Currently, e-commerce in Myanmar falls broadly into two categories – formal and informal.

In the formal category, merchants and buyers conduct transactions using registered digital platforms operated by e-commerce companies.

Transactions between merchants and buyers using public platforms such as social media, messaging apps and forums are categorised as informal.

At present, there are estimated to be 220,000 active online buyers in Myanmar. Of them, 1 percent makes online purchases. The market is about 0.07 percent of Myanmar’s GDP, said U Myo Khaing Win, deputy director of the Department of Trade.

Myanmar launched its e-government master plan in 2015 indicating that the government is keen on improving and updating the legislative and regulatory framework for e-commerce, he said.

“I think that we should have an e-commerce association. If we do, we will need less formal oversight. If the government is going to announce and define do’s and don’ts for e commerce, it will need a legal framework, which is currently lacking. Forming an association would be a good first step for the future growth of e-commerce,” said U Min Min.

There are currently no formal regulations for registering e-commerce businesses in Myanmar and the government has not yet decided which authority will have jurisdiction.

‘’Myanmar has no exact rules and regulations to govern the use of e-commerce now, but procedures for this will come out later. Some businesses want to register formally as e-commerce operations but others do not because of taxes.

Some point out that official businesses should pay taxes to the government but unofficial operators escape it. That’s why we are facing a lot of criticism and resistance,” said U Min Min.

Nevertheless, the Ministry of Trade is supportive of growth in e-commerce and will help facilitate businesses to transact more efficiently through things such as e-commerce, he added.

In the summit, senior spokespersons from Ministry of Commerce and large companies involved in e- commerce discussed the challenges facing e-commerce in Myanmar.

“By holding this summit, we learn the real situation on the ground. Through private-public dialogue, businesses learn what the government is doing while the government learns more about what is needed to help businesses thrive,” said U Min Min.

Source: https://www.mmtimes.com/news/association-needed-quicker-e-commerce-development-minister.html