Myanmar Trade News (October 2025)

Post-COVID-19 Economic Stabilization: After several years of disruption due to the COVID-19 pandemic and subsequent political instability, Myanmar could see early signs of economic stabilization. Trade volumes may start to recover, especially in sectors like agriculture, textiles, and natural resources.
Inflation and Currency Stability: The Myanmar kyat (MMK) may experience volatility, but efforts to stabilize inflation could lead to positive trade relations with neighboring countries like Thailand, China, and India.

2. Myanmar-China Trade Relations

Belt and Road Initiative (BRI) Projects: Myanmar’s strategic location remains a focal point in China’s Belt and Road Initiative. There could be significant developments in infrastructure projects, such as the China-Myanmar Economic Corridor (CMEC). New trade routes and energy projects may be launched, facilitating smoother trade between Myanmar and China.
Natural Resources Exports: Myanmar’s key exports to China, such as jade, timber, and natural gas, might see a boost, as demand in China for these resources increases.

3. Regional Trade Agreements and ASEAN Integration

ASEAN Trade Deals: Myanmar’s role in the Association of Southeast Asian Nations (ASEAN) may continue to shape its trade policies. By mid-2025, Myanmar might be negotiating new trade agreements within ASEAN, focusing on sectors like agriculture, fisheries, and manufacturing. Efforts to improve the regional supply chain may also encourage greater intra-ASEAN trade.
RCEP (Regional Comprehensive Economic Partnership): Myanmar’s participation in RCEP, which involves 15 Asia-Pacific nations, could enhance trade relationships with countries like Japan, South Korea, and Australia. This may lead to new export opportunities, especially in textiles and electronics.

4. Domestic Industry Development

Agricultural Trade: Myanmar’s agricultural exports, particularly rice, pulses, and seafood, could continue to grow as the government supports modernization and improvement in farming practices. The country’s agricultural trade could also be bolstered by new access to markets in the Middle East and Europe.
Textile and Garment Exports: Myanmar’s textile industry may see a revival in recent months, thanks to its competitive labor costs and preferential trade agreements with countries like the EU and Japan. The garment sector could become a key focus, with a particular emphasis on increasing exports to the European Union under the “Everything But Arms” (EBA) initiative.

5. Foreign Investment and Trade Diversification

Foreign Direct Investment (FDI): Foreign investment may begin to trickle back into Myanmar following political reforms and stabilization efforts. Investment could flow into sectors like renewable energy, logistics, and manufacturing. Countries like Singapore, Japan, and South Korea could increase their involvement in Myanmar’s economy.
Trade Diversification Efforts: Myanmar might start working on diversifying its trade partners, exploring new markets in Africa and the Middle East to reduce its dependence on neighboring countries. Efforts could focus on expanding trade in areas such as pharmaceuticals, textiles, and eco-tourism.

6. Challenges and Political Landscape

Sanctions and Trade Barriers: Western sanctions could continue to impact Myanmar’s trade, especially with the US and EU. Myanmar’s military-led government may face ongoing diplomatic pressure, which could result in restrictions on financial transactions or exports in some sectors, particularly arms and luxury goods.
Internal Conflicts and Trade Disruptions: Political instability, particularly in ethnic minority areas, could affect trade flows. Border conflicts and restrictions on trucking routes may disrupt trade between Myanmar and its neighbors, particularly in sectors like rice, oil, and gas.

7. Environmental and Sustainability Initiatives

Green Trade and Sustainable Practices: Myanmar might begin to emphasize sustainable trade practices, especially in timber and agricultural products. The push for more eco-friendly exports could open doors to new trade agreements with countries focused on sustainability, such as those in the European Union.

8. Infrastructure Development

Port and Shipping Expansion: Myanmar could see advancements in port infrastructure, particularly in areas like Yangon and Dawei. Investment in transportation infrastructure could ease the flow of goods and strengthen Myanmar’s position as a regional trade hub, connecting Southeast Asia with South Asia.

China’s dominance in trade: As Myanmar’s largest trading partner, China remains a central player in Myanmar’s trade activity. This could include new projects under BRI, as well as growing exports of resources like timber and natural gas.
Agricultural exports: Myanmar’s rice and pulses trade will likely continue to be a backbone of its export economy. ASEAN countries and China are key markets for these products.
FDI influx: As Myanmar stabilizes politically and economically, foreign direct investment, especially from Southeast Asia, could begin to flow back into Myanmar’s manufacturing, energy, and infrastructure sectors.
Sanctions and global trade politics: Myanmar’s trade relationships with the US and EU may remain strained due to political instability, although there could be opportunities to pivot towards alternative markets in Asia and the Middle East.

Source: Various News