Myanmar Courier, Express and Parcel Market Driven by Booming E-Commerce Market, Liberalization of the Postal Sector and Increasing Trade Volumes
Analysts at Ken Research in their latest publication “Myanmar Courier, Express and Parcel Market Outlook to 2023 - Driven by Booming E Commerce and Liberalization of Postal Services” believe that the Express Logistics Market in Myanmar is expected to grow due to liberalization of the courier services, market entry of foreign firms and government focus on infrastructural development. The Myanmar Express Logistics Market is expected to grow at a CAGR of ~ 30% during the period 2018-2023.
“From Once Being Sole Operator of Courier Services to Expected Privatization, Myanmar Post and Telecommunication is Changing the Landscape of Express Logistics Market”
Strategic Location: Myanmar enjoys a strategic geographical location in Southeast Asia acting as a gateway between India and the ASEAN Countries. Since the economy opened up in 2011, trade volumes with neighbouring countries such as India, China and Thailand, along with other countries, has been steadily increasing.
Entry of Foreign Players: One of the lucrative factors for investing in Myanmar is the abundant supply of natural resources and one of the cheapest labour costs in Asia. Major corporations, especially consumer goods’ manufacturers, from the US, Europe as well as Asia have announced their intention to return to Myanmar or, to invest for the first time. The total amount of FDI in Myanmar reached USD 7.5 billion in 2018.
Liberalization of Postal Sector: The recent and gradual liberalization of delivery services through partnership with third party logistics provides–after decades of strict monopoly by Myanmar Post for mail and small parcels–have enabled the development of a small e-commerce logistics market, primarily in urban regions of Yangon and Mandalay. Cross border e-commerce is still in the nascent growth stage, mainly due to custom clearance procedures in Myanmar which take 5-7 days as against the ideal standard of 1-2 days.
Focus towards Modernization: Myanmar ranked 126th out of 170 countries in the 2016 Integrated Index for Postal Development by the Universal Postal Union (UPU). UPU is now supporting Myanmar Post to aid its development and digitalization process. The Ministry of Transport and Communication and Japan’s Ministry of Internal Affairs and Communications have signed a memorandum of cooperation in the postal sector for the modernization and improvement of Myanmar’s postal services.