Industrialization 21:100 is under implementation


2018-03-07 10:15 GMT+8

One of the national programs commencing this year is Industrialization 21:100 that was approved by the cabinet in late January. The program will cover all sectors, except the mining, such as agriculture, light industry, construction and steel industries. Within the frame, 100 factories that will manufacture export-oriented and import-substituting products will be established. According to an initial estimate, the program will require approximately MNT 1.4 trillion investment, produce over six thousand workplaces and will be implemented in two phases from 2018 to 2019 and from 2019 to 2020.

It is decided that the projects will be financed from local and state budget, foreign soft loans and aids.

The goal of the program is to develop sustainable and competitive industrialization involving value added production, meeting international quality and standardization requirements and market economy demands by introducing advanced technology, based on the local community features and resources. In addition, it is believed that it will increase number of workplaces, circulation of domestic and foreign trade and economic growth.

As of the end of 2016, total sales of the industrial sector resulted MNT 11.06 billion and out of this, 20.3 percent or MNT 2.3 billion was accumulated from the processing sector. This is 8.1 percent of the country’s GDP or 3 fold lower compared to middleincome countries.

In accordance with the results of a study conducted by the United Nations Industrial Development Organization, the country’s structure of industrial sector is highly dependent on raw materials of mining and agricultural sectors based on simple technology, and about 95 percent of export products are subject to only the first stage processing. This shows that the real value added production, which is the base of sustainable development of any country, is very poor in Mongolia.

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