- The import and export turnover of commodities from Vietnam to Myanmar declined by 12% in the first ten months of 2021 compared to the same period the previous year.
- Commercial investments in Myanmar have been reduced as a result of Covid-19 limitations and political instability, and foreign cash is scarce.
- Vietnamese goods have long invaded Myanmar, establishing a brand and a presence in this market, and receiving a lot of affection in terms of both quality and price.
There are challenges in exporting goods to Myanmar.
Myanmar, a country of over 60 million people, must import the majority of consumer and industrial products. Indeed, this is an appealing market for Vietnam’s commodities exporters.
However, since Myanmar’s simultaneous crises of a coup d’etat and the Covid-19 epidemic, the trading situation between Vietnam and Myanmar has deteriorated, with the export value of commodities from Vietnam to Myanmar decreasing.
According to Mr. Nguyen Duong Kien, Head of the Vietnam Trade Office in Myanmar, the import and export turnover of commodities from Vietnam to Myanmar declined by 12% in the first ten months of 2021 compared to the same time last year. For that , Vietnam’s exports to Myanmar totaled 321 million USD, a 41 percent decrease, while Myanmar’s imports into Vietnam totaled 318 million USD, a 77 percent increase.
Due to the statewide Covid-19 limitations and the complex political climate, commercial investments in Myanmar have reduced dramatically. The situation became worse when also in this situation, Myanmar fell into a scarcity of foreign currency. As a result, the government of this country has made a series of policies to ban imports and rigorously oversee various businesses. The oscillations in the economy and finance have disturbed the supply chain to the Myanmar market, people’s living standards have plunged, and the trend of frugal spending has risen.
Myanmar’s export market remains very potential
However, in recent years, owing to the execution of various reform and opening measures connected to trade and investment in order to establish a sustainable economy, Myanmar’s market has grown increasingly appealing , enticing a huge number of Vietnamese firms to do business and conduct business. Furthermore, pursuant to ASEAN commitments, most items exported to Myanmar presently receive advantageous tax rates ranging from 1 to 5%.
Myanmar is a potential market for Vietnamese groups, goods, and services such as transportation and spare parts, electric wires and cables, raw materials for textiles, leather, and footwear, chemical products, food and food processing materials, electronic and electrical household goods, iron and steel and iron and steel products, construction, information technology, telecommunications, and so on.
Furthermore, according to Mr. Nguyen Duong Kien, Myanmar has a poor manufacturing base, few technological impediments, and a lifestyle and purchasing patterns comparable to Vietnamese people.
Furthermore, Vietnamese goods have long invaded Myanmar, establishing a brand and a presence in this market, and receiving a lot of affection in terms of both quality and price. Several promises have been made, including the fact that when the situation in Myanmar stabilizes, Vietnamese enterprises will have many advantages in properly exploiting this market.