Weekly Business News from Myanmar

Yangon – Bangkok highway project has launched with the financial assistance from Asia Development Bank
The Yangon-Bangkok highway project that will allow people to reach Bangkok Yangon by bus in nine hours has launched with financial assistance from Asia Development Bank, according to the Ministry of Construction. Currently, it takes 16 hours to travel 570 miles from Thialwa, Yangon to Bangkok by vehicles. One the new route, it will take four and a half hours to drive from Thilawa to Myawaddy city, the Myanmar-Thailand Border, and another four-and-a-half-hour from Maesot to Thailand. The two sides are in talks on the project, Dr. Kyaw Lin, Deputy Minister of the Ministry of Construction, said. To connect Thilawa Port to Bangkok in nine hours, Myanmar has been building an outer ring road in Yangon to avoid traffic congestion which starts from Htaukkyant to downtown Yangon populated with buses, cars, and other vehicles. Moreover, it also built a new expressway connecting Bago and Kyaikhto as well as other outer ring roads in other cities such as Kyaikhto, Thaton, and Belin.
Myanmar’s rice export through sea trade plummets in the past two months of current financial year
Myanmar’s rice export through sea trade drastically plunged in the past two months amid the competitive pricing, the traders said. The export price of Myanmar’s rice is relatively lower than in other Asian countries such as Thailand and Viet Nam. Yet, the prices are a bit higher than those market prices of India and Pakistan, Myanmar Rice Federation (MRF) stated. Myanmar cannot practise price reduction strategies based on competition to cover the production and logistic costs. Consequently, exports by sea are dropping, for now, said exporters. Myanmar’s rice export by sea generated an estimated income of US$77.08 million as of 27 November in the current financial year, and the figures reflect a decrease of $74.67 million compared with a year-ago period. The export volume by sea plunged from over 519,368 tonnes to 206,046 tonnes in the current FY, as per data released by MRF. However, rice exports via land border rose in the current FY. Rice exports through the land borders have generated an estimated $53.96 million (144,214 tonnes) in the current FY, which increased from $25.379 million (96,224 tonnes) registered in the corresponding period of last year.
Malaysia has offered to buy about 15,000 tons of rice from Myanmar
Malaysia has offered to buy about 15,000 tons of rice from Myanmar and will invite a tender in December, according to the Ministry of Commerce. “Malaysia has proposed to buy about 15,000 tons of rice from Myanmar. As it will buy our rice through tenders, we will call tenders this month,” said a ministry official. The ministry’s figures show that the export volume of rice and broken in about 45 days this fiscal year has fallen by over 170,000 tons compared to the same period of last year with rice export income falling by over US$30 million.
Myanmar Investment Commission (MIC) gives green light to remaining 24 proposals in the current 2020 – 2021 financial year
During the current financial year 2020-2021, Myanmar Investment Commission (MIC) will give the go-ahead to 24 proposals submitted in the previous FY2019-2020, and they are carefully assessing the projects, said Director-General U Thant Sin Lwin of the Directorate of Investment and Company Administration (DICA). Twenty-four foreign investment proposals have an estimated capital of over US$3.5 billion. The commission is carefully reviewing 24 proposals due to large projects, he added.
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.