Weekly Business News from Myanmar

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.
Myanmar Private Equity & Venture Capital Association was officially launched in Nay Pyi Taw with the aim to meet every month for training or networking purposes
Private equity firms have come together to form the Myanmar Private Equity & Venture Capital Association to give institutional investors a voice when engaging with the local authorities, industry website internationalinvestment.net reported. Backed by the UK's CDC Group, the association was officially launched in Naypyidaw and aims to meet every month for training or networking purposes. The association currently has 11 full members including Anthem Asia, an independent private equity firm and Yangon Capital Partners, a venture capital firm set up by Trust Venture Partners.
In collaboration with the World Bank, Ministry of Agriculture, Livestock and Irrigation (MOALI) held the 6th Annual MSR of National Community-Driven Development Project in Nay Pyi Taw
The Ministry of Agriculture, Livestock and Irrigation organized the 6th Annual Union-Level Review (MSR) for Myanmar National Community-Driven Development Project (MNCDDP), implemented by the Department of Rural Development, Ministry of Agriculture, Livestock and Irrigation in collaboration with the World Bank. Union Minister Dr Aung Thu made an opening remark at the event held at M Gallery Hotel in Nay Pyi Taw yesterday morning. The Union Minister said the development of living standard and socioeconomics of people is related with the development of the country, while the MNCDDP is one of the opportunities for this development.
Myanmar coffee producers tried to effort more improvement in the production levels and establishment the new export markets for local produce
US and Myanmar partners celebrated achievements in Myanmar’s coffee and other agriculture sectors in Yangon Tuesday at an event marking the end of the US Agency for International Development (USAID) Value Chains for Rural Development project, under which USAID invested $27 million from 2014-2019. Over the past five years, US-funded agriculture programs have helped some 40,000 farmers improve production levels and establish new export markets for local produce, US Ambassador Scot Marciel said. Moving forward, strong producer and exporter associations such as Myanmar Coffee Association, Myanmar Fruit, Flower and Vegetable Producers and Exporters Association and the Sesame Farmer Development Association will carry on the work of helping farmers sustain production levels and penetrate new markets.
Myanmar earned over USD $ 691 million from rice and broken rice export within 11 months of 2018 – 2019 fiscal year
Myanmar earned over US$691 million from 2.29 million tons of rice and broken rice export within 11 months of 2018-19 FY and about 73 per cent of total rice export is exported through maritime trade, according to Myanmar Rice Federation (MRF). Myanmar exported 1.792 million tons of rice to 65 countries and earned US$559.894 million. It also exported 498,000 tons of broken rice to 41 countries and earned US$132.139 million. Myanmar earned US$187.174 million from rice and broken rice export through border trade routes. It earned US$503.859 million from rice and broken rice export through maritime trade routes.Myanmar exported 738,500 tons of rice and 38,000 tons of broken rice to China and neighbouring countries. It is 33.88 per cent of total rice and broken rice export.
The value of stocks traded on the Yangon Stock Exchange (YSX) reached the highest stock trades in September 2019
The value of stocks traded on the Yangon Stock Exchange (YSX) hit a peak of K2.47 billion this year in September with 421,358 shares traded on the exchange, according to the monthly report of the YSX. At present, shares of five listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co Ltd — are being traded on the stock exchange. In January, 89,576 shares worth K526 million were traded on the exchange, and the trade value slid to K409 million and K396 million in February and March, as share prices fell. In April, 102,682 shares worth K506 million were traded on the YSX. Starting from May, the value of shares traded crossed K1 billion. It touched a new peak of K1.4 billion with 275,325 shares traded in May, K1.32 billion with 233,994 shares traded in June, K1.22 billion with 256,241 shares traded in July, and K1.9 billion with 322,176 shares traded in August.