Entrepreneurs seek business opportunities in Maungtaw

October 29, 2017

“Can we establish a textile factory in Maungtaw Region? We have to think about the production and business development since it’s an economic zone. If we can boost the market then it will simultaneously increase job opportunities.” – U Aung Kyi Soe (General-Secretary of Union of Myanmar Federation of Chambers of Commerce and Industry)

“We need to think about what we can export back when ships carrying imports arrive in Maungtaw. Right now I can think about bananas and coconuts. In 2008 the main banana market was in the Ayeyawady Region. In the context of Myanmar, bananas and coconuts are in high demand in the local markets as well.” –U Kyaw Thu (Secretary of Myanmar Agricultural Produce Production and Trade Association)

The following are excerpts from interviews with U Aung Kyi Soe, U Kyaw Thu and U Aung Myint Thein, Chairman of the Maungtaw Region Merchant Association and the Secretary of the Committee for Establishing an Economic Zone in Maungtaw, during their visits to the Maungtaw region on 29 October.

U Aung Kyi Soe (General-Secretary of Union of Myanmar Federation of Chambers of Commerce and Industry)

Q: Can you tell us about your trip in Maungtaw?

A: There is an upcoming panel discussion about investment opportunities by the Rakhine State Government and I came here to assess development opportunities for the whole region before that discussion.

The Maungtaw Border Merchant Association had been working on the Kanyin Chaung Economic Zone and the UMFCCI (Union of Myanmar Federation of Chambers of Commerce and Industry) facilitates the project while the UEHRD (Union Enterprise for Humanitarian Assis tance, Resettlement and Development in Rakhine) has formed task forces under the leadership of their Director General Dr. Aung Htun Thet. The task forces jobs range from constructing buildings, agriculture, livestock breeding, developing the economic zone, healthcare, private loans, creating job opportunities and developing tourism. We have to acquire the necessary items from Yangon and Sittway and we had a field inspection by Union Minster Dr. Win Myat Aye and Dr. Aung Htun Thet in Kanyin Chaung yesterday.

Q: What are your views on the current situation in Kanyin Chaung economic zone?

A: About 500-800 tons of supply by the Myanmar Red Cross Association arrived in the port during my visit. The main export here is fish and the sellers can immediately cross the border to sell their product over there. If we can establish the economic zone here then we can build freezer factories to store the fish and sell them when we get the price we want.

Q: How do you think the Kanyin Chaung economic zone should proceed?

A: If the economic zone is established then we need to set up border lines for potential buyers to come in and do business in the designated areas. There are also other business opportunites. Can we establish a textile factory in Maungtaw region? We have to think about the production and business development since it’s an economic zone. If we can boost the market then it will simultaneously increase job opportunities.

I believe if we press forward with vigor, we can quickly and effectively develop the region.

U Aung Myint Thein (Chairman of the Maungtaw Region Merchant Association and the Secretary of the Committee for Establishing an Economic Zone in Maungtaw)

Q: Can you tell us about the history of the Kanyin Chaung Economic Zone?

A: It started as a trading zone before it was an economic zone. The trading zone started with business deals with Bangladesh. The population of Bangladesh is triple the population of Myanmar and they have a scarcity of farmland so their demand for basic foodstuff is high. This area also has 90 per cent of the export market in all of Myanmar’s nine border gates.

Q: Can you tell if there were any repercussions to business in the area after the recent attacks?

A: The US Dollar has been the main form of currency used in business transactions in Maungtaw since 1991. After the incidents in June 2012, trade went down by 60 per cent in the area.

Q: How long did it take to establish the economic zone?

A: The plans for the trade zone was submitted to the then Chief Minister of Rakhine State U Hla Maung Tin with four points to it but it only materialized in October 2015 by which time we started establishing the Kanyin Chaung trade zone.

The benefits of the trade zone were the increased number of vessels transporting goods. There are currently 500 to 1000 vessels in operation. Another benefit is that people from Chittagong and Dakha can directly come and purchase in Kanyin Chaung and after the incidents in Maungtaw in 2012 I hope we can offer more job opportunities.

Terrorists can arrive during times of poverty and if there are good job opportunities then it will be easy for them to penetrate into the area.

Q: Can you tell us how you acquired and managed the budget for the economic zone?

A: In the 2015-2016 fiscal year the regional government invested Ks 600 million and the private sector invested Ks 400 million into the project but it was halted due to terrorist attacks. Now in the 2017-2018 fiscal years a new budget plan of Ks 2.2 billion was planned out and submitted at a recent meeting in UMFCCI.

Q: What is the main export product for the area?

A: The largest export item are aquatic products like prawns, hilsa and other fish. Our second biggest export item is rice and third is raw ginger and kitchenware.

Q: Can you briefly explain the job and business opportunities in the area?

A: Maungtaw region alone produces at least 450 tons of prawn and the entire northern region of Rakhine produces about 900 tons of prawn. These are exported to Bangladesh which in turn exports to Singapore. We need to build a freezer factory for quality control if they do not purchase the intended amount.

Secondly, if we can build a textile industry here then we can offer jobs to the huge unemployment pool of women in Myanmar.

U Kyaw Thu (Secretary of Myanmar Agricultural Produce Production and Trade Association)

Myanmar produces between 1 million to 2 million viss of ginger annually and 80 per cent of that is exported to Bangladesh. Ginger is mainly produced in Southern Shan State and travels via Yangon to Singapore. Ginger has a shelf life of 8 months and if we can create facilities for turning ginger into high-end products then we can get better prices and income.

The Kanyin Chaung economic zone now has ports for cargo vessels. We need to think about what we can export back when ships carrying imports arrive in Maungtaw. Right now I can think about bananas and coconuts. In 2008 the main banana market was in the Ayeyawady Region. In the context of Myanmar, bananas and coconuts are in high demand in the local markets as well.

Q: What is the situation for agriculture in the area?

A: We can supply the high demand for ginger to Bangladesh by planting them here so that instead of carrying them from Shan State we can cut costs if we can supply it directly from here.

The main advantage of this area is that it is in proximity to the nearby countries so we have a control of the trade market.

Maw Si and team

Ref; The Global New Light of Myanmar