Industry and Retail
From The Report: Mongolia 2012
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Landlocked in part by its rapidly industrialising neighbour, China, Mongolia’s potential for manufacturing and other industry is limited by factors beyond its control. The government has responded to these challenges by focusing on areas of competitive advantage. Cashmere, for which Mongolia could supply up to 30% of the world, has proven an excellent export commodity, and producers are hoping to boost the amount processed in country. One related strategy is for Mongolia to develop itself as a brand for premium agricultural products, trading on its image as a remote and spiritual land. The government’s plans for traditional industrial development, meanwhile, depend on the development of Sainshand Industrial Complex, which will specialise in processing Mongolia’s abundant mineral resources.
This chapter features an interview with T. Badamjunai, Minister of Food, Agriculture and Light Industry.

Articles from this Chapter

Overview

A step ahead: The government and private sector continue to identify and optimise areas of growth
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Just a few decades after the shift from Mongolia’s communist era to a market economy, the country’s industrial base remains small. Government support for the sector and some significant natural resources work in its favour, but several factors present obstacles to growth. They include geography, infrastructure, corruption and bureaucratic hassle, and the lack of a systematic approach to developing industries or a marketing effort for the finished products. Being situated next to China…

Analysis

Modern times: The cashmere segment is set to introduce new solutions to old problems
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With the capacity to produce 30% of global supply, Mongolia is the world’s second-largest producer of cashmere. Cashmere is perhaps Mongolia’s most important industry, and efforts are now under way to modernise, market and organise it. Cashmere sales average about $180m, according to the Mongol Cashmere Association (MCA). The industry is of major importance, as around a third of the labour force of 1.1m work in agriculture, primarily as herders of horses, sheep, cattle, yak and goats –…

Analysis

Changing gears: Industry priorities are set to shift as development continues
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Though the industrial and manufacturing base in Mongolia is tiny and facing significant structural challenges, several niches within this economic sector seem ideally suited for growth, and progress is already measurable. Segments including beverages, food processing, fast-moving consumer goods and pharmaceuticals look poised for expansion. Many of the metrics global investors look for in frontier markets are available in Mongolia, such as low penetration rates, rising consumer salaries and a…

Interview

OBG talks to T. Badamjunai, Minister of Food, Agriculture and Light Industry
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Interview:T. Badamjunai What legislative changes are necessary to increase international aid and investment in the sector? BADAMJUNAI: Some 74%, or 115.5m sq km, of land in Mongolia is referred to as agricultural common-use land; furthermore, we have 40m heads of livestock. Therefore, we put great importance on integrating our relative comparative advantages with techniques, technologies and financial resources of agriculturally developed countries to fulfil our potential and increase investment…

Analysis

Brand recognition: Introducing labels and expanding chains
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The retail sector in Mongolia has made great strides in recent years, in step with its fast-paced economic growth. Although largely confined to the capital city of Ulaanbaatar, this transformation has brought luxury retail, chain stores, hypermarkets and other retail strategies that have elsewhere presented challenges to the old model of small markets and independent sellers. As of late 2011 there were five main big-box retailers in the country, offering everything from groceries to handicrafts.…

Analysis

Only the best: High-end shopping is coming into its own in the capital
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Given Mongolia’s small population, almost half of whom are still nomads, the country does not seem at first glance like the ideal spot for high-end shopping. However some of the world’s most exclusive retailers have opened up in Ulaanbaatar. Central Tower, a Grade A office tower across from the city’s geographic, political and social focal point, Sukhbaatar Square, has emerged as a very visible centre for luxury shopping. HISTORY: That makes the city and the country part of a trend ongoing…