Sunday, August 10, 2014
Industry & Retail
Mongolia faces significant challenges in manufacturing, as neighbouring China has a prominent edge in production of many goods. The northern country can also be an expensive country for manufacturers, with high transportation and labour costs. In May 2013, the minimum wage was raised from $87.75 per month to $120 per month. Government investment in textiles manufacturing in 2012 saw $68.8m directed to cashmere production, $45m to wool goods output and $13.5m to sewing operations. Still the potential for industry in Mongolia is under-appreciated. The prospects for the sector are positive, but the country must be careful. Mongolia has the right mix of wealth and income growth that will promote strong consumer demand in the medium and long term. Despite concerns about the future of high-end retail, Mongolia remains one of the most promising retail markets globally. This chapter contains an interview with S. Demberel, President, Mongolian National Chamber of Commerce and Industry.