|“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ||Mongolian Business Database||London UK|
|SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA||The Center for American and International Law (CAILAW)||Plano Texas June 17-18 2019|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
DETROIT (Reuters) - Honda Motor Co Ltd (7267.T) said on Monday its has invested $267 million and will add 300 new jobs to support increased production of its revamped 2018 Accord sedan model at the Japanese automaker’s plant in Marysville, Ohio.
Honda unveiled the newest-generation Accord in July, one of four re-engineered midsize sedans that Asian automakers are betting on to win market share as Detroit rivals shift focus to SUVs, crossovers and pickup trucks.
The new Accord, like rival Toyota Motor Corp’s (7203.T) all-new Camry, offers more horsepower, safety technology like standard collision-avoiding braking and better fuel economy although Honda did not release figures.
Honda’s investment in Ohio consists of $220 million for the Marysville plant, including a new $165 million welding department with 342 welding robots. The automaker is also investing $47 million at its Anna, Ohio, engine plant to provide turbocharged engines for the Accord.
The Marysville plant also makes the Acura TLX, a luxury midsize sedan, and the Acura ILX, a luxury compact sedan. With the new investments the plant will have a capacity of 440,000 vehicles a year and can add volume for the Accord as necessary, Steve Rodriguez, Honda’s manufacturing leader for the Accord, told reporters on a conference call on Monday.
Ray Mikiciuk, Honda assistant vice president for sales, said the company is not giving a sales forecast for the Accord, but added “I don’t expect to sell fewer Accords in 2018 with this great new product.”
Honda’s announcement follows Toyota’s last month that it would take a 5 percent stake in smaller Japanese rival Mazda Motor Corp (7261.T) as part of an alliance that will include a $1.6 billion U.S. assembly plant and collaboration on electric vehicles.
The plant came as a surprise for investors at a time of weakening U.S. new vehicle sales.
It also stands in contrast to recent moves by General Motors Co (GM.N) and Ford Motor Co (F.N). Faced with declining sedan sales, GM has cut the third shift at a couple of its plants.
Ford has announced it will move production of its next generation Focus sedan to China from Mexico to save $500 million in retooling costs. The U.S. automaker also announced in May it was laying off more than 1,000 salaried workers.
Passenger car sales have steadily declined since 2012 when they made up 51.2 percent of the U.S. market. Sedans sagged to a 38.1 percent share in the first half of this year.
Let’s start with what you think Mongolia should prioritize. What should we focus on the most?
Due to problems with repayment of the Chinggis Bond, Mongolia had no choice but to look to the International Monetary Fund. Even though the global interest rate had never been lower, Mongolia found itself in a debt crisis. US President Donald Trump is undertaking tax reforms and as a way to eliminate the budget deficit, the US is seeking out capital from the global market, which could be adverse for many countries.
In Mongolia’s case, in order to avoid raising capital on the global market, it has no choice
but to reform its taxation system and create a domestic source of revenue. I personally believe Mongolia needs to increase its taxes. During my previous visit to Ulaanbaatar, I talked about how the number of vehicles on the road has exceeded the capacity that the roads can handle. In order to balance the number of cars and road accessibility, it is essential to reform taxes.
It is also important for Mongolia as a nation to look at how they are using their natural resources. There is a need to focus on how to increase revenue from that sector. It sounds unfathomable that the 1.5 billion USD Chinggis Bond has caused Mongolia to tether on the brink of bankruptcy. The total value of the Oyu Tolgoi mine is 50 billion USD.
It would be beneficial for young Mongolian professionals to work and learn from experts around the world. This will help the Mongolian government retain its stake in the mine. If Mongolia was able to conduct its own exploration expeditions and find new potential mines, it could ink a favorable agreement with private investors. The contract established with Rio Tinto at the time essentially meant that this country would not receive any revenue from the mine in at least 25 years.
Rio Tinto contributed two thirds of the 10 billion USD in capital required to commence operations at the mine and to develop local infrastructure, while the government would finance the remainder. I want to discuss about why Mongolia came to pay money. Mongolia is allowing Rio Tinto to mine the 50 billion USD copper underground and is paying money on top of that.
The exploration company that found the Oyu Tolgoi mine paid a small amount of money for the license and sold it off to Rio Tinto. Even though this is not technically illegal, it is an unfortunate circumstance in the eyes of an economist. In order to address this issue, the Mongolian government must work to improve its capacity for mining exploration. For instance, establishing a mining institute, preparing engineers, and giving them practical experience will help Mongolia determine the total amount of natural resources it possesses.
Seems like it will take a long time, don’t you think?
Yes. Until then, world-class professionals can be contracted to conduct exploration efforts. Invite experts and professionals from around the world to work with young Mongolian professionals, imparting valuable information to them. This will help prevent any loss of stake in the Oyu Tolgoi mine.
As I said, Mongolia will not see any revenue from Oyu Tolgoi in the first 25 years. The government did originally own the license for the mine. A highly valuable mine was given up for a small amount of money. In order to not repeat thismistake, education reform, training of exploration professionals and people to negotiate a beneficial contract with investors is required.
I want to talk about the Mongolian education system briefly. I am from Munich, Germany. Munich, approximately the same size as Ulaanbaatar, has two universities and one military academy. There are a few other schools. Ulaanbaatar in contrast has many universities. Those universities are only preparing people to wear a tie and sit behind an office desk.
Mongolia needs people that work with their hands, professionals trained in technical institutes and that have the ability to perform high skilled tasks. The country does have professional training and manufacturing centers. These institutes need to be expanded and developed further, helping produce capable professionals. The students need to work at companies four days out of the week, accumulating practical knowledge and to also learn theoretical knowledge in class once a week. This type of dual education will be most beneficial.
Germany implements this education system. The trade balance of Germany is positive and we are one of the largest exporting countries in the world. This has a lot to do with this dual education system. The Mongolian education system is similar to that of the United States, possessing a large number of universities and colleges. However, it has already been proven that this type of education system does not have optimum results. All you need to do is look at the manufacturing sector of the United States. Possessing a large amount of land and a small amount of people, Mongolia is best suited to focus on mining, roads, and the construction sector.
Would it be correct to say that you do not support allowing foreign mining exploration companies to conduct exploration expeditions in Mongolia?
Yes, that’s correct. At the moment, Mongolia has no choice but to contract highly skilled
foreign professionals. But when Mongolia allows the whole company to conduct the exploration activities, they tend to lose their ownership of the mines. Mongolian companies should contract foreign professionals to conduct exploration and help retain ownership within the country.
It is possible then to attract investors and sign a contract. However, Mongolia must be unwavering on certain clauses in a potential mining agreement with an investor. When establishing a long-term contract, the two sides must agree to the general agreements and obligations. A clause must be added that in the event of any extenuating circumstances, the two sides will amend the agreement accordingly. I think it is important to note that the attorney contracted to draw up the contract plays a very important role.
My wife and I were both involved in the privatization efforts in East Germany. Based on my experience then, I wrote the book “Jumpstart”. The experiences I noted in my book were implemented during the privatization of the Bolivian mining sector. Bolivia had made it constitutionally illegal to sell ownership of its mines. In this circumstance, we gave advice on how to involve private businesses and investors in the privatization efforts.
The solution was to establish a joint company. In order to make use of the experience and technical capability of private companies, the government established a joint company. The government reached an agreement on what the machinery, technical equipment, and know-how of the company was worth and established a joint company accordingly. I came to Mongolia in order to share this.
Mongolia issued a 1.5 billion USD bond and also enrolled in the extended fund facility program with IMF. What are your views on the program?
This is not a solution, only a sign of more hardships to come. If a person with a low-income receives a loan from one person and uses a loan from another person to pay it off, where will that get them? Country-wise, it will cause the country to be directly influenced by someone else. Norway does not waste its reserves and invests in the global stock market. This helps maintain a relatively low interest rate. Venezuela, on the other hand, has caused artificial inflation due to uncontrolled spending from its oil revenue. The country is on the brink of bankruptcy due to its reliance on oil and decreasing oil prices on the global market.
If Mongolia spends its mining revenue on products such as vehicles or televisions, it is not beneficial. Investors see that there is an economic bubble that has formed in Mongolia that is about to burst, and therefore, they believe it will not be profitable to do business. It would not be outlandish to say that debt is poison. Increasing debt causes a bleak future. It might be time for Mongolia to tighten its belt and increase taxes in order to overcome this hardship. If Mongolia is able to overcome its current crisis, a great and prosperous future is waiting.
How do you see the potential of tourism in Mongolia?
I have heard that many tourists from German speaking countries such as Germany and Switzerland come to Mongolia. Germans wish to see and marvel at the ancient culture and beautiful nature of Mongolia. “The Story of the Weeping Camel” being shown in Germany moved a lot of people emotionally. Mongolia has the opportunity to attract tourists from all over the world. The development of rural infrastructure is key in developing the tourism sector.
Improving the services of rural hotels is also important. Many people come to see the history of the great empire that once was. Not only during Naadam, but year-round, organizing interesting sights will be helpful.
The government must be actively involved in tourism to attract investment and support the sector policy wise. The cooperation between the national government and local governments will help Mongolia see results. Germany is one of the countries with a very developed tourism sector.
There are many companies that send our citizens to many different countries. It is possible
to work together with them. Of course, they will have their requirements and standards. Using those avenues, it is possible to develop the tourism sector much further. Since tour operator companies have a vested interest in operating long-term, it will help establish a sustainable source of income for Mongolia.
What must be done to support domestic manufacturing?
Mongolia would be hard-pressed to establish say a vehicle factory and compete globally. But, Mongolia has the chance to initially supply all of its domestic demand. You can build your own buildings and roads. Of course, you do need experts that have experience in this matter.
On a related note, the Chinese market is large but we must not forget that the European Union’s market is even larger. Of course, China will always be an important economic partner for Mongolia but it is also important to diversify....
Ulaanbaatar /MONTSAME/ A 437.02 meter long steel/concrete composite bridge, which has 40 meters long steel cross beam and 44 tons of load capacity, is now open to traffic in Selenge soum, Bulgan aimag.
The bridge was constructed by Khotgor zam company using new technology and it was handed over for operation on September 16.
“Development comes following road. The bridge shortcuts route to Ulaanbaatar by over 120 km. As the bridge is located in the main agriculture region, it allows us to transport crop quicker, saving time and money” said D.Ganbat, Acting Minister for Road and Transport Development.
Ulaanbaatar /MONTSAME/ Grand opening ceremony of a new branch in Ulaanbaatar city of premium chocolate brand Godiva took place at the Shangri-La Mall on September 14.
Present at the ceremony were Philippe Daue, Chef Chocolatier of Godiva, Carmen Chiu, Director of marketing and merchandising for China and Pacific Rim, managers, celebrities, businessmen and diplomats of Embassies in Mongolia.
On the eve of the grand opening, Philippe Daue carried out training on technologies of the Godiva chocolates and methods of making chocolates by hands.
Godiva is premium chocolate manufacturing company which has over 100 branch stores around the world. The secret of Godiva is that they use high quality natural ingredients to make their products and store at perfect temperature in order to maintain its products freshness and moist.
Ulaanbaatar /MONTSAME/ The 72nd Regular Session of the United Nations General Assembly will convene at UN Headquarters in New York, the U.S, on September 19-25.
As a member of the UN, Mongolia attends the session every year. This year, a working group led by the Acting Foreign Minister Ts.Munkh-Orgil departed Sunday for New York to attend the session.
The President’s Office made an official announcement that the President Kh.Battulga will not participate in the UNGA session.
Jack Ma, the founder of e-commerce giant Alibaba, has offered some of his insights into running business and the role of innovation and entrepreneurship.
The business magnate also shared with people how Alibaba has grown into what it is today.
As a Hanghzou native, Jack Ma attributes his success to the hard-working ethos and innovative spirits that was instilled in him at a young age.
The business tycoon stresses the role of competitive and innovative ideas while opportunities, in his opinion, are open to those who own those creative thoughts.
"There are all kinds of problems every day when you start a new business, and these problems need to be fixed, either by yourself, or by others, because someone has to do it. And those who are able to solve these problems will have seized their opportunity," Ma said.
Ma is encouraging entrepreneurs to have a broader vision and take a wider picture into account in running business.
He describes an innovative entrepreneur as being someone who always sets their sights on the future:
"Being innovative means you look at today from a viewpoint of tomorrow. We need to look at today's China from a viewpoint of the world, and look at ourselves from the viewpoint of those outside this industry. When you think this way, you will do things in a different way," Ma noted.
The Alibaba conglomerate, which just celebrated its 18th birthday earlier this month, has made Ma one of the richest men in China, and in Asia, with a fortune valued at some $30 billion.
Despite the huge success, Ma says he remains cool headed and still stays true to his dreams:
"It's important to retain a 'simple' and 'naive' outlook for the world. If a man still maintains his 'simplicity' and 'naivety' when he turns 100, I think he will be a very noble old man. I hope we can all hold on to a simple mindset and stick to our dreams, because if we lose our dreams, everything we strive for will become pointless and we will only become money-making machines. "
Alibaba's revenue in the 12 months ending in this March rose by 56 percent to $23 billion.
Now, its business has expanded into many other areas such as cloud computing and entertainment, from the original online retail.
Chief negotiators from 11 nations of the Trans-Pacific Partnership free trade pact will meet in Tokyo this week. They are aiming to reach a broad agreement at the Asia-Pacific Economic Cooperation summit in November.
The top TPP officials will meet on Thursday and Friday in Tokyo to discuss items to be shelved from the agreement.
The move comes following the withdrawal of the United States. The 11 countries are trying to put off parts of the agreement, which were added on US requests.
Economic Revitalization Minister Toshimitsu Motegi told reporters on Friday that with the APEC forum 8 weeks away, he hopes the 2-day meeting will become a big step toward achieving great results, while keeping the contents of the pact at high levels.
Japanese government officials say Japan wants to avoid revising the contents of the pact, so the United States could come back to the pact in the future. Japan, as the host nation, is expected to lead the talks so the members can come up with a shortlist of the items to be shelved, while trying to identify each member's interests.
The APEC forum will be held in Vietnam in November.
Mobilising private sector capital is critical to climate transformation, and the Green Climate Fund’s (GCF) partnerships in Mongolia demonstrate how the Fund can leverage public funds to engage private investment.
This was the message emphasised by Ayaan Adam, Director of GCF’s Private Sector Facility, in a statement to the Mongolian Sustainable Finance Forum in Ulaanbaatar on Thursday, September 14, 2017.
”GCF is providing strong support for developing countries to build their climate capacity and ownership,” stated Ms Adam in her keynote speech. “We are also using public funds to catalyse private players and encouraging their full participation, providing creativity, innovation and massive capital for climate action. This is the sustainable, long-term solution to respond to climate change,” she explained.
Ms Adam addressed the 450+ attendees of the international forum in Ulaanbaatar, and used the Fund’s partnerships in the country as an example of how GCF can respond rapidly and with transformative impact to support country ownership and crowd-in private capital.
The Green Climate Fund recently disbursed $20 million for an investment to create a business loan programme for GHG emission reduction in Mongolia. The project was developed in partnership with XacBank, one of Mongolia’s leading banks. It was fast-tracked from accreditation, to project approval, signature, and disbursement in less than a year.
While the Fund has many international private sector projects, this is its first local private commercial project in a developing country.
At the same time, GCF is providing readiness funds to the country in order to support the development of the Mongolian Green Credit Fund by the Mongolian Ministries of Finance and Environment. Delivered in partnership with the Global Green Growth Institute (GGGI), this project will enable the creation of a national financing vehicle to deliver long-term climate finance to stimulate green growth.
At the same time, GCF is providing readiness funds to the country in order to support the development of the Mongolian Green Credit Fund by the Mongolian Ministries of Finance and Environment. Delivered in partnership with the Global Green Growth Institute (GGGI), the one year project will enable the creation of a national financing vehicle to deliver long-term climate finance to stimulate green growth.
The proposal was approved for an amount of $350,000 that will help in scaling up a national finance vehicle to bring long term finance to projects and programmes that stimulate green growth in the country.
In stressing the Fund’s ability to engage the private sector, Ayaan Adam also highlighted the Fund’s Mobilising Funds at Scale programme. A recent Request for Proposals under this $500 million programme has generated over 350 proposals to GCF from private sector institutions around the planet, including from national financial institutions in developing countries.
The most promising ideas will be developed and submitted to GCF’s Board for funding consideration.
Rio Tinto (ASX, LON:RIO), the world’s second largest miner, announced Friday its chief financial officer Chris Lynch would retire from his role by the end of September 2018.
Born in Australia, Lynch joined Rio Tinto’s board in 2011 and was appointed as CFO in 2013. He will remain with the group to ensure a smooth transition of his roles, the firm said in the statement.
Succession planning is already in progress, the company noted, adding Lynch’s replacement will be announced in due course.
Lynch, who turns 65 later this month, leaves the company at a time it searches for a new chairman to replace to Jan du Plessis, who also is also stepping down next year.
Under his direction, the group cut debt significantly and, in February, it was able to post its first gain in annual profit since 2013.
The company, which is also the world’s No. 2 iron producer, announced in August the biggest interim dividend in its history and said it would spend a further $1 billion repurchasing its owns shares.
Rory McIlroy may be Northern Ireland’s best golfer, but he is not that nation’s most daring player.
Adam Rolston wins that honor. Rolston completed the wildest – if not the longest – golf hole in history Saturday when he dropped a 7-foot putt on the 18th green of the Mt Bogd Golf Club in Ulaanbaatar, Mongolia.
Rolston’s golfing journey – detailed by The Telegraph and set for verification by Guinness – covered 80 days and 20,093 shots. He was playing at a self-determined par 14,000. There is no creature in ornithological history – back to the link between birds and their dinosaurs ancestors – to describe a hole 6,093 over par.
Rolston, a 28-year old former Hong Kong rugby player, lost hundreds of balls over the 1,250 mile (2,011km) golf expedition, playing through water, ice and across deserts.
“My mates have all been saying you can’t do this and that has been on repeat in my head,” Rutland told The Telegraph. “This has been the hardest thing I’ve ever done in my life. I’m in awe of the fact we’ve done it.”
Rolston was raising money for Laureus, which runs children’s sports charities worldwide. He has done this sort of thing for charity in the past. He once rode a bicycle though every country in Africa. Rolston said he chose Mongolia for his golf challenges because of the country’s wide-open, flat and sparsely populated terrain.
Rolston teed off from the western point of Mongolia and worked his way toward the 18th green of the country’s lone golf course.
“We have had dozens of people telling us we were mad or crazy, with comments ranging from: ‘That’s impossible” to ‘Do you not have anything better to do?’” says Rolston.
Among the modes of transport: a golf cart that quickly broke down, a Russian jeep, a camel and three horses.
And that was all in the first week.
Rolston has not lost his love for the game, either.
“I definitely want to keep playing when I get back,” he told The Telegraph. “I’ve been super-pumped about playing golf every day. I might hit fewer balls when I get back, but I will still be addicted to the game as much as I ever have been.”