Mongolia Advances Industrial Policy With President Factory Tour

Mongolian President Khurelsukh Ukhnaa toured key national manufacturing enterprises this week. Specifically, this visit highlighted the government’s active industrial policy for economic diversification. Consequently, the tour featured companies within the “White Gold” national movement. Therefore, the President inspected results from substantial state investment loans directly. Ultimately, this event underscores a focused industrial policy targeting value-added production.

The President first visited Gobi Erdene Cashmere LLC. Notably, this company employs over one hundred people directly. Furthermore, it possesses an annual production capacity exceeding two hundred thousand items. Importantly, it received a two billion tugrik investment loan from the state. Additionally, this loan increased its production capacity by more than ten percent significantly.

Exports of processed combed cashmere increased sixfold recently. As a result, this growth represents a major shift from raw material exports. Moreover, national spinning capacity rose by four hundred tonnes overall. Subsequently, the government provided fifty-two billion tugrik in loans to cashmere firms. Clearly, this targeted industrial policy aims to capture more export revenue.

Next, the President also visited footwear manufacturer Lugati LLC. For instance, this company gained a nine hundred million tugrik working capital loan. Consequently, it now plans to produce two hundred fifty thousand shoe pairs yearly. Similarly, this industrial policy supports domestic production against imported goods. Meanwhile, factory representatives requested higher tariffs on similar imported footwear.

Vocational training is a critical component of this strategy. Presently, over forty thousand students study at nationwide training centers. However, fewer than one hundred specialize in footwear manufacturing specifically. Therefore, officials are implementing new “learn while working” programs actively. In essence, this industrial policy directly links education to sectoral labor needs.

The “White Gold” movement provided five hundred twenty billion tugrik in loans already. To illustrate, sixty-six enterprises involved in wool and leather processing received this support. This substantial financial commitment demonstrates the policy’s scale convincingly. Furthermore, the government will distribute another four hundred twenty-five billion this year. Thus, this sustained industrial policy intends to build long-term capacity.

Future targets include producing two million shoe pairs annually by 2028. Likewise, the cashmere sector also aims to triple its production capacity soon. Ultimately, this industrial policy seeks to transform Mongolia’s economic structure fundamentally. It deliberately moves the nation from raw material supplier to finished goods exporter. However, success depends on global market demand and continued state support.

In conclusion, the presidential tour served as a powerful public endorsement. The showcased industrial policy prioritizes job creation and value addition strategically. It represents a decisive shift in national economic planning. Accordingly, the government is betting heavily on its manufacturing sectors’ growth. This visit aimed to build confidence among businesses and herders alike. Indeed, the “White Gold” movement is now a central pillar of national development.