fbpx 52308-001: Innovative Trade Promotion in Myanmar | Asian Development Bank

Myanmar: Innovative Trade Promotion in Myanmar

Sovereign (Public) Project | 52308-001 Status: Proposed

The project is designed to establish a $65 million corpus of the Myanmar Trade Promotion Fund (MTPF) within Ministry of Commerce (MOC). The MTPF will lend to qualified participating financial institutions (PFIs) who will on-lend to mid-sized export units . The exporters will use the funds to cover capital costs to expand production and value addition in strategic export sectors. IN addition, the exporters can also use the funds to obtain sanitary and phytosanitary compliance certification to expand market access. The proposed MTPF will support sectors that are prioritized by the New Export Policy (2015-2019). The proposed MTPF supports other elements of the export strategy including developing trade logistics and infrastructure, trade certification, and trade agreements

Project Details

Project Officer
Rao, Vivek Southeast Asia Department Request for information
Country
  • Myanmar
Sector
  • Industry and trade
 
Project Name Innovative Trade Promotion in Myanmar
Project Number 52308-001
Country Myanmar
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant: Innovative Trade Promotion in Myanmar
concessional ordinary capital resources lending / Asian Development Fund US$ 2.00 million
Loan: Innovative Trade Promotion in Myanmar
concessional ordinary capital resources lending / Asian Development Fund US$ 67.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Industry and trade / Trade and services

Public sector management / Economic affairs management

Gender Equity and Mainstreaming Some gender elements
Description The project is designed to establish a $65 million corpus of the Myanmar Trade Promotion Fund (MTPF) within Ministry of Commerce (MOC). The MTPF will lend to qualified participating financial institutions (PFIs) who will on-lend to mid-sized export units . The exporters will use the funds to cover capital costs to expand production and value addition in strategic export sectors. IN addition, the exporters can also use the funds to obtain sanitary and phytosanitary compliance certification to expand market access. The proposed MTPF will support sectors that are prioritized by the New Export Policy (2015-2019). The proposed MTPF supports other elements of the export strategy including developing trade logistics and infrastructure, trade certification, and trade agreements
Project Rationale and Linkage to Country/Regional Strategy A focus area for NES implementation is small and medium enterprises (SMEs). However, SMEs, especially medium enterprises, have poor access to finance, use old technology, and have weak logistical support. Thus, SMEs are a priority in the Sustainable Development Plan. Weak SME exports contribute to Myanmar's trade deficit, which has widened to around 5% of GDP in 2017 2018 financed by foreign direct investment keeping currency reserves at 3 months imports. Myanmar's trade deficit is growing and expected to reach around 6% of GDP. In response, the NES has identified several SME related export policies, including: (i) access to finance like government facilities, guarantees, bank credit; (ii) quality management for long-term market access; (iii) export promotion through market information; and (iv) trade facilitation and logistics including cold-chains, cargo systems, and legal reform.
Impact Improved Export Performance in Select Sectors (Myanmar Sustainable Development Plan (2018 2030)
Outcome Improved export environment
Outputs $65 million FI loan to establish the Myanmar Trade Promotion Fund (MTPF) in Ministry of Commerce (MOC). Functions such as trade promotion, permit issuance, licensing and gender mainstreaming supported.
Geographical Location Nation-wide
Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Rao, Vivek
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 14 Dec 2020
Fact Finding 18 Jan 2021 to 29 Jan 2021
MRM 26 Mar 2021
Approval -
Last Review Mission -
Last PDS Update 30 Sep 2020

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