Car dealers mull import finance

Commerce Minister U Win Myint has pledged to smooth the complicated system for importing foreign vehicles by allowing new payment methods.

A man assembles a right-hand drive car. Made-in-Myanmar cars are falling out of favour to imported vehicles. Photo: Staff

Currently most vehicles are imported to Myanmar using consignment, meaning foreign exporters own the car but send it to a Myanmar broker, who then sells it for a commission usually between five and 10 percent.

However, most other countries use an array of different financing methods, including direct payments for imported vehicles and letters of credit, where the transaction is essentially guaranteed by banks, allowing the seller to ship the cars before receiving payment.

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