Myanmar’s
exports exceeded US$ 14 billion, a 2 billion increase from the previous
financial year. Myanmar also received the Generalized System of Preferences
which helped bolster the garment industry with a record of US$ 2.5 billion
export.
Dr.
Than Myint
MINISTRY
of Commerce is dedicated for the Republic of the Union of Myanmar’s trade
promotion, facilitation, negotiation, liberalization, consumer education and
protection. “The ministry’s scope does not only cover international trade but
all aspects of business from farm to factory, factory to distributor and
distributor to the consumer’s table. We are working towards improving the whole
supply chain,” said the Union Minister Dr. Than Myint.
On
Strengthening the Economy
The
main objective of the Ministry of Commerce is to boost international trade.
From April 2018 to February 2019, Myanmar traded a total of US$ 32 billion. The
trade deficit totals to US$ 1.89 billion for the previous year, a decrease from
the US$ 1.94 billion the year before.
The
Minister continues: “It is a combined effort of the farmers, workers,
manufacturers and merchants to bring the prosperity. Only if everybody benefits
in the supply chain, there will be consumer satisfaction.”
On
Increasing Exports
Myanmar’s
export value exceeded US$ 14 billion, a 2 billion increase from the previous
financial year. Myanmar also received the Generalized System of Preferences
which helped bolster the garment industry with a record of US$ 2.5 billion
export. There has also been private-public dialogue on the emerging
e-marketplace in Myanmar with various meetings and negotiations held to
strengthen e-commerce in the country.
Protection
for Consumers
Our
biggest achievement has been the online complaint system that was launched on
March 2018.
Through www.doca.gov. mm ,consumers can submit food safety
related complaints and also read up on the current laws, rules and regulations
in the industry.
The
Ministry is also trying to enforce consumer safety standards. In 2018, the
ministry confiscated 389 types of goods and 1333 food products that were unfit
for consumption.
Raising
the Standards of Exports
To
increase exports in the form of agricultural products, Myanmar face a lot of
competition from regional countries. Myanmar is trying to compete in terms of
lowering logistics costs while increasing efficient farming methods that will
allow more yield per acre.
“We
still face challenges regarding getting the highest-grade seeds, quality
equipment including machinery and fertilizers and experts on agriculture in
order to expand our market in the international economy,” claims the Union
Minister.
Challenges
of International Trade
There
are a lot of variables in play such as the exchange rate, climate change, trade
laws and the price of the products in the global economy that significantly
impacts the amount of exports. The current administration is working on
implementing a functioning Market Economy to improve Myanmar’s stagnating
economy.
The
Ministry is therefore, focusing on the National Export Strategy for
diversification and intensification of exports. The current National Export
Strategy (2020-2025) was designed with inputs from state and regional governments
and focuses on 11 different sectors. The Ministry is planning to pick the top
priority industries this coming financial year.
Increasing
Export by Threefold
The
country is trying to build up Special Economic Zones (SEZ) along with Border
Economic Cooperation Zones to increase bilateral and border trade between
Myanmar and other countries.
The
Minister notes “We are building Myanmar International Trade Centre in Yangon to
showcase the traditional arts and crafts along with trade shows. There is also
a Medium Term Programme in collaboration with World Trade Organization that is
being implemented to increase trade by Myanmar.
Redrawing
Laws and Procedures
The
Ministry is focusing on drafting laws for better consumer safety regarding food
safety as well as protecting our local products. We are trying prevent hugely
discounted imports to come into the country that can damage the local economy
through quotas. The Ministry is drafting a Safeguard Law on Increased Imports
in addition to an all-encompassing Trade Law for Myanmar in collaboration with
World Bank Group and GIZ. The Myanmar Competition Law was passed on 24 Feb 2015
and came into force on 24 Feb 2017.
On
Economic Indicators
World
Bank Ease of Doing Business Index ranked Myanmar 171 out of the world in the
ease of doing business. U Aung Htoo, Deputy Minister commented that Myanmar
aims to go down under 100 by 2021. “Hopefully we can attract more investors
once we start climbing the ranks,” the Deputy Minister further comments.
Special
Economic Zones
The
Ministry is implementing an export led growth policy through special economic
zones. Currently, the Thilawa SEZ is very successful among the three currently
in operation. The Kyaukphyu SEZ also have potential to forge a shortcut by
bypassing South China Sea and Malacca Straits. An MOU has been signed with
CITIC, who won the tender, and the project is now in the process of
environmental impact assessments along with negotiations for shareholders and
concessions agreement between the parties. The Dawei SEZ is also under
negotiations between Myanmar and Thailand with plans to include Japan as well.
Creating
Job Opportunities
In
the previous years, there were only US$ 500 million worth of garment exports.
The current administration has expanded exports to US$ 2 billion worth of
products, creating 500,000 more jobs. There are also plans to create more jobs
through increase in trade in other industries such as farming, livestock,
manufacturing, fruits and fishery. “The quote often goes ‘The customer is
always right’ in economics. Hence, we are working towards providing for the
best quality products for the consumers through the ministries’ departments. We
are also trying to provide consumer protection not only in the food industry
but also in the mobile industry (overcharging phone bills), TV (charging extra
for packages and then underdelivering, selling mixed oils when the label claims
to be pure sunflower oil and other service scams.”
Increasing
Border Trade
An
MoU for Myanmar - China Economic Cooperation Zones was signed between Myanmar
and China in 2017. Negotiations are ongoing for the Framework Agreement to be
signed between the parties with Shan State, Muse Township selected as a pilot
program. “There are two parts to the agreement. The first is to establish a
Core Zone where merchants from both country can trade freely with banks, hotels
and tour operators in the area. In the respective border zones, there will be
factories, transportation hubs and other packaging facilities in operation. The
finished products will be sold through the Core Zone into the other country.
This eliminates a lot of potential problems between the countries as well as
increase trade between the countries. We plan to call for Expression of
Interest, EOI soon,” comments the Deputy Minister.
In
conclusion, the Ministry’s main focus is to bolster international trade and
enforce more consumer protection with fair pricing and food safety policies. In
addition, the Ministry will also work towards drafting rules and regulations
and implementing policies that benefits the entire supply chain as well as the
consumers.
Translated
by Myat Thu
By
May Oo Moe
PHOTO:
AYE THAN
Ref; The Global New Light of Myanmar
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