| Austrian trade delegation met the Governor of the Capital City and Mayor of Ulaanbaatar |
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Last week, with the coordination of EuroChamber, Austrian Federal Economic Chamber, Austrian Embassy to Mongolia and C level representatives from Austrian global businesses together formed a trade mission and visited to Mongolia for official meetings with both government agencies and private sectors for future business partnerships and investments in Mongolia.
One of the key meetings was appointed with Governor of the Capital City and Mayor of Ulaanbaatar Nyambaatar Khishgee on exchanging views on cooperation.
Governor of the Capital City and Mayor of Ulaanbaatar Nyambaatar Khishgee said "The two countries have best practices for successfully implementing many projects within the scope of diplomatic relations. The main issue facing Ulaanbaatar is traffic congestion. The consultation tender of the Metro Project, a long-awaited solution to this issue, was announced. Also, the "UBCable Car" project commenced. By enhancing its economic and legal independence, Ulaanbaatar has also adopted a legal framework for concessions, fostering stronger partnerships between the public and private sectors and issuing securities to generate the required funds for alleviating major development challenges."
Ambassador Extraordinary and Plenipotentiary of Austria to Mongolia Andreas Riecken expressed readiness to cooperate on health, infrastructure, and public transportation.
The two sides discussed cooperation in introducing eco-friendly technology to Mongolia and sharing good practices in hydroelectricity, energy efficiency, waste management, and recycling. |
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| AmCham, AustCham and EuroChamber jointly hosted a roundtable meeting with economic journalists |
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On May 3rd, 2024, AmCham, AustCham and EuroChamber collaboratively organized a roundtable meeting with economic journalists. The purpose of this meeting was to provide the Chambers' insights and perspectives on the Law on the National Wealth Fund to the journalists. Throughout the meeting, the chambers articulated their positions on the wealth fund and discussed the associated risks within Mongolia's investment environment.
Remarks of bi-national chambers: - The Parliament paid lip service to the consultation clauses of the Law on Legislation when approving the Law National Wealth Fund - although the initial draft was published in November 2023, no consultations took place, and updated drafts were not published. The law became valid from 1 May but it was published on 2 May. Such speedy legislation process without consulting the relevant stakeholders leads to negative consequences and harm to the economy, so politicians should be careful when trying to win votes within the population.
- Overall, Mongolia has some comprehensive laws, but often fails when it comes to implementation, especially with previous funds' experience and lack of governance in state-owned enterprises, we have concerns over the successful implementation of this law.
- Several countries have implemented National Wealth Funds, with varying outcomes depending on their management strategies. While some have reaped benefits through prudent management, others have suffered losses due to improper handling. International cases suggest that sovereign wealth funds typically accumulate profits ranging between 2% to 4%. This underscores the long-term nature of such funds, emphasizing that their utilization should be directed towards future generations rather than seeking immediate gains for the present.
- The enactment of such laws and regulations not only repels international investors but also hinders potential future sources of revenue that could have contributed to the fund.
Despite the approval of the law, EuroChamber, AmCham and AustCham collectively urged Parliament to review its provisions before passing it. Subsequently, upon its swift passage, the Chambers requested the President of Mongolia to veto the law. Unfortunately, their request was not considered. |
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Transwest Mongolia LLC hosted "Customer Day 2024" gathering more than 150 distinguished guests from the mining industry, provided its attendees an exclusive look into the inner workings of its state-of-the-art service center, offering insights into the cutting-edge equipment and techniques driving efficiency in the sector.
The company's commitment to progress was evident throughout the event, with Transwest Mongolia LLC highlighting substantial investments made in its Service Center. These investments have empowered a dynamic team of young professionals, fostering localized expertise in maintenance practices. Not only have these efforts expanded employment opportunities, but they have also facilitated the transition of previously outsourced maintenance tasks to the skilled Mongolian workforce.
During Customer Day 2024, the dedication and skill of Transwest Mongolia LLC's team were showcased through precise and efficient execution of maintenance tasks on mining equipment. Their proficiency ensures that customers receive prompt and comprehensive solutions, setting new benchmarks for excellence within the industry.
The event was enriched by the presence of representatives from esteemed customers and collaborating organizations, to whom Transwest Mongolia LLC extends its heartfelt gratitude. Together, they are driving the evolution of Mongolia's mining industry towards a prosperous and sustainable future. |
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- 1 May 2024 marks the 20th anniversary of the EU accession of eight economies where the EBRD invests
- GDP per capita in these countries almost doubled as a share of Germany’s GDP per capita between 2003 and 2023
- Deep integration into European and global supply chains supported an “EU accession bonus”, namely faster increases in living standards than those seen in other economies
1 May 2024 marks the 20th anniversary of the EU accession of eight economies where the European Bank for Reconstruction and Development (EBRD) invests – Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic and Slovenia. They were followed by Bulgaria and Romania in 2007 and Croatia in 2013.
A new EBRD study examines the experience of these eight countries in terms of income convergence, comparing their progress to that observed in other economies at similar levels of development that did not join the European Union. It also looks at gains in terms of health and life satisfaction over the last 20 years, following up on the analysis in the latest Transition Report. Further analysis will be presented in the upcoming Regional Economic Prospects, which will be launched on 15 May. EU accession led to rapid growth of per capita incomes. Using Germany as a comparator, GDP per capita in the 2004 accession countries increased, as a share of Germany’s, from 26 per cent 2003 to 50 per cent by 2023 (at market exchange rates). Lower-income economies tended to enjoy faster income convergence: Bulgaria and Romania, which joined the EU in 2007, more than tripled their per capita incomes as a share of Germany’s over this period.
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| Many left-wing contenders didn't miss the opportunity to attend the traditional May Day protest in Paris, while the far-right politician Jordan Bardella, currently leading the polls, announced the rest of his candidate list in southwestern France.
The usual chants for higher salaries and equal pay echoed across the streets of Paris this Wednesday during the traditional May Day labour rights march.
Ten of thousands of protestors took to the streets of the French capital against a backdrop of new demands such as peace in Gaza and against the upcoming Paris Olympic Games.
But with less than six weeks left before the European elections on 9 June, the event turned into a highly political one.
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| EBRD Backs $43.2 Million Investment for Sustainable Healthcare in Mongolia |
| The European Bank for Reconstruction and Development (EBRD) is bolstering Mongolia’s healthcare sector with a $43.2 million sovereign loan and a €5 million capital grant to the Government of Mongolia for the construction of a modern 250-bed hospital in Darkhan.
With a focus on improving healthcare access and reducing mortality rates, the project aims to provide advanced medical services locally, enhance energy efficiency, and achieve EDGE certification for sustainable construction.
Additionally, the EBRD will support initiatives to address gender-based violence and harassment, further promoting equitable healthcare access. Supported by technical assistance and a partnership with the government of Japan, this investment underscores EBRD’s commitment to sustainable development in Mongolia, where it has already invested over €2.3 billion through 140 projects, predominantly supporting private-sector companies.
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| Mongolia sees influx of over 120,000 foreign tourists since beginning of 2024 |
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Mongolia's Ministry of Environment and Tourism reported on Tuesday that the country has seen an influx of more than 120,000 foreign tourists since the beginning of the year. Highlighting ongoing efforts to bolster the tourism sector, the ministry emphasized the organization of 42 ice and snow events aimed at stimulating winter tourism and mitigating the seasonality typically associated with the industry.
Recognizing the significant potential of tourism to contribute to economic growth and employment generation, Mongolia has designated the years 2023-2025 as "Years to Visit Mongolia," setting an ambitious target of attracting at least 1 million foreign tourists annually.
Last year marked a notable milestone for Mongolia's tourism sector, as the country welcomed over 650,000 foreign tourists and generated USD1.2 billion in revenue, reaching an unprecedented level of success. This achievement underscores the increasing importance of tourism as a pivotal driver of economic development in Mongolia.
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| Foreign exchange reserves reached USD 5.25 billion |
| In the first quarter of 2024, Mongolia traded with a total of 128 countries, and the total foreign trade turnover reached USD 6.1 billion.
And exports reached USD 3.7 billion, imports reached USD 2.4 billion, and the balance showed a profit of USD 1.2 billion. And foreign exchange reserves reached USD 5.25 billion.
Exports in the quarter of 2024 decreased by USD 107.5 million from the same period last year, because zinc ore and concentrates decreased by USD 74.4 million, coal by USD 38.7 million, horse meat by USD 32.6 million, and canned meat products by USD 31.6 million.
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| During its regular session on May 1, 2024, the Cabinet made the following decisions:
- Cabinet Approves Resolution on the Implementation of Law on Mongolian Sovereign Wealth Fund
- Measures to Ensure Stable Flour Supply and Reserves
- The Customs Tariff Rate for Cement Import Lowered to 5 Percent
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| The 10th International Ulaanbaatar Marathon - May 25th |
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The International Competition "Ulaanbaatar Marathon" will be organized on May 25, 2024, at the Sukhbaatar square, the heart of Ulaanbaatar City, Mongolia.
This marathon has been organized since 2014 to provide comprehensive education on physical well-being and intellect to teenagers and youth, to develop the running sport, and to increase the number of runners.
The full marathon will cover a distance of 42 km. There will also be half marathons for distances of 21 km, 10 km, 5 km, and 1.5 km. Additionally, special needs Olympic categories will be organized for distances of 0.8 km and 0.5 km.
Half of the total registered runners are signed up for distances of 10 km and longer, and the number of participants has been growing annually.
Currently, requests to participate in the 42 km and 21 km distances of the marathon have been received from Kenya, Japan, Germany, Great Britain, France, and the Russian Federation. Additionally, runners from Australia, Austria, the USA, and England have registered online. So far, 4,334 people have sent requests, and 1,678 people have confirmed their participation online.
Online registration and payments for the 'Ulaanbaatar Marathon-2024' are open until May 20. Interested participants can register and make payments through the hipay website or its' application.
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| May 23 is non-working public holiday |
| According to the law on public holidays and anniversaries of Mongolia, Mongolians have non-working public holidays nine times a year.
Buddha Day, which falls on the 15th day of the first month of summer every year, according to the Buddhist calendar, is dedicated to mark three momentous events in Buddha's life – his birth, enlightenment, and his departure from the human world. This year, it occurs on May 23.
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