Weekly Business News from Myanmar

Myanmar Government is promising market for Vietnamese businesses
Myanmar is a promising market for Vietnamese businesses, according to a workshop in Ho Chi Minh City on November 19, Vietnamplus reported. According to Vo Thi Ngoc Diep, Vietnamese Commercial Counsellor in Myanmar, Vietnam is now one of the 10 biggest trade partners of Myanmar. In 2018, two-way trade reached 860 million USD, of which Vietnam exported over 700 million USD worth of goods to the market.
Myanmar – Thailand Business Matching and Networking Expo was held in Yangon
Myanmar–Thailand Business Matching and Networking Expo was held on Wednesday in Yangon. It was organized by the Myanmar–Thai Chamber of Commerce and Industry Incorporates (MTCCI) at its head office. Minister Counselor for the Office of Commercial Affairs of Royal Thai Embassy, Chairman of MTCCI, Founder of Myanmar Franchise License and Assistant Director of UbonRatchathani Science Park attended the Expo opening ceremony and delivered remarks. Assistant Director, UbonRatchathani Science Park, AnirutSuebsing said “Today, I bring just some entrepreneurs of Thailand to join and matching with entrepreneurs in Myanmar… Today is like the showcases showing products. It’s about 20 companies here and we separated four or five sectors like food, beverage, technology, supplementary care products and medicine.” Over 100 businesspersons from Myanmar and Thai companies attended the event. The event included the seminar “Today, Why Myanmar” focusing on trade and investment rules and regulations in Myanmar for Thai investors.
Myanmar Tourism Bank will provide tourism association members uncollateralized SME loans beginning this month
Myanma Tourism Bank has announced that it will begin providing Union of Myanmar Travel Association members uncollateralised SMEs loans beginning this month. MTB announced the SMEs loans for UMTA members, who are primarily travel and tour companies, at an event in a hotel in Yangon yesterday. “We will release the loans within two week to a month if the applicants have provided the necessary documents for their application,” said MTB Deputy Managing Director Andrew Khant. While the loans are being initially offered to UMTA members, MTB will later on open them up to other tourism-sector businesses, Khant said.
Foreign investments from 50 countries reached over USD $ 81 billion from 1988 – 89 to 2018 – 2019 fiscal year
A total of 50 countries made investments worth over US$81 billion from 1988-89 FY to 2018-19 FY and most of the foreign investments are in oil and natural gas sector and electricity sector, according to Myanmar Investment Commission (MIC). The foreign investments in sectors are as per following: US$22.420 billion in oil and natural gas sector (about 27.38 per cent), US$21.178 billion in electricity sector (about 25.87 per cent), US$11.528 billion in production sector (about 14.08 per cent), US$10.908 billion in transportation and communications sector (about 13.30 per cent), US$5.467 billion in real estate sector (about 6.68 per cent), US$3.118 billion in hotel and tourism sector (about 3.81 per cent), US$2.904 billion in mining sector (about 3.55 per cent), US$766.327 million in livestock and fisheries sector (about 0.94 per cent), US$414.12 million in farming sector (about 0.51 per cent), US$320 million in industrial estate sector (about 0.39 per cent), US$37.767 million in construction sector (about 0.05 per cent) and US$2.808 billion in other sector (about 3.43 per cent).
Ministry of Electricity and Energy is planning to start granting licenses to operate village gas stations aiming to boost small and medium enterprises for local villagers
The Ministry of Electricity and Energy is prepared to start granting licenses to operate village gas stations. The move is aimed to boost small and medium enterprises and the agricultural sector and to create jobs and income for local villagers. Applicants must be residents of the village where they plan to open the gas station and each license holder is allowed to operate one station. A village gas station is required to have at least 2,000 square feet with 40 feet of front space. The proposed space must be at least 300 feet from the village proper and its perimeter must be fenced using non-flammable materials. Moreover, the station must be at least two miles from larger gas stations opened under licenses from the Ministry and located a safe distance from heritage sites.
The mixed development waterfront project along the Kaladan River in Sittwe projected to complete by the middle of next year
A mixed development waterfront project on along the Kaladan River in Sittwe, Rakhine is now 90 percent done and is expected to be complete by the middle of next year, Steve Park, CEO of Korean developer BXT International Co, told Myanmar Times. The remaining work involves the completion of roads, drains and power grids at the project site, said U Aung Kyaw Zan, Rakhine State minister for Electricity, Industry and Transportation. “All the necessary environmental and social impact assessments have been prepared,” he added. The Sittwe Waterfront project, which will comprise government offices, an industrial zone, hotels and shop houses, is being developed in three phases on 36 hectares of land near the Sittwe Myoma Market and port.
The Central Bank of Myanmar (CBM) will be granted retail banking licenses to foreign banks starting in 2020
Starting in 2020, the Central Bank of Myanmar (CBM) will issue licenses to allow overseas lenders to open a branch or a subsidiary in the country. To secure a branch license to provide wholesale banking or enterprise banking services, an investment of up to $75 million and a $40 million deposit with the CBM are required. A $100 million investment is required to obtain a subsidiary license, which allows a foreign bank to provide both wholesale and retail banking services and set up 10 entities including branches and off-site ATMs. Licensing applications will be accepted from June 2020.
The border trade value reached over USD $ 1.177 billion in over a month of this fiscal year
Border trade value in over a month this fiscal year has reached over US$1.17 billion exceeding over US$360 million compared to the same period of last fiscal year, according to official figures from the Ministry of Commerce. From October 1 to November 8 in the current 2019-2020 FY, border trade value amounted to US$1.171 billion while the same period of last FY saw US$808.863 million. So, this year's amount exceeded US$362.891 million. Border trade value at Muse border trade camp which carries out trade activities between Myanmar and China amounted to nearly US$650 million exceeding over US$290 million compared to the same period of last year. Meanwhile, trade value at Nabulel /Htikhee border trade camp amounted to US$190 million falling by over US$20 million compared to last year.
Myanmar will commence auctions for 10 year government treasury bonds soon to meet demand for long term debt from the newly minted insurance industry
Myanmar will start auctioning 10-year sovereign bonds to meet demand for long term debt from the newly minted insurance industry, said Daw Si Si Pyone, Director General of the Treasury Department under the Ministry of Planning and Finance (MoPF). “We are planning to launch auctions for 10-year government treasury bonds soon as demand, mainly from the insurance companies, is rising,” she said at a conference on Monday, but did not provide a fixed schedule for the auction or further details on coupon rates. It is common for insurance firms to invest their premiums in long term sovereign debt, which is less risky than funds and equities, to grow profits and in some instances lower subsequent premium amounts to make their policies more attractive. “We have already prepared funds to invest in government bonds,” said U Thaung Han, managing director of CB Insurance.
Myanmar and Indonesia Business people are keen to keep bilateral trade growing
More than 30 Myanmar business people attended the Indonesia-Myanmar Business Gathering at a hotel in Yangon last week. The gathering organised by the Indonesian Embassy in cooperation with the International Business Promotion Centre held business-to-business meetings for 10 Indonesian representatives from six companies and their Myanmar counterparts. Among the dignitaries at the event were U AikHtun, chair of the International Business Promotion Centre and ShweThaung Group, Daw Hla Hla Yee, member of the Union of Myanmar Federation of Chambers of Commerce and Industry and secretary of the Myanmar International Freight Forwarders’ Associationand, and Dewi Lestari, deputy director of South East Asia Affairs of the Indonesian Ministry of Foreign Affairs.