Apr 26, 2017

European cosmetics firm looking for a distribution/importer partner in Myanmar

The range of products include: hair dyes, whitening cream, tooth paste, etc.
For more information on the opportunity, please contact evi@myanmar-business.org

It’s a Buyers’ Market as Developers Fight to Sell Condos Amid Coming Supply Glut

Competition be­tween condo devel­opers will become fierce this year as they vie for buyers amid a glut of supply, real estate indus­try leaders have said.

U Nay Min Thu, man­aging director of iMyan­marmHouse.com, told Myanmar Business Today that the supply of condos is increasing faster than demand, meaning sellers will have to resort to crea­tive marketing strategies to attract a limited num­ber of buyers.

“The supply of con­dos has been increasing since early 2017,” he said. “Some projects are at the luxury end of the scale and some are more basic.”

Some condos are being sold with long-term pay­ment plans that charge no interest in a bid to attract buyers, U Nay Min Thu said.

His company is hoping to offer long-term pay­ment plans of over 10 years for condo buyers and is in discussions with local banks, he said.

AYA Bank recently part­nered with Shwe Taung Real Estate, the develop­ers of the Hilltop Vista Condominium and Crys­tal Residences projects, to offer 15-Year mortgages, the longest repayment pe­riod available so far in the country.

Developers at other pro­jects including Swaydaw City, Paragon Residence, Kanbae Tower, GEMS Garden, River Front Gar­den, Sea View Condo, Kanthayar Center have all set competitive prices thanks to lacklustre de­mand, observers say.

Because of market con­ditions, apartment blocks that lack parking and an elevator will struggle to attract buyers, U Nay Min Thu said.

But there is hope on the horizon for condo de­velopers. A planned new condominium law is ex­pected to make it legal for foreigners to own condos, a change that is likely to boost demand, especially in the upper segment of the market.

Allowing foreign own­ership of condos has also been welcomed as a way of attracting foreign cur­rency inflows to Myan­mar, which some hope will smooth fluctuations in the dollar exchange rate.

Though the the condo market has faced various headwinds, the Myanmar Real Estate Service Asso­ciation says government policy has recognised and seeks to give the market a boost this year.

Source: Myanmar Business Today

Microfinance Firm Hayman Secures $1m Loan as Part of Aggressive Growth Plan

Microfinance lend­er Hayman Cap­ital has secured a $1 million loan from Malaysia’s May Bank as part of an ambitious ex­pansion plan to enlarge its loan portfolio and be­come a market leader.

The company said last week that it was hoping to receive the first tranche of the loan before the start of the Thingyan holiday.

The Singapore-based lender, which set up in Myanmar in 2014, said in January that it aims to double the size of its op­eration here by the end of 2017.

Deal Street Asia report­ed last week that bosses were in “active negotia­tions” with other inves­tors to sign loan agree­ments worth up to $4 million by April 2018.

“We intend to sign loan agreements of an aver­age of $1 million every quarter,” said managing director and CEO Sultan Marenov.

Between April and De­cember last year the MFI grew its loan portfolio by 129 percent. It aims to double its loan portfolio every year for the next three years.

Hayman Capital's growth follows the relaxa­tion last August of rules regulating microfinance. The reforms have local and foreign MFIs greater control over accessing loans, where they are al­lowed to operate and liquidity and solvency rates.

“It's a good time to in­vest, particularly in the microfinance industry in Myanmar because the government has done many good things like open up the industry and lay down some good regu­lations, so they gave us the opportunity to grow,” Marenov told Myanmar Business Today earlier this year.

The deposit-taking lender has about 26,000 customers across it five branches, most of whom are poor entrepreneurs and sole traders or small­holder farmers.

Marenov has said he plans to add 20,000 bor­rowers this year and an­other 20,000 in 2018.
The lender is active in Yangon and Bago divi­sions but plans to expand into Mandalay and Saga­ing regions this year.

Its average loan size is about $300 and, like other MFIs in Myanmar, Hayman’s borrowers rarely or never default.

Source: Myanmar Business Today

Apr 2, 2017

Myanmar-China oil pipeline nears start-up

YANGON: Nearly a decade in the making, a project to pump oil 770km across Myanmar to South-West China is set for imminent start-up, with a supertanker nearing the port of Kyauk Phyu, marking the opening of a new oil trading route.

Dogged by sensitive relations between Naypyitaw and Beijing, the US$1.5bil oil pipeline has been sitting empty for two years, but the two sides are now close to a deal, said Myanmar-based government and industry sources, despite some last-minute tensions.

An agreement between China’s PetroChina and Myanmar’s government will allow the state energy giant to import overseas oil via the Bay of Bengal and pump it through the pipeline to supply a new 260,000-barrels-per-day (bpd) refinery in landlocked Yunnan province.

The new oil gateway fits with China’s “One Belt, One Road” ambitions, linking it with central Asia and Europe, and will provide a more direct alternative route to sending Middle Eastern oil via the crowded Malacca Straits and Singapore.

It would also be a rare win for China in Myanmar after a diplomatic offensive aimed at forging better ties with its resource-rich neighbour, which has often been wary of Beijing’s economic clout.

Aung Myat Soe, deputy director of planning under the state-owned Myanmar Oil and Gas Enterprise, said the project was awaiting a final sign-off by the Electricity and Energy Minister.

Major issues including transport tariffs and Myanmar’s tax take on the oil have been settled, but port fees have yet to be finalised, said a Myanmar-based industry source familiar with the matter.
“The two sides are working to finalise the terms and sign the contract,” the person said, declining to be named as the information is not public.

“I can't say for sure when the deal would be sealed – it could be in a couple of days or early April.”
The pipeline will have an eventual capacity of 400,000 bpd, about 5% of China’s daily import demand, but the start-up of the Yunnan refinery has been held up as PetroChina and Myanmar negotiated final terms for delivering the oil.

PetroChina plans to start test production at the refinery in June, aiming to expand its foothold in China’s fuel-short southwest which has so far relied largely on rival Sinopec for supplies, said two Beijing-based oil officials familiar with the Yunnan refinery. – Reuters

Read more at http://www.thestar.com.my/business/business-news/2017/03/22/myanmar-china-oil-pipeline-nears-start-up/#EW4YZWurJQfVRZBh.99

Mar 13, 2017

Invitation for Open tender (~400 metric tons of copper cathode)

For more information, please contact evi@myanmar-business.org

Mar 8, 2017

Myanmar Prawn Exports Could Reach $1bn

Exports from Myan­mar’s ailing prawn industry could be worth $1 billion per year by 2022 if it adopts a dis­ease resistant strain of the crustacean from Hawaii in the United States, ac­cording to industry lead­ers.

U Kyaw Tun Myint, chairman of the Myan­mar Shrimp Association, said at an industry meet­ing last month that My­anmar could reduce its trade deficit by 25 percent if it reached its targets for prawn production.

Marine Genetic LLC, a marine laboratory based in the United States, is planning to trial breed specific-pathogen-free (SPF) prawns in My­anmar with the aim of distributing to the local market, the February 22 meeting heard.

Myanmar predomi­nantly farms black tiger prawns at its inland farms but the industry is strug­gling with the high costs of importing shrimp lar­vae from Thailand and disease that has spread through the country’s prawn stocks.

Marine Genetic LLC has set up the Best Burma company to launch the trial breeding of five mil­lion SPF prawns in Rakh­ine State and Ayeyarwad­dy Region.

It will also share bios security systems, farming management techniques and aeration techniques with local breeders, said Dr Jim Wyban, a prawn genealogist and breeder at Marine Genetic LLC.

SPF prawns grow in both fresh and salt wa­ter, have higher survival rates and can grow up to 20 grams in their first 100 days. They can also tolerate a higher popu­lation density, up to 1.5 kilograms of prawns per square metre, which is beneficial for smaller-scale local breeders.

Prawns make up 86 per­cent of the global fishery market, said Wyban, add­ing that to capitalise on this Myanmar breeders must raise the productiv­ity of their prawn busi­nesses.
U Hnin Oo, vice-chair­man of Myanmar Fish Fed­eration (MFF), said Myan­amr’s reliance on Thailand for larvae was also hinder­ing the industry.

“We urgently need to develop prawn larvae breeding capabilities,” he said.

The MFF has urged the government to include the prawn industry in its export strategy, he added.

Myanmar prawn ex­ports reached $400 mil­lion in 2016, while region­al neighbours Thailand and Vietnam earned a combined total of $6 bil­lion from shrimp exports in the same year.

Source: Myanmar Business Today 

Mar 7, 2017

KIA Myanmar Offers 5-Year Hire Purchase Scheme for K 3000 Truck

The Myanmar branch of South Ko­rea automaker KIA has introduced a five-year hire purchase scheme for its K 3000 pick up truck, but buyers were given less than a month to take ad­vantage of the promotion­al offer.

The hire purchase of­fer, which ends March 7th, allows buyers to pay K330,000 a month for sixty months, but they have to make an initial down payment of K5 mil­lion.

The total purchase price of the half-ton vehicle is K25 million. It has a 5 Speed Manual Transmis­sion gear box and 3.0 JT Diesel Engine.

Last month KIA launched its 55555 pro­motion for two different models, the KIA Optima and KIA Carens truck. The deal offered a five year warranty, a five year hire purchase scheme, five free maintenance check ups and a K500,000 fee to register the car.

Source: Myanmar Business Today