Myanmar Trade and Investment Report 2025

Trade showed diverging movements in exports and imports by product. The decline in exports of natural gas and agricultural products was partly offset by increases in garments, copper, rubber, and electrical machinery. On the import side, reconstruction demand following the major earthquake in central Myanmar and raw materials and parts needed to operate factories drove increases, while mineral fuels, the largest import category, declined.

China ranked first as both an export destination and an import source, and its share of combined exports and imports rose to 35.0% from 27.8% the previous year. In addition to instability in overland border trade, constraints from foreign exchange controls stemming from foreign currency shortages and import licensing controls have become more severe, leaving the durability of the trade recovery uncertain.

The account states that the February 2021 coup, economic sanctions imposed by various countries, the prolonged civil war, power shortages, strict foreign exchange controls, and import restrictions further dampened foreign companies’ willingness to invest.

The source cites the concentration of trade with China, instability in border trade, and tighter foreign exchange and import controls, and says the durability of the trade recovery remains uncertain.

Approved inward foreign direct investment fell 31.5% year over year, dropping to less than one-tenth of the 4.8788 billion dollars recorded in fiscal year 2019/20 before the coup.

The leading export items were mineral fuels, down 4.5% to 3.131 billion dollars; woven garments, up 2.2% to 2.625 billion dollars; vegetables and roots, down 20.9% to 1.562 billion dollars; knitted garments, up 11.2% to 1.427 billion dollars; and cereals, down 37.3% to 1.276 billion dollars. Under cut, make, and pack (CMP) contract processing, duty free imported raw materials are processed using low cost labor, with orders from Japan, Europe, South Korea, and others providing support. Copper exports rose about 3.5 times, rubber increased 22.9%, and electrical machinery increased 29.7%.

Mineral fuels, which accounted for 28.3% of imports, fell 7.5% to 4.189 billion dollars. Electrical machinery and parts rose 2.2 times to 973 million dollars; iron and steel increased 86.6% to 720 million dollars; transport equipment increased 76.2% to 620 million dollars; and general machinery and parts increased 25.2% to 565 million dollars. Import licenses were issued as a priority for reconstruction materials and other goods. Short fibers and fabrics of manmade fibers increased 14.2% to 819 million dollars, while long fibers, fabrics, and related goods increased 13.2% to 608 million dollars.

Exports to China increased 24.7% to 4.312 billion dollars, accounting for 29.6% of the total; exports to Thailand fell 8.6% to 2.655 billion dollars; and exports to Japan increased 8.4% to 1.164 billion dollars. India ranked fourth, with exports down 27.6% to 924 million dollars. China and Thailand together accounted for 47.8% of exports, rising to 62.2% when Japan and India were included. Imports from China increased 42.6% to 5.952 billion dollars, accounting for 40.2% of the total; imports from Singapore fell 14.6% to 2.654 billion dollars; and imports from Thailand increased 37.6% to 1.601 billion dollars.

The leading recipients of approved investment were China, with 201.1 million dollars (2.1 times the previous fiscal year) and 42.6% of the total; Singapore, with 155 million dollars (down 66.3%); and Hong Kong, with 54.9 million dollars (up 81.5%). The top three locations accounted for 87.0%. Japan recorded 1.5 million dollars (down 10.3%), including one new project. By sector, manufacturing received 245.2 million dollars (up 34.2%), or 51.9% of the total and 94.1% of newly approved projects. Transport and communications received 131.4 million dollars (up 49.8%), while electricity received 68.8 million dollars, 8.1 times the previous fiscal year.