Ulaanbaatar /MONTSAME/. This year marks the 85th anniversary of the light industry sector in Mongolia. On October 21, the national light industry conference was organized at the State House to discuss the current state and pressing issues of the sector. 

About 1,000 representatives of the light industry sector led by the Minister of Food, Agriculture and Light Industry Ch.Ulaan, and Deputy Minister J.Saule attended the conference. Advisor on Environmental, Urban and Rural Development and Air Pollution Policy to the President D.Purevdavaa delivered a message from President of Mongolia Kh.Battulga addressed to the participants of the conference.

Establishment of industrial-technology park and initiative on tax policy to be supported

“The light industry sector creates the most number of jobs. However, it is unfortunate that we are not able to use many of the opportunities we have. As someone that has previously worked in the sector and knows about the issues, I endeavor to comprehensively support initiatives on establishing an industrial-technology park or supporting the sector through a tax policy," noted the President in his message.

The President also mentioned that works on establishing a leather technology park, eliminating devaluation of commodity, manufacturing a final product, protecting the domestic market, and supporting domestic production and clusters have begun in Darkhan-Uul aimag and construction work of a model plant is actively taking place. 

A bill to export Mongolian textile and woven products tax-free to the U.S. market is being discussed at the U.S. Congress under the name, ‘Third Neighbor Trade Act’. Furthermore, the legal basis to enter large-scale markets with trade discounts, such as those of the European Union and Japan, has also been created. However, it must be noted that the efforts of the Government and government agencies are crucial for their realization, said President Kh.Battulga.

As only results such as increased profits and export and raised sales should be expected from the Government and government organizations in charge of light industry, I am confident that you all will put forth real solutions to the sector executives, and demand measures to be taken.”

The fourth industrial revolution to kick off

At the conference, Minister of Food, Agriculture and Light Industry Ch. Ulaan did a presentation under the theme, ‘Development policy and future objectives for the light industry sector. As Mongolia plans to put 20-25 million livestock into the economic circulation, the Government intends to implement a policy and give special attention to creating the capacity to fully process livestock commodities. For instance, USD 250 million agreement on building the ‘Darkhan leather complex has been established and some financing for the complex has been also reflected in the state budget. Furthermore, new objectives have been set to effectively provide working capital loans to the leather industry, introduce new, environmentally friendly technology as well as improve the quality of livestock commodities. The government policy aims to have the processing industry be developed to meet global standards and to kick off the fourth industrial revolution, noted the Minister in his presentation.

During the conference, representatives of the sector noted the necessity of increasing investment in the sector alongside having a policy on tax reduction. They also expressed their interest in fully processing the commodities and exporting processed products by improving the current industrial technology. Currently, only about 40 percent of cashmere is made into final products, with over 60 percent being exported unprocessed.

Noting the Ministry’s active measures on livestock sterilization in the last two years, representatives of the leather processing industry also requested to have a policy on providing the sector with working capital and enhancing the quality of commodities.

The Government of Mongolia is implementing policies on improving the competitiveness of the light industry sector, and usage of the latest advanced technologies, increasing the number of job opportunities, and production of value-added products that replace import products as well as making the production environmentally friendly, and developing export products. In aims of accelerating the renewal of the technology used in the light industry sector, for instance, the programmes ‘Packaging’, ‘Industrialization 21:100’, and ‘Cashmere’ are being implemented. 

.