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After a shaky year 2016, the Mongolian economy has recovered and is back to an economic growth of 5.1% in 2017, backed by investments in the mining sector and an increased resource production. How can European and German investors benefit from the reinvigorated Mongolian market?
We would like to inform you about the "Invest in Mongolia" Roadshow in Frankfurt, organized by the National Development Agency of Mongolia, the Embassy of Mongolia in Germany and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
High level representatives of the Mongolian Government, including the Ministry of Mining and Heavy Industry, the National Development Agency and the Mongolian Development Bank, as well as representatives from the private sector will attend the roadshow and deliver presentations on the current Mongolian economic situation, favorable investment environments and profitable projects to potential investors and entrepreneurs.
The "Invest in Mongolia" Roadshow is a practical and efficient event for all enterprises and individuals that are actively seeking new investment and business opportunities in Mongolia. It is the ideal chance to meet representatives of the Mongolian government.
The event will be held in English. Participation is free of charge but requires a registration on the official website of Invest in Mongolia....
In cohesion with the development of the Darkhan and Erdenet cities under international development trend of larger cities and settled areas, the Golden Triangle of Development policy was recently presented. According to the Mayor of Ulaanbaatar City Batbold Sundui, the policy was formulated with the governors of five aimags geographically located in the central zone. At present, the central zone comprises only 8 percent of the country's total territory, 10 percent of livestock, 10 percent of water reserve and 27 percent of the forest reserves. However, the central zone inhabits nearly 61 percent of the total population, produces 78 percent of GDP and sells 85 percent of industrial products.
The population density is around 286 persons per square kilometer in Ulaanbaatar, which is 150 times higher than the country’s average, and the capital is facing problems, such as air pollution, traffic jam, growing load of infrastructure and social services, which are 2-3 times than the proper amount. On the other hand, it plays a significant role in improving economic capacity of the country, the mayor noted. For example, the capital city economy was the fundament which sustainably ensured the country’s economic growth when mining and agricultural sectors were facing a crisis. “47 percent of its population and 60-70 percent of its economy and businesses are centered in one city. This raises a challenge to create leverages to analyse and resolve the urban centralization,” he added.
The goal of economic diversification of the three-pillared development policy, which was approved by the government early this year, is to plan the development of agriculture, tourism, industrialization, trade and infrastructure spheres in coordination with information technology, finance, transportation and logistics, and increase the country’s economic competitiveness, the mayor highlighted.
He announced that Ulaanbaatar will be a free economic zone in the near future and working group has been established in this regard.
The city governor’s proposed conception is to develop Ulaanbaatar, Darkhan and Erdenet under the Golden Triangle model of economic development as well as to ensure their sustainable development by increasing accessibility of human resources and workforce and improving market opportunities and resources in local areas using economic and administrative means together with Tuv, Selenge and Bulgan aimags, which are in gravitation and impact zone of the mentioned cities.
Also, a Memorandum of Understanding was signed between the Governors of the abovementioned cities and aimags to help decentralize Ulaanbaatar. For example, Selenge aimag expressed that it will be a reliable provider of healthy food and welcome some faculties of agricultural university. Selenge aimag’s deputy governor noted that out of its 17 soums, 16 were included in the crop farming zone of the country.
While, Darkhan-Uul aimag, where processing factories operate, offered to welcome all hide and skin processing factories at its territory. Darkhan-Uul aimag’s governor emphasized that the city utilizes only one third of its available capacity of producing heat and plans to increase electric power generation. Moreover, the Governor of Erdenet city underscored that infrastructure with fully resolved electric power and engineering networks have been established in 452 hectares of land. In addition, the Governor mentioned that its Science and Technology Park is successfully running its operation. With its profit, the Governor's office is planning to establish a development fund to provide loans to micro businesses.
As for Tuv aimag, its Governor highlighted that the aimag will be the most active zone of Mongolia’s development soon, as the Khushig Valley Airport and Great Maidar projects are finalizing. In addition, a power plant project, which is expected to generate 7 thousand jobs, will be implemented in the area.
An air corridor between India and Mongolia could start soon. A decision to explore the possibility of starting direct air services to Mongolia was taken during the recent visit to Ulaanbaatar by India’s External Affairs Minister Sushma Swaraj. The Mongolia air corridor is part of the India’s Act East policy to reach out to close nations. “We agreed to remove institutional and logistical impediments to boost our trade, tourism, and people to people contacts. In this regard, we also agreed to explore the possibility of launching direct air connectivity between our two capitals,” Sushma Swaraj said during the joint media briefing with Foreign Minister of Mongolia D.Tsogtbaatar.
Mongolia considers India a “third neighbor” as well as a “spiritual neighbour” - the late venerable 19th Kushok Bakula Rinpoche (1917-2003), a Buddhist monk who is revered in Mongolia, served as an Indian emissary to the country.
Russian and French power companies are considering joint nuclear projects in third-party countries, says Russia’s Rosatom.The talks will take place during the St. Petersburg International Economic Forum this week.
“During the 'nuclear dialogue' the sides are expected to present the joint projects on cooperation in third countries in such areas as engineering and the manufacture of nuclear power plant equipment, development of renewable energy resources and energy efficiency, the digital transformation of the energy sector and nuclear fuel cycle,” Rosatom said.
Rosatom will talk to French companies Electricite de France (EDF), Schneider Electric, Assystem and others. Russia and France have a long history of partnership in nuclear energy. The country became the first foreign client of Rosatom in 1971, when the sides signed a contract for the supply of uranium enrichment services from Russia.
Rosatom subsidiary Rosenergoatom and EDF have been cooperating since 1994 in operations, modernization, the prolongation of the life of nuclear power plants, management of radioactive waste and research and development.
Russia's St. Petersburg International Economic Forum, one of the world’s key economic discussion platforms, will officially open on May 24. This year, about 40 world leaders including French President Emmanuel Marcon will attend the forum. SPIEF 2018 will also welcome leading investment funds from 20 countries with total assets of more than $13.5 trillion.
The company is cutting the prices of its Model X and Model S cars in China by about 6% after Beijing said it would slash duties on imported passenger vehicles, starting July 1.
Tesla (TSLA) announced the price cuts on its official Weibo account late Tuesday, saying the move was possible because of the lower import tariffs.
In cash terms, the savings are significant. The price of the most expensive Model X will be cut to 1.3 million yuan ($204,000) from 1.4 million yuan ($219,000), according to a Tesla sales director in Beijing who asked not to be named because she's not a company spokesperson.
The cheapest version of the Model S will now cost 710,600 yuan ($111,200), down from 758,900 yuan ($118,800).
Tesla fans don't need to wait until July 1. In its Weibo post, Tesla said the new lower prices would apply to all cars no matter when they go through customs, and "a few cars in stock" would also be subject to the discounts.
But even after the price cuts, a Tesla in China will still cost a lot more than in the United States, where prices of the Model S start at $75,000.
China's tariffs on cars have long angered President Donald Trump. The United States charges a tariff of 2.5% on imported cars.
The Chinese tariff cut comes as the world's top two economies try to defuse the threat of a full-on trade war.
Other car companies have welcomed the decision to cut tariffs. Germany's Porsche (POAHF) said Tuesday it would consider lowering its prices for the Chinese market.
For many Mongolians, the booming capital, Ulaanbaatar, is synonymous with economic opportunity and a new life. Half the population now lives in the capital, most of them in the so-called ger areas, unplanned districts often lacking essential infrastructure like water and electricity and isolated from commercial activity. Starting a business here and keeping it running is hard, and even harder for women. Yet, with women comprising nearly 40 percent of the country’s entrepreneurs, Mongolia’s economic future is tied to their ability to participate in the marketplace.
While the female-to-male ratio of labor-force participation in the formal sector is relatively high in Mongolia compared to other countries in the region, women in business still face steep challenges in acquiring business skills, developing networks, and securing financing.
Take 27-year-old Undrakh, who started her handicraft business several years ago in her home but struggled to sell her products. Although full of passion, she lacked the skills at the outset to keep accounts, market her products, establish sales channels, and understand customer feedback—it was all uncharted water. Living in a ger area, she faced the constant challenge of traveling with large and unwieldy baskets to deliver to customers, a few at a time, in the city center.
Fast-forward to today, and Undrakh has a registered LLC with a well-appointed studio office in the center of Ulaanbaatar, two assistants, and a steady stream of regular orders from bigger businesses.
Undrakh is one of 28 graduates of Mongolia’s first-ever Women’s Business Center and Incubator Project, funded by the Korea International Cooperation Agency (KOICA) and The Asia Foundation’s Lotus Circle. The WBC supports a growing number of women business owners like Undrakh by providing high-quality business support services and an enabling environment for women entrepreneurs.
Since opening in 2016, the WBC has trained over 5,000 women and developed a regular client base of 2,000 entrepreneurs. For clients like Undrakh, the center is valuable not only for its high-quality business support and development services, but also for its open environment, where women from all walks of life gather to share information and exchange ideas.
While business-support centers do exist in Mongolia, the WBC stands alone in addressing the unique needs of women entrepreneurs, particularly single mothers and those with disabilities or from low-income groups. Close partnerships with grassroots service organizations allow the project to attract participants from marginalized communities, who are typically excluded from capacity-building efforts. Services include basic and intermediate business training and one-on-one advising, finance training and consulting, a coworking space, a business library, and a children’s playroom.
The WBC’s flagship initiative is an accelerated business incubator providing an intense four-month, tailored, business-development program to selected women entrepreneurs. The incubator offers participants a wide range of opportunities with practical, positive outcomes. Five to nine women are chosen for each class—28 women have graduated from the incubator to date—and the selection process has become increasingly competitive.
The program provides four stages of intensive business support: product development, identifying target clients and developing marketing strategy, achieving successful market penetration, and establishing binding contracts with investors and larger vendors. Incubator participants also have access to regularly organized pop-up-shop events and other sales or investment opportunities. Those without their own office may use the incubator at no cost while in the program. This four months of intensive development becomes a platform for networking and companionship, and alumni often return to the center to help other women.
The WBC has been recognized domestically and internationally, most recently by a visit from President Khaltmaagiin Battulga on May 14. The president met with incubator graduates to discuss their challenges and achievements, viewing their various products and expressing support for women’s economic empowerment.
The WBC’s social impact can be measured in the lives of its clients: women who are creating employment opportunities for other women, shifting from informal cottage enterprises to formal businesses, and experiencing higher self-esteem and improved status in their communities. As the most active network of women entrepreneurs in Ulaanbaatar, the WBC is helping to create a vigorous ecosystem of Mongolian women entrepreneurs.
Amarzaya Naran is The Asia Foundation’s project manager for the Women’s Business Center and Incubator Project in Mongolia. She can be reached at firstname.lastname@example.org. Soomin Jun is the Women’s Business Center and Incubator Project consultant in Mongolia. She can be reached at email@example.com. The views and opinions expressed here are those of the authors and not those of The Asia Foundation....
Ulaanbaatar /MONTSAME/ On May 23, at the meeting of the Financial Regulatory Commission the request from Erdene Resource Development Corp. (TSX:ERD) for dual registration of shares on Mongolian Stock Exchange was approved. The company listed on Toronto Stock Exchange requested to register 4 million shares worth of CAD 1.2 million.
The introduction of new product into the Mongolian stock market opens up a door for more than 30 mining companies operating in Mongolia, but listed on foreign stock exchanges to trade their stocks here. It will allow the public to become shareholders and benefit from natural resources. In addition, it will be a step forward to the development of Mongolian stock market towards the global benchmark.
Discovery Minerals Ltd. has signed an agreement for its Mongolia Gold Project. The Board of Directors is pleased to announce that after several months of negotiations an agreement has now been executed with Canadian company Meritus Minerals Limited.
Discovery will now embark on an intense programme to bring the project into production as soon as possible. The Project has already been granted a 30 year Mining Permit which will shorten the lead up time to go into bullion production.
“The drilled target at Gutain Davaa has a resource that has excellent potential to be expanded to about 500,000 ounces of gold and possibly more. Other targets on the mining license have potential to add resources of similar grade.
District wise there is excellent potential to locate substantial gold resources of similar nature to those at Toordogiin Shil, or possibly large tonnage lower grade resources similar to those at Boruu and Gasurt. There is a high chance of the district turning into a new gold camp.
Providing MMGL is able to work with the Soum authorities and enter into arrangements with them that are of distinct benefit to the local community, there is an excellent probability that MMGL will be able to establish itself as the preferred operator within Batshireet Soum and have advantages in obtaining new exploration titles.”
Ulaanbaatar /MONTSAME/ The Central Bank presented Mongolia’s economic review today as of the first four months of 2018.
Money supply reached MNT 16.2 trillion and money flow rose by 30 percent compared to same period of the previous year. Savings grew by MNT 144.5 billion and Tugrik savings make up 55 percent of it whereas dollar savings have decreased.
Investment worth USD 547.9 million was made in Mongolia in the first quarter of 2018 and most of it went to mining sector. Balance of payments had MNT 42.2 million deficit, however, it is a decreased amount compared to 2017.
Generally, according to the four months' review, money supply and value of tugrik are rising as well as amount of consumption loan increases, highlighted the Bank of Mongolia.
Ulaanbaatar/MONTSAME/ Mongolian visa issuance regulation has been facilitated. A single and double-entry visa for up to 90 days of ‘H’ classification will be granted without permission to emigrants, foreign national born from Mongolian citizen and their family members. ‘H’ visa is issued for a foreign national who is to visit for private purpose.
In case the foreign investor, foreign national who is to work in public or inter-governmental organization and family members of these people reside in Mongolia, getting a visa prior to arrival was necessary. According to the new modified regulation, temporary visitors /J-tourism, B-business and H-private purpose categories/ will be permitted taking their residence application into consideration.
It also includes many improvements, such as availability of applying visa and invitation requests online.
It aims at creating favorable condition to issue visa to foreign investors, emigrants and foreign nationals born from Mongolian citizens, facilitate visa issuance conditions and deliver public services promptly.
In addition, the Cabinet approved a renewed regulation on ‘Residence of foreign nationals in Mongolia and the registration’.