Contents
Abbreviations ......................................................................................................................................... iv
Executive Summary................................................................................................................................. 5
1. Background and Process ................................................................. Error! Bookmark not defined.
2. The Changing Landscape and Role of the Ministry of Commerce ............................................... 11
2.1. Political Landscape ................................................................................................................ 15
2.2. Economic Landscape ............................................................................................................. 16
3. From State Trading to Policy Making: Evolution of the MOC ...................................................... 20
4. Strengthening Capacity and Policy Functions .............................................................................. 26
4.1. Strengthening Policy Formulation, Planning and Communication Functions ...................... 27
4.2. Strengthening the Minister’s Office...................................................................................... 30
4.3. Optimizing Capacity Development Efforts ............................................................................ 34
4.4. Strengthening Leadership and Managing Change.……………………………………………………………42
4.5. Optimizing Resources and Support from Development Partners ........................................ 42
4.6. Realigning Functions of Departments ................................................................................... 43
4.7. References ............................................................................................................................ 52
5. Implementation and the Way Forward ........................................................................................ 53
Annex 1: List of Persons Met ................................................................................................................ 58
Annex 2: Proposed Terms of Reference............................................................................................... 60
Annex 3: Example of Ministry and Department Performance Indicators ............................................ 62
Annex 4: Comparison Chart with ASEAN Countries, Australia, UK and US .......................................... 65
Figures
Figure 1. Export Diversification Index ................................................................................................... 16
Figure 2. Drivers of Export Growth Between 2010 and 2015 (percent) ............................................... 16
Figure 3. Import Values Through Normal and Land Border Channels (and 12-month moving average)
.............................................................................................................................................................. 17
Figure 4. Export Value Through Normal and Land Border Channels (and 12-month moving average)
.............................................................................................................................................................. 17
Figure 5. Hospitality and Retail: Contribution to Nonfarm Income (percent) ...................................... 18
Figure 6. Street-Related Services: Contribution to Nonfarm Income (percent) ................................... 18
Figure 7. Preferred Methods of Communications by Stakeholders ..................................................... 19
Figure 8. Constraints Faced by Microenterprises in Myanmar............................................................. 21
Figure 9. Evolution of the Ministry of Commerce................................................................................. 21
Figure 10. Evolution of Departments Within the Ministry of Commerce since 1998 .......................... 23
Figure 11. Current Organogram of the Ministry of Commerce and Staff Allocation............................ 24
Figure 12. Budget Allocations Across Departments of the Ministry of Commerce in FY 2017/18 ....... 25
Figure 13. MOC Functions ..................................................................................................................... 27
Figure 14. Stakeholder Perception on Factors Affecting Slow Progress of Policy Reforms .................. 28
Figure 15. Stakeholders Perception on Weaknesses of MOC ............................................................... 29
Figure 16. Current Structure of Minister's Office of the Ministry of Commerce .................................. 31
Figure 17. Factors Affecting Time Management................................................................................... 31
Figure 18. Sectoral Areas Needing MOC’s Focus .................................................................................. 32
Figure 19. Proposed Structure of the Minister’s Office in the MOC..................................................... 33
Figure 20. Opinion on Taking Early Retirement or Resignation ............................................................ 34
ii
Figure 21. Reasons for Thinking of Early Retirement or Resignation ................................................... 35
Figure 22. Factors Determining Job Satisfaction .................................................................................. 35
Figure 23. Herzberg’s Distinction Between “Satisfiers” and “Hygiene Factors” ................................... 36
Figure 24. Staff Perception on MOC as an Employer ............................................................................ 36
Figure 25. Undergraduate Background of Gazetted Staff .................................................................... 37
Figure 26. Preferred New Subjects to Study ......................................................................................... 37
Figure 27. Familiarity with and Use of Information Technology Programs .......................................... 37
Figure 28. Perceptions on Improvements to Bring to MOC................................................................. 38
Figure 29. Age Profile of MOC............................................................................................................... 38
Figure 30. Sources of Learning for Skill Development .......................................................................... 39
Figure 31. Ethnic Diversity Across Different Positions .......................................................................... 41
Figure 32. Gender Diversity Across Different Positions ........................................................................ 41
Figure 33. Proposed Structure for International Relations and Aid for Trade Unit .............................. 43
Figure 34. Number of MOC Staff in Border Posts and Number of Licenses Issued per Month in FY
2016/17 ................................................................................................................................................. 46
Tables
Table 1. Factors Influencing the Tasks of the Ministry of Commerce .................................................. 15
Table 2. Major Functions of Each Department ..................................................................................... 24
Table 3. Comparison of Management of Providers .............................................................................. 32
Table 4. Proposed Restructuring of DOT into Department for Foreign Trade ..................................... 44
Table 5. Typical Attributes of a Trade Promotion Agency in Neighboring Countries ........................... 48
Table 6. Recommendations for Divisions Under the Department of Consumer Affairs....................... 51
Table 7. Planning and Implementing Reform Options: A Snapshot ..................................................... 54
Boxes
Box 1. Stakeholder Feedback on MOC Policy Notifications .................................................................. 28
Box 2 USAID Program for Capacity Building at Ministry of Trade of Indonesia.................................... 39
Box 3. Trade Promotion Efforts and the Agency of Singapore ............................................................. 50
iii
Abbreviations
A4T Aid for Trade
ASEAN Association of Southeast Asia Nations
DG Director General
DOCA Department of Consumer Affairs
DOT Department of Trade
FY Fiscal Year
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German
International Development Organization)
HR Human Resources
IBT Informal Border Trade
ICT information and Communications Technology
IT Information and Technology
MOC Ministry of Commerce
MOT Ministry of Trade
MPLCS Myanmar Poverty and Living Conditions Survey
MyanTrade Myanmar Trade Promotion Organization
PSD Private Sector Development
RCEP Regional Comprehensive Economic Partnership
SEZ Special Economic Zone
SME Small and Medium Enterprise
TFA Trade Facilitation Agreement
UCSB Union Civil Service Board
WTO World Trade Organization
iv
Acknowledgment
This report was written by Sjamsu Rahardja and Zubair K. Bhatti of the World Bank.
The team expresses appreciation for guidance and support from H.E. U Than Myint and H.E U Aung
Htoo, Minister and Deputy Union Minister of Commerce. The team also wishes to acknowledge
support from staff and Director Generals from Department of Trade Promotion, Department of Trade,
Department of Consumer Affairs, and the Permanent Secretary of the Ministry of Commerce.
The team thanks Prof. Mari Pangestu of CSIS for providing background note for the report. Aka Kyaw
Min Maw, Lwin Aung and Tony Dickinson provided excellent research assistances. A team from Thura
Swiss made significant contributions to staff survey data collection. The team benefited from
discussions with representatives from Myanmar private sector. The team also received valuable
feedback from Morten Larsen.
Australia Aid and UK-Aid provided generous support for the preparation of this report.
5
Executive Summary
1. Myanmar’s Ministry of Commerce (MOC) continues its evolution from a state trading
agency to a ministry responsible for trade-related policy. Initially called the Ministry of Commerce,
Supplies, and Transportation, its name and identity have undergone several changes. When Myanmar
effectively became a closed economy during the “Burmese Way to Socialism,” the Ministry was
authorized to conduct commercial trading and imposed strict control over international trade. Even
after the economy was opened up in 1988, the then Ministry of Trade continued its involvement with
trading strategic commodities and controlled inland cross-border trade. Since 2011, the Myanmar
government has tasked MOC with promoting trade through the private sector, coordinating trade-
related policies, opening export markets, and promoting rights for consumers and a level playing field
for producers. However, remnants of active control over trade remain while capacity to execute new
functions, such as policy formulation, coordination, and monitoring, is still underdeveloped. The
Ministry retains a large border presence and has a sizable number of staff under the Department of
Consumer Affairs in Nay Pyi Taw and in states and regions.
2. Socioeconomic transitions are putting pressure on MOC to change. The critical factors
behind MOC’s evolution during the foreseeable future are Myanmar’s political and economic
transitions, the rising expectations of citizens and businesses, the introduction of technology, staff
capacity, and a change in role required to meet new regulatory challenges. The Ministry is expected
to coordinate policies that address the low quality of export products, unlock opportunities for trade
in industries that create jobs, and promote domestic commerce through retailing, wholesaling, and
franchising. Promoting trade and job creation through the private sector are arguably the areas in
which MOC faces the greatest expectations to deliver its mandate.
3. In recent years, MOC has taken steps to become a modern commerce ministry. It reduced
the number of import licenses, introduced an electronic mechanism to issue trade licenses, set up the
Trade Information Portal, and undertook the Trade Policy Review and the Diagnostic Trade Study for
Myanmar. The Ministry also stepped up trade diplomacy with the Association of South East Asia
Nations (ASEAN) and active engagement with the World Trade Organization (WTO). The Ministry is
leading coordination to improve Myanmar’s ranking in the World Bank’s Doing Business Indicators
and acts as a focal point for the Private Sector Development Committee. The government has also
asked MOC to coordinate development of special economic zones (SEZs) in Myanmar.
4. This review finds key gaps in organizational setup and practices that affect the capability of
MOC to deliver tasks. Although the tasks and responsibilities carried out by MOC are similar to other
ministries of trade and commerce in the East Asia and Pacific Region, the Ministry is not yet supported
by proper organizational and functional structures. There is an overreliance on the Department of
Trade (DOT) to deliver outputs, while trade negotiation and promotion functions in other departments
are underdeveloped. With MOC’s reduced involvement in trade, DOT is filling in the vacuum by
developing policies, delivering training, and supporting the minister in negotiating market access with
neighboring countries. The capacity of the divisions under the Minister’s Office to carry out strategic
planning, monitor results, and analyze new policies is limited. MOC lacks key, centralized cross-
support functions in human resources (HR), legal services, and information and technology—and
instead, each department has its own services. The MOC isn’t set up to appoint and assign tasks to
commercial attaches abroad.
5. This review identifies four sets of recommendations, each with suggested interventions,
around the following goals:
6
• strengthen the Minister’s Office, which includes strengthening planning and policy
formulation and cross-support function;
• step up efforts to develop staff capacity;
• optimize resources and support from development partners; and
• align functions under existing departments: reorganizing the Department of Trade,
setting up a Trade Negotiation Department to strengthen trade promotion and
reorganizing the domestic trade function.
6. Recommendation Set 1: Strengthening the Minister’s Office is fundamental to drive reform
within MOC and promote sound policies. The Ministry has defined its vision and mission, developed
important sector strategies. However, shortcomings in the Minister’s Office hamper the achievement
of MOC’s strategic objectives. Firstly, the permanent secretary has no direct role in the Minister’s
Office. None of the functional divisions under the minister report to the permanent secretary, who is
supposed drive and sustain implementation of MOC’s work program. Secondly, given that promoting
private sector development (PSD) is a high priority, MOC needs to strengthen its support to ensure
proper follow-up. Thirdly, important functions like HR, internal audit, planning, statistics, information
technology, and legal services are distributed across the ministry, which contributes to the dispersal
of scarce skills and weak coordination. The limited provision of support functions by the Minister’s
office contrasts sharply with most other ministries of commerce and trade in the countries of East Asia
and Pacific Region.
7. The following interventions are proposed to help overcome these shortcomings and
strengthen the Minister’s Office to improve coordination and implementation of strategic initiatives.
a. Empower the Permanent Secretary to coordinate and ensure collaboration across Departments on
planning tasks, defining strategic objectives, monitoring results, and ensuring policy coherence. To
do so, bring planning and statistics under the permanent secretary. This function may also include
access to external advisors to help MOC deal with additional tasks (e.g., the PSD and SEZ
committees). The permanent secretary may also lead the delivery of shared and support
functions.
b. Improve planning and policy formulation. Strategic direction from the minister, deputy minister,
and permanent secretary is needed to ensure the alignment of each department’s activities with
MOC’s vision and mission, and more importantly, with the economic policies of the government.
The lack of strategic planning in MOC manifests as a results framework and milestones of
deliverables that are unclear. MOC also may consider separating the policy formulation role from
implementation, to avoid policies being driven by the potentially narrow and conflicting interests
of departments and crowding out the space and time for systematic policy analysis.
c. Centralize, partially or fully, administrative and supporting functions: HR, information and
communications technology, internal audit, legal services, planning, and statistics. Most of these
functions are provided separately within each department, with limited cross-support.
Centralizing the provision of these functions, partially or fully, under the Office of the Permanent
Secretary or minister, would help strengthen strategic direction setting, improve coordination,
concentrate scarce capacity, and improve information sharing within the Ministry. For example,
an HR unit under the Minister’s Office could manage recruitment, career planning, and rotation
across departments as well as discipline, promotion, and other HR issues for gazetted staff.
d. Strengthen the Secretariat for the Trade and Business Promotion Task Force and the PSD
Committee. This task force was established by the Government and has a key coordinating
7
function across the trade sector. It may be provided with a full-time secretariat (possibly headed
by a retired civil servant) and have strong links and networks with the private sector. The
secretariat may report directly to the permanent secretary.
e. Upgrade International Cooperation function under the Minister’s Office: This is to help MOC to
coordinate activities of development partners and supervise implementation of grant-funded
program to support government strategic objectives (e.g., Myanmar Sustainable Development
Plan).
a. A stronger communication function is needed for MOC to disseminate policies and reform
direction. With the rising popularity of social media, MOC may want to revisit its strategy for media
outreach and appoint a dedicated media team. Creating a dedicated website would be the first
step in this strategy.
8. Recommendations Set 2: Strengthen organizational and staff capacity to meet new policy
requirements. The political and economic context of Myanmar is undergoing a rapid transition
requiring new ways of working together (organizational capacity) and new skills (staff capacity). More
than half of MOC staff are above 50 years of age and will likely enter retirement in 10 years or less. A
staff survey suggests building the capacity of junior and mid-level employees may be an immediate
and long-term priority for MOC. It is important to attract the best and the brightest. While the ministry
cannot improve the pay and compensation package of its staff, which is determined by central civil
service policies, it can improve the working environment, career prospects, and other nonfinancial
aspects of employment to help improve morale and attract high-caliber staff. The following
interventions may be considered:
a. Create interdepartmental task groups drawn from MOC staff to review specific tasks and resolve
problems. One form of incentive for skills improvement is to create a demand for skilled staff.
MOC could also establish a task group consisting of staff from different departments to undertake
certain tasks relevant for director generals (DGs) or the policy unit of the Minister’s Office.
b. Facilitate staff rotation across departments. Prescribed rotations within a career planning
framework can help to improve coordination and information flow across departments. It would
also provide stretch challenges for staff, provide a break from the routine of one department, and
help identify and groom staff with high potential.
c. Increase the ratio of gazetted staff relative to nongazetted staff from one to four to one to three.
The increasing demand for regulatory and policy work, and the increased use of IT, means that
higher levels of skills and education are required, and these are only found among gazetted staff.
Such an adjustment would also help reduce costs over the long term.
d. Increase linkages with the private sector, academic institutions, and civil society to improve policy
capacity. The demand for high-level analytical and policy development skills cannot be met
entirely from within the ministry. It would be important for the ministry to develop linkages with
the private sector, academic institutions, and civil society to improve policy capacity.
e. Review and strengthen the training function based on a MOC’s new skills requirements. Specific
skills such as trade negotiations and trade analysis are relevant. The supply of training may be
demand-driven, and opportunities for support from the private sector and development partners
may be explored as well as tailor-made cooperation with foreign universities and think tanks. An
option to explore is establishing degree programs on a considerable scale similar to, for example,
support from the U.S. Agency for International Development to Indonesia. The responsibility for
developing a training plan could be anchored in a new human resources division (see chapter 4).
8
f. Invest in ICT systems. Careful investments in ICT capacity, processes and systems can drive change,
save money, and improve services.
g. Strengthen inclusiveness by increasing the share of females in senior leadership positions and by
setting up programs to increase the intake of non-Bamar groups into gazetted positions.
h. Implement collective leadership by instituting regular and thorough conversations about change
at all levels of the organization.
i. Implement performance management by establishing key performance indicators for the
organization which cascade down to all levels of leadership and are followed up in the form of
annual results agreements to be regularly reviewed during the year.
9. Recommendation Set 3: MOC may establish a plan for using development assistance that
includes a needs assessment of the type of support wanted and the establishment of an Aid for
Trade Unit to help guide the process. Over the last five years, Myanmar has received assistance from
multilateral and bilateral development partners. Division for International Cooperation within the
Minister’s Office can be a “gate keeper” for coordinating development assistance and a key liaison
unit for development cooperation, ensuring that all donor support is clearly aligned with the MOC’s
strategic plans
10. The Ministry may also want to consider having the management of Aid for Trade (AfT) Unit
under the Minister’s office. This can help MOC monitor programs supported by development partners.
It will also ensure that AfT resources be used optimally to support strategic development objectives,
such as Myanmar Sustainable Development Plan. The Ministry may want to consider the experiences
of neighboring countries with workable Aid for Trade Units, such as the Ministry of Trade and Industry
of the Lao People’s Democratic Republic.
11. Recommendation Set 4: Conduct organizational reform to align the ministry’s structure to
serve new policy requirements. Given the core significance of MOC’s international trade negotiation
and promotion functions, the following interventions could be considered:
a. Reorganize the Department of Trade by refocusing core functions on facilitating trade, industry,
and policy analyses. The department can develop capacity to support trade negotiation and to
monitor developments in policies and trends in global trade. It could also support MOC in
preparing dumping investigations and formulating the margin of dumping.
b. Withdraw MOC’s presence from inland border posts. MOC already offers online license processing
for import licenses and will soon introduce a negative list for export licenses. Modern practices
also suggest that functions related to inspections, cargo clearance, and the movement of people
may be done by Customs, Immigration, and Quarantine. This step, which may be implemented in
phases, would also allow MOC to free up resources for other activities.
c. Establish a Department for Trade Cooperation and Negotiation. Given the intensity of coordinating
the implementation of, and participation in, international negotiation forums, MOC may consider
establishing a specialist department. The Ministry already has responsibility for coordinating
implementation of Myanmar’s commitments under the WTO, making reasonable to bring the role
of coordinator of ASEAN and Regional Comprehensive Economic Partnership negotiations within
MOC’s remit. Technical discussions, however, could still be done by technical ministries. For
example, the Directorate of Investment and Company Administration or Ministry of Planning and
Finance could lead bilateral investment negotiations.
9
d. Transform the Myanmar Trade Promotion Organization (MyanTrade) into the country’s trade
promotion agency (TPA). MyanTrade has limited budget and staff capacity to carry out its
international trade promotion activities. It may have the capacity to communicate with
commercial attaches in Myanmar’s embassies and to contribute to trade negotiations. Like other
TPAs, MyanTrade may be able to use fiscal resources to promote exports in the most cost-effective
way.
e. Strengthen capacity and clarify functions for the Department of Consumer Affairs (DOCA). The
department is well positioned to take on MOC’s responsibility to promote consumer rights and
mediate consumer-seller disputes. On product standards, DOCA may play a role in setting up
policies with low transaction costs for businesses to follow. DOCA’s role in promoting domestic
trade also needs to be clarified.
Implementing the Recommendations
12. This functional review of the Ministry of Commerce presents a wide range of
recommendations for reform of the structure and capacity of the ministry. Some suggestions, such
as restructuring the Minister’s Office and strengthening the role of the permanent secretary, may
need the sanction of the union cabinet. Suggestions for additional budget for MyanTrade may need
discussions with the Ministry of Planning and Finance. Recalibration of the ratio of gazetted officers
relative to nongazetted staff at the ministry level can be done through workforce attrition. Other ideas
such as the rotation of officers can be implemented within the ministry through an internal decision-
making process.
13. While the exact financial implications of each intervention have not been detailed, the
review aims to be broadly budget neutral. Suggestions like creation of a new trade unit and policy,
planning and communication units, and more capacity development activities would need more
funds, but these additions are balanced by the suggestions that many support functions can be
rationalized and consolidated under the Minister’s Office. Also, the abolition of border posts will save
funds that can be reallocated to prioritized, strategic functions.
14. Implementing organizational change is never easy and needs sustained, inventive efforts .
Old habits, legacy processes, weak capacity and pockets of vested are likely, as is often the case in any
developing country, likely to challenge implementation of the recommendations. This change
management strategy could draw on a range of tools such as problem-driven workshops, knowledge
exchanges, communications and stakeholder alignment, incentives rewarding performance, adaptive
leadership and implementation coaching.
10
11
1. In February 2017, the Minister of Commerce, H.E. Dr. Than Myint, requested a functional
review of the Ministry of Commerce (MOC) by the World Bank Group). The request was triggered by
a need to review the Ministry’s structure given new challenges, including those posed by trade
services, special economic zones (SEZ), the entry into force of the Trade Facilitation Agreement (TFA)
of the World Trade Organization (WTO) and issues framed by the recently formed Private Sector
Development (PSD) Committee. (See Annex 1 for the terms of reference.)
2. The World Bank Group team agreed to provide an inception report as a work in progress in
September 2017 and to present findings by December 2017. The inception report was shared with the
ministry on September 26, 2017.
3. The review process includes the following activities conducted by the World Bank team in
partnership with the MOC: (i) data gathered to date; (ii) a series of meetings in April and May 2017
between the World Bank team and the minister, deputy minister, permanent secretary, and directors
general as well as Professor Mari Pangestu, a former minister of trade in the Indonesian government;
(iii) several meetings in April, May, and August between the World Bank team and staff of the Ministry
of Commerce; (iv) a desk review comparing the functions of similar ministries in other ASEAN countries
as well as in Australia, the United Kingdom, and the United States; and (v) implementation of a MOC
staff survey of the gazetted officials in MOC (henceforth the “the staff survey”) and a stakeholder
survey.
4. Two surveys—one of gazetted officers and another of the ministry’s stakeholders—were
conducted to further identify perceptions of the ministry’s performance and its strengths and
weaknesses by officials and clients. Survey instrument for the survey of gazetted officers was
formulated through meetings with both middle management and senior management of the Ministry
of Commerce. Two officials from each department were assigned as focal persons to coordinate with
the review team for fact finding, data collection, and consultation. Consultations with senior
management—the union minister, permanent secretary, and DGs of each department—were
conducted in 2017 on May 17 and 18.
5. The World Bank Group contracted Thura Swiss, a consulting firm, to implement the two
surveys. Before the actual survey of gazetted officers was implemented, a pilot survey was conducted
at the Trade Training Institute in Yangon on July 4, 2017. Both Computer-Assisted Personal Interviews
and Paper-Assisted Personal Interviews were used for data collection. The final data was obtained on
September 12, 2017. A total of 435 samples were received (from 494 gazetted staff surveyed), giving
a response rate of 88 percent.
6. Survey instruments for the ministry’s stakeholder survey were formulated through several
meetings with leaders from the private sector. The review team interviewed three private companies
and organizations in July 2017. The survey itself was also implemented by Thura Swiss and included a
range of organizations from domestic companies in various sectors (such as agribusiness, garment
manufacturing, and food processing) to international chambers of commerce working in Myanmar.
After commencing the survey on August 21, 2017, the firm surveyed 70 companies and organizations
from Yangon, Mandalay, and Pathein.
7. The review is divided into five chapters. The first chapter provides background and review
process. The second chapter describes the country context and key drivers of change. Chapter 3
outlines the evolution of the ministry since independence in 1948, given that the legacy functions and
personnel still heavily influence the character and capacities of the ministry. The current organogram,
budget, and personnel strength are provided. Chapter 4 discusses findings that support
12
recommendations to strengthen capacity building and policy development functions. Chapter 5
outlines the five sets of recommendations. Two of the recommendation sets address general civil
service issues—the design of the Office of the Permanent Secretary, for example—that are not specific
to the Ministry of Commerce but are integral to reform. The other three sets of recommendations are
about commerce-related issues.
13
14
8. Myanmar’s transition, globalization and new technologies provide the backdrop for the new
requirements facing the Ministry of Commerce. Myanmar’s political and economic transitions, the
rising expectations of citizens and businesses, management matters, more sophisticated and
increased trade relationships, the introduction of technology, and the capacity of staff to meet new
regulatory challenges are critical factors behind MOC’s evolution.
2.1. Political Landscape
9. Democratization is expected to increase demands for public accountability and
responsiveness in policy making from all government agencies, including MOC. The incumbent
elected government is under pressure to deliver promised economic reforms that lead to jobs and the
economic (as well as social) betterment of Myanmar’s people. Myanmar also needs to overcome the
legacy of conflict and economic sanctions that has contributed to flourishing informal trade,
particularly along border areas. Other factors are the withdrawal of the military from day-to-day policy
making in most areas of the economy, the need for more sophisticated policy analysis, and required
investment for the development of the “civilian” civil service. filled
10. It is in the times of political and economic transition that narrow interest groups are most
active in shaping the new policies, rules, and regulations in favor of their own interests. Rent seeking
is generally defined as the manipulation of the social and political environment in which economic
activities occur to obtain an economic rent from an asset without generating additional value from
that asset. While the transition from a state-dominated to a market-oriented economy is intended to
reduce rent-seeking opportunities by subjecting a wider range of economic activities to market
competition, the process of transition itself offers significant opportunities to manipulate the social
and political environment which could have the opposite effect. For instance, certain commercial
groups might manage to negotiate special terms and privileges.
Table 1. Factors Influencing the Tasks of the Ministry of Commerce
Political and Geopolitical
• Greater political participation and demand for accountability and responsiveness in policy making
• Pressure to deliver promised economic reforms
• Managing an increasing international commercial relationship
• Increasing the number of commercial interest groups motivated to shape the regulatory
framework for trade and commerce, based on particular industry needs
Economics
• Greater role of the private sector in driving commerce and job creation
• Limited export diversification beyond "traditional" products of natural resources and low-quality
goods
• Uncertainty in the global trade environment and backlash against globalization in developed
countries
Demographic, Culture, and Social
• Young population
• Tension in border and post-conflict areas
• Greater awareness on the need to promote inclusivity in development
• Capacity of staff
Technology
• Greater use of internet and mobile applications
• Popularity of social media in capturing real-time issues
15
2.2. Economic Landscape
11. Promoting trade and job creation through the private sector are arguably two areas where
MOC faces the greatest expectation to deliver. MOC is expected to coordinate policies that address
the low quality of Myanmar’s export products and to unlock opportunities for trade in job-friendly
activities, such as agri-business and light manufacturing which are still constrained by inadequate
access to reliable power and problems in trade facilitation. With a growing internal market, MOC is
also expected to promote domestic commerce through retailing, wholesaling, and franchising. Despite
greater trade and investment opportunities, Myanmar’s exports remain highly concentrated in a
handful of sectors and products—gas (41 percent), minerals including gemstones (11 percent), and
agriculture (25 percent)—which have a limited impact on creating quality jobs. Myanmar’s exports,
despite some diversification since its reintegration with the global economy, are much more
concentrated compared with other countries in the East Asia and Pacific Region.
12. The removal of sanctions by Western countries and the ongoing negotiation of the Regional
Comprehensive Economic Partnership (RCEP) among ASEAN countries (and six partners) can help
Myanmar gain wider market access and rebalance its trade relationship. Myanmar can expand and
diversify export markets to reduce dependence on certain export markets, such as China for rice and
fruit, India for pulses, and Thailand for rubber and maize. Despite official quotas, China absorbs 70
percent of Myanmar’s rice exports. Removal of sanctions opens new markets for Myanmar as shown
by an increase in “extensive margin” or expansion from new markets. However, sustained export
growth is typically determined by “intensive margin” or expansion of the same exports to the same
markets over time (Besedes and Prusa 2011). Trade agreements can assist Myanmar in seizing this
opportunity, and MOC may take the lead in negotiating access to markets.
Figure 1. Export Diversification Index Figure 2. Drivers of Export Growth Between
2010 and 2015 (percent)
0.35 100.0
0.30 80.0
0.25
0.20 60.0
0.15 40.0
0.10
20.0
0.05
0.00 -
2007 2010 2013 2016 Intensive Existing Existing New
margin products, markets, products,
Bangladesh Cambodia new new new
markets products markets
Myanmar Vietnam Myanmar Vietnam Cambodia
Source: UNComtrade
13. Land borders with five countries—Bangladesh, China, India, Lao People’s Democratic
Republic, and Thailand—provide enormous potential to facilitate trade and investment. Border
trade also provides local communities with opportunities to improve their livelihoods. This is
particularly important as trade through land borders has increased, while trade through normal
channels (air and ocean routes) has been relatively stable. Given this trend, and Myanmar’s
geographical location, land border trade can be instrumental in attracting investment and creating
jobs.
16
Figure 3. Import Values Through Normal and Figure 4. Export Value Through Normal and
Land Border Channels (and 12-month moving Land Border Channels (and 12-month
average) moving average)
2,000 Million $ 1,600 Million $
1,800 1,400
1,600
1,200
1,400 Normal channel
1,200 1,000
1,000 Normal channel 800
800 600
600
Land border channel
400
400
200 200
Land border channel
0 0
Jul-13
Jul-13
Jun-16
May-14
Jun-16
Apr-12
Dec-13
May-14
Apr-12
Aug-15
Dec-13
Aug-15
Oct-14
Sep-12
Feb-13
Mar-15
Jan-16
Sep-12
Feb-13
Mar-15
Jan-16
Oct-14
Source: MOC data
14. There is fierce pressure for the Myanmar government to manage the large informal border
trade. This is a critical, complex issue. Local trade in border areas is typically carried out without proper
documentation, and in some cases, involves traders affiliated with ethnic armed groups. In Myanmar,
the presence of a flourishing informal border trade (IBT) cannot be separated from the period of
sanctions imposed by Western economies and from the legacy of ongoing armed conflicts in border
areas which encourage an underground economy (Aung 2011). IBT thrives around Myanmar’s borders
with the lack of economic opportunities and formal credit mechanisms in rural areas (Aung 2011).
15. The inability of authorities to document small trade by local communities, and the rapid
growth in consumption across Myanmar, may contribute to wider illegal trade . Undocumented
goods are distributed and consumed beyond border areas. In many cases, products supplied through
IBT have no clear expiration date and have a high risk of being counterfeit. Interviews suggest that
investors in the manufacturing of consumer and food goods in Myanmar are concerned about unfair
competition from goods distributed through IBT.
16. The retail supply chain is likely to be the most important commerce activity in the domestic
supply chain. Data from the Myanmar Poverty and Living Conditions Survey (MPLCS) suggest that
hospitality and retailing contributes to 45 percent of nonfarm income among rural households and 39
percent of urban households (Figure 5). The contribution of income from hospitality (cafes, hotels)
and retailing activities to nonfarm income tends to be higher among households in the higher-income
quintile, both in rural and urban areas. The higher concentration of hospitality and retailing activities
in higher-income groups may be driven by resource availability, as these activities need working
capital, entrepreneurial skills, and population concentration.
17
Figure 5. Hospitality and Retail: Figure 6. Street-Related Services: Contribution
Contribution to Nonfarm Income (percent) to Nonfarm Income (percent)
60.0 45.0
40.0
50.0
35.0
40.0 30.0
25.0
30.0
20.0
20.0 15.0
10.0
10.0
5.0
0.0 0.0
Q1 Q2 Q3 Q4 Q5 Q1 Q2 Q3 Q4 Q5
Rural Consumption Quintiles Rural Consumption Quintiles
Urban Consumption Quintiles Urban Consumption Quintiles
Source: Myanmar Poverty and Living Conditions Survey (2017)
17. Street-related activities, including street retail vendors, contribute more to the income of
low-income households. About 40 percent of nonfarm income of the lowest income groups in rural
areas comes from street-related services. Casual observations in Yangon suggest many informal street
vendors, which are microenterprises, are operating outside the confined spaces of retail markets. As
modern retailing continues to develop and incomes increase, finding ways to strengthen the capacity
and competitiveness of small (street) retailers can be important for the livelihoods of poor
households.
18. Citizens’ expectations of faster, better and fairer service delivery from government agencies
are also increasing. This trend is due to the exposure to an ever-improving quality of services from
the private sector, often enabled by the adoption of technology, especially in the telecoms and
banking sectors. Government agencies must keep pace or risk mounting dissatisfaction and criticism
on mass and social media. In fact, the private sector would like to see an active role of MOC in using
technology for obtaining information and communicating with the ministry. The website and social
media of the ministry are the top two channels that MOC’s stakeholders prefer to use to communicate
with the ministry (Figure 7). Indeed, use of technology in communication has been growing in
Myanmar. According to Digital in 2018 in Southeast Asia, the growth rates for Myanmar’s internet
users, active social media users, and active mobile social users were 97 percent, 84 percent, and 106
percent, respectively, compared to 2016,1 although from a low starting point compared to its ASEAN
peers.
1
Data are from Digital in 2018 in Southeast Asia Part 2—South-East, published on January 29, 2018 by We Are
Social and Hootsuite. https://www.slideshare.net/wearesocial/digital-in-2018-in-southeast-asia-part-2-
southeast-86866464.
18
Figure 7. Preferred Methods of Communications by Stakeholders
Ministry of Commerce’s website 60%
Social media (e.g., blogs, Facebook, Twitter, YouTube,
44%
Flickr)
Ministry of Commerce’s publications and other written
40%
materials
Ministry of Commerce’s seminars, workshops, conferences 39%
Direct contact with Ministry of Commerce (i.e., face-to-
39%
face meetings, discussions)
Other 4%
Source: Survey of MOC’s Stakeholders (2017)
19. The use of “disruptive technology” (such as e-commerce) by small and microenterprises in
Myanmar is a likely scenario in the foreseeable future. As in other developing countries,
microenterprises in Myanmar face challenges in finding markets. Most of these enterprises rely on
traditional ways of doing businesses. They wait for customers to come to their shops and rely on
informal references from family or business associates. MPLCS data suggest that aside from access to
finance, difficulties in finding markets is the second most serious constraint faced by microenterprises.
E-commerce platforms offer options for small and medium enterprises (SMEs) that allow them to
market and send their goods directly to customers.
Figure 8. Constraints Faced by Microenterprises in Myanmar
Lack of available skilled workers
Inadequate building space
Customers buy on credit but they don't pay back
Irregular supply of raw materials
Fluctuation of commondity prices
Difficulty finding market
Lack of capital
No problem
0 10 20 30 40 50
Source: Myanmar Poverty and Living Conditions Survey (2017)
19
20
20. The Ministry of Commerce has gone through significant role changes over the last 70 years
from managing trade to issuing import and export licenses. During the early years after
independence, the Department of Commerce and Supplies, set up in 1945, was restructured as the
Ministry of Commerce, Supplies, and Transportation. It was renamed as the Ministry of Commerce
from 1951 to 1954 and renamed again as the Ministry of Trade Development from 1954 to 1965.
21. During the “Burmese Way to Socialism” from the 1960s to the 1980s, the Ministry became
the only agency conducting trade, as Myanmar evolved into a closed economy. In 1965, the Ministry
was renamed the Ministry of Trade, comprising 22 trade corporations, 11 regional trade offices, 283
subregional offices, and 1,982 public shops. In 1967, the number of trade corporations was reduced
from 22 to 11, each with its own network of enterprises, sub-enterprises, shops, factories, and offices.
Even after the economy gradually opened in 1988, the Ministry of Trade continued to trade strategic
commodities. See Figure for its historical evolution.
Figure 9. Evolution of the Ministry of Commerce
22. Since 2011, the Myanmar government has tasked MOC to establish a regulatory framework
to ensure coordination of trade policies, create and maintain a level playing field for the private
sector, and provide adequate protection for consumers and domestic producers. MOC promoted
the adoption of the 2015 Competition Law and is preparing to implement regulations and establish a
Competition Agency. MOC also introduced a Consumer Protection Law that sets out the mandate of
the Department of Consumer Affairs. At parliament’s request, MOC is also preparing legislation
regarding trade remedies, including antidumping legislation. Recently, MOC drafted a new Framework
Trade Law, which is intended to replace the 1947 Export-Import Law. It is expected to provide a legal
basis from which to coordinate trade-related policies, ensure compliance with Myanmar’s
commitments (to WTO or ASEAN), and better define MOC’s mandate. The new law may be a law of
21
principles rather than a law of control and regulation. Its policy principles may inform the
organizational structure of MOC.
23. MOC faces challenging demands, both from the Myanmar government and stakeholders.
The 12- point Economic Policy of the Union of Myanmar aims for inclusive, people-centered
development.2 The national vision aims for national reconciliation, balanced development of natural
resources, and the spread of benefits across states and regions. The following components pertain to
the MOC3:
• Role of SMEs as generators of employment and growth
• Digital and e-government strategy
• Creation of economic enterprises that create jobs
• Comprehensive, balanced development of agriculture and industrial sectors to ensure
"rounded development,” food security, and increased exports
• Enabling of private sector growth in line with the market economy system
• Policies to increase foreign investment and strengthen property rights and rule of law
• Strong competitiveness in regional and global markets, identifying the changing and
developing business environment in ASEAN and beyond
24. Recognizing these challenges, the MOC has taken the crucial step of defining its vision and
mission and has developed important sector strategies. In November 2016, the senior management
of MOC outlined a vision for “Developing the National Economy Through Trade.”4 This was further
translated into the following mission statements and underpinned by strategic principles.
Mission statements:
• To increase trade volume
• To encourage private sector development in conformity with a market-oriented economic
system
• To expand market shares of Myanmar products in the world market in collaboration with
international organizations
• To facilitate trade activities
• To protect consumer rights and safety of products
Three strategic principles:
• Trade activities should be aimed at the interest of the State and the people
• Trade activities should not be a burden to the people
• Trade activities should be aimed at structuring a long-term viable trading system rather
than gaining short-term profit
25. At the same time, MOC has also finalized a Medium-Term Program for Aid for Trade,
consisting of proposed cross-sector projects to promote trade in Myanmar.5
2
See “Economic Policy of the Union of Myanmar,” July 28, 2016.
http://themimu.info/sites/themimu.info/files/documents/Statement_Economic_Policy_Aug2016.pdf
3
See “Economic Policy of the Union of Myanmar,” July 28, 2016.
4
Supported by the German Agency for International Cooperation (Deutsche Gesellschaft für Internationale
Zusammenarbeit).
5
Establishment of the Medium-Term Program in 2017 is a direct follow-up from the Diagnostic Trade
Integration Study and is supported by the World Bank Group in partnership with Australia Aid, the Enhanced
Integrated Framework, and UK Aid.
22
26. In addition to its core functions of promoting external trade and domestic commerce, MOC is
tasked with taking a significant role in the SEZ Management Committee, PSD Committee, the Jobs
Sector Working Group, and the Competition Commission.
27. The recent restructuring of the MOC still leaves many support functions to the Department
of Trade (DOT) and policy-making functions to each relevant department. In 2013, the Department
of Commerce and Consumer Affairs handled all trade-related operational matters, such as handling
both overseas and border trade issues (see Figure ). The responsibilities of the Directorate of Trade
were focused mainly on trade policy formulation and on giving support functions to the whole
ministry, such as information and communications technology (ICT). Since the DOT was set up in 2015,
it has continued to provide support functions to the Minister’s Office, such as implementing the
Diagnostic Trade Integration Study and preparing Aid for Trade, and has worked on trade policy
formulation.
Figure 10. Evolution of Departments Within the Ministry of Commerce since 1998
28. The Ministry has three core departments according to notification no. (24/2016). The
Minister’s Office oversees policy formulation and supports the general business areas of MOC. Figure
presents the current organizational structure of MOC and its staff allocation. The Ministry can employ
770 gazetted staff and 4,341 nongazetted staff. But the so-called two-thirds policy allows only two-
thirds of the officially sanctioned posts to be filled— 513 gazetted staff and 2,894 nongazetted staff.6
6
The Ministry of Planning and Finance has implementing this cost-cutting policy across most ministries for
several years.
23
Figure 11. Current Organogram of the Ministry of Commerce and Staff Allocation
Ministry of Commerce
Gazetted staff Nongazetted staff
770 4341
Minister s Office
Gazetted staff Nongazetted staff
50 115
Myanmar Trade Promotion
Department of Trade Department of Consumer Affairs
Organization
Gazetted staff Nongazetted staff Gazetted staff Nongazetted staff Gazetted staff Nongazetted staff
298 1598 298 2402 124 226
Source: Ministry of Commerce
29. Staff from other departments are attached to the Minister’s Office of MOC to cope with
shortage of staff. The formal setup of the office has been standardized across all ministries with little
flexibility. Mainly because of its legacy role as a trading corporation, the Department of Consumer
Affairs (DOCA) has the most employees through its state and regional stations and offices and district
stations and offices across Myanmar.
Table 2. Major Functions of Each Department
Department Major Functions
Minister’s Office • To oversee the whole ministry in terms of general operational matters
such as administration, finance, information technology, and human
resources
• To formulate and develop trade and related polices
Department of • To manage export and import licenses
Trade • To engage in trade negotiation matters
• To perform policy analysis
• To manage border posts and trade zones
• To formulate and implement trade policy and regulations
Department of • To promote and raise awareness of product safety for consumer
Consumer Affairs protection
• To resolve consumer complaints for both goods and services
• To formulate and implement consumer protection policy and
regulations
Myanmar Trade • To promote Myanmar products in international markets
Promotion • To promote investment and trade
Organization • To formulate and implement export promotion policy and strategy
Source: Notification no. (24/2016)
30. DOT is allocated more budget than the other departments (see
31.
24
32. Figure ) and performs diverse functions from managing border posts to engaging in trade
negotiations. It generates higher revenue than the other departments as it collects fees such as trade
license processing fees. The Myanmar Trade Promotion Organization (MyanTrade) has a relatively
small budget allocation. A combination of lower staff numbers, lower budget allocation, and the
general challenge of capacity of staff is likely to impede MyanTrade in implementing its export
promoting functions, such as developing trade centers domestically and arranging trade fairs and
exhibitions internationally.
Figure 12. Budget Allocations Across Departments of the Ministry of Commerce in FY 2017/18
Panel A. Revenue Panel B. Expenditure
Minister's Minister's
Office Myanmar Trade Office
3% Promotion Organization 5%
Department of
12%
Consumer Affairs
21%
Department of Departm
Department of
Trade ent of
Consumer Affairs
76% Trade
39%
44%
Source: Ministry of Commerce
Note: Figures use budget estimates
25
26
33. The vision and mission statements issued in 2016 define objectives and activities for MOC;
however, the structure and the capacity of staff are not adequately aligned to achieve objectives.
While recognizing that building capacity—improving schools and universities, fostering think tanks
and academia, and recruiting quality talent into government—is a relatively long-term process and
outside the immediate control of the ministry, it can take steps to increase its ability to deliver on its
mandate. These include reorganizing the delivery of many functions, increasing emphasis on some
functions, and shedding some outdated roles.
Figure 13. MOC Functions
4.1. Strengthening Policy Formulation, Planning and Communication Functions
The shift from state trading to policy making requires much stronger emphasis on policy
formulation, planning, and communication functions to create an enabling environment for
businesses.
34. Internal and external stakeholders look for strategic directions in MOC’s activities.
Interviews with staff and external clients suggest that the minister, deputy minister, and permanent
secretary need to establish a strategic direction to ensure consistency of a department’s activities with
MOC’s vision and mission, and importantly, with the economic policy of the government.
Strengthening the Minister’s Office can help MOC ensure policy coherence. While involvement of
departmental teams in formulating policies may help effectiveness in implementation, the Minister’s
Office may directly lead or oversee consultations and the formulation of proposed new policies, so
they align with the government’s economic reform objectives. Recent experiences suggest mixed
reactions from stakeholders about MOC notifications (see Box 1) and raise questions about the ability
of MOC to maintain coherence in policy reform.
27
Box 1. Stakeholder Feedback on MOC Policy Notifications
The private sector has applauded MOC’s initiative to establish a negative list for import licenses. A
survey commissioned by the World Bank Group suggests that the introduction of a negative list,
which also reduced the coverage of products requiring a license, saved the private sector around
$4 million in FY 2015/16. The private sector also praised MOC’s initiative to reduce the duplication
of import price checks, which is normally part of the customs valuation process. However,
stakeholders raise concerns that the recent notification on rechecking import invoices is
inconsistent with internationally recognized practices for customs valuation.
35. Lack of clarity in policy strategy is seen as a major problem according to stakeholders. They
also associate problems in MOC policies with lack of coordination with other government departments
(Figure ). Moreover, the lack of communication and disclosure about the MOC’s work and program is
perceived as an important weakness (
36.
37. Figure ).
Figure 14. Stakeholder Perception on Factors Affecting Slow Progress of Policy Reforms
Lack of clarity in overall economic policy and strategy 46%
Lack of coordination within Union government 44%
Lack of or inadequate levels of capacity to design or
34%
formulate policy
Ongoing conflict and instability 23%
Political pressures and obstacles 21%
Lack of or inadequate levels of capacity to implement
20%
policy
Poor coordination within departments in the Ministry of
19%
Commerce
Inadequate funding 17%
There is not an adequate feedback from citizen or civil
14%
society
The Ministry of Commerce works too slowly 7%
The Ministry of Commerce does not do adequate follow
7%
through or follow-up
Other 6%
Source: Survey of MOC’s Stakeholders (2017)
28
Figure 15. Stakeholders Perception on Weaknesses of MOC
Not enough public disclosure of its work 46%
MOC processes are too slow (e.g., too bureaucratic) 37%
Not providing enough support to civil society organizations
34%
in helping achieve development results in Myanmar
MOC processes are too complex 30%
Not collaborating enough with stakeholders outside
26%
Government
The credibility of its knowledge or data 20%
Activities are not aligned with country priorities 16%
Inadequate number of MOC staff members located in the
11%
country
Inadequate quality of MOC staff 11%
Too influenced by developed countries 11%
Staff are difficult to access 3%
Source: Survey of MOC’s Stakeholders (2017)
38. This review recommends MOC consider the following actions to strengthen policy
formulation, planning, and communication functions:
• Gradually separate the role of policy formulation from implementation, for instance through
the establishment of a Policy Unit in the Minister’s Office. Clarity, coordination, and capacity
are seen at three topic policy reform challenges by the MOC stakeholder (Figure ). Setting up a
dedicated unit will help provide the strategic focus. It will also help avoid policies driven by the
narrow and potentially conflicting interests of departments. It would also ensure that
implementation does not crowd out the space and opportunity for policy reflection. Therefore,
MOC may need to set up a Policy Unit or Policy Coordination Unit, with access to policy analysis
support (from within MOC or outsourced, for an appropriate level of input to think tanks,
academic institutions, or consultancies), communication support, and legal support.
• Set up a Planning Unit in the Minister’s Office to help the minister, deputy minister, and
permanent secretary translate the government’s development aspirations and MOC’s vision
statement into a medium-term development program, which would be implemented by the
respective directorates. Second, a Planning Unit will help introduce and monitor performance
indicators across departments. Using government economic policy and MOC’s strategic
mission, Annex 3 provides a relevant example to guide this important exercise. The new
requirements for a steering role in policy and planning requires some centralization of functions
in the Minister’s Office, although the MOC may be careful not to establish new divisions or units
for every new functional task.
• Strengthen the role of strategic communication with stakeholders. MOC could do more to
communicate its role in trade and PSD (including reforms carried out by other government
29
agencies under the coordination of the Trade and Business Promotion Task Force). In the era of
social media, MOC cannot rely on traditional media releases for coverage in printed news or
television interviews.
•
• Figure shows that the most critical issue in the mind of stakeholders is adequate
communication and disclosure of the ministry’s work. A capable communication unit with
dedicated media officers is needed to highlight achievements and issues being addressed. The
ministry may update its website and social media regularly and be prepared to respond to
stakeholder concerns through such channels. This unit could consist of an individual senior
communication specialist with resources to hire part-time communication consultants.
4.2. Strengthening the Minister’s Office
Regrouping and strengthening the Minister’s Office is a key priority for MOC, so it can undertake
its work effectively in an increasingly demanding environment
39. The permanent secretary position was introduced across government in 2015 to coordinate
policy formulation and support functions. To serve these purposes the position was attached to the
Minister’s Office. In practice, the role of the permanent secretary, considered as first among equal
DGs, has not played that role and this position. None of the functional divisions under the minister
appear to report to the permanent secretary, who may have a critical role in driving and sustaining
the implementation of MOC’s work program.
40. Under the current structure, each department is still largely responsible for policy
formulation as well as implementation, while the role of the Minister’s Office in policy formulation
is still limited. The current structure of the Minister’s Office also does not adequately drive
achievement of MOC’s strategic objectives (Figure ). Findings from the gazetted staff and stakeholder
surveys suggest that coordination, cooperation between departments, and planning and
implementation are key challenges. Lack of coordination is cited as one of the top factors affecting
41.
time management of gazetted staff (
42. Figure ). Stakeholders perceive that coordinating and implementing trade policies is cited as
one of the top areas for MOC’s focus (Figure ). One viable option to address this challenge is to
strengthen the Office of the Permanent Secretary. In addition, support for MOC cross-sector
engagement, such as through the secretariat for the PSD Committee, are only provided by
departments where DGs are taking up these additional tasks. Providing a clear role for the Minister’s
Office in institutionalizing the agenda and ensuring coordination will be a more effective way forward.
30
Figure 16. Current Structure of Minister's Office of the Ministry of Commerce
Minister
Deputy Minister
Permanent Secretary
Deputy Permanent Secretary
Minister’s Office
Administration, Audit and Office of the
Policy and Local,
Human Finance Permanent
Rules International
Resources Division Secretary
Relations, and
Communication
supporting units for the Minister and Permanent Secretary
Figure 17. Factors Affecting Time Management
Staff lacks adequate skills 86%
Lack of coordination 39%
Too many meetings 28%
Office requires more staff 25%
Attitude of senior officers 24%
Excessive paperwork and reports 22%
Lack of office resources, computers, and infrastructure 19%
Heavy workload 17%
Lack of clarity in procedures 17%
No electricity 6%
Source: Survey of MOC’s Gazetted Staff (2017)
31
Figure 18. Sectoral Areas Needing MOC’s Focus
Promoting exports in international markets 56%
Coordinating and implementing trade policies 53%
Protecting consumers (from bad or unsafe products, fraud
44%
in retailing)
Capacity building of local exporters 39%
Domestic trade promotion 33%
Coordinating trade negotiation with bilateral, regional, and
23%
multilateral partners
Research and analysis 13%
Online processing of trade licenses and publication of
13%
trade-related regulations
Management of licenses at the borders 9%
Source: Survey of MOC’s Stakeholders (2017)
43. The limited provision of support functions managed by the Minister’s Office is in contrast
with most of other ministries of commerce or trade in the East Asia and Pacific Region. For example,
in the Malaysian Ministry of Trade and Industry, all support functions by division report to the
secretary general (equivalent to a permanent secretary in Myanmar). In the Indonesian Ministry of
Trade, the secretary general leads divisions giving support services to other departments.
Table 3. Comparison of Management of Providers
Management of Providers
Support Functions Myanmar MOC Malaysia MITI Indonesia MOT
Secretary
Internal audit Minister’s Office general Minister
HR (staff rotation, hiring, release) Minister’s Office and DGs SG SG
Training academy or institute DOT SG SG
ICT DOT SG SG
Legal bureau n/a SG SG
Strategic planning n/a SG SG
Donor coordination n/a SG SG
Note: DGs = director generals; DOT = Department of Trade; HR = human resources; ICT = information and
communications technology; MITI = Ministry of Trade and Industry; MOC = Ministry of Commerce; MOT =
Ministry of Trade; n/a = not applicable; SG = secretary general.
44. Against this backdrop, the review recommends the Minister’s Office consider the following:
• Empower the permanent secretary to ensure closer collaboration in planning tasks, defining
strategic objectives, and ensuring policy coherence with the day-to-day work of the minister
and deputy minister. This could be done by bringing planning and statistics under the
permanent secretary. This unit may have access to external advisors to help MOC in dealing
with emerging tasks (e.g., the PSD and SEZ committees). The permanent secretary may also
32
need to be supported by a head of office or a staff equivalent to deputy director general to help
day-to-day management.
• Centralize key management, administrative, and supporting functions in the Minister’s
Office. These include Human resources (HR), ICT, internal audit, legal services, planning, and
statistics. Most of these functions are offered by departments, with limited cross-support and
synergy. Centralizing the provision of these functions, partially or fully, under the Minister’s
Office or the Office of the Permanent Secretary would help strengthen strategic direction
setting, improve coordination, concentrate scarce capacity, and improve sharing of information
within the ministry. For example, a Human Resources Division under the Minister’s Office could
manage recruitment, career planning, rotation across departments, discipline, promotion, and
other HR issues for gazetted (or deputy director level and above) staff. The management of
nongazetted staff (or remaining gazetted officers) can stay with the DGs.7
• Set up an International Relations Unit that would serve as a gatekeeper for engagement
with development partners and manage the Aid for Trade program to support government
and MOC strategic objectives (see Recommendation 5 for more discussion on Aid for Trade).
Figure 19. Proposed Structure of the Minister’s Office in the MOC
1. Minister
2. Deputy Minister
1. Permanent Secretary
2. Deputy Permanent Secretary
Planning and
Policy and Rules Administration
Statistics
International
Relations and Aid
for Trade
Human
Finance and Information and
Resources and Legal and
internal audit Technology
Training Communication
Minister’s Office
7
See also Myanmar Pay, Compensation, and Human Resource Management Review, jointly undertaken by the
government and the World Bank.
http://documents.worldbank.org/curated/en/167501522309579124/pdf/124697-WP-P162323-PUBLIC-Pay-
review.pdf.
33
4.3. Optimizing Capacity Development Efforts
Facilitating the rotation of high-potential staff, improving the ratio of gazetted staff,
strengthening training tailored to new competency requirements, and building linkages with
academia and think tanks can help develop the capacity of the department.
4.3.1. Improving Motivation for Better Performance
45. Disappointment over lack of recognition, low pay, and lack of merit-based promotion are
cited as main reasons for considering early retirement (see Figure ). Around 40 percent of gazetted
staff have been thinking of taking early retirement from MOC (see
Figure). If desire to retire early or resign is a proxy for job dissatisfaction, significant proportion of staff
can be considered being dissatisfied or unhappy. However, the ministry cannot improve the pay and
compensation package of its staff. They are decided by central civil service policies. It can,
nevertheless, improve its work environment, career prospects, and other nonfinancial aspects to help
improve morale and attract high-quality staff. Factors like recognition and challenge at work could be
more important to drive higher satisfaction. According to the staff survey, the major determinants for
job satisfaction are fair treatment of subordinates by superiors, adequate pay and compensation,
regular feedback and recognition of effort, and opportunity to utilize and develop their skills (see
Figure ).
Figure 20. Opinion on Taking Early Retirement or Resignation
80%
70%
60%
50%
40%
30%
20%
10%
0%
Dept. of Dept. of Trade Minister's Myantrade Total
Consumer Office
Affairs
Yes No
Source: Survey of MOC’s Gazetted Staff (2017)
34
Figure 21. Reasons for Thinking of Early Retirement or Resignation
Others 39% 39% 22%
Disappointed about lack of recognition 23% 46% 30%
Low pay package 23% 45% 32%
Inconvenient or unimportant postings that are not
21% 45% 34%
based on merit
Better opportunities outside government 16% 47% 37%
To undertake social work 11% 60% 29%
Frustration at being unable to contribute to society 8% 45% 47%
To get away from political interference and
7% 30% 63%
harassment
To join politics 1%11%
Very Important Important Not Important
Source: Survey of MOC’s Gazetted Staff (2017)
46. It is useful to distinguish between human resource factors that cause satisfaction and
dissatisfaction, respectively, when deriving policy implications from the survey. In Herzberg’s ideal
type two-factor model (see Figure ), the key idea is that hygiene factors will not motivate, but if they
are not there, they can lower motivation. The satisfiers on the other hand are key sources of job
motivation. For instance, salary might over time come to be viewed as entitlements and lose the ability
to motivate. So, it may not be a long-term solution to simply improve salary across the board for all
public servants. Yet, if salary is perceived to be low, it will cause dissatisfaction and poor performance.
Figure 22. Factors Determining Job Satisfaction
Fair treatment of superiors to subordinates 61% 39%
Adequate pay and compensation 57% 41% 2%
Regular feedback and recognition of effort 48% 50% 2%
Opportunity to utilize and develop one’s skills 43% 56% 1%
Congenial work environment 41% 56% 3%
Appropriate level of authority or autonomy 35% 57% 8%
Challenging opportunities at work 26% 66% 8%
Chance to make a useful contribution 21% 74% 4%
Very Important Important Not Important
Source: Survey of MOC Gazetted Staff (2017)
35
Figure 23. Herzberg’s Distinction Between Figure 24. Staff Perception on MOC as an
“Satisfiers” and “Hygiene Factors” Employer
I don't
have Much
experienc better
e with 8%
other
employer
Worse s
1% 16%
Better
36%
Same
39%
Source: Herzberg (1968) Source: Survey of MOC’s Gazetted Staff (2017)
47. The strain of dissatisfaction may be due to larger civil service issues since a significant share
of the staff perceives the ministry positively as an employer compared to other government entities—
8 percent of the staff viewed the ministry as a much better employer and 36 percent as a better
employer. Only a small share of the staff (with only 1 percent) viewed the ministry as the worst
employee (Error! Reference source not found.).
4.3.2. Improving Capacity to Meet New Requirements
48. Even though MOC is staffed with well-educated gazetted staff, only a small fraction of them
holds undergraduate degrees in relevant subjects such as business, economics, and related studies
(Figure ). Having officials with sound knowledge in economics, business, and other relevant subjects
or at least the basics of critical thinking, analytical, and communication skills, either gained from solid
undergraduate education and through strong ongoing specialized training, is important for the
ministry to meet its increasing role in trade and PSD.
49. To address the new skills requirement and the shortage of staff with relevant education,
the training function could be strengthened. The survey of MOC’s gazetted staff reveals that business
and marketing is the most preferred subject to study, followed by information technology, in line with
the ministry’s need (Figure 25). Hence, capacity building for staff in these subjects may be considered.
These subjects are important for staff to develop their capacity given the increasing demand for the
ministry to play a role in trade facilitation and promotion, modernization of licensing applications, and
other special initiatives such as private sector development and special economic zones. To ensure
that the training is needs based, it may be linked closely to organizational development needs and
informed by MOC’s strategy, specifically a competency development plan. Training is just one among
many instruments to improve capacity. Specifically, the inputs to implement the competency plan can
be sourced from various inputs, such as job rotation, coaching on the job, and learning from outside
experts.
36
Figure 25. Undergraduate Background of Figure 26. Preferred New Subjects to Study
Gazetted Staff
Agri. Science and
Business or
Tech., 1% Business and Marketing 80%
Economics, 14%
None, 4%
Engineering or Information Technology 36%
Computer Sci.,
9%
Others,
54% Economics and Public Policy 20%
English,
7%
International Law 16%
Law, 6%
Military
Competition Policy 10%
Academy,
5%
Source: Survey of MOC’s Gazetted Staff (2017)
50. Even though the majority of staff use Figure 27: Familiarity with and Use of
computer programs to perform their day-to- Information Technology Programs
day work, a fraction of staff does not use any
computer program (Figure 27). In addition, a Use of any computer
89%
program?
considerable share of staff does not use
Use MS office last month? 72%
fundamental information technology (IT)
applications such as email and Microsoft Office Own computer workstation 71%
at workplace?
applications on a day-to-day basis. That could
Use email last month? 55%
indicate that IT capacity in the ministry is still
low because fundamental office applications are Use other computer
14%
program last month?
not widely used. Along with lower use of
Microsoft Excel, other analytical tools (for Source: Survey of MOC’s Gazetted Staff (2017)
instance, statistical packages) are not widely
used in the ministry yet, which could suggest a need to improve the quantitative analytical skills of
officers using suitable tools.
51. The staff emphasize the importance technology use and skills capacity as priorities that can
bring improvement in MOC (Error! Reference source not found.). Although training programs have
been provided during the past year, staff still feel they lack adequate skills to perform their duties,
indicating the ineffectiveness of the training programs. The survey reveals that IT and language skills
are essential for staff to fulfill their responsibilities. Skills training may be provided.
52. Developing the capacity of junior and mid-level staff may be one of the MOC’s medium-
term priorities. More than half of MOC staff are already above 50 years of age, with a large gap in the
number of mid-career staff (35-50 years old) and junior staff (under 35) (Error! Reference source not
found.). Staff that are close to retirement age appear to be concentrated in DOCA and MyanTrade.
Thus, it is essential for MOC to have a training plan for junior and mid-level staff to better prepare
them for emerging tasks and to groom the next cadre of directors, deputy DGs, and DGs. The age
profile of MOC reveals that the ministry needs a plan to develop the capacity of its younger staff, but
37
it also indicates a need to recruit junior (or younger) staff. Half of the gazetted staff are getting closer
to the retirement age. Such large impending attrition is also an opportunity to change the skill profile
of the ministry. A more comprehensive HR analysis that maps the functions, job descriptions, and
competency profile would ensure a systematic approach, rather than just conducting general training
of staff.
Figure 28. Perceptions on Improvements to Bring to MOC
Strategic leaders 76% 21% 4%
Technology and access to data 76% 20% 4%
Training and staff skills development 74% 22% 4%
Stronger analytical work 68% 28% 4%
Better salaries 66% 28% 6%
Reorganization or reassignment of tasks 64% 33% 2%
Delegation of powers or more autonomy 64% 30% 6%
Work process and flow changes 62% 33% 4%
More investment funds 58% 33% 8%
More operation funds 57% 35% 7%
More staff 40% 46% 14%
Different type of staff 34% 55% 10%
Agree Neutral Disagree
Source: Survey of MOC’s Gazetted Staff (2017)
Figure 29. Age Profile of MOC
80%
70%
60%
50%
40%
30%
20%
10%
0%
Dept. of Dept. of Trade Minister's Office Myantrade Total
Consumer Affairs
Under 35 and Below Between 35 and 50 Above 50
Source: Survey of MOC’s Gazetted Staff (2017)
53. Learning on the job is cited as the most important source of learning source by the staff,
followed by self-study, learning from outside experts, training programs, and learning from the
internet. Understanding staff perceptions on different learning sources is also useful in strengthening
capacity. (Error! Reference source not found.). Even though all the learning sources are considered
important for skills development, training programs and learning from the internet are considered
less important than other sources. This finding indicates that training programs may not be that
38
effective, and staff may not be quite comfortable utilizing available sources on the internet for
learning.
Figure 30. Sources of Learning for Skill Development
Learning on the job 49% 51%
Self-development or self-study 47% 52% 1%
Mentoring by seniors 37% 62% 1%
Learning from outside experts 25% 70% 5%
Training programs 24% 74% 3%
Internet 20% 73% 7%
Very Important Important Not Important
Source: Survey of MOC’s Gazetted Staff (2017)
54. The Ministry needs to prepare a capacity development plan, based on a competency profile,
for its staff as most of them do not have relevant backgrounds to perform the functions of a modern
commerce ministry. While it is important for the Ministry to take into account staff preferences for
new subjects to study, an important driver may be the capacity demands of the ministry’s growing
and changing responsibilities to create an enabling and conducive environment for businesses. In
addition, the ministry may consider using up-to-date IT programs, along with building IT capacity of
the staff, as a significant share of staff still does not use basic IT tools to do office work.
55. In addition to general skills, the trade specific skills also need special focus. These include
international trade law, corporate law, business marketing etc. The need can be reviewed further after
a more organized training need analysis based on the strategic priorities of the ministry and emerging
needs.
56. Extensive investment in ICTs is also needed. The report has not reviewed the current or
proposed IT systems in detail but clearly the systematic use of ICT is very limited. Coupled with careful
capacity building and business process reform, investment in IT systems, can drive change, make some
significant savings and improve services.
57. The Trade Training Institute in Yangon is aimed at lower-level officials from the private and
the public sectors. It is not equipped, with staff or by its mandate, to train mid-level or senior
managers. The Union Civil Service Board also does not provide this level of training given its mandate
of developing cross-departmental managerial skills. The sporadic national or international courses
offered by development partners are important, but are not systematic enough for broad skills
development of officers. An option to explore is establishing degree programs on a considerable scale
similar to, for example, support from the U.S. Agency for International Development to Indonesia.
Box 2. USAID Program for Capacity Building at the Ministry of Trade of Indonesia
After political transition, the Ministry of Trade of Indonesia was separated from Ministry of Industry
and has a primary mandate to promote Indonesia’s trade interests and protect consumers’ safety.
Strengthening capacity of staff to formulate policies and engage in complex environment was the
immediate objective of Indonesia’s Ministry of Trade. The USAID capacity building program for
Indonesia’s Ministry of Trade (MOT) partnered with University of Indonesia to introduce a one-year
39
Master degree on International Trade Law and Policy. The curriculum was designed jointly by
USAID, MOT, and the University. Candidates from MOT were selected through interviews and given
a full tuition scholarship to undertake the study.
58. Linkages with universities and think tanks will also help improve specialized training at
lower cost. Ideally, local think tanks and universities may organize these trainings to lower cost and
also to provide the private sector the opportunities to use these facilities. ideally run by local think
tanks or private universities. Regular discussions and lectures by outside experts is another way to
expose staff to new ideas. The possibility of leveraging the training facilities of other ministries, such
as the proposed Public Financial Management Academy of the Ministry of Planning and Finance, may
be explored till the time that more organized systems are not developed to deliver specialized trade
related training. The responsibility for developing a training plan could be anchored in a new human
resources division.
4.3.3. Providing Stretch Assignments
59. MOC could also form a task group consisting of staff from different departments to
undertake certain tasks relevant for DGs or the Policy Unit of the Minister’s Office. Giving staff
incentives to upgrade their skills is important. Another form of incentive and opportunity for skills
improvement is by creating demand for skilled staff. A good example in MOC is the current formation
of the Drafting Team for the Trade Law which consists of staff from various departments. This practice
can facilitate the inclusion of expertise and views from different departments. This is also an example
of learning on the job (or learning by doing), highlighted as the most important learning source for
skill development among gazetted staff as shown. New arrangements may be needed to allow staff
to work outside the direct command of their department DG.
4.3.4. Enhancing Information Flow Within the Ministry
60. The limited cohesion and information flow across departments in MOC can act as a limiting
factor for large-scale reforms in the future. As in other government ministries and public
bureaucracies, work tends to be organized by silos. It is typically formed within certain departments
or directorates and often stays inside self-contained units within a ministry. Officers working in one
department or directorate tend to stay and work within their confined space and mandate. Given that
in Myanmar all gazetted staff (with minor exceptions) are recruited, rotated, and promoted within
one department, the “silo” mentality can be exacerbated. Under these conditions, it is not easy to
introduce change and reforms, or to have coordination and coherence, since there are few horizontal
connections and social networks between different divisions.
61. This silo mentality can be unlocked by facilitating staff rotation across departments.
Prescribed rotations within a career planning framework can help improve coordination and
information flow across departments. They would also provide stretch challenges for staff and a break
from the routine of one department, and help identify and groom high potential staff.
62. The Human Resources Division of the Minister’s Office could lead staff rotation across
departments as a part of professional development and career promotion. The options for staff
rotation would be to:
• Facilitate two one-year rotations for young staff officers to work in different departments
before they settle for six years;
40
• Require one or two three-year rotations to another department as a precondition for
promotion to Director; or
• Facilitate the circulation of the same or higher-level positions in other departments for
mid-managers (assistant director or director).
4.3.5. Rationalizing Nongazetted Staffing
63. Traditionally, each gazetted officer has been supported by a team of nongazetted staff for
filing, paperwork, and miscellaneous functions. The ratio of gazetted to nongazetted staff stands at
one to five. However, two factors indicate this ratio may, over the course of future recruitments, be
changed to one to three. The growing use of IT is decreasing the need for filing and paperwork, and
therefore the need for support staff. The increasing demand for regulatory and policy work and the
increasing use of IT, require higher level of skills and education, which can only be found among
gazetted staff.
4.3.6. Creating Linkages
64. The MOC may develop linkages with the private sector, academic institutions, and civil
society to improve policy capacity. The demand for high-level analytics and policy development and
analysis cannot entirely be filled within the Ministry. At a minimum, more data sharing by the Ministry
with local partners—for example, the production yields data collected nationally by the Consumer
Affairs Department—can help improve analysis and diffusion of information.
4.3.7. Improving Diversity
65. Improving diversity in terms of ethnicity and gender to promote inclusiveness in the
workplace could expand the pool of talent available. The gazetted staff survey reveals that the
ministry is dominated by the Bamar ethnic group with 89 percent (Figure and 31), whereas the Bamar
ethnic population accounts for 68 percent of the nation. This pattern could partly explain the lower
share of non-Bamar ethnic groups being employed as gazetted staff. The Ministry is more diverse in
terms of gender as 45 percent of gazetted staff are female and 55 percent male. However, women
tend to concentrate in the lower gazetted ranks since director and above are mostly males.
66. Several avenues for supporting women and minorities can be used. Many countries – India
for lower caste groups, Pakistan for provinces, Malaysia for Malays - stipulate time-barred recruitment
quotas to implement affirmative action programs for historically disadvantaged groups. If direct
quotas are not possible because of the potential clash with some interpretation of the constitution
guaranteeing equality irrespective of race, gender and other factors, women and minorities can be
fast tracked by the Ministry by providing more training, career and leadership opportunities to
develop a pipeline of talent.
41
Figure 31. Ethnic Diversity Across Different Figure 32. Gender Diversity Across Different
Positions Positions
Senior Management 83% 17% Senior Management 17% 83%
Director 88% 12% Director 23% 77%
Deputy Director 88% 11%
Deputy Director 41% 59%
Assistant Director 92% 7%
Staff Officer 87% 14% Assistant Director 44% 56%
Staff Officer 52% 48%
Bamar Non-Bamar
Female Male
Source: Survey of MOC’s Gazetted Staff (2017)
4.4. Strengthening Leadership and Managing Change
67. Collective leadership is central to drive change. This functional review necessarily focuses on
the organizational of departments and functions and suggests several reforms, including
strengthening the office of the permanent secretary. It is important to note however that the minister
or the PS alone cannot drive fundamental change. Collective leadership approach involving all
management is likely to have more impact may have more impact than relying mostly on the PS to
drive the reform.
68. Gradual introduction of modern performance management systems in the ministry will also
help drive change. Adapted to the context, these could be phased in a manner to avoid any disruption
in the functioning of the ministry and can be. Results agreements between the minister and the DGs
and between the DGs and the division heads with clear performance indicators, linked with the overall
goals of the Ministry, could help improve performance of the entire Ministry. The KPIs could be linked
with simple professional and psychological incentives such as national or international.
4.5. Optimizing Resources and Support from Development Partners
To ensure the coherence of support from development partners for the government’s strategy and
coordinate implementation, MOC may establish an International Relations Unit under the
Minister’s Office to manage (i) relationships with development partners, and (ii) implementation of
Aid for Trade projects.
69. During the last five years several development partners have provided assistance to MOC.
These include a number of multilateral and bilateral development partners, such as the WTO, World
Bank Group, Asian Development Bank, European Union, Australia, Japan, South Korea, United
Kingdom and United States.
70. Setting up an Aid for Trade Unit can help MOC coordinate and monitor implementation and
mobilize more resources from development partners. Existing funding from the WTO can be used to
further develop projects. Continuing to keep Aid for Trade under the WTO Division of DOT may be
challenging as the division’s capacity is concentrated on liaising with the WTO and not on project
implementation. Therefore, having a dedicated unit will improve coordination, monitoring, and
reporting of implementation projects, particularly those that are implemented by MOC and other
government departments. In the absence of a clear national Aid for Trade agenda, it will be challenging
42
for MOC to ensure the synergy between a development partner’s support program and the strategic
objectives of MOC and the government.
71. An International Relations and Aid for Trade division led by a director may serve two key
functions. It can act as a “gate keeper” for coordinating donor support for MOC, to ensure that
proposed support is aligned with MOC strategic priorities and the policies of the government. The
division can also manage the implementation of an Aid for Trade program which requires capacity in
project management, procurement, and communicating results. The division can be led by a director,
includes international and national advisors, and long-term consultants specializing in different issues
(e.g., Aid for Trade, trade policy, procurement, and contracts) and funded from the WTO-led Aid for
Trade (A4T) multilateral initiative.
72. Ministry of Commerce can build on the experience of other least developed countries in
maximizing the benefit of A4T to their economies. Both Cambodia and Lao PDR have experience in
implementing multi-sector A4T program for almost two decades. Both countries also have been major
recipients of A4T support. Below is a structure for MOC to consider for guiding the implementation of
A4T-funded projects in Myanmar.
Figure 33. Proposed Structure for International Relations and Aid for Trade Unit
Permanent Secretary
Deputy Permanent Secretary
Director
International Relations and Aid for Trade
Advisors (national
Deputy Director
and international)
Finance and
Procurement Technical Units
Administration
Officers Finance officers Analysts
Support staff Communication
Funded with support from the Aid for Trade multilateral initiative.
4.6. Realigning Functions of Departments
73. MOC has a similar role to the ministries of commerce and trade in ASEAN countries,
particularly on trade negotiation and promotion. A snapshot of typical tasks of ministries in selected
countries can help indicate functions the MOC needs to develop (see Annex 4). Similar to the
Indonesian Ministry of Trade, Myanmar’s MOC also issues trade licenses and is not tasked to develop
43
industrial policies. Promoting consumer protection and overseeing domestic trade are also within the
mandates of the Indonesian Ministry of Trade and Malaysian Ministry of Industry and Trade.
4.6.1 Reorganizing the Department for Trade into a Department for Foreign Trade
74. The Department of Trade has been the central plank of MOC in developing and promoting
trade in Myanmar. DOT administered trade licenses and conducted border trade operations during
Myanmar’s socialist period. It has also been present in border areas to encourage and manage cross-
border trade. Since 2011, DOT introduced automation in processing trade licenses and a trade portal,
and has been proactive in supporting Myanmar’s engagement with WTO and neighboring countries.
Accordingly, DOT has invested in capacity and knowledge to implement policies to facilitate and
encourage cross-border trade.
75. Several of DOT’s functions and proposed expansions need to be reviewed against results
effectiveness. For example, a training center can serve staff from other departments and provide the
training needs for MOC HR strategy and planning. Aid for Trade has an operational function to support
MOC in implementing its priorities. In this context, the senior management of MOC may want to
review activities of DOT (and other departments) based on the following considerations:
• Assessing the span of control of the DG and deputy DGs. DOT has 13 divisions with at least three
different work areas—export-import, e-licensing, and border trade; bilateral, regional, and
multilateral trade relations; and competition policy. Adding another division or function can
overstretch management in monitoring and implementing MOC program and priorities. They
can also create “competing goals” that drain energy and undermine the focus of DOT managers.
• Combining and rationalizing divisions. There is a case for DOT and other departments to
combine certain divisions to reduce the number of directors and to increase effectiveness.
Within DOT, the Accounting, Finance, and Planning Divisions can be merged into an
Administrative and Planning Division.
• Centralizing support functions under the permanent secretary. Several functions, such as audit,
ICT, a training center, and Aid for Trade, are support functions for all departments that may be
coordinated and managed under Office of the Permanent Secretary. This also applies to other
departments in MOC because centralizing the management of support functions can help
increase efficiency.
Table 4. Proposed Restructuring of DOT into Department for Foreign Trade
Divisions of the Remarks Recommendations
Department of Trade (DOT)
Finance Managing finance issues of DOT Merge these three divisions into an
Accounting Managing accounting reports Administrative and Planning Division;
Planning and Statistics Managing planning of activities transfer the statistics function to the
and data collection Trade Policy Division
Internal Audit Performing audit for DOT Unless there is a strong case, this
activities and budgetary use function may be under the Office of the
Permanent Secretary
Information Technology Supporting demand for ICT in Merge to form a Trade Facilitation and
DOT Documents Processing Unit with a strong
Export and Import Main role is issuing trade capacity in ICT, involvement in WTO TFA
licenses implementation, and liaisons with other
departments (e.g., customs, quarantine)
Trade Policy Responsible for analysis and Consider turning this into a Trade Policy
monitoring policies Analysis Division; the capacity of this
division may be strengthened with the
44
possibility of forming a “core-of-
excellences” staff who cover industry
topics (including services) and SPS/TBT to
policy analysis for inputs to policies and
trade negotiations
WTO and International Tasks generally follow WTO Options are (i) transfer these functions to
Organizations agenda a new Department for Trade
Regional Economic MOC may expect more demand Negotiation; (ii) keep them under DOT to
Cooperation for negotiation from these support negotiations led by the Office of
Bilateral Trade Relation divisions the Permanent Secretary
Border Post Coordination Manage staff in border posts Consider phasing out presence in border
and Supervision and trade zones for inspection post as Myanmar moves to a customs,
and issuance of licenses immigration, and quarantine system for
border management; consider turning
this division into a support trade zone
(local economic zone) and MOC in
developing SEZs
Competition Division Supports MOC in implementing Explore the possibility of co-shared
the competition law functions with Consumer Affairs and
Domestic Trade
Trade Education (Training) Provides courses for the private Turn this into a Trade Institute under the
sector on export and import Office of the Permanent Secretary to
procedures provide a capacity building program for
all MOC staff
Trade Defense and Not yet available Consider establishing this function,
Antidumping perhaps can start under Trade Policy
Division until it has a clear work plan
76. Refocusing functions of DOT around its core competence can increase effectiveness of MOC.
DOT already has operational experience in handling trade licenses. It also has experience in conducting
and implementing policies to promote trade facilitation. This functional review recommends that DOT
focus its tasks on the following core areas:
• Processing trade permits and licenses for traders. DOT has strong capacity in handling export
and import processes through an electronic platform. It may also continue managing the Trade
Portal to help traders in getting official information for requirements for exporting and
importing. With this capacity, DOT may be the focal department of MOC to participate in a
national single window for trade facilitation.
• Support MOC in formulating and advocating reforms in trade facilitation. DOT has experience
and familiarity with WTO and ASEAN agendas for trade facilitation, e.g., WTO, TFA, and ASEAN
Trade in Goods Agreement (ATIGA). In coordination with Customs and other departments, DOC
can continue to support MOC in formulating and advocating policy reforms in trade facilitation,
including international e-commerce. DOT may also be the focal department to support MOC in
coordinating implementation of the WTO Trade Facilitation Agreement and other
commitments of WTO and ATIGA. MOC may reconsider refocusing DOT tasks away from the
documentary issuance of licenses at border posts. Instead, DOT can help develop policies, in
coordination with Customs, to encourage trade through formal channel.
• Support MOC in industry and policy analyses. DOT can establish a "core-of-excellences” staff—
a group of three or four staff led by assistant directors or directors, to specialize in industry
topics, such as agriculture, fisheries, light manufacturing and selected services (retail and
45
business). Outputs from the core-of-excellences staff can inform policy formulation in MOC and
contribute to negotiating position and trade promotion strategy.
• Coordinate preparation for investigation and formulation of a dumping margin. With
experiences and familiarity of WTO rules and global trading systems, DOT may coordinate the
development of materials to support the future Antidumping Commission, including the
proposed dumping margin that Customs needs to collect (or refund if an investigation finds no
evidence of dumping).
• Support MOC in promoting and developing SEZs. MOC may want to consider tasking DOT to
provide core support for MOC involvement in promoting SEZ. DOT is already engaged in
developing and managing trade zones and is likely to have certain capacity to undertake this
task.
77. The MOC also may want to set up a plan and timeline to withdraw from handling licenses
and coordinating inspections at inland border posts. MOC already offers online processing for trade
licenses, connected to the Customs Automatic Declaration System. Modern border management
practices also suggest that stronger cooperation is needed among agencies involved in inspections,
cargo clearance, and facilitation of the movement of people, which are tasks currently done by
Customs, Immigration, and Quarantine. Furthermore, the ASEAN Agreement on Customs, signed in
2012, suggests customs agencies would be the focal point for coordinating trade facilitation at border
checkpoints (see article 47 (1) of the agreement).
78. MOC's role in trade facilitation could be refocused on policy advocacy and on promoting
transparency through its Trade Portal, while moving away from the transactional issuance of licenses
at the border. Significantly reducing the presence of MOC staff at border posts could also improve the
operational efficiency of MOC. In FY 2016/17, MOC had 157 staff at border posts, 40 of whom were
gazetted staff. Muse is the busiest post, with 50 staff handling 57 percent of all import and export
licenses issued at land border posts. On average though, staff in Muse issued about nine licenses per
month, or less than one license per day (Figure ). Eliminating or significantly reducing the presence at
border posts would allow MOC to free up some resources to meet the new demands of its role (e.g.,
promotion, negotiation).
Figure 34. Number of MOC Staff in Border Posts and Number of Licenses Issued per Month in FY
2016/17
60 10
9
50 8
No. of License
7
No. of staff
40
6
30 5
4
20 3
10 2
1
0 0
Border Posts
No. of staff in border post License issued/month (right axis)
Source: MOC data
46
79. The MOC may also want to reconsider the role of DOT in competition policy and the
Myanmar Competition Commission. Most of the countries in the region have independent
competition commissions led by independent commissioners. However, competition issues are mainly
"behind the border" which falls beyond the regular function of DOT. Malaysia, for example, has
competition policy under Domestic Trade. Indonesia has an independent commission, and the
Ministry of Trade is not involved in the Competition Commission. Given the limited internal capacity
of MOC in competition policy and to reduce the risk of conflict of interest, it may be necessary to limit
the role of MOC in selecting commissioners by setting up a selection committee of government
officials and professionals.
4.6.2. Strengthening Functions for Cooperation and Trade Negotiations
80. The responsibilities for trade negotiations are spread across several Myanmar government
agencies. MOC is leading engagement and negotiations for issues discussed under the WTO while the
Ministry of Planning and Finance handles negotiations under the ASEAN agenda for regional
integration. In services, the Ministry of Transport and Communication represents Myanmar in ASEAN
services negotiations. This separation of the mandate can create difficulties in coordinating a common
position, ensuring consistency in approach, and increasing effectiveness in international economic
diplomacy. This situation also can cause difficulty in coordinating follow-up in the implementation of
commitments.
81. In view of Myanmar’s increasing trade integration and as a party to several trade
agreements, there is a strong rationale to strengthen its negotiation capability. Myanmar is a party
to ASEAN negotiation initiatives, including the agreements on trade in goods, comprehensive
investment, services, customs, and facilitation of goods in transit. At the same time, ASEAN Plus Six
countries are also concluding a mega-regional agreement. Myanmar is also party to the Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic Cooperation. To support negotiations and
engagement in various forums, MOC needs the capacity to consolidate inputs from different
departments. It may develop the capacity to coordinate inputs from other government agencies and
departments as well as consultations with stakeholders. Also, MOC may need to communicate the key
outcome of each negotiation round to other senior government officials so information can cascade
down to their staff.
82. MOC will be the right ministry to house a “National Secretariat” for participating in trade
negotiations. Activities may be performed in cooperation with the Ministry of Foreign Affairs. A full-
time secretariat plays an important role for coordinating preparation across ministries before
negotiations, which often entails a technical and legal study, consultations with stakeholders, a
mapping request-offer, and communication of the results of each negotiation round. Although MOC
senior staff may not lead negotiation or the delegation, MOC can host a secretariat to provide a
support function for trade negotiation.
83. To strengthen cooperation and trade negotiation functions, MOC can consider the following
options:
• Form a Strategic Division led by a director under the permanent secretary to lead coordination
and preparation for new trade negotiations. The negotiations can be led by a former ambassador
or senior government officials with the support from this division. This approach is similar with
47
the practices of Malaysia's Ministry of Trade and Industry. This approach assumes that the division
can obtain seamless cooperation from various departments and has the capacity to coordinate
inputs from other stakeholders on issues in trade in goods and services. It also assumes DOT or
the Department of Trade Promotion has the capacity to participate in regular forums (e.g.,
bilateral, ASEAN, and WTO).
• Establish a Department for Trade Cooperation and Negotiation led by a DG. Having a dedicated
department can provide MOC stronger capacity to coordinate trade negotiations activities. Having
a DG leading this department can also help MOC in coordinating inputs and gaining cooperation
from other government agencies. The staff of this department can also develop capacity on
different negotiation topics, such as services trade, ICT, and goods; however, this option may incur
higher costs associated with administration and overhead. This approach is used by the Thai
Ministry of Commerce and the Indonesian Ministry of Trade.
4.6.3. Revamping the Trade Promotion Function
84. Myanmar’s integration into global and regional trade markets necessitates a more proactive
trade promotion. Trade promotion is usually done through a trade promotion agency (TPA). A study
involving 103 TPAs around the world suggests that, on average, they make a positive impact on export
development (Lederman et al. 2010). The main justification for government support through a TPA is
the market’s failure to address information asymmetry. Individual firms are less willing to invest in
marketing and gathering contact and market information if such efforts can be easily replicated by
competitors. Therefore, a market mechanism is likely to deliver too little information for exporters,
particularly those who would like to export a new product or to a new market. Challenges and risks
associated with exporting to a new market can also be too high for individual firms to take. Thus, many
governments also support trade promotion through export insurance.
85. The design of a TPA matters for export performance. Typically, there are four types of TPA:
(i) part of a ministry’s unit; (ii) a semi-autonomous institution reporting to the government; (iii) a
public-private entity; and (iv) a private entity. With a large part of the TPA’s operational budget coming
from the government, a global study suggests a strong correlation between having a board with
members from the private sector and a TPA’s performance (Lederman et al. 2009). In other words,
accountability, responsibility, and flexibility in hiring competent people have a positive influence on
the effectiveness of using public funds to promote trade.
Table 5. Typical Attributes of a Trade Promotion Agency in Neighboring Countries
Country Name Setup Core Features Other Relevant
Statutory Bodies or
Program
Indonesia Department Department under 1. Organizes buyers- • National Creative
for National the Ministry of suppliers matching, Agency (semi-
Export Trade, led by a supports participation autonomous agency
Development director general of exporters in key reporting to the
foreign trade fairs, president)
gathers market • Investment
information Coordination Board
2. Coordinates activities • Exim Bank and Export
of commercial attaché Guarantee Agency
48
offices and trade
centers abroad
3. National export
branding
Malaysia Malaysia Established as a • Similar to 1, 2, and 3 • Pemudah, a public-
External Trade public corporation • Offers grants and a private entity for
Development external to the range of services to an promoting investment
Corporation, Ministry of Trade individual exporter reforms
known as and Industry, led by • Has the capability to • MIDA, investment
MATRADE a chief executive borrow funds board
officer reporting to • SME-Corp, semi-
a board consisting autonomous under the
of government and Ministry of Trade and
private sector Industry
representatives • Malaysia Exim Bank
Philippines Center for Department under • Similar to 1 and 3 • Board of Investment
International Ministry of Trade • Organizes creative • Philippines Exim Bank
Trade and Industry, led by events (e.g., fashion • Entrepreneurship
Exposition and a director general designs) program, e.g., One
Mission Town One Village
Thailand Department of Department under • Similar to 1, 2, and 3 • Thai Board of
International Ministry of Trade, Investment
Trade led by a director • Thai Exim Bank
Promotion general • Entrepreneurship
program, e.g., One
Tambon One Product
Vietnam Vietrade Department under • Similar with 1, 2, and 3 • Department of
Vietnam Ministry of • Entrepreneurship Investment and
Trade and Industry, development program Planning
led by a director • Exim Bank
general
86. Strengthening the trade promotion function of MOC is critical to respond to growing
demand from stakeholders. The stakeholders’ survey suggests this function is important and needed
by Myanmar’s private sector. Given MOC’s mandate, trade promotion involves MyanTrade and DOCA.
To ensure synergy, MOC may want to consider the following demarcation of activities:
• The DOCA will promote domestic commerce through policies in retailing, consumer protection
for e-commerce, and franchising. In cooperation with MyanTrade, DOCA will work with selected
associations of producers to organize thematic trade fairs for domestic consumers (e.g.,
handicrafts or traditional clothes).
• MyanTrade will promote Myanmar products to foreign markets and support DOCA in domestic
trade promotion. This include managing international trade fairs; developing and implementing
a matching grant scheme for potential exporters to join the international value chain; and
managing relationship with trade attaches and counselors.
87. The MOC needs a transition plan to turn MyanTrade into the trade promotion agency of
Myanmar. Box 3 presents the TPA of Singapore and its services to promote exports. However,
MyanTrade cannot be expected to function as TPA providing services to exporters. MyanTrade would
need a plan (capacity building, resources) to gradually perform promotion functions. It is also
important to realize that many TPAs in other countries rely on professionals to perform export
marketing (e.g., trade fairs for Indonesia and the Philippines) or to have TPA established as a statutory
body (e.g., MATRADE in Malaysia) that can hire professionals to provide services to exporters.
49
Regardless of the various options for the structure and form, a well-functioning TPA will generally
need to have the following elements:
• Responsiveness and professionalism. TPA interacts with private companies and may deliver
value in its services. Therefore, TPA needs the ability to hire professionals from the market and
deploy experienced staff.
• Accountability and transparency in use of public funds. TPA needs to be transparent and
accountable in how it uses public funds to support the private sector. If the TPA is able collect
a fee for services, it may also be transparent on how fees are managed and spent.
• Discipline in monitoring and willingness to evaluate intervention and program. To be successful
TPA would need to track results from interventions (e.g., new exports, job creation). It also may
evaluate how the intervention is creating impact for recipients compared to non-recipients.
Box 3. Trade Promotion Efforts and the Agency of Singapore
Over the past 30 years, Singapore’s trade promotion efforts have been led by International Enterprise
(IE) Singapore, a statutory government agency under the Ministry of Trade and Industry. Apart from
spearheading initiatives aimed at supporting the internationalization of Singapore companies, IE
Singapore’s mandate also includes attracting global commodities traders to establish their global or
Asian home bases in Singapore and connecting businesses with relevant Singapore-based companies for
their business expansion. IE Singapore has a network of offices spanning many developed and emerging
markets around the globe. In 2016, IE Singapore helped 34,000 firms, up from 28,000 in 2014. The
agency's total headcount, which includes its 39 overseas centers in major business capitals, has
remained fairly constant at about 500 staff. IE staff have the opportunity to embark on three- to four-
year overseas rotations, during which their responsibilities include nurturing the organization’s network
of contacts in the private sector and counterpart government agencies, as well as identifying business
opportunities and providing market insights and consultancy services to Singapore companies.
IE Singapore originated from a reorganization of what used to be called the Singapore Trade
Development Board (TDB). The TDB was formed in 1983 to develop Singapore as an international trading
hub, promoting the nation's goods and services. This rebranding coincided with an acknowledgment
that Singapore had to move beyond its investment-led and electronics-dominated export base and
diversify sources of growth. TDB was renamed International Enterprise Singapore on April 12, 2002 to
mark a strategic shift in activities, which was to focus less on export promotion and more on helping
Singaporean businesses start and develop their business overseas.
Presently, IE Singapore offers services to help Singapore-based enterprises, including SMEs, export,
develop business capabilities, find overseas markets, and enter new markets. The organization’s support
for trade promotion can be categorized in three key ways, namely, by expanding a company’s network
of contacts, by building competencies, and by providing capital support. IE Singapore's global presence
and extensive network of key business and government contacts offer companies the necessary
connections to venture overseas. Enterprises can take part in business missions, networking sessions,
and trade fairs to find overseas partners. To support private sector efforts to improve competencies, IE
Singapore offers a wide range of assistance programs and resources to help build competencies in
alliance formation, branding, design, export, intellectual property, and the workforce. Companies can
also build market knowledge through support from IE Singapore. They can also obtain personalized in-
depth advice from consultants in its advisory centers. Lastly, IE Singapore offers a range of financial tools,
grants, and tax incentives to help enterprises gain access to capital, develop their financial management
capabilities, and defray developmental costs of expanding overseas.
88. The MOC may be authorized to appoint trade counselors and set up trade offices abroad, in
consultation with relevant ministries. Ideally, trade counselors may have a senior profile and report
50
to the permanent secretary or minister. Because of an important role in promoting Myanmar's
interest, the positions may be filled by qualified persons who perform the following functions: (i)
gathering market intelligence for the Myanmar government and private sector; (ii) lobbying for
Myanmar market access interests and attracting investments; and (iii) supporting the broader
economic interests of Myanmar abroad.
89. Appointment of trade counselors, however, may be coordinated with Ministry of Foreign
Affairs to ensure smooth working relationships and to preserve unity of Myanmar’s mission abroad.
Trade counselors have the authority to set up offices and be provided with budget for recruiting local
staff and consultants to support their work. MyanTrade may have a division to support trade
counselors in setting up their work abroad and administering their reporting to MOC.
4.6.4. Defining the Scope of Domestic Trade Work Under DOCA
90. The Department of Consumer Affairs is a new unit tasked with promoting consumer
interests and domestic trade. It was established after Myanmar passed the 2014 Consumer
Protection Law with its main function being to raise public awareness of product safety. It helps solve
consumer complaints and disputes between the consumer and the producer, seller, or manufacturer
around both products and services, and inspects products in the market. As required by law, DOCA
has a Central Committee for Consumer Protection and a Dispute Arbitration Board chaired by the
Minister. Similar committees can also be established at the state and regional levels (chaired by
regional ministers and consumer affairs officers from states). MOC has proposed amending the
Consumer Protection Law to include the role and responsibilities of DOCA. Recently MOC has tasked
the DOCA to promote domestic trade in Myanmar.
91. The MOC may review the role of DOCA in consumer safety inspections to minimize the risk
of rent seeking. Currently, DOCA performs inspections at the district office level and plans to expand
the coverage to the township level. While inspection is a common approach to ensure compliance,
there is a risk of misuse in authority which can be costly for the private sector. Therefore, the issue is
not the inspection function itself, but how it is designed to work to support regulatory compliance in
a cost-effective way.
Table 6. Recommendations for Divisions Under the Department of Consumer Affairs
Division or Offices Recommendations
Administration Division These two divisions can be merged into an Administrative and Planning
Accounting Division Division with a focus on coordinating and monitoring activities.
DOCA may want to consider combining this division with the Research
Division for Consumer Affairs and Domestic Trade, which would allow
the division to provide policy analysis on domestic trade policy and
Policy and Statistics Division consumer protection policy issues.
General information and communications technology (ICT) support may
be centralized under the Minister’s Office or the Office of the Permanent
Information, Technology, and Secretary. But the use of specific ICT tools for inspection, data collection,
Quality Control Division and quality control can be provided by this division.
Consumer Affairs Division Strengthen capacity.
Product Safety Division Strengthen capacity.
These offices are more for operations at the ground level. Greater
State, regional, and district cooperation is needed between this division and other main divisions of
offices the department.
51
92. DOCA may apply a risk-based approach to inspection. This means that DOCA may avoid
inspecting all businesses to ensure compliance. This approach would be ineffective, create a burden
on the private sector, and possibly discourage compliance. Developing inspection protocols based on
risk will be critical. Moreover, Myanmar does not yet have a National Quality Infrastructure for
advising MOC and consumers on product safety standards. To avoid conflicts of interest, MOC may
not introduce standards without deciding how they may be enforced.
93. MOC needs to assume a more proactive approach about dialogue on standards, and DOCA
can be the focal point. Product standards are normally set by an independent institution under the
umbrella of a National Quality Infrastructure. Currently the responsibility for developing standards in
Myanmar is still with the Department of Science and Technology of the Ministry of Education. It is
important for MOC to engage in this subject to ensure compatibility of proposed standards and
technical regulations with relevant WTO agreements.
94. DOCA needs to carefully consider the scope and limitations of price stabilization. Through
DOCA, MOC monitors and collects price data of key products, and if needed, may intervene to stabilize
prices. The existing mechanism for MOC to stabilize prices is the revolving fund that can be used to
buy rice during overproduction or deploy emergency supplies if a severe natural disaster occurs.
Under the latter condition, MOC can also introduce temporary export restrictions on certain products.
A discussion is taking place on how DOCA can respond to a sudden increase in the prices of basic
commodities that is not caused by natural disaster. However, pursuing price stabilization without clear
analysis can be distortive and lead to dangerous precedence of costly public-price stabilization.
95. MOC needs to further clarify and develop the domestic trade function of DOCA. There is not
yet a clear work plan for DOCA on domestic trade. However, interviews suggest that DOCA is
contemplating various options, including working on a value chain of certain products sold for
domestic market and promoting retailing and franchising in Myanmar. But domestic trade covers a
wider range of topics for strategic decision making by MOC, such as:
• Promoting domestic products. DOCA may identify policies where MOC can influence the
competitiveness of domestic products and incentive schemes that will persuade entrepreneurs to
increase their product quality. The former may include policy measures to improve the business
environment. The latter may include incentive measures to support entrepreneurs in achieving
quality "Made in Myanmar" products and services.
• Trademarks and geographical indicators. These forms of property rights can promote trade and
awareness of Myanmar products. A law on intellectual property rights is being prepared for
submission to parliament; however, Myanmar is yet to set up implementation arrangement to
make the law supportive for businesses.
4.7. References
Aung, Winston Set. 2011. “Informal Trade and Underground Economy in Myanmar.” IRASEC
Occasional Paper No. 04, Observatory Series, Research Institute on Contemporary Southeast
Asia, Bangkok, Thailand.
Besedes, Tibor, and Thomas J. Prusa. 2011. “The Role of Extensive and Intensive Margins and Export
Growth.” Journal of Development Economics 96 (2): 371–379.
Herzberg, Frederick. 1968. "One More Time: How Do You Motivate Employees?" Harvard Business
Review 46 (1): 53–62.
52
Lederman, Daniel, Marcelo Olarreaga, and Lucy Payton. 2009. “Export Promotion Agencies
Revisited.” Policy Research Working Paper No. 5125, World Bank, Washington, DC.
———. 2010. “Export Promotion Agencies : Do They Work?” Journal of Development Economics 91:
257–265.
53
54
96. This functional review of the Ministry of Commerce presents a wide range of
recommendations for reform of the structure and capacity of the ministry. Some suggestions, such
as restructuring the Minister’s Office and strengthening the role of the permanent secretary, may
need the sanction of the union cabinet. Suggestions for additional budget for MyanTrade may need
discussions with the Ministry of Planning and Finance. Recalibration of the ratio of gazetted officers
relative to nongazetted staff at the ministry level can be done through workforce attrition. Other ideas
such as the rotation of officers can be implemented within the ministry through an internal decision-
making process.
97. Implementing organizational change is never easy and needs sustained, inventive efforts.
Old habits, legacy processes, weak capacity and pockets of vested are likely, as is often the case in any
developing country, likely to challenge implementation of the recommendations. This change
management strategy could draw on a range of tools such as problem-driven workshops, knowledge
exchanges, communications and stakeholder alignment, incentives rewarding performance, adaptive
leadership and implementation coaching.
98. Gradual introduction of modern performance management systems in the ministry will also
help. Adapted to the context, it could be phased in a manner to avoid any disruption in the functioning
of the ministry and can be. Results agreements between the minister and the DGs and between the
DGs and the division heads with clear performance indicators, linked with the overall goals of the
ministry, could help improve performance of the entire ministry. The KPIs could be linked with simple
professional and psychological incentives such as national or international trainings, honorable
mentions, internal visibility etc (see Annex 3 for an example of KPI).
99. Table 7 presents a snapshot of reform options including suggested timelines and
administrative considerations.
Table 7. Planning and Implementing Reform Options: A Snapshot
Proposed Responsibilities and
Reform Options Possible timeline Operational Steps
Recommendation Set 1: Strengthening the Minister’s Office is fundamental to drive reform within MOC
and promote sound policies.
Empower the permanent secretary to ensure Minister and cabinet decision with
closer coordination and collaboration in permanent secretary responsible
relation to planning tasks, defining strategic for operational aspects.
objectives, and ensuring policy coherence with 6 months
the day-to-day work of the minister and deputy
minister.
Improve planning and policy formulation. Minister decision with vice
Strategic direction from the minister, deputy minister and permanent secretary
minister, and permanent secretary is needed to overseeing implementation.
ensure the alignment of each department’s
activities with the vision and mission of the 6 months
Ministry of Commerce (MOC), and more
importantly, with the economic policies of the
government.
Centralize key organizational functions: Permanent secretary oversees the
information and communications technology process. In one month’s time, the
(ICT), human resources (HR), internal audit, 12 months permanent secretary’s staff
legal services, planning, and statistics in the prepares a process action plan for
Minister’s Office. integrating these functions within
55
the Minister’s Office and
implementation completed in 10
months for all functions.
Strengthen the Secretariat for the Trade and Development of a draft work plan
Business Promotion Task Force and the Private and draft descriptions of the
Sector Development Committee. This task force secretariat’s functions. Permanent
has a key coordinating function across the secretary to guide the process and
trade sector and may have a full-time 6 months minister to provide final approval
secretariat and strong links and networks with of work plan and terms of
the private sector. This secretariat may also reference.
report directly to the permanent secretary.
Establish an International Relations and Aid Permanent secretary oversees
for Trade Unit. This unit will be responsible for development of organizational
coordinating implementation of programs on terms of reference for the division.
trade supported by development partners Staff
(DPs), including support for liaising with sector 6 months recruitment in consultation with
coordination groups and the Donor Assistance the Union Civil Service Board
Coordination Unit. (UCSB) and MOC senior
management.
Minister approves new structure.
Strengthen the communications function with Development of action plan by the
particular emphasis on dissemination of policies Minister’s Office in close
and reform direction through development of a consultation with other MOC
communications action plan. 12 months departments. Recruitment of
relevant staff. A dedicated website
would be the first step in this
strategy.
Recommendation Set 2: Strengthening organizational and staff capacity to meet new policy
requirements.
Create interdepartmental task groups drawn Coordinated through the
from MOC staff to solve specific tasks and Minister’s Office and the Office of
problems. This is a project-oriented approach. the Permanent Secretary but
The format may include a clear description of technical work driven by relevant
the objective of the ad-hoc working group, policy departments and divisions.
Ad-hoc as required
department, or division leading the group, time
frame with clear milestones including a specific
deadline for work completion, and resources
needed. Important to keep the number of task
groups at a limited level.
Facilitate staff rotation across departments. HR Division—when and if
Prescribed rotations within a career planning established—in the Minister’s
Staff to rotate every
framework. Office to develop and manage
2-4 years
scheme for staff rotation across
departments.
Increase the ratio of gazetted staff relative to HR Division—when and if
nongazetted staff from one to four to one to 5-year period but established—in the Minister’s
three. Adjustment to happen over a 5-year starting as soon as Office to assume responsibility, in
period facilitated by natural workforce attrition. possible close cooperation with UCSB.
Increase linkages with the private sector, Coordinated by Minister’s Office
academic institutions, and civil society to with involvement of relevant
improve policy capacity. The demand for high- departments and divisions.
level analytical and policy development skills 1 year
cannot be met entirely from within the
ministry. Regular sessions with stakeholders to
discuss policy issues and constraints, e.g.,
56
through national and regional private sector
forums.
Review and strengthen the training function A competency framework and a
based on MOC’s new skills requirements. The training plan to be developed by a
supply of training may be demand-driven. cross-ministerial working group,
6 months
referring to the vice minister. If an
HR Division is established, it
would assume key responsibility.
Strengthen inclusiveness by increasing the HR Division—if and when
share of females in senior leadership positions established—in close cooperation
and by setting up programs to increase the Could be initiated as with UCSB. In the meantime, the
intake of non-Bamar groups into gazetted soon as possible Minister’s Office will lead the
positions. process.
Invest in ICT systems. Careful investments in ICT Detailed analysis of IT needs to be
capacity, processes and systems can drive 3-24 months conducted followed by
change, save money, and improve services. investments in capacity building.
Develop and implement a change management This is an ongoing process. The
plan. This plan could draw on a range of tools revamped PS office to lead this
such as collective leadership, problem-driven ongoing process.
workshops, knowledge exchanges, 6-24 months
communications and stakeholder alignment,
performance management, adaptive leadership
and implementation coaching.
Recommendation Set 3: MOC may establish a plan for the use of development assistance, among other
things developing a needs assessment of support required. Establishing an Aid for Trade Unit will help
to guide this process. MOC may establish a plan for using development assistance that includes a needs
assessment of the type of support wanted and the establishment of an Aid for Trade Unit to help guide
this process.
Alignment of DP support to MOC’s strategic Draft functional description of
needs and policies and coordination of DP new Aid for Trade Unit developed
support to avoid overlap will be essential tools by the International Cooperation
for strengthening policy and institutional Department and approved by the
capacity. Establishing an Aid for Trade Unit to 12 months minister (3 months). Aid for Trade
help oversee, administer, and monitor this Unit to develop needs assessment
process will be instrumental to achieve this and plan for DP assistance (3
objective. months).
Recommendation Set 4: Conduct organizational reform to align the ministry’s structure to serve new
policy requirements.
Reorganize Department of Trade (DOT) by DOT to prepare draft proposal for
refocusing core functions on facilitating trade, 12 months Minister’s approval.
industry, and policy analyses.
Withdraw MOC’s presence from inland border Office of the Minister—in close
posts. Online licenses for import is already consultation with DOT—to
Implemented in
available, and a negative list for export licenses prepare draft action plan for
phases
is being prepared. withdrawing MOC from inland
border posts.
Establish a Department for Trade Cooperation Draft a functional description of
and Negotiation. Given the intensity of the task mandate and responsibilities,
of coordinating the implementation of (and including staffing and budget,
participation in) international negotiation 6-12 months developed by the Minister’s
forums, MOC may consider establishing a Office. Minister of Commerce to
specialist department in this area. approve draft.
57
Transform Myanmar Trade Promotion MyanTrade prepares a draft
Organization into a trade promotion agency proposal, including staffing and
(TPA). MyanTrade has limited budget and staff budget, for minister’s approval (3
capacity to carry out its international trade months). TPA is established (3
promotion activities. It may also have the months).
capacity to communicate with commercial 12 months in
attaches in Myanmar embassies and contribute sequences
to trade negotiations. Like other TPAs,
MyanTrade may have the capacity to use fiscal
resources to promote exports in the most cost-
effective way.
Strengthen capacity and clarify functions for Develop regulations and
Department of Consumer Affairs (DOCA). The guidelines—including possible
department is well positioned to take on MOC’s staffing and budget implications—
responsibility to promote consumer rights and for DOCA to assume new role.
mediate consumer-seller disputes. On product 12 months DOCA to prepare draft for
standards, DOCA may play a role in setting up minister’s approval.
policies with low transaction costs for business
to follow. DOCA’s role in promoting domestic
trade needs to be clarified.
100. While the exact financial implications of each intervention have not been detailed, the
review aims to be broadly budget neutral. Suggestions like creation of a new trade unit and policy,
planning and communication units, and more capacity development activities would need more
funds, but these additions are balanced by the suggestions that many support functions can be
rationalized and consolidated under the Minister’s Office. Also, the abolition of border posts will save
funds that can be reallocated to prioritized, strategic functions.
101. Mindful of the sensitivities around job losses, the report does not recommend related
intervention. The suggested reforms can be sequenced with staff attrition and re-allocation over the
medium term.
102. It is suggested that after due deliberation within the ministry, an inter-ministerial
committee of the ministry, Union Civil Service Board, and the Ministry of Planning and Finance is
formed to review recommendations that are general in nature, and if implemented, can also inform
the structural design of other ministries. The recommendations of this committee can thus suitably
inform the Cabinet of Myanmar when its approval is sought.
103. Other committees at the DG level, and at state and regional levels, could be formed to
discuss the review’s finding and the recommendations. This approach will help communicate findings
and recommendations to all tiers of the ministry.
104. Not all suggestions will be endorsed by the ministry or implemented. It is hoped the
suggestions chosen for implementation should, put together, aim for budget neutrality and position
the ministry as a forward looking, high-capacity organization over the next 10 years that will enable
the realization of the national vision of economic development. It is also hoped that the general civil
service reforms implemented in the ministry become examples for other ministries to follow.
58
Annex 1: List of Persons Met
H.E. U Than Myint Union Minister Minister’s Office
H.E. U Aung Htoo Deputy Minister Minister’s Office
U Toe Aung Myint Permanent Secretary Minister’s Office
U Soe Win Deputy Permanent Secretary Minister's Office
U Yan Naing Htun Director General Department of Trade
U Aung Soe Director General Myanmar Trade Promotion Organization
U Hla Maw Oo Director General Department of Consumer Affairs
U Minn Minn Deputy Director General Department of Trade
U Myint Lwin Deputy Director General Department of Consumer Affairs
U Aung Maung Deputy Director General Department of Consumer Affairs
Daw Mu Tar Ka Paw Deputy Director General Myanmar Trade Promotion Organization
U Min Zaw Assistant Secretary Minister’s Office
Daw Kay Khine Oo Assistant Secretary Minister’s Office
Daw Khin Thet Htar Assistant Secretary Minister’s Office
U Myint Soe Assistant Secretary Minister’s Office
U Khin Maung Lwin Assistant Secretary Minister’s office
U Win Lwin Director Department of Trade
U Aung Min Thyke Director Department of Trade
U Aung Thwin Oo Director Department of Consumer Affairs
U Ko Ko Lay Director Department of Trade
U Myint Wai Director Department of Consumer Affairs
U Myo Thu Director Myanmar Trade Promotion Organization
Daw Khin Myo Yee Director Myanmar Trade Promotion Organization
U Than Myint Oo Director Myanmar Trade Promotion Organization
U Ye Htut Naing Acting Director Department of Consumer Affairs
Daw Thanda Khin Deputy Director Minister’s Office
U Sein Win Deputy Director Department of Trade
U Yan Shin Deputy Director Department of Trade
U Lwin Myo Zaw Deputy Director Department of Trade
U Kyaw San Deputy Director Department of Trade
Daw Tin San Yee Deputy Director Department of Trade
Daw Win Min Phyo Deputy Director Department of Trade
In-Charge of Curriculum
U Thein Myint Wai Trade Training Institute
Development
Daw Thin Nu Khine Deputy Director Trade Training Institute
Daw Thida Win Htay Deputy Director Myanmar Trade Promotion Organization
U Nay Aye Lwin Deputy Director Department of Consumer Affairs
U Han Win Kyaw Deputy Director Department of Consumer Affairs
Daw Nilar Thein Deputy Director Department of Consumer Affairs
Daw Yee Yee Win Deputy Director Myanmar Trade Promotion Organization
Daw Nge Nge Lwin Deputy Director Myanmar Trade Promotion Organization
Daw Sandar Tun Assistant Director Trade Training Institute
U Ye Lin Htet Assistant Director Department of Consumer Affairs
59
U Zayyar Swe Assistant Director Department of Consumer Affairs
U Aung Nay Tun Assistant Director Myanmar Trade Promotion Organization
60
Annex 2: Proposed Terms of Reference
Objectives: The functional review of Ministry of Commerce (MOC) aims to identify whether the
functions, structures, and capacities in the ministry are aligned with its mandate, the changes in the
internal and external trade environment, and the strategic objective of the Union Government. The
review will:
• Appraise and benchmark the structure and mandate of MOC against commerce/trade
ministries across major ASEAN countries (e.g., Cambodia, Indonesia, Thailand) which divested
the industry portfolio to other agencies (e.g., to Ministry of Industry);
• Assess the division of the policy making and implementation function within the ministry;
• Assess whether the regulatory regime, staffing, and skills are appropriate for the ministry to
meet its objectives;
• Assess practice and results of the ministry related to performance management, business
processes, training systems, budgeting, beneficiary engagement, gender focus and service
delivery performance.
• Provide specific reform options with an implementation plan.
Scope: While the MOC performs a range of functions, the core focus of the review will be on the
management and promotion of external and internal trade and the related departments and
organizations. In particular, the review will cover:
• Role in implementation: facilitating trade, issuance of export/import licenses, representing
Myanmar in international and regional trade negotiation (e.g., WTO, ASEAN);
• Role as regulator to promote external and internal trade: policies in domestic commerce
(wholesale/retail), policies in external trade (export/import licenses) ;
• Tasks given by the Union Government to lead special initiatives, such as Special Economic
Zones, and key role in promoting private sector development (PSD Committee, Doing
Business);
• Business processes within the ministry
The organizations related to competition and consumer protection, for example, will be reviewed only
to the extent they impact the promotion of internal and external trade. The report will not focus on
internal management of the state-owned enterprises (SOEs) attached with the ministry. Given the
role of MOC to promote internal and external trade, the review will be based on the market-led
development and private sector promotion principles. It will not focus on cross-public sector issues
(such as civil service salary structure) which are outside the direct purview of the ministry.
Methodology: The review will use both qualitative and quantitative methods. Existing data (trade
statistics, service delivery, performance, budget etc.) will be collected and analyzed. Laws and
regulations governing the MOC mandate and its structure will be reviewed. Extensive interviews with
stakeholders, other government agencies, employees, the private sector and especially various
business associations, will be conducted. A detailed survey of gazette employees will be conducted to
take accurate stock of skills, incentives and management practices within the ministry. Draft chapters
will be shared with the government for feedback.
Proposed draft chapters/notes for feedback:
61
• Benchmarking mandate and structure of MOC with commerce/trade ministries in
Cambodia, Indonesia, Thailand
• Budget and service delivery performance
• Stock take of skills, incentives and management practices
• Organizational structure for external and internal trade and special initiatives
Formation of Working Committee: The Ministry is requested to form a working committee to provide
guidance and oversight and to ensure that the required information is available for analysis.
Core team: Sjamsu Rahardja and Zubair Bhatti.
62
Annex 3: Example of Ministry and Department Performance Indicators
1. Level 1: Linking economic vision and strategy to the Union Government with MOC strategic
mission. Ideally this exercise should be managed directly by the Office of President in coordination
with members of Cabinet.
2016 Economic Policy Statement of MOC Strategic Mission (from document received by
the Union Government WB team)
• Increase FDI and export 1. Increase trade volume
• Promote SMEs as driver of job 2. Encourage private sector development in a market
creation system
• Taking advantage of 3. Support trade facilitation
opportunities in global and 4. Protect consumer rights and ensure product
regional markets safety
2. Level 2: Planning Unit of Minister’s Office can organize a senior management retreat (Minister,
Deputy Minister, Permanent Secretary, and DGs) to identify key programs and output that MOC
should be focusing on delivering between 2016 and 2019, which is the effective period of government.
Below is an illustration of how mission #1 could be translated into a program.
Mission #1. Increase trade volume
Measurable outcome indicators Program (for example only)
Increase in exported non-empty 1. Reduce paperwork for exporting and importing
containers through Yangon and
2. Increase effectiveness of participation in trade
Thilawa by average __% per-year and
fairs
border post by average __% per-year
3. Launch “Myanmar” branding for export
Increase in value of transactions at 4. Promote domestic trade
trade fairs by __
__ number of new export products
and __ number of new export
markets
__number of transactions in modern
retail outlets in Myanmar
63
3. Level 3: Below is an example of how the Planning Unit can translate mission statement of MOC
into program that each Department can implement and be monitored.
Mission #1: Increase trade volume
Reduce paperwork for exporting and importing
Activities Coordinator Outputs Completed Support from
by development
partners
Improve performance of Dept. of Trade ➢ Review and …
Trade Portal redesign Trade-Portal
…
➢ Establish “Help
Desk” for Trade portal
and train __ staff officers
to respond to questions
from traders
Increase effectiveness of Policy Unit, ➢ Complete draft …
negative list for trade Minister’s and conduct
licenses Office consultations with
government
stakeholders and private
sector
Dept. of Trade ➢ Reduce number …
of documents for …
applying negative list
➢ Conduct __ …
workshops with
government
departments
➢ Conduct __
workshops for private
sector
Increase effectiveness in participation in trade fairs
Strengthen network of Permanent ➢ Appointment of …
trade attaches Secretary new trade attaches
Dept. of Trade ➢ Training for trade …
Promotion attaches
Introduce new Dept. of Trade ➢
promotion materials Promotion
… .. ➢
4. Level 4: Performance indicator: Planning Unit then reach agreement with departments on key
performance indicators which Minister’s Office will monitor and use to evaluate success.
Improve performance of Trade Portal
Department Outputs Key performance indicators
responsible 2019 target 2019 actual
Dept. of Trade Review and redesign __ number of active __ number of active
Trade Portal users users
Documents required for Documents required for
obtaining licenses __ obtaining licenses __
Establish “Help Desk” for None __ of calls by traders
Trade portal and train __
staff officers to respond
64
to questions from
traders
Policy Unit, Minister’s Increase effectiveness of Number of policy brief Number of policy
Office negative list for trade submitted to the submitted to the
licenses Minister: None Minister __
Dept. of Trade Reduce number of ___ ____
documents for applying
negative list
65
Annex 4: Comparison Chart with ASEAN Countries, Australia, UK and US
Country Ministry Industry Internation Domesti Trade Consumer Competition Company National Invest- Trade National Special
Name al Trade c Trade Promotion Affairs Policy Registration Statistics ment Negotiati Standards Economic
Body on Body Zones (SEZs)
Australia Department No. Yes No. No. No. No. No. No. No. Yes No. There are no
of Foreign (Departm (Departm (Australian (Australian (Australian (Australian (Australian (Austrade - (Standards SEZs in
Affairs and ent of ent of Trade Competition Competition Securities & Bureau of the Australia, Australia
Trade Industry, Industry, Commission and and Investments Statistics) Australian non- (attempt to
Innovatio Innovatio - Austrade) Consumer Consumer Commission) Trade government, establish a
n and n and Commission) Commission) Commission) not-for-profit Darwin Trade
Science) Science) Standards Development
organization) Zone failed)
United Department No. (Dept. Yes No. (Dept. Yes. No. No. No. No. (UK Yes Yes No. No (Enterprise
Kingdom for for for (Competition (Competition (Companies Statistics (Regulatory zones
International Business, Business, and Markets and Markets House - an Authority, Delivery, part governed by
Trade Energy Energy Authority - a Authority - a executive an of Dept. for Department
and and non- non- agency independent Business for Business,
Industrial Industrial ministerial ministerial sponsored by statutory Energy and Energy &
Strategy) Strategy) Gov’t Gov’t Dept. for body) Industrial Industrial
department) department) Business, Strategy) Strategy, in
Energy and conjunction
Industrial with
Strategy) Department
for
Communities
and Local
Government,
and Homes
and
Communities
Agency)
66
United Department Yes. Yes. Yes. No. (United No. (Federal No. (Federal No. (US Yes. No. (Office No. (United Yes. (National No. (Enterprise
States of (Internati (Internationa (Internati States Trade Trade Trade Securities and (Economics of States Institute of zones set up
Commerce onal l Trade onal Representati Commission) Commission) Exchange & Statistics Investment Trade Standards by state
Trade Administrati Trade ve Commission) Administrati Affairs, US Representa and governments)
Administr on) Administr nominated on) Department tive Technology)
ation) ation) by the of State) nominated
President. by the
Heads the President,
Trade heads the
Promotion Trade
Authority Promotion
which Authority
advises which
Congress on advises
trade Congress
agreements on trade
and trade agreement
promotion) s and trade
promotion)
Brunei Ministry of No. Yes Yes Yes No. No. No. (Registrty No. No. (Brunei Yes No. No. (Brunei
Foreign (Ministry (Consumer (Consumer of Companies (Department Investment (Construction Investment
Affairs and of Energy Affairs Affairs and Business of Statistics Agency, Planning and Agency,
Trade and Division of Division of Names under under the Ministry of Research Ministry of
Industry) the the the Ministry Department Finance) Unit, Ministry Finance)
Department Department of Finance) of Economic of
of Economic of Economic Planning and Development
Planning and Planning and Developmen )
Development, Development, t)
Prime Prime
Minster’s Minster’s
Office) Office).
Competition
law enacted
2015.
Cambodia Ministry of No. Yes Yes Yes Yes. Draft Yes. Draft Yes. MOC No. No. (Council Yes No. (Institute No. (Council
Commerce (Ministry consumer competition online portal. (National for the of Standards for the
of protection law nearing Institute of Developmen of Cambodia, Development
Industry law nearing completion. Statistics t of Ministry of of Cambodia,
and completion. under the Cambodia, Industry and chaired by PM,
chaired by Handicraft) incorporating
67
Handicraft Ministry of PM, the Cambodia
) Planning) incorporatin Investment
g the Board and the
Cambodia Cambodia
Investment Special
Board and Economic
the Zone
Cambodia Development
Special Board)
Economic
Zone
Developmen
t Board)
Indonesia Ministry of No. Yes. Yes. Yes No. (National No. (Komisi Yes. No. No. Yes No. (National No. (National
Trade (Ministry Directorate (Directora Consumer Pengawas (Company (Indonesia Standardisati Council for
of General of te General Protection Persaingan Directory) Central Investment on Agency of Special
Industry) Foreign of Agency BBKN) Usaha) Statistical Coordinating Indonesia) Economic
Trade. Domestic Agency - Board) - Zone, chaired
Directorate Trade) Badan Pusat BKPM by the
General of Statistik Coordinating
International Minister for
Trade Economic
Cooperation Affairs)
Lao PDR Ministry of Yes. Yes Yes. Yes. (Trade Yes. Yes. Yes. (Lao No. Yes No. No.
Industry and (Industrial (Domestic and Product (Consumer Competition (Enterprise Statistics (Investment (Department (Investment
Commerce Promotio Trade Promotion protection law enacted Registry Bureau) Promotion of Promotion
n and Departme Department) law enacted July 2015. Office, Department Standardizati Department of
Managem nt) 2010) Provide for a Department of the on and the Ministry of
ent Lao of Investment Ministry of Metrology, Planning and
Division) Competition Promotion for Planning and Ministry of Investment)
Commission. General Investment) Science and
Businesses) Technology)
Malaysia Ministry of Yes Yes No. Yes. No. (Ministry No. (Malaysia No. No. No. Yes No. Standards No. (Iskandar
International (Ministry (Malaysia of Domestic Competition Companies (Department (Malaysian Malaysia, Regional
Trade and of External Trade, Co- Commission Commission of Statistics Investment Ministry of Development
Industry Domestic Trade operatives established of Malaysia - Malaysia - a Developmen Science, Authority is a
Trade, Co- Developmen and 2012) SSM under statutory t Authority, Technology statutory body
operatives t Consumerism the Ministry Government Government and co-chaired by
and Corporation ) of Domestic agency statutory Innovation the Prime
Trade, Co- under the body) Minister and
68
Consumer - operatives Prime the Chief
ism) MATRADE) and Minister’s Minister of
Consumerism Office) Johor)
Philippine Department Yes Yes Yes Yes. (Bureau Yes. No. Yes No. Yes. (The Yes Yes. (Bureau Yes.
s of Trade and of Domestic (Consumer (Philippine (Philippine Philippine of Product (Philippine
Industry Trade Protection Competition Statistics Board of Standards, Economic
Promotion) Group) Commission - Authority - a Investments Department Zone
an statutory (BOI), an of Trade and Authority, an
independent Government attached Industry) agency
quasi-judicial body agency of attached to
body) established Department the
in 2013) of Trade and Department of
Industry) Trade and
Industry)
Singapore Ministry of Yes Yes Yes No. Yes. Yes No. No. No. Yes Yes. Singapore has
Trade and (Internation Scrutinized by (Accounting Department Singapore (Standards established
Industry al Enterprise a non-profit and of Statistics Economic Department SEZs in India
Singapore) NGO, The Corporate Singapore Developmen of SPRING and Indonesia,
Consumers Regulatory t Board Singapore, an developed by
Association of Authority) agency under consortia on
Singapore the Ministry Singaporean
(CASE) of Trade and Countries.
Industry) Driven by the
Ministry of
Trade and
Industry)
Thailand Ministry of No Yes Yes Yes. No. (Office of No. (Office of Yes. No. (Board of Yes No. (Thai No. (Industrial
Commerce (Ministry (Department the Consumer Trade (Department (National Investment Industrial Estate
of of Protection Competition of Business Statistical of Thailand), Standards Authority of
Industry) International Board under Commission). Registration) Office under under the Institute, Thailand, an
Trade the Office of Thailand was the Office of Prime Ministry of agency under
Promotion) the Prime the first the Prime Minister’s Industry) the Ministry of
Minister) ASEAN nation Minister) Office) Industry)
to enact a
trade
competition
law on the
initiative of
the Ministry
69
of Commerce
in 1991.
Vietnam Ministry of Yes Yes Yes. Hm Yes. Yes. (Vietnam No. (Ministry No. (General No. (Foreign Yes No. No. (Ministry
Industry and (Domestic (Vietnam Competition of Planning Statistics Investment (Directorate of Planning
Trade Market Trade Authority) and Office of Agency, for Standards, and
Departme Promotion Investment) Vietnam, Ministry of Meteorology Investment)
nt) Agency - under the Planning and and Quality,
VIETRADE) - Ministry of Finance) Ministry f
Separate Planning and Science and
Government Investment) Technology)
agency, but
chaired by
the Minister
of Industry
and Trade)
Myanmar Ministry of No. Yes Unclear Yes Yes. Yes. No. No. (Central No. No. No. (National Yes. Recently
Commerce (Ministry mandate (Department (Department (Department (Directorate Statistical (Myanmar (Ministry of Standards transferred
of (Ministry of Trade of Consumer of Trade) of Investment Organisation Investment Commerce and Quality from Ministry
Industry) of Promotion - Affairs) and Company under the Commission, leads on Department, of Planning
Industry MYANTRADE Administratio Ministry of under the WTO, and Research and and Finance.
responsibl ) n under the Planning and aegis of the recently Innovation
e for SME Ministry of Finance) Ministry of took over Division of
developm Planning and Planning and Trade in the Ministry
ent. Finance) Finance) Services of Education)
from the
Ministry of
Transport
and
Communic
ations.
Ministry of
Planning
and
Finance
leads on
ASEAN and
RCEP)
70