T.Duuren: "Special loan needed to promote export of light industry”Economy
Ulaanbaatar /MONTSAME/ A scientific and theoretical conference on development strategy and export trend of light industry took place last Friday, October 16. The conference aimed to define technological level of leather and cashmere industries, pressing issues in the sector, solutions for them and to discuss R&D research development, innovation trend and ways to expand domestic and foreign cooperation.
A total of 53 thousand people are working in light industry sector. And 85 percent of local economy is based on agricultural production.
“There is an urgent need to change the country’s economic
dependence on mining, make investment in light industry sector and create value-added
Mongolia’s GDP per capita is USD 4000. It is almost impossible to run a profitable business in such condition. Generally, a business can run normal with profit and income once GDP per capita averaged USD 8000 in developing market.
In other words, Mongolia’s economy needs to grow two times from current state in a very short time. Consequently, 1.3 million working age population will be provided with stable jobs and income. Therefore, it is necessary for the country to develop its non-mining sectors and make investment in light industry, its equipment and technology. The only way to develop light industry is to promote export. The MNCCI organized export events of some sectors in collaboration with chambers of commerce and industry of Russia and China from last year. And we reached a conclusion that there is a necessity to issue special loan to promote export. The Government should give policy support on loan interest for export products. We have made estimation and research on it and it has been reflected in the Government Action Program for 2020-2024”, CEO of the Mongolian National Chamber of Commerce and Industry (MNCCI) T.Duuren said.
Director of the School of Animal Husbandry and Biotechnology of the Mongolian University of Life Sciences (MULS) O.Baatartsogt stressed that agriculture is one of the main sectors to develop Mongolia’s economy. We are facing the need to develop science and research-based light industry sector to develop export-oriented products through improvement of raw material processing technologies. The MULS prepares professional personnel to work in the sector. To train skilled personnel, we need to base on state policy, manufacturers’ demand and research. The number of students of the sector is in decline in recent years. State policy is also required in increasing the personnel.