Myanmar is the 7th largest economy of ASEAN. The service sector accounts for about 46% of GDP, of which industry and agriculture account for 28% and 26% of GDP. The main industries include agricultural processing, manufacturing, construction and transportation.
1. Myanmar market characteristics

Myanmar is the 7th largest economy of ASEAN. The service sector accounts for about 46% of GDP, of which industry and agriculture account for 28% and 26% of GDP. The main industries include agricultural processing, manufacturing, construction and transportation.

In July 2016, the Myanmar government announced its first economic policy with 12 key points, emphasizing the importance of developing a market-oriented system in Myanmar and supporting the development of agriculture, industry and infrastructure. The policy also emphasizes the need to increase the attraction of foreign direct investment (FDI) and improve domestic business facilitation. Earlier, important reform measures were introduced within the 100-day period of the new government.

To upgrade infrastructure, the Myanmar government has liberalized the telecommunications sector and allowed foreign investors to bid on national telecommunications projects. In 2014, two licenses were issued to international telecom operators, Norway's Telenor and Qatar's Ooredoo with an operating period of 15 years. The opening up of the telecommunications sector is seen as an important step towards economic reform and infrastructure upgrades. According to the World Bank, Myanmar's mobile phone registration rate has increased from 13% in 2013 to 76% in 2015, reflecting the huge growth potential of the telecommunications market in the country. In the same year, Cambodian and Lao registration rates were 133% and 53%, respectively.

Myanmar's reforms and opening up have caught the attention of foreign companies looking to move their labor-intensive manufacturing facilities to the country.

Myanmar's economy is an agricultural economy. Agriculture, cattle raising, fisheries, and forest products account for 60% of GDP. Nuts and beans, rice, wood, corn and fishery products are Myanmar's dominant exports. The energy and mineral industries also account for a significant proportion of the country's annual exports.

The service and manufacturing sectors remain underdeveloped. The informal economy accounts for a large proportion (larger than the formal economy) ranging from foreign currency trading, to education, to trade in goods.

2.  Bilateral trade relations between Vietnam and Myanmar

In 10 months of 2022, the total import-export turnover of Vietnam and Myanmar reached 728.7 million USD, up 14% over the same period in 2021.

Export

In 10 months of 2022, Vietnam's exports to Myanmar reached 451.7 million USD, up 40.8% over the same period in 2021.

 Export turnover of commodity groups:

+ For processing and manufacturing groups: reached 284.3 million USD, up nearly 47% over the same period in 2021. Export turnover of some main items in this group are as follows: textile, garment, leather and shoe materials (50.6 million USD, up 80.6%); plastic products (46.9 million USD, up 46.9%); textiles and garments (45.9 million USD, up 71%); fertilizers of all kinds (36.8 million USD, up 680.2%); machinery, equipment, tools and other spare parts (27.8 million USD, up 47.8%).

+ For construction materials: turnover reached nearly 54 million USD, up 83.6% over the same period in 2021. Export turnover of all items are: electrical wires and cables (24.8 million USD, up 57.2%); iron and steel products (17.5 million USD, up 82%); iron and steel of all kinds (11.7 million USD, up 190.7%).

+ For agricultural and fishery groups: reached 9.8 million USD, up 51.6% over the same period in 2021 (mainly exporting coffee products, reaching 8.6 million USD, up nearly 34%).

Imports

In 10 months of 2022, Vietnam's imports from Myanmar reached 277 million USD, down nearly 13% over the same period in 2021. The main imports are vegetables and fruits (more than 90 million USD, up 2.7%), seafood (5.8 million USD, up 93.4%).

3. Myanmar market development trends

Myanmar's affordable market still accounts for the majority, but the middle and high-end consumer segment is also on an upward trend since Myanmar opened its market, attracted a lot of foreign investment, increased job opportunities and income for people. In particular, Yangon city is considered as the main market of Myanmar, orienting consumption for the rest of the market in the country.

On the other hand, the consumer tastes of the people of Myanmar are not only influenced by consumption needs, but also by customs, practices and religions. Therefore, Myanmar people prioritize shopping for items used in family life. They often pay attention to prices in advance, less actively approach products if not introduced or offered. When someone chooses to buy a satisfactory product, the level of product information spread is very fast. Products with promotions or sweepstakes will be of greater interest to Myanmar consumers.

According to the Ho Chi Minh City Trade and Investment Promotion Center, Myanmar people currently have a special affection for Vietnamese goods, but Vietnamese businesses need to pay attention to clearly stating product information and prices in Myanmar or English so that buyers can easily identify them.

Vietnamese products have exported and penetrated the Myanmar market in many fields such as household plastics, garments, footwear, electrical-electronic equipment, construction materials-interior decoration goods, stationery, food ...; in which, there are some Vietnamese brands favored by Myanmar consumers including Kangaroo, Happy Cook; Dai Dong Tien, Dien Quang, Cadivi, Lioa, Visan, Sa Giang, Trung Nguyen, Tan Quang Minh...

The key items that Vietnam exports to Myanmar include products from iron and steel, steel of all kinds, means of transport and machinery parts, equipment and spare parts. Vietnam imports from Myanmar raw materials, wood and forest products, agricultural and fishery products.

4. Some useful website addresses

- Myanmar National Trade Portal: https://myanmartradeportal.gov.mm/en

- Myanmar TradeNet: https://myanmartradenet.com

- Myanmar trade and investment portal: https://servicetrade.gov.mm