Mongolia-Japan business forum heldEconomy
Ulaanbaatar /MONTSAME/ In order to increase trade and investment between Mongolia and Japan, the National Development Agency, Japan External Trade Organization (JETRO), Embassy of Mongolia in Japan, International Finance Corporation (IFC), and Irbis Ventures hosted "Invest in Mongolia - Tokyo 2021", an online Mongolian-Japanese business forum on May 20. The Ministry of Foreign Affairs of Mongolia and the Ministry of Economy, Trade and Industry of Japan (METI) also cooperated as supporting organizations.
During the forum, Japanese investors and entrepreneurs were introduced to Mongolia’s economic cooperation, investment, and business climate reform plans, and the success stories of Japanese investors and entrepreneurs who have invested in Mongolia. In particular, CEO of Mobicom Corporation Tatsuya Hamada, CEO of And Global B.Khos-Erdene shared their experiences on investment and Board Member of Newcom Group E.Orchlon shared his views on the future and opportunities of Mongolia’s renewable energy sector.
Furthermore, projects selected and enhanced through the Project Capacity Building Program, carried out in cooperation with the National Development Agency, Irbis Ventures, and GMG Consulting, have been presented at the forum based on their high investment potential. For instance, introduction of projects by companies such as Chimege Systems (software, voice tech, AI/ NLP), Solongo Kharaa Company (health), Urban Lily (agriculture), Zoson Fashion (light industry) and “Mongolian Artisan Cheesemakers Union” attracted interest of Japanese investors.
Over 400 Japanese and Mongolian delegates attended the forum, representing the areas including banking and finance, construction, food production, light industry, other manufacturing sectors, transport, trade and education.
Incidentally, Mongolian-Japanese trade turnover reached USD 416.5 million by the end of 2020, a decrease of 30.7 percent compared to the previous year. Mongolia’s exports to Japan reached USD 9.68 million and imports reached USD 406.7 million in 2020, which is a year on year decrease of 38.6 percent and an increase of 30.6 percent respectively. The main export items were combed cashmere and cashmere products, while the main import items were passenger vehicles, trucks, public transport vehicles, rice, and synthetic fabrics.
Japan’s foreign direct investment in Mongolia from 1990 to 2020 was about USD 1 billion, ranking ninth out of 123 countries. Japan accounts for 4.4 percent of foreign direct investment in Mongolia. Trade and catering accounted for 45 percent of investment; 8.23 percent was in light industry; 14 percent was in construction, engineering, and construction materials; 9.6 percent was in banking and finance; and 23.17 percent was invested in other sectors. There are 670 Japanese direct foreign investment companies registered in Mongolia. Trade and catering account for 63.13 percent of these enterprises (423), light industry for 10.30 percent, banking and financial activities for 7.01 percent, tourism for 2.69 percent and other sectors for 16.87 percent.