THE border trade between Myanmar and China through Muse border trade camp in Northern Shan State is projected to hit US$ 5 billion with an export volume of US$ 3.5 billion and US$ 1.5 billion of import volume in the fiscal year 2019- 2020 which started on 1 October, according to the Ministry of Commerce. The two neighbours’ trade volume via Muse border trade camp amounted to nearly US$ 650 million in the current financial year, increased by US$ 290 million when compared to the same period last year, the ministry said.
Total trade volume between Myanmar and China through four border gates during the current financial year reached over US$ 750 million, up by more than US$ 300 million when compared to the same period of the previous year.Border trade between Myanmar and China has seen a significant growth over the past couple of years.But due to import ban on rice, sugar and maize by China and ongoing armed clashes in Northern Shan State and Kachin State, the border trade volume between Myanmar and China via Muse border trade camp which is one of the biggest overland trading routes in Myanmar has been declined slightly when compared to previous years.China suspended the import of some agricultural products from Myanmar. The suspension resulted in a sharp drop in trade at Muse border trade camp, according to an official from the ministry.
China is the major rice export market for Myanmar and China offered Myanmar to officially purchase rice through border gates between the two countries, according to the Myanmar Rice Federation.
Myanmar conducts border trade with China through four border checkpoints in Muse and Chinshwehaw in Shan State, and Lwejel and Kanpeiktee in Kachin State. Myanmar mainly exports beans and pulses, sesame, maize, rubber, and marine products to China while pesticides, fertilizers, household items, and foodstuff are imported into the country through Muse border trade camp.In an attempt to boost bilateral trade between Myanmar and China, the two neighbours have been organizing trade exhibitions, seminars and workshops on a rotating basis.
Around 20 per cent of Myanmar’s total trade is conducted through its border gates and the remaining 80 per cent is done by sea route.
Myanmar’s total foreign trade amounted to 4.59 billion US dollars as of 15 November. 15 this FY, with 2.3 billion US dollars’ import value. During the period, Myanmar’s trade with foreign countries via sea route was valued at US$ 3.3 billion while its border trade saw US$ 1.29 billion.
According to the figures from the ministry, border trade between Myanmar and China amounted to US$ 4.3 billion in over eight months of the fiscal year 2018-2019 which ended in September. As of June this year, Myanmar’s exports through border checkpoints were valued at US$ 3 billion while its imports were worth US$ 1.3 billion.Both of these figures are down from last year, with the export number reaching US$ 2.6 billion and imports saw US$ 0.98 billion in 2018.Border trade volume between Myanmar and China via Muse border gate stood more than US$ 5.68 billion in the financial year 2017-2018 and over US$ 4.53 billion in the fiscal year 2018-2019.
China’s investment in Myanmar during the period from 1988 to date was valued at more than US$ 20 billion which is equivalent to about 26 per cent of total FDI in the country.Around 1,780 foreign enterprises from 50 countries around the world were permitted to invest in 12 sectors, with the total amount of US$ 81,597.743 million during the period from 1988 to the end of August 2019.Myanmar received US$ 9.4 billion of foreign direct investment in 2015-2016 FY, US$ 6.6 billion of FDI in 2016-2017 and US$ 5.7 billion of FDI in 2017- 2018 FY.
The largest sector of FDI came to oil and gas sector, accounting for 27.48 per cent of the total foreign investments, followed by the power sector with 25.95 per cent and the manufacturing sector with 14.01 per cent.-GNLM