Yangon University of Economics

Department of Economics
Executive Master of Development Studies Program
2022-2023 Academic Year
EMDevS 18th Batch (Online Class)
First Year, Second Quarter
(December to February, 2022-2023)

EMDevS – 122 Principles of Macroeconomics

Assignment – Myanmar Forestry
(Group Assignment)

Name: Group-E

Date: 18. Jan.2023

January 2022
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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

 Our Team (Group – E)

` Name Roll- Number

1 Mg Ye Naing Aung 83

2 Mg Aung Thura Phyo 20

3 Mg Bo Bo 24

4 Mg Aung Naing 18

5 Mg Han Thu Htoon 30

6 Ma Nang Mo Mo Theda 51

7 Ma Tin Tin New 76

8 Ma Thi Thi Thaung 72

9 Ma Mar Mar Aung 45

10 Ma Nang Daing Hpaw Clain 50

11 Ma Hnin Akari 32

12 Ma Ei Thandar Win 28

13 Ma Myo Htet Thiri Hlaing 49

14 Ma Nilar Sein 57
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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

Introduction

Myanmar is rich in natural resources to its various types of forests and diverse biological
resources. About 42.19% of the country’s land area is still covered by forest resources, accounting
for 28.5 million hectares (FAO, 2020). Myanmar possesses great variation in topography and
climatic conditions, and six major forest types can be found in the country, ranging from mangrove
forests in the coastal region and dry forests and deciduous dipterocarp in the central region to hill
and temperate forests in the northern part of the country. Of these, mixed deciduous forests and
hill and temperate evergreen forests are the major forest types, covering an area of 38.20% and
26.92%, respectively. Myanmar’s forests play an important role in contributing to the nation’s
economy and supporting the socio-economic and well-being of the local people. Over 70% of the
country’s population resides in rural areas and mainly depend on forest resources for food, fodder,
shelter, and fuel. Despite high dependency on forests, considerable extent of natural forests in the
country is an indication of the consistent exercise of sound forest management practices for years.

The history of Myanmar’s forest management has not only been strong for many years but
also has a great tradition. Forest resources have been abundant since the time of our ancestors and
have differences in climate according to geographical position. Because of the differences in the
height of the earth’s surface, many beautiful forests are growing and surviving biologically. In
addition, Myanmar’s forest not only meet the basic needs of the people living in Myanmar but also
earn a lot of foreign currency every year.

Burma’s forest cover dates to the third Burmese Kingdom when it was no less than 75%
of the country’s land area. Despite this existence, Myanmar’s consolidation and establishment did
not play an important role in the country’s economy from the began period of the 11th century to
the mid-18th century. During the resign of the King, the island was declared and maintained as the
King’s new island, but it was not able to operate as a business in the world market until several
years later. After 8 different dynasties after the boon dynasty, it was only during the region of Min
Tong that teak could be commercially produced. Therefore, it can be said that the beginning of the
history of Myanmar’s forest management began in 1752 when the king of Pyeongyang established
the island as a new kingdom. Since ancient times, in extracting teak wood, teak tree has been killed.
They carried out standing drying and extracting waterfloods from the canals.
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 Since the beginning of the 19th century, European imperialists have been at war with each
other. When Europe ran out of oak wood for ships, they began to crave timber from Asia. In 1826,
after the conquest of Tanintharyi and Rakhine State, Timber from the area around Mawlamyaing
was extracted under license. Due to the agreed of the businessmen, the island forests around
Mawlamyaing were destroyed.

Learning from the destruction of Tanintharyi island forests after the British continued to
occupy Lower Myanmar in 1852, the Forestry department was systematically established in 1856
to ensure long term extraction from the forests and sustainable management.

Since 1866, forestry scholars were sent to France and Germany to properly manage
Myanmar’s forests. In 1898, a forestry school was opened in Tharyarwati, Myanmar where junior
forestry workers were trained. In 1923, the Department of Forestry was opened in Yangon
University.

After the independence, the operations of the big timber companies were nationalized, and
the State-owned new Enterprise Group continued to work. Under the leadership of Forestry
Commissioner, working plan was drawn and completed for 36 districts Kayah State and developed
preliminary plan for Chin State.

Today, as population is increased, people’s basic needs have increased so the extraction
and use of large natural forests has increased. Myanmar has the second largest extent of forest
cover in the Association of Southeast Asian Nations (ASEAN) region, although deforestation and
forest degradation are high and increasing. Assessment of the Food and Agriculture Association
of the United Nations (FAO) reported that, between 2010 and 2015, the world’s forests decreased
annually by some 3.3 million ha (FAO 2015). Currently, Myanmar, has a forest cover of 42.92%
of the country area (Than 2016). However, between 2010 and 2015, Myanmar had the third highest
rate of deforestation in the world (Thu 2019). The annual deforestation rate is estimated at 546,000
ha per year, which represents 1.7% of the forest cover in year 2010 (Phyu 2015). No 2 Drivers of
deforestation and forest degradation Table 1. Forest cover status in Myanmar (2015) Classification
Area (000 ha) % of total country area Closed Forest 14,585 21.56 Open Forest 14,456 21.36 Total
Forest 29,041 42.92 Other wooded land 15,080 22.28 Other lands 21,634 31.97 Water bodies 1,903
4

2.81 Total 67,658 100

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

 Recent study provides a contemporary assessment of the distribution of the different forest
types. All forest land is formally state property and is governed by the Forest Department under
the Ministry of Natural Resources and Conservation. The permanent forest estate (PFE) is defined
as either reserved forest, protected public forest or a Protected Area System (PAS), which includes
nature reserves and wildlife sanctuaries. However, much of Myanmar’s forest remains
unclassified. FAO reported that Myanmar has one of the highest rates of forest area loss
worldwide, behind only Brazil and Indonesia (FAO 2015). Between 1990s and 2000, Myanmar
lost 12,000 km2 due to human activities, with an annual rate of forest loss of 0.3%. During the
same interval, about 3,000 km2 of forest regenerated, reducing the annual net deforestation rate to
0.2%, which corresponds to the global average. Deforestation rates, however, vary widely within
the country and found 10 deforestation hotspots within Myanmar with annual clearing rates well
above the global average. Some localities had extremely high losses, such as townships that are
hotspots for intact forest loss in Shan, Sagaing, Kachin, and Tanintharyi administrative regions.
The rapid change rates in closed forests (either an increase or decrease in area of closed forests)
are associated with increases and decreases in timber harvesting in Myanmar, particularly during
1999–2000s and 2006–2008. Forest policy and law have been changed in accordance with the
modern system. The importance of protecting biodiversity and its ecosystem has been recognized
more and more internationally.

Forest cover area of Myanmar

Myanmar has 134,626 square miles of its total area in 2000- 2001 and 110,209 square miles
of its total in 2019-2020. Generally, Myanmar lost 24,217 square miles after 20 years. Basically
Myanmar lost average 1,210.85 square miles in last 20 years. The forest area was covered more
than 50 percent of its total area in 2000-2001, but it decreases to less than 50 percent of its total
after 20 years. Myanmar was ranked as 11 in the Asia rank for 43.7% of forest area while Brunei
(1), Laos (2), Malaysia (6), Indonesia (8), Vietnam (9), Cambodia (10) (theglobaleconomy.com).
Now Myanmar was decreased her various forest product to for maintain and sustainability of
forest. Please see the following table for more information of Myanmar forest cover area.
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 Forest cover area
Year % of total area
(Sq mile)
2000-2001 134626 0.52
2001-2002 133432 0.51
2002-2003 132237 0.51
2003-2004 131043 0.5
2004-2005 129848 0.5
2005-2006 128653 0.49
2006-2007 127458 0.49
2007-2008 126263 0.48
2008-2009 125067 0.48
2009-2010 123872 0.47
2010-2011 122677 0.47
2011-2012 121482 0.47
2012-2013 120287 0.46
2013-2014 117655 0.45
2014-2015 117655 0.45
2015-2016 115801 0.44
2016-2017 110009 0.42
2017-2018 107898 0.41
2018-2019 107898 0.41
2019-2020 110209 0.42

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

 Forest Cover Area of State
160000 0.60
140000
0.50
Forest cover area (Sq miles)

120000

Percent of total land

0.40
100000
80000 0.30
60000
0.20
40000
0.10
20000
0 0.00

Forest cover area (Sq mile) % of toal area

Permanent forest estate of Myanmar

Land area designated by the Ministry of Natural Resources and Environmental

Conversation (MONREC) (with cabinet approval) as forest in Myanmar is called the “Permanent
Forest Estate (PEE)”. There are three classifications in permanent forest estate and they are
reserved forest (RF), protected public forest (PPF) and protected areas (PA). The reserved forest
(RA) area has the best quality and high commercial value but grants no harvesting rights to the
public. The protected public forest (PPF) is the area with lower commercial value, is more
accessible and grants some harvesting rights to the public. The protected area (PA) aims to preserve
diverse ecosystems and the species richness of Myanmar.

There were 70,954.16 square miles and it is the 27.16% of total land of Myanmar in 2005-
2006. But permanent forest estate was increase to 83,297.55 square miles, 31.89% of total land in
2019-2020.
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 Permanent Forest
Year % of total land
Estate (sq mile)
2005-2006 70954.16 27.16
2006-2007 71630.53 27.42
2007-2008 72764.83 27.85
2008-2009 73077.41 27.97
2009-2010 73324.39 28.07
2010-2011 77380.12 29.62
2011-2012 78608.03 30.09
2012-2013 78874.14 30.19
2013-2014 79993.6 30.62
2014-2015 80340.95 30.76
2015-2016 80263.75 30.73
2016-2017 80656.35 30.88
2017-2018 81513.35 31.2
2018-2019 82449.97 31.56
2019-2020 83297.55 31.89

Permanent Forest Estate (sq mile) of Myanmar

85000 33
Permanent Forest Estate (sqmile

32
Percent of total land

80000 31
30
75000 29
70000 28
27
65000 26
25
60000 24

Permanent Forest Estate (sq mile)

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Permanent forest of State and Region

There is 14 states and regions which include permanent forest in Myanmar according to
CSO 2020. The Sagaing region has the largest permanent forest area as 17,914.08 square miles
and Yangon region has the smallest permanent forest area as 422.23 square miles. Totally there
are 83,294.68 square miles of permanent forest of state and region while total land has 261,255
square miles in Myanmar base on 2020-year records. The following table and chart are showing
permanent forest of state and region in Myanmar,2020. The Myanmar government is upgrading
some forest laws and policy to improve and maintain the permanent forest area of each region.

Permanent Forest estate

Year Total Land % of total land
(Sq. mile)

Kachin State 34379 13971.78 40.6

Kayah State 4530 2440.94 53.9
Kayin State 11731 3768.15 32.1
Chin State 13907 2491.14 17.9
Sagaing Region 36534 17914.08 49
Tanintharyi Region 16736 6057.99 36.2
Bago Region 15241 6592.11 43.3
Magway Region 17305 4432.98 25.6
Mandalay Region 14295 3776.89 26.4
Mon State 4748 897.94 18.9
Rakhine State 14200 4184.54 29.5
Yangon Region 3927 422.23 10.8
Shan State 60155 13884.94 23.1
Ayeyarwady Region 13567 2458.97 18.1
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 Permanent Forest Estate of Sates and Regions in 2020
70000 60.0

60000
Permanent Forest Estate (Sq mile)

50.0

50000

Percent of total land

40.0
40000
30.0
30000
20.0
20000

10000 10.0

0 0.0

Total Land Permanent Forest estste (sq mile) % of total land

Teak and Hardwood logs extraction of Myanmar

Myanmar is well known for its natural Teak (Tectona grandis) forests. Myanmar timber
enterprise undertakes timber harvesting and utilization whilst forest department carries out forest
management and conservation. Before Second world war, teak was extracted from Myanmar
forests by five British companies. After independence being regained, the State Timber Board
(STB) was formed on 5th April 1948 and empowered to undertake the commercial exploitation,
processing and marketing of teakwood. Established private national timber businessmen were
granted licenses to continue extraction of non-teak hardwoods under contracts. Local saw millers
were allowed to mill and process non-teak hardwoods by permits being issued for operating on
yearly basis. Hardwood marketing was nationalized in 1963 and all private-owned sawmills were
also brought under the State control in 1965 under the socialist economic system.

In 1989, Myanmar economy was reformed to the market-oriented economy. At the same
time, Timber corporation was restructured and renamed as Myanmar timber enterprise. The forest
10

department prescribes the annual allowable cut on the basis of its inventory of trees and its growing
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stock, performs selection and marking of teak and hard wood trees to be green-felled within the
MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E
year and girdles teak to be left for about three years for natural drying and do the all the process
for logging. In 1990-91, Myanmar timber enterprise has logs totally 105,238,3 cubic tons of
441,558 teak and 610,795 hardwoods. In 2019-20, totally 221,975 cubic tons of 7,254 teak and
214,716. The Myanmar Forest’ logs amount was decrease in each year as shown in table.

Year Total Teak Hardwood

1990-91 1052383 441588 610795

1995-96 887949 232397 655552
2000-2001 1201100 250500 950600
2003-2004 1488901 362039 1126862
2004-2005 1449373 300497 1148876
2005-2006 1484060 307060 1177000
2006-2007 1540505 323000 1217505
2007-2008 1612858 343665 1269193
2008-2009 1564010 247621 1316389
2009-2010 1648968 201312 1447656
2010-2011 1530402 232517 1297885
2011-2012 1692408 287293 1405115
2012-2013 1858187 300083 1558104
2013-2014 1613739 329315 1284424
2014-2015 741747 128220 613527
2015-2016 692065 70826 621240
2016-2017 524588 50786 473802
2017-2018 236182 14815 221367
2018-2019 299259 27568 271691
2019-2020 221975 7254 214716
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 TEAK AND HARDWOOD LOGS EXTRACTION (Cubic Ton)
2000000
Cubic Ton
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0

Total Teak Hardwood

Teak and Hardwood logs extraction of state & region in 2019-2020

As mention above, the Sagaing region has greatest forest area in Myanmar and also the
biggest extraction. Totally 124,837 cubic ton of 1,261 teak and 123,576 hardwoods. The total
amount is 221,975 cubic tons logs in 2019-2020.

State and Division Total Teak Hardwood

Kachin State 3356 - 3356

Kayah State - - -
Kayin State - - -
Chin State 3175 502 2673
Sagaing Regio 124837 1261 123576
Tanintharyi Region 5165 5165
Bago Region 2440 79 2361
Magway Region 16114 16114
Mandalay Region 41278 1936 39324
Mon State - - -
12

Rakhine State 3310 - 3310

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Yangon Region - - -

MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

 Shan State 12100 3481 8619
Ayeyarwady Region 5678 - 5678
Nay Pyi Taw 4522 - 4522
140000
Cubic Tons

120000
100000
80000
60000
40000
20000
0

Total Teak Hardwood

Production of Minor Forest product

Generally, there are various kinds of production of minor forest product including
firewood, charcoal, bamboo, rattan, cutch, indwe-pwenyet, kanyin resin, turpentine, dani-thetke,
honey, bees-wax, bat’s buano, orchids, edible bird’s nest, lac, barks, thanatkha, jute, bastard sandal
wood, cardanon, serpent wood, lacquer, natsaygamone and thangarzingamone. Firewood, charcoal
and bamboo are the most popular product of forest. The Myanmar timber enterprise has produced
420,522 cubic tons of firewood, 4,960 cubic tons of charcoal and 22,882,796 bamboos in 20 years
(1990-2020).

Production of minor forest product make a significant amount of national GDP. The
continuously production from forest in significant amount can lead us to environmental
degradation in the future. So, the government was terminated some forest production to keep the
forest sustainable and for benefit for predecessors. The following table is showing the amount of
firewood, charcoal and bamboo production from 1991 to 2020.
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 Bamboo
Year Firewood (Cu-Ton) Charcoal (Cu-Ton)
(Nos).
1990-91 17913 698 938047
1995-96 17769 213 947880
2000-2001 18579 182 106314
2003-2004 19831 409 1128829
2004-2005 20164 225 1149418

2005-2006 20544 233 1185137

2006-2007 21216 297 1202319

2007-2008 21876 269 1241618

2008-2009 22542 266 1279727
2009-2010 23166 210 1303078
2010-2011 20683 212 1346156
2011-2012 22466 201 1264282
2012-2013 22747 217 1273018
2013-2014 23020 229 1291093
2014-2015 23320 231 1308804
2015-2016 20911 233 1213301
2016-2017 21001 180 1164285
2017-2018 21175 166 1172205
2018-2019 20033 149 1187116
2019-2020 21566 140 1180169
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 Firewood Cubic Tons (000) Firewood (000)Cubic-Ton
25000
Charcoal (000)Cubic-Ton
Charcoal Cubic Tons (000)

20000
800

700
15000
600
10000
500
5000
400

300 0

200

100

Bamboo (000)NO.
Bamboo No. (000)

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0
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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

Production Distribution and Export of Teak logs

Teak is one of the most valuable hardwoods, used in yachts, home flooring, doors, window
frames and furniture in daily life. Myanmar is the biggest producer of the wood, even though its
natural forest is dwindling. The exports of Myanmar’s timber industry are dominated by the
valuable Burmese teak (Tectona grandis), although many other species are harvested both the
country’s natural forests and forest plantations. These species include Pyinkado (Xylia
dolabriformis, X.kerri), Pakauk (Pterocarpus macrocarpus), Htauk kyant (Terminalia tomentosa),
Rubber tree (Hevea brasiliensis) and Gmelina (Gmelina arborea). The latter two species are
principal plantation species. While much of the timber is harvested and transported by private
Myanmar companies, in cooperation with the state-owned Myanmar timber enterprise (MTE)
under the Ministry of Natural Resources and Environmental Conservation (MONREC), all timber
must be shipped out through designated Yangon timber ports with MTE markings. The great
majority of the timber exports are going to other Asian countries, in particular China and India.

Myanmar was produce 422,931 cubic tons in 2007-2008 year and exported 227,344 cubic
tons of teak. In 2016-2017, Myanmar has 229,381 cubic tons in exported teak. Among 2007-2017,
Myanmar was exported 239,653,9 cubic tons of teak and made a great amount of national GDP in
each year. Then Myanmar government stopped the exporting teak for the sustainable forest in
2016-2017.

Distribution during
Year Production Export
year
2007-2008 422931 422931 227344
2008-2009 407612 407612 139781
2009-2010 453047 453047 163146
2010-2011 497506 497506 229381
2011-2012 506889 506889 285544
2012-2013 467025 467025 309054
2013-2014 429550 429550 367376
16

2014-2015 265655 265655 172800

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

 2015-2016 201705 201705 272732
2016-2017 146900 146900 229381
2017-2018 116264 116264 -
2018-2019 101137 101137 -
2019-2020 62157 62157 -

Production, Distribution and Export of Teak logs (Cubic Tons)

Cubic Tons

600000
500000
400000
300000
200000
100000
0

Export Production Distribution duing year

Production, Distribution and Export of Hardwood Saw Timber

Myanmar has exported not only teak but also hardwood saw timer. The forest products
joint venture corporation (FPJVC) limited is the well-known and found with the leading of the
member from the ministry of forestry. The forest products joint venture corporation limited does
processing of teak and hard wood logs into high quality products, locally and abroad. The
corporations owns four wood-based factories that Manufacture value added wood products. Two
are in Yangon and two in Amarapura township near Mandalay. A hard wood saw mill at Phayagyi
in Bago township is the place which produce hardwood sawn timber to be distributed locally.
Development of real estate and property is also in the forest products joint venture corporation
limited’ line of business. Since 1997, the corporation has leased a 0.41 acres plot of land from
MTE and constructed a 12 store, Commercial center, at the corner of Botataung pagoda and strand
road.

Myanmar has produced 260,094 cubic tons of saw timber in 2007-2020 from government
17

and joint corporations and exported 754,54 cubic tons as shown in table.
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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

 Distribution during
Year Production Export
year
2007-2008 15513 15513 3465
2008-2009 11451 11451 1960
2009-2010 13565 13565 3615
2010-2011 20714 20714 4040
2011-2012 34151 34151 6926
2012-2013 34644 34644 9939
2013-2014 36351 36351 10609
2014-2015 27088 27088 8888
2015-2016 21846 21846 11845
2016-2017 13547 13547 1407
2017-2018 13234 13234 7046
2018-2019 11579 11579 4183
2019-2020 6411 6411 1528

Production, Distribution and Export of Hardwood Sawn Timber (Cubic

Cubic Tons

Tons)
350000

300000

250000

200000

150000

100000

50000

0
18

Production Distribution duing year Export

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

Establishment of forest plantation

Forest plantations are defined as “forest stand established by planting and seeding in the
process of afforestation or reforestation”. Myanmar has covered a hug amount area of forest on
her land and produced a lot of cubic ton after independence. The government founded some
department such as environmental conservation department (ECD) which is responsible for the
implementing National environmental policy, strategy, framework, planning and action plan for
the integration of environmental consideration into the national sustainable development process.
It is also responsible for environmental management and pollution control on water, air and land
for the sustainable environment. The status of forest cover area is changing in Myanmar
significantly by each year due to the various factors, forest cover is gradually decreasing and other
land cover areas are gradually increasing. Deforestation was at an alarming rate in the past years
due to various reasons. The extent of forest area is changing by different rate on a different period.
Myanmar was among the tropical countries with the highest rates of deforestation, after Brazil and
Indonesia in the world.

National environmental policy was adopted in 2019, which builds on Myanmar’s 1994
National environmental policy and reaffirms its core values such as the wealth of the nation is its
people, its cultural heritage, its environment and its natural resource, it is the responsibility of the
state and every citizen to preserve our natural resources in the interests of present and future
generations, and environmental protection should always be the primary objective in seeking
development. The government founded some management plan for plantation and sustainable of
forest such as Forest Management Units (FMUs). In order to restore the degraded forests, forest
department launched Myanmar reforestation and Rehabilitation programme (MRRP) in 2017. Dry
zone greening department is also cooperating with forest department in implementing MRRP. It
is a milestone and significant initiative of the Government with various object such as to restore
and rehabilitate the degraded forest, to fulfill the demands on forest products, to strengthen the
investment of private sector, to improve the livelihood and socioeconomic conditions of the rural
people. Also, the government allowed private sector to invest in establishment of teak plantations
and hardwood plantations in 2006 in order to accelerate plantation forestry, meet the timber
demands, increase forest cover and enhance job opportunities.
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 Myanmar has re-planted 1,288,064 acres’ total including commercial plantation, local
supply plantation, industrial plantation, watershed plantation, private plantation and community
forest.

Industria Watershe
Commerci Local Gran
l d Private Communit
al Supply d
Year Plantatio Plantatio Plantatio y Forest
Plantation Plantatio Total
n n n (Acre) (Acre)
(Acre) n (Acre) (Acre)
(Acre) (Acre)
1990
-91 45250 14841 11300 4464 75855
1995
-96 29134 33283 6795 10105 79317
2000
-
2001 41630 10711 5155 18410 75906
2003
-
2004 37915 10855 8200 18250 75220
2004
-
2005 40225 9035 9650 20100 79010
2005
-
2006 42217 10425 7400 22000 82042
2006
-
2007 32240 6425 4750 16585 60000
2007
-
20

2008 31850 5250 4760 17200 59060

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

2008
-
2009 38900 4950 11 16150 60011
2009
-
2010 38150 4550 - 12500 55200
2010
-
2011 34250 2265 - 550 37065
2011
-
2012 26500 1700 - 800 29000
2012
-
2013 13550 1000 - 850 15400
2013
-
2014 13325 1100 - 575 15000
2014
-
2015 7100 60 - 300 8000
2015
-
2016 3850 700 - 350 4900
2016
-
2017 3700 1000 - 900 7600
2017
- 16191
21

2018 14970 5287 - 2250 9409 13000 8

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

2018
- 16599
2019 17215 6548 - 2330 19283 120621 7
2019
- 14156
2020 17370 7343 - 2585 11340 102925 3

180000
ESTABLISHMENT OF FOREST PLANTATION
160000
Forest Plantation (Acre)

140000

120000

100000

80000

60000

40000

20000

Commercial Plantation(Acre) Local Supply Plantation(Acre)

Industrial Plantation (Acre) Watershed Plantation(Acre)

Private Plantation (Acre) Community Forest(Acre)

Grand Total (Acre)

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

Plantation of Teak & Hardwood Trees

According to Statistical Year Book 2021, the status of Teak and Hardwood plantation between
2001 and 2020 is shown in Table-11.

Table-11: Teak and Hardwood Tree Plantation (2001 to 2020)

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 Teak and Hardwood Plantation Chart
3,000,000.00

2,500,000.00

2,000,000.00

1,500,000.00

1,000,000.00

500,000.00

Teak Plantation (Acre) Hardwood Plantation

Figure-11: Teak and Hardwood Plantation

In Figure-11, Teak and Hardwood plantation is measured by acre. Forest regulations were
formulated to replant rather than just cutting down the forests. Therefore, in terms of acres planted
with teak, from 1,596,714 acres to 2,259,228 acres at most have been planted, and hardwood
cultivation has increased from 2,074,290 to 2,706,952 acres.

Girdling and Green Teak Marking by States and Region

Girdling is a technique that kills woody plants in place without cutting them down. The
nutrient flow between the foliage and the roots is cut by the sharp tool. Teak is extracted under a
selection felling system. Mature teak trees which may be 120 to 150 years old are selected and
girdled. The girdled teak is left standing for about 3 years in order to lose much of its moisture.
When the plant died, its weight is reduced for easy transportation.

In Table-12, the number of girdling and green teak marking increased to 245,421 in total
in 2008-2009. According to state and region, Sagaing region is the most numerous number in
girdling and marking activity during this period.
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 Table-12: Girdling and Green Teak Marking by States and Region (2000 to 2020)

Girdling and Green Teak Marking by States and Region

300000

250000

200000

150000

100000

50000

Kachin Kayah Kayin Chin Sagaing

25

Bago Magway Mandalay Rakhine Yangon

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MACROECONOMICS – 122 MYANMAR FORESTRY TOPIC SUBMITTED BY GROUP E

 Forest Operation

In Myanmar, there are 13 categories of forest operations: Girdling & Green Teak (GT)
Marking, Selected Felling (SF) Marking, Artificial Regeneration, Natural Regeneration,
Improvement Felling, Weeding, Thinning, Climber Cutting, Repair of Forest Road, Repair of
Reserve Boundary, Repair of Compt Boundary, Fire Protection and Reservation. Among them,
Gardling & GT Marking and SF Marking operations are compared between 2001 and 2020 in the
following figure and table.

Gardling & GT Marking Tree, SF Marking

1,200,000.00

1,000,000.00

800,000.00

600,000.00

400,000.00

200,000.00

-
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020

Gardling & GT Marking (Tree) SF Marking (Tree)

Figure-13: Girdling & GT Marking and SF Marking Table-13: The Two Forest Operations Comparison

In Figure-13, girdling and GT marking operation and also the SF marking are the highest
in the period of 2008-2009. These two operations decreased after 2012 because of the prohibited
rules for timber extraction.
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 Production of Minor Products of Forest

There are 24 categories of forest products. Among them, three types of products (Firewood,
Charcoal and Bamboo) are described in the following figures until 2020.

Firewood (Cubic-Ton)
Firewood Cubic Tons (000)

25000

20000

15000

10000

5000

0
1990-91
1995-96
2000-2001
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020

Figure-14: Firewood Production Table-14: Firewood Production (1990 to 2020)

In Figure-14, Firewood production is between 15000 to 23000 cubic tons. The trend of the
Firewood has no dramatically changes.

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 Charcoal (Cubic-Ton)
Charcoal Cubic Tons (000)

800

700

600

500

400

300

200

100

0
1990-91
1995-96

2012-2013
2000-2001
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012

2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020

Figure-15: Charcoal Production Table-15: Charcoal Production (1990 to 2020)

In Figure-15, Charcoal production was reduced from 298 to 213 cubic tons after 1990.
However, it approached to increase to 409 cubic tons and then remained stable between 297 and
233 cubic tons in 2005-2016. Then, the production is reducing continuously because the electricity
is most widely used in today.

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 Bamboo (nos).
Bamboo No. (000)

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0
1995-96
1990-91

2009-2010
2000-2001
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009

2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020

Figure-16: Bamboo Production Table-16: Bamboo Production (1990 to 2020)

In Figure-16, in 2000-2001, Bamboo production amount was significantly decreased in

2000-2001. Later on, the production increased and becomes stable between 100,000 and 140,000
due to the country’s encouragement on the bamboo products.

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Working elephant used in timber extraction by states and regions

Timber extraction will be difficult without elephants. As the timbers are extracted only
when the lifespan of timbers is expired, this activity is very difficult for human. Although roads
are used for carrying the logs, the working elephants are usually more used to carry via the creeks
and rivers. The nature of elephants is that they cannot be able to work in the hot season so they
have to take a break at that time.

In Table-17, according to the state and region, Sagaing region has a lot of working
elephants used and Taninthayi and Naypyidaw have no any elephants. In year 2015-2016, the total
working elephants used in the forestry is 1315 elephants.

The working elephants used in timber extraction is described in the following figures, by states
Table-17: Working elephant used in timber extraction by states and regions
and regions.
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 Working elephant used in timber extraction by states and regions
3500

3000

2500

2000

1500

1000

500

Kachin Kayah Kayin Chin Sagaing Taninthayi Bago Magway

Mandalay Mon Rakhine Yangon Shan Ayy NPT Total

Figure-17: Working elephant used in timber extraction

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 Summary and Conclusion

The status of the contribution of forestry in the country’s GDP is shown in the following
Table and Figure. The income contribution of forestry sector increased from 24.68% in 2000-2001
to 63.36% in 2006-2007. As the significance fact, the income started to fluctuate from 2013 and
then reduced in 2016-2017. On the other hand, the total GDP of the country is falling.

Forestry GDP rate and Total GDP

40

30

20

10

-10

-20

-30

-40

-50

-60

-70

Forestry GDP

Figure-18: Forestry GDP & Total GDP Chart Table-18: Forestry GDP rate & Total GDP

The comparison of forestry share percentage and agriculture share percentage of total GDP from
2000 to 2020 is shown in Table-19. Forestry share is gradually declining in percentage as shown
in Figure-19.
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 Forestry % Share of Total GDP
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Figure-19: Forestry Share Percentage Table-19: Forestry Share Percentage

Figure-18: Forestry GDP rate & Total GDP

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The remarkable laws of Myanmar Forestry can be found as the following picture.

As the review of the forestry in Myanmar, we study it with the SWOT analysis.

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In fact, forestry is mainly related to the wildlife. As the strengths, it would be beneficial for wildlife
animals if the country takes prudent conservation of the forest. And also, the ecology becomes
more balanced. The weaknesses may be low income and increasing unemployment rate if the
forestry production is stopped. We found the opportunities from this sector that if the Myanmar’s
forest is preserved well, the predecessors will get the benefits from using the various kinds of
forestry products. The more forestry products, the better the environmental prospect. We also need
to consider the threats that are individuals who is depending on this sector and black economy of
illegal extraction.

In conclusion, over 150 years, forestry sector becomes progressed especially teak with the
process of preservation around the country. The three persons - Dr Wallach, Dr Brandish, U Chain
Hoe (Unique in Myanmar Forestry History) are honorable because of their enthusiasm by love of
forest for sustainability. Myanmar Selection System is well-known. There are many kinds of
forestry products and good environmental reservation. Moreover, laws and goals to reserve natural
and forestry resources, wildlife, and also dam are established. Currently, there are over 50% of
forest area. Myanmar’s forest needs to be continuously conservation.

References

1. Myanmar Statistical Yearbook (2001,2011,2015,2021) by Ministry of Planning and

Finance

2. Forest History (2008) by Forestry Department

3. https://www.forestdepartment.gov.mm

4. Google Photos

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