Myanmar Achieves First-ever Foreign Trade Surplus

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Last updated at: (Beijing Time) Monday, April 28, 2003

Myanmar Achieves First-ever Foreign Trade Surplus

The Myanmar government has finally produced surplus in its foreign trade after the problem of foreign trade deficit plagued its economy for a long period.

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The Myanmar government has finally produced surplus in its foreign trade after the problem of foreign trade deficit plagued its economy for a long period.

According to the figures published by the Central Statistical Organization, the country's foreign trade deficit reached as high as 1,687 million US dollars in 1998, 1,232 million dollars in 1999,1,048 million dollars in 2000 and 501 million dollars in 2001.

In 2002, Myanmar's foreign trade totaled 5,276 million dollars, of which the import accounted for 2,294 million dollars, while the export represented 2,982 million dollars, producing a trade surplus of 688 million dollars.

Myanmar has taken effective measures in reducing the trade deficit and realizing the trade surplus. It firstly adopted the strategy of "sell more, buy less" and "export more, import less" to encourage its countrymen to use home-made goods, buy less foreign ones and substitute imported goods with domestic products as much as possible.

Secondly, it greatly supported enterprises engaged in producing export goods by providing privileges in accordance with its policy.

Thirdly, it opened more border trade points, simplifying related formalities, appropriately adjusting its standard of charge collection and strictly controlling the import of high-grade consumer goods and luxury ones.

Fourthly, it strove for the promotion of production, ensured goods supply and tackled the phenomena of shortage of locally manufactured commodities.

A fact that deserves mentioning is that the export earning of natural gas has played an important role in Myanmar's efforts to bring down the trade deficit and realize trade surplus for the first time.

Myanmar began export of natural gas in 1998, earning 750,000 dollars only during the year when the country suffered a trade deficit of as high as over 1,600 million dollars. In 2001, the country's gas export proceeds increased to 523 million dollars, while that year's trade deficit dropped to 501 million dollars. In2002, its gas export earning attained a new record high of 846 million dollars, generating a foreign trade surplus for the first time.

Myanmar's natural gas is exported to Thailand through pipelines with an annual export quantity of billions of cubic meters.

According to official statistics, Myanmar's natural gas reserve reached 1,442.05 billion cubic meters. It concentrates mainly on Rakhine state and Tanintharyi division and Mottama.

In 2002, the gas output of Myanmar was 9,173.8 million cubic meters. According to the present scale of production, the country's natural gas could be exploited for 157 years.

Myanmar is an agricultural country with very weak industrial infrastructure. The majority of its required capital goods of machinery and equipment depends on import. As these imported goods,which contain a high degree of technology and highly-added value, are relatively costly, it constituted an important factor leading to the emergence of deficit for consecutive years in its foreign trade.

Official statistics show that in 2002, Myanmar imported capital goods valued at 557 million dollars, taking up 24.28 percent of the country's total imports.

At a time when the capital goods are depending on import, Myanmar has also to import a great deal of consumer and intermediate goods annually to meet the domestic demand. In 2002, the import vale of Myanmar's consumer and intermediate goods stoodat 892 million dollars and 845 million dollars, accounting for 38.88 percent and 36.84 percent of the country's total imports respectively.

Meanwhile, as a less-developed country, Myanmar has a unitary structure of its export goods, and commodities available for export are very much limited. Its export goods are mainly known as primary products such as agricultural and marine products, timber and mine products. The prices of them are low, constituting a great contrast against imported goods which contain a high degree of technology and highly-added value.

In addition, Myanmar products lack good quality and competitiveness in the world market. These factors have also restricted Myanmar's export to a large extent.

Although Myanmar has achieved surplus for the first time in its foreign trade, it is hard for the country to maintain such status in the long run. To attain this, it is up to Myanmar to adjust the structure of its export goods, increase the export products categories, seek new export growth points, boost gas export, improve the quality of export commodities, speed up the industrialization process, and raise the level of high technology.

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