Weekly Business News from Myanmar

Yangon Government authorities are planning to build a logistics hub and truck terminal at the outskirts of the city aiming to ease congestion
Yangon is planning to build a logistics hub and truck terminal in the outskirts of the city to ease traffic congestion and provide enough parking space for trucks, said Yangon Region Planning and Finance Minister U Myint Thaung at the regional parliament. He was responding to U Kyaw Min Han, MP from Latha township, who asked if there any plans to implement a project to improve efficiencies and productivity in the logistics industry. Currently, companies transport goods by 22-wheel, 12-wheel and 6-wheel trucks from factories directly to respective townships. However, others move the goods to a depot at Bayintnaung Highway bus terminal in Mayangone township before they are loaded onto trucks and ferried to their intended destinations. This has led to heavy traffic congestion near the terminal, which is no longer big enough to accommodate the rising number of trucks.
Business people from Myanmar and Indonesia are discussing on cooperation in foodstuff, textile and service industries sectors
Discussion is underway between Indonesian and Myanmar businesspeople to cooperate in foodstuff, textile and service industries, according to the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). A one-on-one business matching took place to facilitate cooperation between business people of each countries in trading fertilizers, weed killers, food and medicine packaging, cement, paper and pulp, textiles including batik, trade and services. According to trade data from the ministry of commerce, trade between the two countries amounted to US$523.147 million in the six-month interim budget period from April to September 2018. Myanmar exported goods worth US$62.822 million to Indonesia. Then, Myanmar imported goods worth US$460.325 million from Indonesia.
Myanmar Security Exchange Commission (MSEC) urged foreign traders to conduct trading on the Yangon Stock Exchange (YSX) in July 2020
The Myanmar Security Exchange Commission (MSEC) issued an order allowing foreigners to conduct trading on the Yangon Stock Exchange in July, but did not specify an exact date for start of the liberalizing of the stock market. U Htay Chun, Member of the Commission, indicated that they will start allowing foreign traders early next year to allow time for the commission to make the necessary arrangements. “We cannot start immediately. We need to prepare the exchange for taxation purposes, and to accept currency exchange rates which will make for a smooth experience,” he added. The MSEC will allow foreign investors to buy shares up to a maximum of 30 percent of the value of a local company, and 35 percent for foreign companies. The other exception is the stock cannot be associated with immovable properties such as land.
Authorities are planned to launch new tour programs at the Myeik Archipelago in Tanintharyi Region
MYEIK-Plans are underway to launch new tour programs at the Myeik Archipelago in Tanintharyi Region because tourism period will start soon, according to tourism agencies. Although authorities planned to begin tourism season in Myeik Archipelago in mid September, the plan would be implemented depending on the weather. “We already planned to launch the tourism season since the beginning of September 16th. However, we are going to implement the tour programs in accordance with the Department of Meteorology and Hydrology. The adventure trip, bird looking and underwater scenes will be included in new tour programs. Moreover, we, Myeik Archipelago, offer the frogmen. Mostly travelers went to Smart Island in Myeik Archipelago last season. Marcus Island is second attraction for the travelers who observed underwater scenes and fishing rafts. The tour program of Smart Island will be offering the waterfall programs and Salon village to the travelers,” said Manager Ye Thu from Bright Asia King Travel & Tour.
Myanmar’s garment sector is on track to meet a target which USD $ 10 billion in exports set under 10 year plan
An industry body says Myanmar’s garment sector is on track to meet a target of US$10 billion in exports set under a 10-year plan. The export target and a goal to create one million job opportunities in the sector had been laid out under the Myanmar Garment Industry Strategic Plan 2014-2024 by the Myanmar Garment Entrepreneurs Association. “Export volumes for the 2018-19 fiscal year up to August hit US$4.37 billion, compared with US$3.2 billion in the same period a year ago. This is an increase of US$1.17 billion in exports,” said Ministry of Commerce Deputy Secretary U Khing Maung Lwin. Garment exports have been rising yearly in Myanmar, especially since 2013, when the European Union granted goods from Myanmar preferential access to the EU market under the Everything But Arms tariff scheme.
Japanese firm, Sumitomo Corporation will replace Chinese as financial partner in Yangon Central Railway Station Development project
Japan’s Sumitomo Corporation will act as financial partner for the Yangon Central Railway Station Development Project, replacing China’s Sino Great Wall as part of a consortium selected to implement the project, according to U Ba Myint, Managing Director of Myanma Railways. “Sumitomo approached us as a new investor in the Yangon Central Railway Station project while we were seeking a new partner to replace Sino Great Wall,” he said. ‘’Now, Sumitomo will participate in the project as financial partner. We are expecting to finalise the arrangement between the other partners and seek approval from the government soon, U Ba Myint added. U Aung Thu Latt, General Manager of Myanma Railways, said the decision to choose Sumitomo came after advise from international consultancies. He added that the original terms and design of the project will remain unchanged.
In collaboration with the Industrial Bank of Korea, SME Bank will establish incubation centre in Nay Pyi Taw for startups
The SME Development Bank will establish an incubation center in Naypyidaw for startups, this is in collaboration with the Industrial Bank of Korea, according to Dr. Zayer Nyunt, Chief Operating Officer of the bank. The incubation center aims to help develop startup companies by providing capital, technology assistance, and business matching events. The center will start operating in December 2019. Interested SMEs can apply for assistance, and if approved, the center will provide necessary funds and technology to further help the company develop. “We are the first to establish an incubation center, we are implementing this after studying an incubation center in Korea. This center will help local startups, Korea will provide technical assistance. The two banks will also exchange technologies,” said Dr. Zayer Nyunt.
States and Regions Government perused local and foreign investors at Myanmar Global Investment Forum 2019 in Nay Pyi Taw
State and regional governments set up booths and sent senior representatives to engage with investors at the Myanmar Global Investment Forum 2019 in Nay Pyi Taw. The outreach was supported by the DaNa Facility and the International Trade Centre (ITC), and funded by the UK’s Department for International Development. Addressing the business audience, Magway Region Chief Minister U Aung Moe Nyo highlighted the importance of the Myanmar Business Environment Index and said the index provides “the clearest picture to date of the state of local economic governance in Myanmar.” He said that the administration sees growing foreign and domestic investment in the states and regions as a critical element of “inclusive growth” in the poorer areas and a key factor contributing to Myanmar’s “inclusive development”.
AVIS make its investment which is worth around USD $ 50 million to provide car rental services in Myanmar
AVIS recently announced its plans to provide car rental services in Myanmar. The U.S. car rental giant provides services in 5,500 locations in 170 countries. They unveiled the plan during an introduction event held on September 4 at Chatrium Hotel, Yangon. The company will offer both short- and long-term car rental solutions with a fresh new fleet; they will offer options for both self- and chauffeur-driven vehicles. AVIS said it has made an investment worth around $50 million for its operations in Myanmar. “We also strive to serve our customers at their locations not only in Yangon, but other cities through our expanded network in Mandalay, Nay Pyi Taw, Bagan, Taunggyi, and Dawei,” said Ms. Prasoporn Tansupasiri, General Manager of Avis Myanmar.
Myanmar government will set to collaborate with Hong Kong on Belt and Road Initiative (BRI) projects
Myanmar is set to cooperate with Hong Kong in addition to other countries along China’s Belt and Road Initiative, announced Minister of Investment and Foreign Economic Relations U Thaung Tun during the Fourth Belt and Road Summit 2019 in Hong Kong on September 11 and 12. The summit was organised by the government of Hong Kong and the Hong Kong Trade Development Council to promote business collaboration through the Belt and Road platform. More than 5800 representatives from 69countries attended the event. “Hong Kong and Myanmar are strategically located along the Belt and Road project. Hong Kong is a major economic entrance to China, a central area for logistics and is also a centre for financial services. On the other hand, Myanmar is a fast-growing country and so will cooperate with Hong Kong and other countries along the Belt and Road project,” U Thaung Tun said.