04 October 2023

It is expected that the Vietnam-Myanmar business trade seminar will be held on November 1, 2023 to promote trade and investment cooperation between the two countries.

Citing statistics of Vietnam Customs, the Vietnam Trade Office in Myanmar said that by the end of August 2023, Vietnam-Myanmar trade turnover reached 489 million USD, down 17% over the same period in 2022.

In particular, Vietnam's export turnover to Myanmar reached 311 million USD, down 15% and imports reached 178 million USD, down 20% over the same period in 2022. The main export items are spare parts transport vehicles, textiles, garments, machinery, equipment and tools, textile and garment raw materials, footwear, fertilizers of all kinds, plastic products, electrical wires and cables, plastic raw materials...

According to the Vietnam Trade Office in Myanmar, export turnover to Myanmar decreased mainly because Myanmar has recently strengthened import restriction measures; the payment and remittance from Myanmar for a commercial contract (sea in USD) requires not only an import license but also permission from the Myanmar Foreign Exchange Control Commission.

In addition, trade activities, especially border trade between Myanmar and neighboring countries such as Thailand, China and India, businesses on both sides have been allowed to use the local currency. The licensing of imports for cross-border trade and with these countries also happens quickly. Therefore, over the past time, there have been businesses diverting and increasing imports from Thailand, China and India.

Along with that, the Myanmar market has signs that aggregate demand is not growing. As of August 31, 2023 of the 2023-2024 fiscal year, Myanmar's import-export turnover reached $13.7 billion, down 5% from the same period last fiscal year. FDI and ODA investment in Myanmar has slowed down, along with the modest operation of domestic enterprises, which has limited the import of Vietnam's export strengths into the market (such as iron and steel, machinery and equipment...).

In addition, most goods imported into Myanmar require a license except for some agricultural machinery and equipment. The time to apply for a license to import goods normally by sea takes about 3.5 months, while by land it takes about 4-6 days.

Also according to the Vietnam Trade Office in Myanmar, Myanmar's import situation from other countries in general faces many difficulties. Based on the current market situation, the Vietnam Trade Office in Myanmar has been and will continue to implement trade promotion activities in the direction of: Continue to actively work through the channels of business associations, distribution enterprises, contractors, supermarkets and other partner enterprises of Myanmar to connect with Vietnamese suppliers.

At the same time, the Vietnam Trade Office in Myanmar strengthens coordination with domestic enterprises to closely cooperate with project contractors in bidding packages and projects with great export potential, especially machinery, electrical equipment, power cables, iron and steel and construction materials; organize trade activities, business delegations of the two countries, attend fairs.

More information, the Vietnam Trade Office in Myanmar said that it is currently cooperating with the Burma Business Association of Myanmar to organize the Burma-Vietnam Trade Fair from November 1, 2023 at Junction City, Yangon. The Vietnamese side will participate with 22 booths. The Vietnam-Myanmar Business Trade Seminar is scheduled to be held on November 1, 2023 covering the fair space with the participation of leaders, members of leading Chambers of Commerce federations, associations and businesses of Myanmar.

In addition, the Deal recommends to businesses to carry out activities and transactions with Myanmar partners in accordance with guidelines and policies, using safe payment methods.

Source: congthuong.vn