CNI News

5 December 2023

with the armed conflicts taking place in Myanmar, because the border trade routes are interrupted and the border trade has stopped, commodity prices may rise and goods may become scarce, businesspeople and traders. 

Almost trade routes with China, Thailand and Bangladesh have stopped due to the current battles in Myanmar. Myanmar is 80 percent dependent on border trade for its economy and foreign currency earnings.

The scarcity of imported goods and domestic commodity prices increases may arise in the long run because the border trade has currently stopped, U Thet Zaw, an economic commentator, told CNI News.

" Myanmar's economy depends on trade. There is nothing in the manufacturing industry in Myanmar. When the border trade has stopped, about 80 percent of the country will be affected, I guess. Because the government can't sell fuel, the fuel price has risen 300 kyats per litre. If we have to go on like this in the long run, the country will find it difficult, I guess. First, commodity prices will go up. Second, goods will be scarce. In the trade amount of Myanmar, the border trade is 80 percent and the remaining 20 percent is trade by sea. So, the country's economy will probably be affected badly." said U Thet Zaw.

However, there are some border trades in Kachin State, eastern Shan State and Tanintharyi Region.

While the cars were stuck due to battles

Because of very few border trade, imported goods cannot enter Myanmar and the commodity prices may rise in the long run. 

Moreover, because the inflow of foreign currencies may be reduced, foreign exchange control and restrictions may also occur, pointed out businessmen.

Due to not being able to do  border trade in northern Shan State, although the government has stated that any border trade gates can be used, exporters are finding it difficult because of regional instabilities, delay on the way and high transportation charges reportedly. 

The people suffer more than the government due to border trade suspension, U Thiha Paing, founder of the Via Logistics and Supply Chain, told CNI News.

While seeing a truck

" Those who are doing business of supply chain network and mainly connected with the flow of goods suffer more. The people suffer more than the government. The government is a corporation. In other words, it is the biggest company in the country. It's doing business as well. It has its own escape. If there's a trouble, the people suffer 90 percent of the trouble. But the government suffers only 10 percent. The government provide service only in trade. It's not directly responsible. If the government have vehicles and do the marketing, it will have a problem, like under the socialist government in the past. Because there are many businesses in the public hands, the people get into trouble." he said.

Due to territorial instabilities, local products cannot be exported abroad, other regions and states. So, some commodities are going up. Especially, the people in the armed conflict zones are finding it more difficult. 

So, it was necessary to allow the trucks to pass for the border trade, pointed out economic commentators and business people.