CNI News

28 March 2024

Although Sr-Gen Min Aung Hlaing, chairman of the State Administration Council said to develop beneficial national export strategies, there was something to think about how to develop them, said exporters and businessmen. 

The chairman of the SAC said the above at the meeting of national planning commission to exercise beneficial national export strategies within the two years. However, it was not easy to gain benefits regarding the export sector in the current situation, pointed out businessmen.

Rather than developing beneficial strategies, it would be more important to lay down a reasonable economic policy, U Htay Aung Kyi, a banking expert, told CNI News.

While seeing farmed fish

" In fact, it's more important to lay down a reasonable economic policy. The policy must create a better economic environment or a macro-economic system. If an economic system is good, the public will automatically implement the system. The opportunities will automatically emerge." he said.

There were 14 sectors including garment, agricultural products, metal and mining products in the export and it was necessary to discuss for each sector, they pointed out. Because there is no territorial stability at the present, it is not easy to export goods through border trade reportedly.

Moreover, because the price of dollar has become higher, in the garment industries, the cost is higher and it is difficult to use electricity properly. So, it would not be easy to gain profits from export sector, said economic analysts. Regarding agricultural product export, export earnings policy should be relaxed for some products so that more profits could be gained and more export could be conducted, U Thant Zin Tun, vice chairman of the Myanmar Corn Industrial Association, CNI News.

While seeing the exports

" We want the government to relax the trade sector. Traders don't get the prices that the Thai traders because of difficult policies. The price of corn is the lowest in the FOB market. It's just between 220 and 250 dollars per ton. And then, when we have to pass the State policy, the price has gone low. Various kinds of bean are 700 to 1,000 dollars per ton in the FOB market. What I want to tell you is that to mainly collect the tax from high-priced goods. If the policy is relaxed for the corn, domestic price of corn will be higher a bit." he said.

Although exporters have been allowed to import fuel, edible oil and fertilizer, it is not beneficial to exporters kind of, said exporters.

" For example, if A company that export rubber imports, it can sell the 70 percent of export earnings at the market price. Otherwise, it can sell 35 percent at 2,100 kyats per dollar and 65 percent, at 3,150 kyats per dollar. If you want to import fertilizer, firstly you have to study rules and regulations. You'll need many certificates. And then, you'll have to compete with great companies that import fertilizer. When you sell fertilizer, you have to sell it on credit. You can get the debt only when the crops emerge. It will take you about six months to get the certificate for importing fertilizer. The deadline is the end of this March." said U Khaing Myint, secretary of the Myanmar Rubber Planters and Producers Association.

A policy that has been laid down by the Ministry of Commerce impacts on not only the trade sector but also industry, agriculture and livestock activities. So, before a policy was laid down, systematic negotiations and discussions were needed, pointed out businessmen.

" Before policies or restrictions are released, coordination meetings are held and academics and experts attend there. But sometimes unnecessarily, they tend to interfere. In fact, the trade sector is linking with other sectors such as industries, agriculture as well as other ministries. Holding coordination meetings with those who are really understandable is still weak." said U Thiha Paing, founder of the Via Logistics and Supply Chain.

The border trade routes that are main in the export are not dependable at present due to territorial instabilities. So, maritime trade is being used.

Because the maritime trade has to be used, it is difficult in getting export permits as well as loading onto and unloading from the ship and port clearance has not been conducted as well, according to exporters.

When exporting by sea, they were experiencing delays, said exporters.