CNI News
12 January 2024
Myanmar's 2023 export value from border trade was reduced than 2022 by several hundred US dollars in 2022, according to the statistics of the Ministry of Commerce.
Although Myanmar's export value through border trade with China, Thailand, Bangladesh and India was more than 4,5000 million dollars in 2022, export value of Myanmar through border trade in 2023 was over 4,100 million dollars only. Export value through border trade was reduced by 400 million dollars.
Due to the devaluation of export value like that, foreign currency earnings and the economy of the country may be affected, U Htay Aung Kyi, a banking expert, told CNI News.
" Export is more important in a situation like this. Export is important in a normal situation. According to theory, export is the engine of growth. Generally, there are two economic policies. One is export promotion and the other is import substitution. Import substitution is just to protect dollars from leaving for foreign countries, but doesn't mean getting foreign currencies. Export is more important. If a country can't export, it won't be convenient for its economy. Only if the country exports, can it get dollars. If the export continues to decrease, the dollar crisis will be worse." said U Htay Aung Kyi.
While trucks are stranded
Dollars could be received mainly from export only and foreign investments could not be dependable at present, said economic analysts.
In the same way, asking expatriate citizens to pay the income tax depends on the participation by everyone concerned and if the export was affected, the country's economy would be affected a lot, they pointed out.
The decline in Myanmar's exports is not only due to unrest at the border areas but also due to some activities restricted by the Central Bank, pointed out economic analysts.
In order to promote exporting, if the Central Bank provided service to the relaxations required by business sectors and necessary renewals, it would be better, U Thet Zaw, an economic analyst, told CNI News.
" Regarding the export policy, there must be rules and regulations that are unnecessarily strict. Recently, there have been proposals submitted by some fisheries. When they export fish, The cash in/out takes more than 45 days. In a situation like this, because you have to deposit designated export earnings within 30 days, fish exporters can't export." he said.
While trucks are burning
The amount of Myanmar's export value that was reduced from the border trade in 2023 was 157 million dollars from the China-Myanmar border trade, 178 million dollars from the Thailand-Myanmar border trade, over 9 million dollars from the Bangladesh-Myanmar border trade and over 5 million dollars from the India-Myanmar border trade.
There were fewer battles along the border trade in 2022 and if battles broke out, it didn't take long. So, they didn't impact the border trade. However, in 2023, armed conflicts were severely breaking out along the border trade routes and it did affect the border trade, they pointed out.
Because the regular channels that were used for the border trade in the past cannot be used due to territorial instabilities, although new channels have been allowed to use, they cost a lot more, said traders.
