Staff from Lumi Viet Nam Co introduce home technology solutions to a client during the Viet Nam Expo 2019 in Myanmar late last year. — Photo nhathongminhviet.vn

Vietnamese exporters need to be cautious when shipping goods to Myanmar despite untapped opportunities available in the market, according to the Viet Nam Trade Office in Myanmar.

Under Myanmar's regulations, if imported goods arrive at the country’s ports and fail to clear customs within 60 days, these goods would be auctioned or confiscated. Therefore, Vietnamese enterprises need to be careful when exporting to Myanmar to avoid business losses, the office warned.

Firms should improve their understanding about the country’s laws as they make transactions with local partners, the office suggested.

Additionally, businesses could encounter other challenges in the market, due to its import licensing requirements, slow goods clearance, low incomes of the majority of local people and their shopping habits – favouring cheaper products.

According to trade experts, consumers there were particularly fond of Vietnamese fresh produce and processed foods, such as coffee and fruits. The prices of Vietnamese goods were very competitive, they said.

However, the goods still faced fierce competition from other companies in the region, which required Vietnamese enterprises to improve product quality and reduce costs to improve their competitiveness.

Vietnamese manufacturers should also make efforts to establish their brands in the global market and invest more in product packaging and labelling, they said.

Despite these challenges, Myanmar remained a lucrative market for Vietnamese companies because of the country’s insufficient production capacity, few strict technical barriers to imported goods, and tax incentives for products imported from ASEAN members.

Myanmar is a great market for a wide range of Viet Nam's good and services, from food and materials for food processing, electronics and electrical goods, iron and steel, bikes and motorbikes to information and telecommunications, according to the office.

Bilateral trade between the two countries increased significantly from a modest US$152 million in 2010 to nearly $860 million in 2019. It is estimated to reach $1.05 billion in 2029.

Viet Nam is also the seventh largest investor in Myanmar, with 18 large projects worth a total of nearly $2.2 billion. Major companies such as Hoang Anh Gia Lai, the Bank for Investment and Development and Viettel have operations there. — VNS