local Voices and Prospects for the Dawei Special Economic Zone Project” and a new video “Women of Dawei, Myanmar” in Myanmar language and English yesterday. A decade has passed since the Myanmar and Thai governments agreed to create the Dawei Special Economic Zone (SEZ) project. The report and accompanying video aim to lay out the facts and experiences of the people affected by one of the biggest industrial development projects in the country. This report documents how villagers living in SEZ project areas understand the SEZ and what it might mean for their lives, livelihoods and families. Although research on villagers’ perspectives on the Dawei SEZ has been carried out before, no such research has taken place in the years since the project’s suspension.
Chin State sees a little progress in drawing investment, but there are massive opportunities in tourism, energy and agribusiness sectors
Long plagued by poor road connectivity and the absence of power infrastructure, Chin has not succeeded in securing investments to develop the region thus far, but opportunities in tourism, energy and agribusiness abound. According to the “Opportunities and Challenges for Local Business Development in Chin State” report issued by the Gender and Development Institute of Myanmar (GDI), Chin has opportunities for investment which would be essential for the state’s development. Chin State, the least developed among Myanmar’s 14 states and regions, has suffered from an absolute absence of foreign direct investment (FDI). According to DICA, Chin State is the only state or region in the country with zero investment, domestic or foreign, between fiscal year 1994-95 and October 2017. Until now, only one hotel business has entered the state. FDI is absent even though all nine townships in Chin enjoy a tax exemption for up to seven years. The state qualifies for the highest tax incentives under the recently implemented Myanmar Investment Law as it is one of Myanmar’s least developed states.
The UK Department for International Development (DFID) and the World Wide Fund for Nature (WWF) made a joint investment to catalyze change in Myanmar rubber production
The UK Department for International Development (DFID), the World Wide Fund for Nature (WWF) and Dawei Golden Land Co (DGL) have made a joint investment of over US$2.4 million to catalyse change in Myanmar’s rubber production, emphasising “green” (environmentally friendly) rubber. The project, supported by DFID-funded DaNa Facility and conservation organisation, focuses on developing sustainable rubber production in Tanintharyi Region. The scheme has a long-term goal that the region, as part of the WWF initiative, provides a replicable business model in sustainable and traceable rubber. Tom Coward, Team Leader of the Inclusive Growth and Livelihoods Unit for DFID in Myanmar, said during the launch that it is exciting to see the “significant transformative potential” of producing rubber sustainably in the country. “With Myanmar the seventh largest rubber producer in the world, this project has huge potential to improve the livelihoods of poor farmers, while also promoting the feasibility and profitability of ‘zero deforestation’ sustainable rubber,” he remarked.
Under a partnership between No. 1 Heavy Industry Enterprise from the Ministry of Industry, Green Power Myanmar Co Ltd, and Csepel Holding Limited of Hungary, Modulo electric buses will be manufactured in Myanmar
Modulo electric buses will be manufactured locally under a partnership between No 1 Heavy Industry Enterprise from the Ministry of Industry, Green Power Myanmar Co Ltd, and Csepel Holding Limited of Hungary. The Myanmar Times interviewed U Tin Maung Kyin, CEO of Green Power Myanmar Co Ltd regarding the implementation plans. Production is planned to begin in mid-2019 and the vehicles will be exported to Sri Lanka, India and Singapore according to the contracts, he said. The total expected number of export will be more than 7000 and with 300-500 buses made for domestic use. The CEO went on to explain that the reason for cooperating with Hungary is due to their advanced technology and being the main manufacturer and exporter of high-standard trains and buses to Germany.
Myanmar authorities will host International Textile Garment Export in Yangon during 6 to 9 December 2018
An international textile and garment expo hosted by Myanmar will take place in Myanmar's largest city Yangon from Dec. 6-9, according to the event organizer Monday. More than a dozen countries are expected to join the 7th Myanmar International Textile and Garment Industry Exhibition, jointly organized by the Myanmar Garment Manufacturers' Association and the Myanmar Textile Manufacturers' Association. The four-day expo at the Yangon Convention Center will showcase over 130 top brands from China, Germany, China's Hong Kong Special Administrative Region, Japan, India, Malaysia, Myanmar, Singapore, among others.
Union Minister for New Investment and Foreign Economic Relations Ministry should emphasize substance and not spin
U Thaung Tun’s new ministry should be an effective voice of business in government, challenging line ministries on red tape while ensuring all business-related laws are properly consulted on. WITH liberalisation stalled, investor interest falling, and criticisms from the private sector increasingly vocal, the National League for Democracy-led (NLD-led) government has gone on the charm offensive to reboot its economic agenda. The formation of the Ministry for Investment and Foreign Economic Relations, taking over two existing departments - the Directorate of Investment and Company Administration (DICA) and Foreign Economic Relations Department - and headed by career diplomat U Thaung Tun, is the latest endeavour. For such measures to succeed or, in the least, not to backfire, Nay Pyi Taw should ensure this is about substance and not spin. The ministerial appointment is already a missed opportunity to bring the younger generation on board for the cabinet and inject new life into the political leadership.
Local entrepreneurs have been invited to invest in copper and chromium mining along the valley in eastern part of Chin State (Dr. Min Zaw Oo, Director of Chin State Directorate of Investment and Company Administration)
Local entrepreneurs have mainly been invited to invest in mining along the valley in eastern part of Chin State adjacent to Sagaing and Magway regions as the area has potential for copper and chromium deposits, said Dr Min Zaw Oo, director of Chin State Directorate of Investment and Company Administration. "Along the stretches of the eastern Chin State valley there are good prospects for exploring minerals, especially chromite and copper. They can apply for mining businesses. They can work on a manageable, small or medium scale. It will be smoother for small or medium scale businesses as even the state authorities can pass approval. Local miners are mostly invited. For foreign investors, the government needs to consider a little," said Dr Min Zaw Oo. As the private sector in Chin State tries to develop, local people are found to be establishing companies owned by individuals or groups.
PTT Exploration and Production Public Company Limited (PTTEP) recorded net profit of USD $ 315 million in third quarter of this year which is up more than 100 % compared to the same period of last year
PTT Exploration and Production Public Company Limited (PTTEP) reported net profit in the third quarter of this year at $315 million, increasing by more than 100% compared to the same period last year. The increase is attributed to rising Average Selling Price (ASP) aligning with the rally of global oil prices as well as increase of sales volume mainly from the additional stakes from the Bongkot field acquisition. The company endeavors to accelerate the development of Pre-FID projects, capture mergers and acquisitions (M&A) opportunity and invest in new businesses to foster long-term and sustainable growth. In the third quarter of this year, PTTEP recorded recurring net income of $292, driven by the average selling price of $47.67 per barrel of oil equivalent (per BOE) comparing with $38.78 per BOE in the same period last year (Q3/2017), coupled with increasing average sales volume of 304, 940 barrels of oil equivalent per day (BOED), up from 298,139 BOED of the same period last year. Meanwhile, PTTEP also recognized profits from non-recurring items at $23 million. As the result, the company’s net profit was posted at $315 million. comparing to net loss of $264 million in the same period last year.
Myeik authorities are planning to build one stop service pier in Myeik to check marine products directly on fishing vessels
The Myeik authorities is planning to build a one-stop service pier in Myeik to check marine products, such as fish and prawns, meant for exports. As part of the service, teams are expected to inspect the products directly on fishing vessels. A meeting to discuss the matter was held on 25 November. “It would be more efficient to inspect marine products meant for exports at the pier. The pier is essential to the region,” said Tanintharyi Region Government Planning and Finance Minister U Phyo Win Tun at the meeting. Myeik district’s Fisheries Department Head, U Than Lwin, discussed the possible difficulties that may arise when inspection teams conduct checks on board the fishing vessels as part of the one-stop services. The region’s Port Officer U Myat Soe Win presented the situations on use of both government and private piers.