Business Tank : INTERVIEW WITH PYAE PHYO TUN INTERNATIONAL CO., LTD
U Tun Lin
M Y A N M A R B U S I N E S S & T R A V E L
Published Incooperation with Myanmar Business Tank Co., Ltd. &
BUSINESS INFORMATION GROUP ( B.I.G )
Issue - 1 October , 2001
BI-MONTHLY ISSUE
Myanmar
Thursday October 11, 2001
BUSINESS INTERVIEW
INTERVIEW WITH PYAE PHYO TUN INTERNATIONAL CO., LTD
Photo -Secretary-1 Lt. Gen Khin Nyunt inspecting facilities of Pyae
Phyo Tun Co.
Myanmar, which is abundant in natural fishery resources, has earned an
estimated US$ 200 million annually from exports of marine products by
the private sector. Private businesses have been allowed to catch,
process and export fishery products since the country practised the
market economy in 1988.
An interview was conducted with Dr. Aung Lwin, Managing Director of
Pyae Phyo Tun International Co., Ltd., which is one of the leading
marine fishery export companies in Myanmar on 24th September. Here are
some of the excerpts from the interview:
Please describe in brief about your company. When was the company
established?
The company was established in 1993 and the business commenced its
operations one year later at which live lobsters were first bred in
captivity in Myeik, Tanintharyi Division. Then we proceed on to
exports of live grouper fish.
Photo - Conducting an interview with MD U Aung Lwin
Are there any schemes to expand your business to other sectors?
We have expanded into cold storage and ice plants, ship’s docking and
repair works as well as trawling at sea in addition to exporting live
lobsters and grouper fish.
How do you manage these enterprises and how many employees are
employed in your company?
The main business activities are based in Myeik while management is
being done from Yangon. The local office is located at Tarlinesu Ward
in Myeik while cold storage facilites are established on Pathaw Pathet
Island facing Myeik. Live grouper catchings and breedings are done on
Maw Tonegyi island which is about two-and-a-half hours’ journey by
boat. About 3500 workers and employees are employed by our company.
In what way are the marine products exported? Do you also cater to
local markets?
We export 100% of our products abroad. Live grouper fish are exported
to Hong Kong and China while lobsters have markets in Hong Kong, China
and Taiwan. Prawns are in high demand in Japan, the United States and
Europe.
Can you describe the earnings from these exports?
Yes, we earned nearly US$ 2 million from our exports in 1995-96 but
our earnings dropped in 1997- 98 and 99. We gain only half-a-million
dollars in each of these years. But we hope to earn US$ 5 to $6
million during this financial year.
What are the prospects for export markets in light of recent events in
the international scene?
At present, the Japanese market demand for seafood is cool while the
situation in the United States has worsened the prospects. We are
working cautiously because we might be faced with huge stocks in our
hands if the global recession continues.
Are the exports done directly or through the third party?
Exports are done directly to foreign markets through shipments from
Yangon. But in case of Myeik, we still have to rely on the Thai side
for 90% of our products. This has resulted from difficulties in
transportation, telecommunications links and banking systems. If we
can resolve such hinderances, exports can be done directly to foreign
clients. If we can ship directly from Myeik, I think the town can
become a major export hub for fishery products, even bigger than
Yangon.
Are new ventures planned in addition to exports of marine products?
We are going to set up a veneer factory on the Pathaw Pathet island.
The company is planning value- added industries like fillet and surami
processing so that we can earn more foreign exchanges. These will be
established on Myeik islands.
Please clarify on value added industries.
Well, I’ll give you an example. We can process all species of fish
which are cheap into surami. There are markets for these products.
But in case of Japan, we need to promote our products down to
supermarkets. I have recently travelled abroad to promote our value
added products. Even if we can offer our products, we need faithful
customers. We will have to work on the desired quality and the
required amount that they have requested.
The last question is, what are your views on the long-term development
of fishery sector? What are your opinions on improving the fishery
sector of Myanmar?
We should not be content upon wild catch alone and packing them in
crates. We should strive for value added products. If we do not
advance further, the industry will go down in future. We should also
avoid over-catching and illegal fishing methods. Some are trawling by
not observing stipulated rules and procedures. They are using drift
nets which may destroy the environment. Some are catching fish using
dynamites and poison. We should overcome such illegal fishing
practises while sustainable fishery may allow us to prosper in the
long term.