Mongolian small businesses getting ready to export to the European UnionEconomy
Ulaanbaatar /MONTSAME/ The EBRD and EU, together with EuroChamber, are launching the ‘SME Export capacity building’ project to pave the way for Mongolian SMEs to enter the European market.
As they are looking for ways to diversify their exports, Mongolian enterprises are intensifying the efforts to strengthen their presence in the European Union (EU). The European Bank for Reconstruction and Development (EBRD) and the EU are supporting this effort with the ‘SME Export capacity building’ Project funded by the EU and facilitated by EuroChamber, the European Mongolian Chamber of Commerce and Industry. This initiative is supported within the framework of the "Support for Mongolian Economic Diversification through SME Access to Finance" Programme funded by the EU and implemented by the EBRD.
The initiative will promote export diversification and expand opportunities for Mongolian small and medium-sized enterprises (SMEs) on the EU market. At present the EU ranks fourth among Mongolia's external trading partners after China, Russia and Japan with a share of only 4.6 per cent of exports, mainly textile products.
On the launch of the project, H.E. Mr Traian Hristea, Ambassador of the European Union to Mongolia said, “I am confident that SMEs who will benefit from EuroChamber's expertise will develop their potential to enter the EU market and contribute to the expansion of sustainable trade relations between the EU and Mongolia”
Mr Hannes Takacs, Head of EBRD Mongolia said, “SMEs provide the majority of employment in Mongolia. However, they are still facing challenges when it comes to international trade. The EBRD is looking forward to working with EuroChamber on this project to improve the export capacity of Mongolian SMEs”
The project aims to improve the capacity of selected Mongolian SMEs. During the next seven months, EuroChamber will help them boost their export capacities through business tools such as export readiness assessment, consultations, networking, and presence on digital platforms, policy dialogue and development of bankable business proposals.
Mr Mark Gabel, President of EuroChamber Mongolia said, “We are very pleased that EuroChamber has a chance to utilize its expertise and support Mongolian SMEs to increase their capacity to grow exports to Europe. This work is in line with our strategic objective to build and strengthen a ‘two-way bridge between Europe and Mongolia’, and we are thankful to the European Union and the EBRD to be able to engage in the wider European business agenda of supporting economic diversification”
The SMEs Export Capacity Building Project will continue to work with the four clusters identified by the EU-funded Trade Related Assistance to Mongolia (TRAM) Project and aims to support SMEs on the following issues:
- Assessing their export readiness and support the development of business plans in line with EU requirements for increased exports;
- Accessing E-commerce platforms for sales in the EU;
- Facilitating access to export/ pre-export financing;
- Organizing policy dialogue at national level to improve the export-relevant framework in Mongolia.
In Mongolia, SMEs account for nearly 70 per cent of all the employment, but only 10 per cent of all exports. This means, more SMEs entering a new market can bring many advantages for the national economy.
Source: EuroChamber Mongolia