Transcript Mongolia

1. General Information of Mongolian
economy
2. Trade Facilitation Initiatives and
projects
3. Actions to be taken by MNCCI

By the end of 2008:

GDP reached to 3,620 bln. tugrug, (approximately 2.26 bln.
USD)

GDP growth in 2008 - 8.9%

2008-2009 forecast –

GDP per capita - 1480 USD (2007)

GDP per capita - 1440 USD (2008)

Foreign trade turnover equaled to over 6155.1 million USD
in 2008, of which
Exports comprised 2 539.3 million USD
Imports comprised 3 615.8 million USD
The total external trade balance was a deficit of 1076.5
million USD

No import limitation

5 percent tax for all imported goods

No export taxes except few items

Real economic growth in:
2004-10.4%
2006-8.4%
2005-6.2%
2007-9.9%

Landlocked Developing Country (LDC)

Main export commodity - mineral products

Import is mainly comprised of consumer goods, foodstuff

Need for a regional economic integration
Raw material processing
3,0%
Others
10,7%
Mining & exploration
48,4%
Construction
3,2%
Banking
4,9%
Light industry
4,9%
Trade & catering
17,7%
Russia
3,12%
Other countries
20,65%
China
46,64%
Japan
4,26%
USA
4,9%
South Korea
6,69%
Canada
13,74%
Increase
No change
Decrease
Total
Increase
No change
Decrease
Total
Increase/depreciation
No change or stable
Decrease/appreciation
Total
Inflation rate, /by end of period/ %
Inflation rate / 2005-12=100 %/
Inflation rate, annual average, %
Inflation target level
Difference between targeted and
actual inflation rate/levels
2004
2005
2006
%
quantit
%
quantit
%
quantit
y
y
y
1. Expectation on consumer price increase
66.3
504
81.7
512
89.6
690
25.3
192
12.3
77
2.6
20
8.4
64
6.0
39
7.8
60
100.0
760
100.0
628
100.0
770
2. Wage & salary and income increase expectation
53.2
404
53.1
334
63.6
490
26.0
107
26.0
167
31.2
240
20.8
159
20.9
127
5.2
40
100.0
760
100.0
628
100.0
770
3. Foreign exchange expectation
44.8
340
65.0
408
54.5
420
40.9
310
23.3
146
22.7
175
19.7
110
11.7
74
22.7
175
100.0
760
100.0
628
100.0
770
4. Inflation parameters - CPI
11.0
9.5
6.0
91.4
100.0
106.0
8.2
12.7
5.1
7.0
-1.0
2007
%
quantit
y
2008
%
quantit
y
70.0
8
22
100.0
560
64
176
800
71.6
17.4
11.0
100.0
1521
394
265
2180
61.6
22.3
16.1
100.0
488
184
132
800
62.0
38.0
100.0
1359
821
2180
61.0
20.0
19.0
100.0
488
160
152
800
56.0
15.0
29.0
100.0
1221
335
624
2180
15.1
122.0
9.0
5.0
+10.1
22.1
144.1
27.9
6.0
+16.1
5. Foreign exchange parameters
¥ : USD Nominal exchange rate
1209.0
1221.0
1165.0
1169.75
1267.5
¥ : USD Annual average
exchange rate
1185.9
1205.2
1179.5
1170.4
1169.2
¥ : USD NEER
/2000=1097 Tugrug =100 % /
83.38
85.35
86.00
80.55
-
¥ : USD REER
/2000=1097 Tugrug =100 % /
83.97
87.88
86.01
81.73
-
33.9 %
38.5 %
39.4 %
32.6 %
37.6 %
163.6
298.0
687.6
972.4
606.3
-
-
-
8.4
9.75
11.0 : 3.5
9.5 : 0.9
6.0 : - 4.5
15.1 : 0.4
22.1 : 8.3
Dollarization
Foreign net reserve /Mill USD/
Policy rate of Bank of Mongolia
Inflation and exchange rate
growth ratio
6. The main macro economic parameters
GDP growth rate /nominal/
Ì2/GDP ratio
Expenditure/GDP ratio
GDP per capita
Loan outstanding /Billion tugrug/
and its increase
10.6 %
7.3 %
8.4 %
9.9 %
8.9 %
0.39
0.41
0.41
0.52
0.38
34.9 %
27.5 %
33.2 %
38.4 %
40.1 %
480
710
690
880
1290
606.8
100 %
859.8
141.7 %
1223.3
201.6 %
2056.1
338.8 %
2635.6
434.3 %
- 220.9
- 1076.5
Poverty ratio
Foreign trade balance,
Million USD
32.2 %
- 151.4
- 119.4
57.2
8. Consumer price movement
Copper concentrate average
price per ton /based on custom’s
statistics/
505.37
555.28
1059.90
1335.21
1433.58
Copper concentrate
estimated by
444.75
603.28
1196.67
1273.89
1242.30
2866.0 USD
3679.0 USD
6722.0 USD
7118.0 USD
6956.0 USD
37.7 USD
53.39 USD
64.29 USD
71.12 USD
96.99 USD
577
751
870
952
990
-
-
955
976
1210
86.0 %
100.0 %
103.3 %
128.7 %
152.7 %
1724
1596
496
455
595
578
1484
2348
2124
491
417
707
630
1600
2500
2273
493
405
681
897
1543
3035
2753
716
660
739
837
2456
3263
2993
858
764
1208
908
3060
price
/
Copper grade A /ton/
Grude oil /barrel/
Petrol À92 / per liter, tugrug
Diesel / per liter, tugrug
Food price increase
Beef, kg, tugrug
Ìutton, kg, tugrug
Flour, highest grade, kg, tugrug
Flour, 1 grade, kg, tugrug
Rice, kg, tugrug
Sugar, kg, tugrug
Vegetable oil, litre, tugrug
9. The government servants’ salary increase
Public
salary fund
tugrug/ and its increase
/Billion
Salary fund/GDP ratio
Salary increase / compared with
last year/
128.8
100.0 %
142.7
110.8 %
196.6
137.8 %
307.2
156.2 %
559.8
182.2 %
3.4
7.5
6.4
5.9
5.4
25 %
17.5 %
30 %
50 %
20.0 %
Ease of...
Doing Business
2008 rank
Doing Business
2009 rank
/forecast/
Change in
rank
Doing Business
55
58
-3
Starting a Business
53
59
-6
Dealing with
Construction Permits
109
103
+6
Employing Workers
70
71
-1
Registering Property
17
20
-3
Getting Credit
61
68
-7
Protecting Investors
19
24
-5
Paying Taxes
84
79
+5
Trading Across
Borders
149
156
-7
Enforcing Contracts
36
38
-2
Closing a Business
118
108
+10
Trade Facilitation Initiatives
and projects in Mongolia
 Transit
transportation
 Initiation
and implementation of SEW
and “Transit Mongolia” program

NATIONAL COMMITTEE FOR TRADE AND
TRANSPORT FACILITATION (NCTTF)
 Vision:
To accelerate the coordination of
activities determining the purpose and action
areas to facilitate international trade and transit
transport of Mongolia, and to make Mongolia a
land-linking transit country by supporting trade,
transport and logistics sector.

Recommendation by UNESCAP, NCTTF was established by the
Government Resolution No. 245 of Oct 11, 2006

Working group /member/ of NCTTF was adopted by the Minister
of Road, Transport and Tourism order No 10 of Jan 10, 2007.

WG of NCTTF was renewed by the Minister of Road, Transport,
Construction and Urban Development, order no 63 of March 11,
2009

The website was created in 2007, however it still has only in
Mongolian version.

NCTTF still can not manage its action oriented, efficient
mechanism:
◦ In April, 2007, secretariat was established with the purpose of
implementation of day-to-day work.
◦ The secretary of NCTTF was changed in first quarter of 2008 and
again in 2009.
◦ According to the Committee’s internal regulation, WG members
meeting should be organized in quarterly basis. But there’s no
meeting was held since the last meeting on Apr 01, 2008 and no
activity has been done till today.

Adoption by Government Resolution No. 183,
on May 14, 2008
The purpose: The primary purpose of the Program is
to formulate the policy, strategy and action guidelines
on the basis of demand–driven development of transit
transport and logistics sector, and to identify the ways
of implementation and financing. The implementation
strategy will assure Mongolia to use its geopolitical
advantages, and be led by an active participation of
private sector and foreign investors

to improve a legal environment for foreign trade, international
transportation and logistics service

to promote and develop trade, transport and logistics services, to
support international transit transport

to extend national road and transport and connect to
international transport system

to simplify the process of customs, border and professional
inspection and control

To apply ICT for trade, transport and logistics service
facilitation

to improve institutional and human resource capacities
Missing points based on the recent circumstances:

Lack of leadership and commitment on implementation of
“Transit Mongolia” national program. The following problems
occured:
◦ Zamyn-Uud logistics facilities: Lack of coordination mechanism
and relation among interested parties.
◦ Responsibilities and roles of WG members were specified by
the action plan, however there’s no follow up action was made
until today.
◦ Communication link between administration, secretariat and
WG members is not clear or not systematically stabled.
MNCCI position and recommendation for
the mission:
MNCCI has been paid an attention to the followings:

To promote and support private sector involvement in the
implementation of “Transit Mongolia” national program

To conduct trainings and workshops for capacity building
of private sector in the field of transport and logistics

To intend to implement pilot projects with international
organizations

To build up close working relation between secretariat and
MRTCUD
Khankh
Borshoo
Khatgal
UVS
Ereentsav
Baga-Ilbenh
ULAANGOM
Altanbulag
HUVSGUL
Naranbulag
AH-4
ULGII
MURUN
SELENGE
Ulgii
DARKHAN
BAYAN-ULGII
AH-32
ZAVKHAN
BULGAN
ARHANGAI
ULIASTAI
KHOVD
ERDENET
BULGAN
Tsahir
AH-4
Havirga
AH-3
Jargalant
ULAANBAATAR
CHOIBALSAN
Battsengel
AH-32
AH-32
KHENTII
DORNOD
ZUUN MOD
TUV
TSETSERLEG
Matad
UNDURKHAAN
Khar-Khorin
ALTAI
Yarantai
BARUUN- URT
Uench
BAYANHONGOR
SUKHBAATAR
CHOIR
ARVAIHEER
GOVY-ALTAI
Bichigt
MANDALGOVY
BAYANHONGOR
AH-3
UVURHANGAI
DUNDGOVY
SAINSHAND
Burgastai
DORNOGOVY
Tsogt Ovoo
Tsagaan
suvarga
Tavantolgoi
Zamyn-Uud
DALANZADGAD
UMNUGOVY
Asian highway corridors
AH-3
1041.0 km
AH-4
743.0 km
AH-32
Tamsagbulag
2325.1 km
Oyutolgoi
Khanbogd
Shivee huren
Gashuun Suhait

In 2008, Organized National workshop on the
“Use of the UNESCAP Time/Cost/Distance
methodology” with ESCAP in Ulaanbaatar,
Mongolia

In 2009, Implementing the project of “CAREC
Transport and Trade Corridors performance
measurement and Monitoring” with ADB.

To study and gather data to eliminate the border
trade bottleneck and identify barriers to trade and
transit impediment along the route.

Collecting the information by using the
methodology of Time/cost/distance alone the
corridor of CAREC 4b/Altanbulag-Darkhan-UBChoir-Sainshand-Zamiin uud-Erlian-Tianjin

Translation of UN/CEFACT recommendation
No:33 submitted to the Government of Mongolia
from the MNCCI, 2006

WG for SEW establishment by government
resolution No:251, 18, Oct 2006

National Program on SEW approved by the
Government resolution No:131, 2007
Since the establishment of WG already passed 2 years
but there no activity has been done till today on the
following reasons:



Committee secretary did not show the potential effort.
Lack of coordination mechanism and relation among
the interested parties.
Communication
link
between
administration,
secretariat and WG members is not clear or not
systematically stabled

Establishment of WG of MNCCI and (Mongolian
Customs General Administration)MCGA to
improve
the
activities
and
power
the
implementation program, March 2009

Leading MCGA & MNCCI and to improve the
participation of other governmental parties or
public institutions and business entity etc

To establish WG or committee under the direct
control of Prime Minister on basis of PPP principle
1.Simplification all international trade related documents
including transportation, insurance, banking, inspection,
permits and border control (export & import
procedures)
2.Harmonization/alignment and re-design the document
with regard to UNEdocs/UNLK principles and to
facilitate the mechanic activities
3. To conduct trainings and workshops for capacity
building and adaptation of national standards with
regards UN Layout keys for trade documents.
Objectives:
◦ Raising public awareness and legal framework
review
◦ Improve IT infrastructure
◦ Technical and feasibility study of SEW
implementation
◦ Define organization structure of the PPP based
legal entity, investors, strategic partners
◦ Official launch of the PPP based company
◦ To intend to implement pilot projects with
international organizations

The national workshop on Establishing
“SEW” in Mongolia was jointly organized by
the MNCCI in collaboration with UNESCAP
and UNECE on 29, Sep 2009.

The objective of this workshop was to enhance
institutional and human capacities of
landlocked and transit developing country, to
develop and implement SW facility for
electronic trade data exchange.

At the end of this workshop, the experts and
participants approved recommendation

Sent to the Prime Minister and other related
government agencies.
 To
take support the implementation of
projects from the ADB and other
international donor institutions on the
following;
 Implementation on SEW
 Cooperation on renovation of equipment
 Raising of public awareness
 Improve the capacity of participating
parties etc….

According to the request of MNCCI, 5-day
training on Multimodal transport and logistics
for trainers and enterprises in collaboration the
UNESCAP

Now some trainers will participate the regional
Training of Trainers workshop on 16-19, Nov
2009.
 The
objectives of these workshops:
 Strengthen the understanding of trainers on
training fundamentals
 Enhance the knowledge of trainers on the
principles and practice of multimodal
transport, logistics and supply chain
management etc.