Weekly Business News from Myanmar

The four tourist destinations will be launched this month to resume suspended tourism
Four tourist destinations will be launched this month to resume suspended tourism, according to the Ministry of Hotels and Tourism state media reported. Myanmar’s tourism industry has nearly halted because of the outbreak of the COVID-19 pandemic. To resume tourism, the Ministry has planned to launch four tourist attraction places this month.
Mitsubishi Corporation has signed two contracts with Myanmar Railways to buy 246 new carriages for Yangon Circular Railway and the Yangon-Mandalay railway project
Mitsubishi Corporation has signed two contracts with Myanmar Railways to buy 246 new carriages for Yangon-Mandalay road section and Yangon circular road worth Japanese Yen 69 billion. The first contract is for 66 rail carriages that will be used in the Yangon Circular Railway project and the second is for 180 carriages for the Yangon-Mandalay railway project. The two contracts were signed on December 7, 2020.
Bilateral trade between Thailand and Myanmar through the Hteekhee land border falls USD $ 188 million over the past two months of COVID-19 surge
Bilateral trade between Thailand and Myanmar through the Hteekhee land border over the past two months reflected a decrease of $188.38 million as against a year-ago period. Between 1 October and 27 November in the current financial year 2020-2021, the figures sharply fell to US$218 million from $406 million registered in the previous financial year, according to the data from the Commerce Ministry. The surge in coronavirus cases in Myanmar led Thailand to close the border areas and to limit the working hours of truck drivers at the border posts. Consequently, the trade via land border sharply fell in the current FY. Exports of natural gas from Taninthayi Region have contributed to the enormous increase in trade through the Hteekhee border during the previous years, the Ministry of Commerce stated.
Exporters require to grant permission to allow the use of Yangon-Mandalay Expressway for fruit trucks
Fruit commodity depots of the Muse 105th Mile trade zone requested the Ministry of Construction on 9 December to grant permission to drive the fruit trucks on Yangon-Mandalay highway. Earlier, the trucks were allowed to drive on the Yangon–Mandalay highway from 5 October to 30 November. During the permission period, the watermelon and muskmelon from Yangon region, Bago region and Mon State were sent to Mandalay through the highway. It took a minimum of eight hours and a maximum of 15 hours. Additionally, it could save time. Besides rapid transportation, it could save the fuel oil costs and transport charges as well as fresh and more marketable fruits, according to the Muse 105th Mile trade zone fruit commodity depots. Now, the above-mentioned 12-wheel trucks are not permitted to travel on the highway starting from 1 December because of the pandemic. The trucks are only allowed to travel through the old road by showing off the health certificates. It is taking longer miles, and thus it has an impact on the fruits’ freshness and the price.
The CMP garment exports plummeted by 50 percent in two months in the current 2020 – 2021 financial year
Myanmar’s garment export has dropped by 50 per cent for now on the back of a slump in demand by European Union market, the Ministry of Commerce stated. Exports of garments manufactured under the cut-make-pack (CMP) system were valued US$214 million in the past two months (Oct-Nov) in the current budget year 2020-2021, according to the data from the Ministry of Commerce. The figures plunged from $450 million in the corresponding period of last FY. The CMP garment sector in Myanmar has been hit hard by the coronavirus impacts amid the global demand slump. The market is expected to recover after the COVID-19 vaccine success in Europe, Myanmar Garment Manufacturers Association stated. Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent.
Myanmar has imported fuel worth over USD $ 160 million over the past one and a half months in the current 2020 – 2021 financial year
Myanmar has imported nearly 450,000 tons of fuel worth over US$160 million over the past one and a half months in the current fiscal year falling over 120,000 tons worth over US$180 million when compared to the same period of last year, an official from the Ministry of Commerce told The Daily Eleven. From October 1 to November 13 in the 2020-2021 fiscal year, 449,374 tons of fuel worth US$165.918 million were imported.
The bilateral trade between Myanmar and Japan hits nearly USD $ 2 billion in the past 2019 – 2020 financial year
Myanmar’s bilateral trade with Japan reached almost US$2 billion in the financial year 2019-2020, with exports surpassing imports, according to figures updated by the Department of Trade under the Ministry of Commerce in the second week of November.Myanmar transported commodities worth about US$1.355 billion to Japan in the financial year 2019-2020, a decrease of some US$75 million when compared to the same period last year. The Southeast Asian nation imported goods valued at about US$574 million from the East Asian country in the same period, earning over US$780 million trade surplus. Myanmar’s exports to Japan in 2019 saw US$1.43 billion and imports from Japan were valued at US$502 million. Myanmar mainly freights clothing, footwear, marine and agricultural products to Japan and imports car, electronic equipment, iron, steel, medical apparatus, and machinery from the East Asian country. In terms of foreign investments in Myanmar, Japan ranks the 10th place with nearly US$2 billion invested in Myanmar, according to the government’s data. So far, total investments by over 400 Japanese companies in 150 businesses in Myanmar amounted to around US$2 billion.
The freight rates spiked to triple in Myanmar due to the pandemic-induced container shortage
Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, businesspersons in the logistic industry shared their opinions. The container shortage has become the biggest disrupter in shipping amid the coronavirus impacts, on the back of robust demand on the Asia-Europe and transpacific trade. Container shipping costs are drastically surging. The shipping cost in Asia has increased from three-fold to five-fold from last year’s rates. Container shortage is forcing up the shipping rates and also exacerbating other additional costs. The empty containers are desperately needed in Asia, but they are scattered at the ports across Europe, the experts pointed out.
Myanmar Investment Commission (MIC) will grant permit on the raw sesame, peanut import upon of concerned Ministries
Myanmar Investment Commission (MIC) will grant a permit on the raw and sesame seeds importation proposal if the ministries concerned will give the go-ahead, said U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA). “We have to ask for the opinions of the Ministry of Commerce if the proposal is related to import/export business. For pulses such as beans and sesame seeds, we call for opinions from the Ministry of Agriculture Livestock and Irrigation. We will continue the processing upon the response of the ministries concerned,” he affirmed. The ministries balance on local production and harvest season. Also, they assess whether the imported goods are suitable for the domestic market. The commission will issue the permit upon the approval of the ministries concerned, he added.
Myanmar’s Foreign Direct Investment (FDI) topped USD $209.616 million as of 25 November in the 2020 – 2021 financial year
Myanmar has attracted US$209.616 million in foreign direct investments as of 25 November in the current financial year2020-2021 started on 1 October, including the expansion of capital by the existing enterprises, as per the statement of Myanmar Investment Commission (MIC). The figures also include $9.86 million in investments in Thilawa SEZ under the Special Economic Zone Law. According to the statistics, 14 foreign enterprises have obtained permits from MIC and endorsements from regional and state Investment Committees between 1 October and 25 November in the current FY under the Myanmar Investment Law, bringing in the capital of $65.786 million. Amid the COVID-19 concerns, foreign direct investments flow into many types of businesses, including the garment enterprises, MIC stated.