|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
The growth of Mongolia’s gross domestic product (GDP) reached 6.3 percent in the first half of 2018, according to preliminary data released by the National Statistics Office on Thursday.
The GDP totaled MNT eight trillion (USD 3.2 billion) in the January-June period of 2018, an increase of over MNT 475.2 billion (USD 193 million) compared to the same period last year.
The data indicated, that the growth is a result of the MNT 192.1 billion tax revenue growth and the favorable performance of the service sector,.
The impressive statistics contrast with those of the World Bank which predicted Mongolia’s economy growth would be 3.1 percent in 2018.
Rio Tinto (LON, ASX, NYSE:RIO) opened today a fourth diamond pipe at the subarctic Diavik Diamond Mine, located in the Northwest Territories of Canada, 220 kilometres south of the Arctic Circle.
In a press release, the Anglo-Australian miner said that the new open-pit pipe will provide an important source of “incremental supply over the next four years to sustain production levels at the Rio Tinto operated mine.”
In the same statement, the company explained that A21 is located adjacent to Diavik’s existing mining operations in the Lac de Gras area. It took four years to build the pipe and first ore was delivered in March. Rio expects it to be at full production during the fourth quarter of 2018.
“It is a remarkable achievement to deliver this project safely and ahead of time in such a challenging environment, positioning Diavik to continue meeting the demand for its outstanding diamonds,” Rio Tinto Copper & Diamonds chief executive, Arnaud Soirat, said in the brief.
Some $350 million were invested in the construction of A21, with the financial burden shared between Rio and joint venture partner Dominion Diamond Corporation, the latter in control of 40 per cent of the operation.
As a whole, Diavik started activities in 2003 and has an annual production of some 6-7 million carats of predominantly large, white gem-quality diamonds.
Ulaanbaatar /MONTSAME/ A decision to increase the minimum wage rate to MNT 1904 per hour or MNT 320 thousand was made last Friday at the tripartite negotiation of Labor and Social Consensus.
In this regard, Minister of Labor and Social Protection S.Chinzorig, President of the Confederation of Mongolian Trade Unions Kh.Amgalanbaatar and CEO of the Mongolian Employers’ Federation Kh.Ganbaatar held a press conference on August 20.
At the press conference, Minister S.Chinzorig noted that according to relevant law, the minimum wage rate must be renewed every two years.
The decision will take effect from January 1, 2019. Moreover, the minimum wage will be increased to MNT 420 thousand from 2020.
Currently, the minimum wage is MNT 240 thousand, which came into force since January 2017. A working group was set up to revise the decision in April, 2018.
On Monday 20 August 2018, Luxembourg's Minister of Cooperation and Humanitarian Action, Romain Schneider, welcomed with the Minister of Health of Mongolia, Davaajantsan Sarangerel, for a meeting in Luxembourg city.
Discussions focused on bilateral relations and provided an update on development cooperation relations between Luxembourg and Mongolia, particularly in the health sector. Minister Schneider expressed his willingness to continue Luxembourg support to the health sector in Mongolia, specifically in the fight against cardiovascular diseases. In this context, the Mongolian Ministerial delegation also visited the National Institute of Cardiac Surgery and Interventional Cardiology (INCCI).
In 2017, Luxembourg's aid to Mongolia amounted to €2.6 million.
Iain Cox Deputy Head of Mission of the British Embassy and Ser-Od Ichinkhorloo Founder & CEO of MBD met today in Aug 20 and discussed the MBD's partnership with UK TVET www.tvetuk.org on its new "TVET skills network" online training program, British Aggreko www.aggreko.com brand business development in Mongolia and the MBD's next Mongolian trade mission to "Brand Licensing Europe 2018" and which includes other business programs in London in Oct.
The British Embassy in Mongolia confirmed to fully support the projects and cooperate with MBD on the programs.
Ulaanbaatar /MONTSAME/ A regular ‘Mongolia-China-Russia Economic and Trade Cooperation’ forum was held on August 17-19 in Erenhot, Inner Mongolia Autonomous Region, China. Government delegates led by Deputy Speaker of Parliament Ya. Sanjmyatav and representatives of 130 member companies of the Mongolian National Chamber of Commerce and Industry (MNCCI) attended the forum and presented their products at the expo organized within the event.
A total of 38 companies from six regions of Russia and 800 companies from China participated the event, and agreements worth USD 1.3 billion were made.
S. Yanjinsuren, adviser to Deputy Prime Minister, conveyed greetings of U. Enkhtuvshin, Deputy Prime Minister of Mongolia and Head of Mongolian side to Mongolia-China and Mongolia-Russia Intergovernmental Commissions on Trade, Economy, Science and Technology, to the Deputy Mayor of Erenhot Guo Pinwang.
During the forum, a special roundtable discussion on Economic Cooperation Zones in Zamyn-Uud and Erenhot was organized, at which Ts.Ganbold, advisor to the Deputy Prime Minister of Mongolia in charge of the Free Zones, presented a detailed introduction on Mongolia's position on the establishment of joint zones along the borders of the two countries and the ongoing works in this regard. He noted that the process of establishing the economic cooperation networks based in Zamyn-Uud and Erenhot, which began in 2014, has intensified recently and the Government of Mongolia has endorsed Mongolia's proposal for the Intergovernmental agreement between the two countries and authorized relevant officials to start official talks with the Chinese side.
During the discussion, Governor of Zamyn-Uud Free Zone I. Batnasan and Deputy Mayor of Erenhot Guo Pinwang signed the document on intensifying agreement for cooperation region between People's Government of Erenhot and the Governor’s Office of Zamyn-Uud Free Zone.
SHENZHEN, China/SHANGHAI (Reuters) - Larry Sloven arrived in southern China three decades ago, just as the region was taking off as the low-cost manufacturing center of the world. Since then, he has exported millions of dollars of goods, ranging from power tools to LED lights, to some of America’s biggest retailers.
Businessman Larry Sloven, 69, speaks in Hong Kong, China August 9, 2018, in this still image taken from Reuters TV footage. Footage taken August 9, 2018. REUTERS/Samantha Vadas/via Reuters TV
That era may now be coming to an end.
For years, Sloven has seen profits whittled away by rising costs, tighter regulations and Chinese government policies aimed at building a more sustainable and services-oriented economy that have squeezed lower-end manufacturers.
But the final straw may be the prospect of tariffs stemming from a trade war between the United States and China, and a world of more protectionism.
“It’s been step, by step, by step. And it’s been getting more and more expensive to produce products in China,” said Sloven, president of Capstone International HK Ltd, a division of Capstone Companies, from Deerfield Beach, Florida, a maker of consumer electronics goods.
Manufacturers have been feeling the squeeze as China shifts its priorities from lower-end manufacturing to high technology industries as part of a broader bid to upgrade its economy.
But with tariffs looming, “everybody finally woke up to the extent that ‘maybe I should face reality’,” he said. Manufacturers were increasingly worried that “the next group of tariffs would be the killer”.
Sloven is now stepping up efforts to trim his exposure to China, diversifying into growing manufacturing centers like Thailand.
“Thailand, Vietnam, Malaysia and Cambodia are countries that have potential opportunities,” he said. “However, it’s not going to be as easy as many may think. And you don’t know what’s coming next in China.”
Interviews with over a dozen manufacturers from medical device makers to agricultural equipment firms illustrate how companies exporting to the United States are now rethinking their calculations about making goods in China.
“Before the tariffs came on board, we were looking to move about 30 percent of our production from China to the United States,” said Charles M. Hubbs, European director at Premier Guard, a medical products manufacturer, citing reasons such as rising wages, a shrinking workforce and soaring costs.
“With the latest tariff development, assuming those tariffs will go into effect, we’ll probably be moving about 60 percent of our manufacturing out of China to the United States.”
Other companies are closely reviewing their options.
“In the current tariff environment, it’s only natural for companies like ours and others to be internally reassessing the impact and taking steps to mitigate that,” said a senior China-based executive with a major U.S. manufacturer.
Moves could include “limiting additional sourcing from China, shifting sourcing to other countries, or bringing work back to the United States”.
The escalating tit-for-tat trade war between the United States and China, with President Donald Trump threatening to impose tariffs on Chinese-made goods, could have huge implications for heavily integrated and globalized supply chains.
For some, the impact has been obvious and direct.
Georgia-based AGCO Corp (AGCO.N) told the United States Trade Representative that tariffs would make the farm equipment it makes in Changzhou, a city in China’s Jiangsu province, “price uncompetitive” in the United States.
Maroon Group, a chemical maker from North America said it would be “priced out of the market”, a concern echoed by Goodman Global, which assembles air conditioners in Houston from Chinese-made parts.
Some firms have already made their moves. The furniture makers At Home Group Inc (HOME.N) and RH (RH.N) have said they will cut back production in China.
Others are trying to adjust supply chains. DSM China Ltd, part of the Dutch nutrition firm Royal DSM, is looking to replace U.S. soybeans with new ingredients such as pea powder it can source locally to avoid Beijing’s retaliatory import duties.
Rising risk from the trade tensions “gave us good impetus to check out how we look at the whole business”, said Bernard Cheung, director of global strategic marketing at DSM China.
For some, the response has been dictated by where they sit in the supply chain.
U.S.-based GMM Nonstick Coatings has moved some production to India after a 30-40 percent drop-off in China orders for advanced chemicals used to coat American household kitchenware brands such as George Foreman and Baker’s Secret as those clients move some production out of China.
“This tariff thing is adding extra friction to being in China and it’s making the decision” to shift production “quite easy for U.S. sourcing departments,” said Ravin Gandhi, GMM’s chief executive.
There are still plenty of manufacturers staying in China for now, especially those targeting the huge domestic or regional market, Gandhi said.
China still has the best infrastructure, supply chain networks and engineering talent, a major hurdle for potential rivals seeking to lure firms away with lower costs, according executives interviewed by Reuters.
In terms of scale, China cannot be easily replaced: it has a manufacturing output of around $2 trillion, according to a Brookings Institution report in July, the world’s largest.
Bird, a Santa Monica, California-based scooter start-up, wrote in a submission to the Office of the U.S. Trade Representative in June that it was “unaware of any U.S. producer of electric scooters that can manufacture to Bird’s scale and needs”.
Keith Siilats, the head of Bytelogics, another U.S.-based scooter start-up that manufactures in China, said it was hard to shift production from China. Instead, he expects to absorb the higher costs for the moment and plans to develop European operations less vulnerable to tariff pressure.
China’s manufacturing sector will not vanish overnight, but a shift is inevitable, said Dan Krassenstein, Shanghai-based director of Asia operations at ProconPacific, which makes around 3 million specialized industrial shipment bags.
He said manufacturing was moving to South Asia and Southeast Asia in search of cheaper labor costs and as Beijing discourages polluting, lower-margin sectors.
The tariff escalation “is just going to accelerate it”, he said.
Five years ago his company made all its products in China. Now, a quarter are made in India and 5-10 percent in Vietnam.
DOING THE SUMS
In Southern China’s Pearl River Delta, the cost of renting industrial and commercial space has surged around 80 percent in the past eight years, while companies have complained of soaring labor costs.
“Production costs are cheaper in the U.S. than in China,” said Yuan Juyou, deputy head of marketing at Wonderful Group, a ceramics maker. “Even though labor costs are more expensive, we have automated a lot of processes. Plus electricity, land, these kinds of costs are cheaper than China.”
Wonderful, a unit of the Chinese manufacturer Marco Polo, began shipping products from its new factory in Tennessee in June.
Regional rivals are also starting to sense an opportunity to step up and into China’s competitive space.
Thailand is actively promoting itself as a regional manufacturing hub, offering incentives such as an exemption of up to eight years on corporate income tax for certain industries and exemptions on import duties for some raw materials.
The country’s corporate income tax rate of 20 percent also ranks it as the second-lowest among countries in the Association of Southeast Asian Nations, according to Thailand’s Board of Investment.
Thailand is already a major center for some electronics and components, and the government plans a series of industrial zones to push development of target industries. A China-ASEAN free trade deal also helps mitigate the trade-war risk for companies trading with both the United States and China.
“The Thai government is making it very easy now to move down there,” said Sloven.
“The Chinese government embraced manufacturing back in the day. But now, they’re not looking for growth in the product business. They’re looking for high-tech,” he said. “It’s a bit like when a wife comes to a husband and says, ‘I don’t love you anymore’.”
Reporting by Samantha Vadas in SHENZHEN, Anne Marie Roantree in HONG KONG, Adam Jourdan, David Stanway, Brenda Goh, John Ruwitch in SHANGHAI, Elias Glenn in BEIJING and Holly Chik and Maggie Liu, Sue-Lin Wong in DONGGUAN; Editing by Anne Marie Roantree and Philip McClellan...
ULAN BATOR (Xinhua) – Uruguay is planning to open a consulate general in Mongolia to promote bilateral ties, especially tourism exchanges, the Mongolian Foreign Ministry announced Saturday.
Mongolia and Uruguay agreed to enhance bilateral ties and cooperation in a wide range of areas, including trade, economy, tourism and agriculture, the foreign ministry said.
The agreement was reached on Friday between State Secretary of the Mongolian Ministry of Foreign Affairs, Damdinsuren Davaasuren, and a visiting Uruguayan delegation led by Fernando Cabral, head of the International Economic Cooperation Department at Uruguay’s Foreign Ministry.
Mongolia and Uruguay established diplomatic ties in October 1997. Except for the embassy in Ulan Bator, there is no consulate of Uruguay in the Asian country yet.
The two countries signed a visa-free agreement in April allowing for 30-day visa-free travel for visitors from each other’s countries, which came into force on June 1.
K-Bank, the nation's first internet-only lender, has teamed up with KT to export its banking services to Mongolia, the company said, Sunday.
The move is part of K-Bank's efforts to expand its business overseas. KT is the largest shareholder of K-Bank with an 18.01 percent stake.
The bank said that in cooperation with Korea's top fixed-line telecom operator, it has signed a contract with MCS Group, a Mongolian conglomerate, to transfer its internet banking technologies and services.
The five-year contract is estimated to be worth up to 5.5 billion won ($4.92 million), including 2.3 billion won in consultancy fees.
Established in 1993 as an energy sector consultant, MCS Group is one of Mongolia's largest conglomerates.
It has a wide business portfolio that includes telecommunications, engineering and infrastructure, real estate, mining and consumer goods distribution.
The Mongolian enterprise has been preparing to set up its first internet lender since early last year. K-Bank and KT will join hands to help MCS Group start the business tentatively titled "M Bank."
Under the contract, the Korean duo will take part in a wide range of projects to launch M Bank, including developing a business model, operation know-how of credit risk management systems and constructing an information technology system.
KT especially will help the Mongolian lender build its own credit scoring system (CSS).
"I am pleased that we can take the first step of expanding our business to the global market, which has been one of our main goals when initiating the internet-only lending business," K-Bank CEO Shim Seong-hoon said in a statement.
"As a major shareholder of K-Bank, KT has developed its own CSS and has accumulated knowhow on the system over years," Yun Kyung-lim, head of KT's global business office, said.
"Based on the company's enhanced technology and platform in the fintech sector, the company will expand its business overseas. We will also strengthen our partnership with MCS Group."
Thursday night, 25-year-old Lincoln man Sam Larson won $500,000 on television. All he had to do was get dropped off in a remote stretch of northern Mongolia for 60 days — hunting for his own food and enduring subzero temps, extreme isolation and the threat of deadly predators. No big deal!
Larson became the longest-remaining contestant on the fifth season of the History Channel reality series “Alone,” in which competitors rough it in remote locations, going into the wild carrying only what they can fit into a backpack. The one who lasts the longest wins the prize.
The contestants are in true isolation. There is no camera crew or producers. The survivors are tasked with filming every moment.
The show was shot last summer, which, Larson said, felt like a "crummy Nebraska November" in Mongolia.
Larson had been on “Alone” previously, in the first season. For this season, he and his nine fellow contestants were previous competitors who came up short.
Mongolia was a second chance for Larson, a writer, speaker and wilderness skills instructor who lives with his wife, Sydney, and their two children in Lincoln. Their 3-year-old son is named Alaska. Their now 1-year-old daughter is named Everest. She was only seven days old when Sam left to rough it in Mongolia. His growing family ended up being his key motivation and biggest worry while he was in the woods.
“This was an opportunity for personal redemption for me,” Larson said on Thursday’s season finale. “Coming out here set the reset button on my life and gave me the chance to have my family look at me as a provider rather than someone who’s just barely getting by all the time.”
Larson — by day 60 hungry, cold, unable to have a bowel movement — was already in tears on Thursday’s finale when his wife, Sydney, snuck up behind him to reveal that he’d outlasted everyone else and won the show.
Sam fell into Sydney’s arms laugh-crying.
Sam: “I’m so happy to see you. Oh my gosh.”
Sydney: “You did it! How are you feeling?"
Sam: “Alright, who has food? Who has stinkin’ food? You have food?”
Sam told her that with the $500,000, he’s going to get a new car, one that doesn’t break down all the time.
Thursday night on his Facebook page, Larson said, “I honestly feel like ‘winner’ is a weird title. How do you ‘win’ against nature?
“You really don’t,” he continued. “You just have to live as much as you can and be thankful for the time you get to spend in the natural world.”
When he was dropped into the Mongolian wilderness, Larson brought with him a saw, an ax, a pot, ferro rod, multitool, food ration, sleeping bag, paracord and trapping wire. Larson, who is 6-foot-2, went into the woods last summer weighting 250 pounds. He lost about 50 pounds over the next 60 days.
In a Friday phone call with The World-Herald, Larson said the worst part of his 60 days in Mongolia was not knowing what was going on with his family.
"But being a dad really toughened me up," he said. "And surviving in Vancouver (on the first season of 'Alone') was a perfect warm-up for Mongolia."
He has yet to receive his prize money, Larson said. But in the meantime, thank God, his old car has yet to break down.
"It's been many, many months since I got home from Mongolia," he said. "That '98 Honda has been pulling through for us."
Larson has been “playing in the woods” for as long as he can remember.
He got the survival skills bug when he saw an arrowhead exhibit at a natural history museum. That led to trips to western Nebraska rivers like the Dismal and Middle Loup. When he couldn’t travel far, he escaped to his backyard, “playing around, lighting things on fire before my parents could find me.”
At 14, he sold a bunch of his possessions to fund a canoe expedition in northern Ontario. After high school, he studied wilderness skills in Maine, lived under an army poncho in Arizona and solo trekked the Gila Wilderness of New Mexico before coming back to Lincoln.
On Thursday’s finale, Larson said he felt angry after leaving his camp on the first season of "Alone."
“But in Mongolia,” he said, “every time I started my morning fire, I felt grateful for the fire. I was thankful for the trees and the resources I had. I was thankful for every little thing that came my way.”...