Potential exporters should beware of Myanmar, the Vietnam Trade Office in Myanmar has warned.
In a recent statement, it urged those enticed by Myanmar’s demand for imported goods to be careful of what it characterized as inefficient, unreliable and unforgiving trade infrastructure. The statement, summarized in English by the Viet Nam News, described a difficult and slow customs process with goods seized and auctioned by authorities if they fail to clear within 60 days. It warned potential investors about the pitfalls of working with Myanmar partners and advised them to carefully review Myanmar trade laws.
The Trade Office’s warning did not stop at laws and trade policy. It also argued that demand for high quality Vietnamese goods would be low, as Myanmar’s population is still relatively poor and more interested in cheap, low quality products from partners like China.
The warning comes after a decade of increased trade between Myanmar and Vietnam, which has more than quadrupled since 2010 to USD 860 million in 2019, Viet Nam News reported. Prime Minister Nguyen Xuan Phuc and a high-ranking delegation of Vietnam visited Nay Pyi Taw and Yangon just last December 16, 2019.
Despite its slow and unreliable customs process, exporters from around Asia have been attracted by Myanmar’s relatively low barrier of entry for foreign goods. China, Japan and Thailand have all made recent steps to boost trade with Myanmar as well as open manufacturing centers in the country’s industrial zones and special economic zones.
However, inefficient and unreliable bureaucracy has always been a thorn in Myanmar’s side when it comes to attracting foreign-owned factories. High-end brands from developed countries have been warded away by Myanmar’s underdeveloped infrastructure–despite promises from officials to build new roads, power lines and other necessary facilities.