The recent powerful earthquake in Myanmar has added to the already difficult business environment for Vietnamese enterprises operating in the country, stated the Vietnam Trade Office in Myanmar.
On March 28, a 7.7 magnitude earthquake struck Myanmar, causing significant obstacles for trading activities between the two nations. According to the trade office, all Vietnamese businesses in Myanmar are safe, but the earthquake has severely affected the region’s infrastructure, including power and telecommunication networks, creating further barriers to trade.
The disaster only adds to the numerous challenges that Myanmar has been facing, including political instability, conflict, and a fragile economy. With the ongoing political crisis and conflict, travel between regions has become increasingly difficult, leading to high logistics costs and complicating business operations. Additionally, the country’s economy, already fragile due to years of internal conflict, now faces even greater setbacks such as frequent power shortages and high operational costs.
Given these circumstances, it is unlikely that Myanmar’s economy will experience significant recovery in the short term. This has resulted in a decline in trade between Vietnam and Myanmar, with a 16% decrease in two-way trade turnover reported in 2024 and a 29% decrease in the first two months of 2025.
The decline in trade can be attributed to Myanmar’s import restrictions and complex import procedures, which make it challenging for Vietnamese companies to obtain necessary licenses for exporting goods to Myanmar. Many businesses have been forced to export their goods through neighboring countries, significantly raising costs and hindering trade. Moreover, with strict foreign exchange controls and increased sanctions from the US and EU, Vietnamese companies must exercise caution in their business dealings with Myanmar.
In light of these challenges, the Vietnam Trade Office advises Vietnamese exporters to closely monitor the situation and maintain communication with the relevant agencies. They also recommend following Myanmar’s policies and guidelines for conducting trade and adopting safe payment methods to mitigate potential risks.
Despite these obstacles, the Vietnam Trade Office remains committed to supporting Vietnamese businesses in Myanmar and plans to organize a trade fair in 2025 to further promote trade between the two countries.