Thailand Becomes Top Trading Partner with Myanmar
Thailand is one of Myanmar’s major trading partners amongst the ASEAN countries. Myanmar mainly exports natural gas, fishery products, coal, tin concentrate, coconut (fresh and dried), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. The Ministry of Commerce said that the natural gas export trade from the Taninthayi Region has seen a huge rise with Thailand in the preceding years.
On the other hand, Thailand imports capital goods such as machinery, raw industrial goods such as cement and fertilisers, and consumer goods such as cosmetics, edible vegetable oil and food products to Myanmar. Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Meisei are targeted border areas used for trading with Thailand.
According to the statistics issued by the Ministry of Planning and Finance, the value of the bilateral trade with Thailand reached USD 4.12 billion in the last ten months of the current financial year. The ministry reported that exports exceeded imports with Thailand, with exports reaching over USD 2.55 billion and imports valued at over USD 1.57 billion.
Even though there were some difficulties to carry out trade activities last year due to the Covid-19 outbreak, regional external trade could be carried out by Myanmar to its regional trade partners.
18 Sep 2021
Closure of Nearly Half of Hotels in Yangon
The Covid-19 outbreak and civil unrest has devastated the tourism industry. A total of 225 out of 483 hotels registered in Yangon, the capital of Myanmar, have now terminated their operations. According to an officer from the Ministry of Tourism, almost half of Yangon’s hotels have shut down due to the high operation costs and the lack of hotel guests.
Even though some hotels remain open to current guests as there are still international companies in Yangon, they do not provide services for new guests nor meal services. Currently, hotel owners are struggling to earn a profit and pay off expenses. Nevertheless, they believe that hotels play an important role in both the community and in the business sector and have therefore decided to continue their ongoing operations and services.
16 Sep 2021
One Foreign Investment Endorsed by the Yangon Region Investment Committee (YRIC) in the Manufacturing Sector
On 8 September 2021, the YRIC held a meeting through videoconferencing in which the committee members and investors joined for the purpose of ensuring that there is a steady foreign capital inflow during the Covid-19 pandemic. In the manufacturing industry, one foreign investment business was endorsed by the YRIC with a total capital amount of USD 1.10 million. The endorsed business is likely to provide 851 job opportunities for local workers. Additionally, the general issues of the other four companies were discussed.
As far as foreign investments are concerned, the Myanmar Investment Law (MIL) gives powers to the State and Region Investment Committees to permit foreign investment proposals in the cases of investment activities that do not exceed USD 5 million. The investors can inquire on any investment questions that they wish to know by making a phone call to the YRIC offices. As for foreign investors who are willing to invest above USD 5 million, they can contact the Myanmar Investment Commission (MIC) located in Yangon via telephone. Most foreign businessmen are interested in investing in businesses such as the production of pharmaceuticals, vehicles, container boxes, and garments, especially in the Yangon Region.
11 Sep 2021
Removal of 500 Companies from the Company Registration List Due to the Annual Return (AR) Absence
The Myanmar Companies Law (MCL) provides that all companies registered under the MCL must mandatorily file the AR via the MyCO online registry system within two months of incorporation and at least once every year. Failing to do so may invoke the Directorate of Investment and Company Administration (DICA) to give notice that it intends to suspend the company registration in order to restore their status on the online registry system.
In the last two months, DICA removed 500 companies from the register list stating that companies had failed to restore their status within six months from the date of suspension. According to the Notification issued by DICA, these companies were removed from the company registration list starting from 5, 9, 16 July, and 25 and 30 August respectively.
08 Sep 2021
The Central Bank of Myanmar (CBM) stipulates to deposit export income within the specified period
On 3 September 2021, the CBM issued the Notification No. 33/2021 (Notification) which must be followed by exporters when receiving foreign currency as an export income as prescribed under s.49(b) of the Foreign Exchange Management Law.
The Notification says that exporters must, without any default, deposit export income with the foreign currency into their bank account opened in Myanmar within the specified period from the exporting date.
After receiving such export income into bank accounts, exporters must, without any default, sell unused export income to the Myanmar bank holding an authorized dealer license issued by the CBM within four months from the receipt of export income. The Notification came into effect on 3 September 2021.
03 Sep 2021
Termination of Metro’s operations in Myanmar
Giant German wholesale food distribution company Metro announced in September 2021 that Metro Myanmar which was officially launched in March 2019 will cease its operations by the end of October 2021 as the current situation in Myanmar may cause difficulties to operate the business in accordance with their high standards.
Metro’s warehouse is located in the Thilawa Special Economic Zone outside Yangon. Its main service is one-stop food service distribution for hotels, restaurants, catering firms, independent traders and offices. During the Covid-19 period, Metro became famous for its online shop and delivery systems that met the needs of those who were restricted to go out for meals in Myanmar.
02 Sep 2021
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