Download Report

ASSOMAC-AUDITORIUM
Vigevano(PV)ITALY
INTERNATIONAL MEETING ON
SERVICE CENTRES
24Februaury 2015
MONGOLIA
Mongolia
•
•
•
•
•
•
•
National name:
Mongolia
Capital city:
Ulaanbaatar
Official language:
Mongolian
Population:
3000000
Area:
1,564,116 km2
Government:
Parliamentary Republic
Currency:
tugrug(T)
Economic summary
•
•
•
•
•
•
•
•
•
•
GDP/PPP (2012 est.): $15.44 billion; per capita
$5,500.
Real growth rate: 12.3%.
Inflation: 14.2%. Unemployment: 9%.
Labor force: 1.037 million; agriculture 33%,
industry 10.6%, services 56.4%, (2011).
Agriculture: wheat, barley, vegetables, forage
crops; sheep, goats, cattle, camels, horses.
Industries: construction and construction
materials; mining (coal, copper, molybdenum,
fluorspar, tin, tungsten, and gold); oil; food and
beverages; processing of animal products,
cashmere and natural fiber manufacturing.
Natural resources: oil, coal, copper,
molybdenum, tungsten, phosphates, tin, nickel,
zinc, wolfram, fluorspar, gold, silver, iron,
phosphate.
Exports: $4.385 billion (2012 est.): copper,
apparel, livestock, animal products, cashmere,
wool, hides, fluorspar, other nonferrous metals.
Imports: $6.739 (2012 est.): machinery and
equipment, fuel, cars, food products, industrial
consumer goods, chemicals, building materials,
sugar, tea.
Foreign investment to Mongolia
Communications
•
•
•
•
Telephones:
main lines in use: 187,600 (2011);
mobile cellular: 2.942 million (2011).
Broadcast media: following a law passed
in 2005, Mongolia's state-run radio and TV
provider converted to a public service
provider; also available are private radio
and TV broadcasters, as well as multichannel satellite and cable TV providers;
more than 100 radio stations, including
some 20 via repeaters for the public
broadcaster; transmissions of multiple
international broadcasters are available
(2008).
Internet Service Providers (ISPs): 20,084
(2012).
Internet users: 800,000 (2012).
Transportation
Railways: total: 1,908 km (2010).
Roadways: total: 49,249 km; paved:
3,015 km; unpaved: 46,234 km
(2010).
Ports and harbors: 580 km (the only
waterway in operation is Lake
Hovsgol) (135 km); Selenge River
(270 km) and Orhon River (175 km)
are navigable but carry little traffic;
lakes and rivers freeze in winter, they
are open from May to September)
(2010).
Airports: 44 (2012).
Animal breeding
Mongolia has one of the largest
concentrations
of
indigenous
animal breeds in Asia.
With a population of some 40
million head of cattle, horses, yaks,
goats and camels, most herding
households are self-sufficient in
meat and milk products and earn
an income from selling live animals,
milk, meat, skins and hides, wool
and cashmere.
INDUSTRIAL POLICY
Mongolia is under-industrialized. Economic
diversification that allows the manufacturing
sector to play a more significant role should be
an important policy objective.
Mongolia is currently operating an exportoriented industrialization strategy in the context
of an open trade regime.
Given the small size of the domestic market,
evidence that one of the prerequisites of
success with such a strategy is that producers
should access imported inputs at international
prices, and the existence of significant natural
protection from the landlocked nature of the
economy, it is unlikely that low uniform
protection has seriously undermined domestic
manufacturing.
INDUSTRIAL POLICY
•
•
•
•
•
Mongolia is a land-locked country, where
distances are huge and transport costs
high. Every effort needs to be made to
improve the transport infrastructure to
lower transport costs.
Additionally, an adequate and high-quality
physical infrastructure should be built for
production to be efficient and
competitive.
The institutional structure needs to doing
businesses. For industry to flourish, it
must also have access to skilled
professionals.
Specifically, concerns highlighted on
industrial development in Mongolia, such
as a lack of longterm finance.
An effective environmental dimension to
industrial policy requires
LEATHER SECTOR
IN MONGOLIA
LEATHER INDUSTRY
• The National program for the leather industry
was developed with the objective to ensure the
sustainable development of the livestock product
processing industry.
• This industry is crucial for the economic
development of the country in the achievement
of the objectives of the Government to promote
export-oriented industry, to achieve about 10 %
growth in economy, and to maintain the
sustainable development of the industry.
LEATHER INDUSTRY
Goal of the sector:
• Increase the export earnings of the leather industry
through improvements in processing and add value.
Restructure the industry in line with the regional
development concepts.
Reduce the ecologically negative impact of the
production technology, and introduce new and
advanced technology.
Promote the livestock product processing and the
recycling of production wastes based on modern,
advanced biotechnology processing.
25000
20066,4
20000
19227,6
15000
10000
5166,8
5000
0
321,5 0
CAMEL
2619,4
242,5
HORSE
Livestock
4640,8
2909,5
473,9
BOVINE
SHEEP
Raw hide & skins
Source: Mongolian national statistical organization 2013, 315p
GOAT
RAW HIDE & SKINS
LEATHER INDUSTRY
• Mongolia currently produces 8.4 million raw skins and hides, out of
which 52.4% or 4.4 million is sheep skin, 26.2 % or 2.2 million is
goat skin, 7.1 % or 0.6 million is cow hides; The remaining leather
products constitute 4.7% or 0.46 million.
• As of 2012, more than 30 leather-processing companies represent
the industry. Hundred twenty processing companies produce
finished goods. The total processing capacity maintained by these
companies is 7.9 million skins.
• However, they currently operate at a production capacity of 1040%. Early stage processing has exceeded the raw material resource
capacity by 12.6%.
Production volume of the industry for 2012 was 118 billion MNT.
• A total value of USD 19 million was exported. This amount reflects
1.3% of the GDP. Most of the production volume and export is
semi-processed leather.
LEATHER INDUSTRY
• The leather industry
is in a continued
state of decline, and
issues of raw
material quality,
• processing costs and
environmental
pollution are
significant.
LEATHER INDUSTRY
•
•
There are currently 35 leather processing
factories, and 171 producers of final leather
goods in Mongolia according to the latest
government figures. Many of these businesses
operate only on a seasonal basis up to six
months a year largely due to the lack of
working capital to procure raw materials.
The Government of Mongolia, in particular,
the Ministry of Industry , is proposing a new
initiative to address the problem, and support
the leather processing sector in general, by
issuing a MNT 140 Billion bond. Once
implemented the initiative will generate
25,000 new jobs and result in the production
of leather goods export valued at USD 460
Million.
19
LEATHER INDUSTRY
• It is also expected that the whole supply
chain of the leather production will be
improved, and processors will be able to
use more local raw materials produced by
the herding community.
• As the program was supported by the
Economic Standing Committee, it will now
be realized the near future.
LEATHER INDUSTRY
• A Government meeting has
recently concluded to review the
financing of a leather factory
complex to be established in new
Province, as well as projects to
upgrade the technologies and
infrastructure of existing leather
factories.
• Minister from related sectors
were also instructed to use
buyers’ investments to reform
technologies or develop the
infrastructure needed to support
domestic manufacturers, along
with soft loans and industry
organization assistance.
LEATHER INDUSTRY
•
•
•
•
The Ministry of Industry of Mongolia, reported :
Mongolia has the potential to earn an income of one trillion MNT from leather industry sales.
Our country is capable of introducing technology from countries such as Italy, Spain and
Holland, the countries that are leading in the technology sector, by 2016 and producing
leather products domestically.”
According to calculations, 80 percent of raw material of leather will be produced as end
product and the remaining 20 percent will be exported as semi-processed leather. Nearly
24,700 jobs could be created by these investments in the leather goods industry.
LEATHER INDUSTRY
• Out of all leathers prepared in
Mongolia, only 25.8 percent (10.3
million) of raw leathers is
processed domestically. The
remaining percentage of raw
leather is exported to the foreign
market, which many analysts
consider a great loss for Mongolia.
• For now, domestic manufacturers
will continue to face the challenges
of insufficient profits, and limited
distribution networks, which leaves
them no other option but to halt
operations for five to six months as
they struggle to store raw material.
Export
D.AMARJARGAL
Senior officer,
Department for Light industry policy
and regulation,
MINISTRY OF INDUSTRY, MONGOLIA
Please send your comment to the
e-mail: [email protected],
[email protected],
Phone: +976-91915858