An ethnic armed group in the western Myanmar state of Rakhine said it has taken control of a town bordering India and Bangladesh, marking the latest loss for the military government as it battles rebellion in several parts of the country.

Myanmar is in the throes of an insurgency on multiple fronts, where allied anti-junta groups backed by a pro-democracy parallel government have seized control of several military posts and towns.

It is the biggest challenge the junta has faced since it mounted a coup against an elected government in 2021.

A spokesperson for the Arakan Army (AA) said late on Sunday it had conquered Paletwa, a port town on the Kaladan river that is key to trade with neighbouring countries.

"Regarding border stability issues, we will cooperate at our best with neighbouring countries," said AA spokesperson Khine Thu Kha in a statement, adding the group will take over administration and law enforcement in the area.

A spokesperson for the junta did not respond to a request for comment.

The fall of Paletwa in the west comes after another rebel group in the Three Brotherhood Alliance took Laukkai town in northern Shan State on the border with China.

Last week, the junta agreed a ceasefire with that group, the TNLA, for the region bordering China. The talks were held in the Chinese city of Kunming and facilitated by Chinese officials.

But on Sunday, the rebel alliance said junta forces are breaching the ceasefire agreement, launching attacks in several townships in Shan State.

More than 300,000 people have been displaced due to the recent violence, and more than 2 million overall since the coup, according to the United Nations.

The conflict has also seen Myanmar police and military personnel surrender to rebel groups or flee across borders into India.

On Thursday, Myanmar's junta chief, Min Aung Hlaing, met with a special envoy from the Association of Southeast Asian Nations (Asean), state media reported, as Laos takes over chairing the bloc, which has encouraged peace efforts in the country.

The military ruler met Alounkeo Kittikhoun, the chair's envoy on the Myanmar crisis, amid frustration with the lack of commitment from the generals to forge peace under a plan agreed to among all Asean members, including Myanmar, in 2021.

Asean has repeatedly urged the junta to halt hostilities and implement its "five-point consensus".

The junta has refused to initiate dialogue with its opponents in a shadow National Unity Government (NUG) and a pro-democracy resistance movement, a key component of the agreement, calling them "terrorists".

Communist Laos has made no mention of the envoy's trip in its state-run media, or issued any statement on the meeting as Asean chair. Its foreign ministry did not immediately respond to a request for comment.

The state-run newspaper Global New Light of Myanmar reported the two leaders discussed "efforts of the government to ensure peace and stability of the State and national reconciliation".