Trade between Russia & China booming – Chinese ambassador to Russia www.rt.com

Russia and China have seen a 25 percent expansion in mutual trade in the first seven months of the year, as business links between the countries continue to grow.

O.Erkhemjargal: Customers can make an appointment for certain visa permit services www.gogo.mn

The Mongolia Immigration Agency (MIA) has promoted a goal of “Online Immigration Service” in 2017, under this goal the agency has initiated services which would make the service more timely and consistent with an international standard. This time, the Mongolia Immigration Agency is implementing “Telephone appointment service” and we have interviewed Mr. Erkhemjargal, information officer of the MIA, regarding the new service.
-That is the first time that the government agency has applied “Telephone appointment service” in Mongolia. Please provide detailed information about the service. 
-High technology is being widely used worldwide. At the same time, our agency is implementing “Telephone appointment service” starting from 15th September, which applies to international standard. Our customers can ask an appointment to a certain type of visa permit service via telephone, without waiting in a queue.
In the first stage, the service is covering foreign investors, educational field clients such as students and teachers as well as an inter-governmental organization customers.
The MIA customers are foreigners and mainly foreign investors, businessmen and applicant form an educational arena among them. Thus, the service is up-to-date as it not only saving the time of customers but also reducing the state service burden. On the other hand, it can be one way to attract foreign investors. Since the customer made an appointment, one does not have to wait in line to apply, which makes customers more satisfied with the service. On top of that, the Mongolia Immigration Agency is quite far from the city center. Regarding those circumstances, we have executed the service which could be time and economic friendly.
-How can we make an appointment? What are the requirements for customers?
-Customers can make telephone appointment by making a call to information center 1800-1882 and the appointment due time could be up to 1 (one) month. The customer can apply for the MIA service in the prearranged time and if the customer didn’t arrive on time, the appointment shall be canceled. More importantly, customers who are making an appointment must bring proper and complete documents in compliance with applicable laws and regulations, as inquiring from the information center and from our website. There are common incomplete documents as having no photographs and filling out application form incomplete.

We only receive complete documents for visa permit and issue the service within timeline in accordance with laws and regulations. Having an appointment with unprepared and incomplete documents is certainly avoidable. Due to lack of documents, service could become complicated as the customer need to come over again. Therefore, I strongly advise to our customers to increase one’s responsibility for not having a difficult situation for themselves.
Finally, I would like to highlight that the service is not decision-making period, but to check the completeness of the visa permit documents during the given time.
-How would the Mongolia Immigration Agency provide service for those who do not have the appointment?
-The MIA would provide service normally for those customers with line numbers issued in service hall. “Telephone appointment service” does not mean all customer must make an appointment for applying for visa permit. Accordingly, the state service will proceed typically in working hours as before.
-What are the new services that the MIA planning to launch in the near future?
-The Mongolia Immigration Agency’s goal of this year is “Online Immigration Service”. Furthermore, we would continue working to provide online services in compliance with an international standard. For example, our agency will test online visa permit service from September 20, 2017. This service would check whether applicant’s documents are complete or not, and more importantly, it would save the time of our customers. If the examination can be conducted successfully, we will continue working on the improvement of more online services. 
-Thank you.

Development Bank and Export Development project established cooperation memorandum www.montsame.mn

Ulaanbaatar /MONTSAME/ The Export Development Project aimed to help small- and medium-sized enterprises in non-minerals sectors strengthen their export capabilities and boost their access to export markets has being implemented since this March. A cooperation memorandum between the Project implementing unit and the Development Bank of Mongolia was signed on September 18.

Mongolia aims to receive 1 million tourists www.montsame.mn

Slack valued at $5.1 billion after new funding led by SoftBank www.reuters.com

(Reuters) - Software startup Slack Technologies Inc said it raised $250 million from SoftBank Group Corp (9984.T) and other investors in its latest funding round, boosting the company’s valuation to $5.1 billion.

Honda invests $267 million, to add 300 jobs for new Accord model www.reuters.com

DETROIT (Reuters) - Honda Motor Co Ltd (7267.T) said on Monday its has invested $267 million and will add 300 new jobs to support increased production of its revamped 2018 Accord sedan model at the Japanese automaker’s plant in Marysville, Ohio.

German economist Hans-Werner Sinn gives insight into Mongolia’s economy www.theubpost.mn

Let’s start with what you think Mongolia should prioritize. What should we focus on the most?

Due to problems with repayment of the Chinggis Bond, Mongolia had no choice but to look to the International Monetary Fund. Even though the global interest rate had never been lower, Mongolia found itself in a debt crisis. US President Donald Trump is undertaking tax reforms and as a way to eliminate the budget deficit, the US is seeking out capital from the global market, which could be adverse for many countries.

In Mongolia’s case, in order to avoid raising capital on the global market, it has no choice
but to reform its taxation system and create a domestic source of revenue. I personally believe Mongolia needs to increase its taxes. During my previous visit to Ulaanbaatar, I talked about how the number of vehicles on the road has exceeded the capacity that the roads can handle. In order to balance the number of cars and road accessibility, it is essential to reform taxes.

It is also important for Mongolia as a nation to look at how they are using their natural resources. There is a need to focus on how to increase revenue from that sector. It sounds unfathomable that the 1.5 billion USD Chinggis Bond has caused Mongolia to tether on the brink of bankruptcy. The total value of the Oyu Tolgoi mine is 50 billion USD.

It would be beneficial for young Mongolian professionals to work and learn from experts around the world. This will help the Mongolian government retain its stake in the mine. If Mongolia was able to conduct its own exploration expeditions and find new potential mines, it could ink a favorable agreement with private investors. The contract established with Rio Tinto at the time essentially meant that this country would not receive any revenue from the mine in at least 25 years.

Rio Tinto contributed two thirds of the 10 billion USD in capital required to commence operations at the mine and to develop local infrastructure, while the government would finance the remainder. I want to discuss about why Mongolia came to pay money. Mongolia is allowing Rio Tinto to mine the 50 billion USD copper underground and is paying money on top of that.

The exploration company that found the Oyu Tolgoi mine paid a small amount of money for the license and sold it off to Rio Tinto. Even though this is not technically illegal, it is an unfortunate circumstance in the eyes of an economist. In order to address this issue, the Mongolian government must work to improve its capacity for mining exploration. For instance, establishing a mining institute, preparing engineers, and giving them practical experience will help Mongolia determine the total amount of natural resources it possesses.

Seems like it will take a long time, don’t you think?

Yes. Until then, world-class professionals can be contracted to conduct exploration efforts. Invite experts and professionals from around the world to work with young Mongolian professionals, imparting valuable information to them. This will help prevent any loss of stake in the Oyu Tolgoi mine.

As I said, Mongolia will not see any revenue from Oyu Tolgoi in the first 25 years. The government did originally own the license for the mine. A highly valuable mine was given up for a small amount of money. In order to not repeat thismistake, education reform, training of exploration professionals and people to negotiate a beneficial contract with investors is required.

I want to talk about the Mongolian education system briefly. I am from Munich, Germany. Munich, approximately the same size as Ulaanbaatar, has two universities and one military academy. There are a few other schools. Ulaanbaatar in contrast has many universities. Those universities are only preparing people to wear a tie and sit behind an office desk.

Mongolia needs people that work with their hands, professionals trained in technical institutes and that have the ability to perform high skilled tasks. The country does have professional training and manufacturing centers. These institutes need to be expanded and developed further, helping produce capable professionals. The students need to work at companies four days out of the week, accumulating practical knowledge and to also learn theoretical knowledge in class once a week. This type of dual education will be most beneficial.

Germany implements this education system. The trade balance of Germany is positive and we are one of the largest exporting countries in the world. This has a lot to do with this dual education system. The Mongolian education system is similar to that of the United States, possessing a large number of universities and colleges. However, it has already been proven that this type of education system does not have optimum results. All you need to do is look at the manufacturing sector of the United States. Possessing a large amount of land and a small amount of people, Mongolia is best suited to focus on mining, roads, and the construction sector.

Would it be correct to say that you do not support allowing foreign mining exploration companies to conduct exploration expeditions in Mongolia?

Yes, that’s correct. At the moment, Mongolia has no choice but to contract highly skilled
foreign professionals. But when Mongolia allows the whole company to conduct the exploration activities, they tend to lose their ownership of the mines. Mongolian companies should contract foreign professionals to conduct exploration and help retain ownership within the country.

It is possible then to attract investors and sign a contract. However, Mongolia must be unwavering on certain clauses in a potential mining agreement with an investor. When establishing a long-term contract, the two sides must agree to the general agreements and obligations. A clause must be added that in the event of any extenuating circumstances, the two sides will amend the agreement accordingly. I think it is important to note that the attorney contracted to draw up the contract plays a very important role.

My wife and I were both involved in the privatization efforts in East Germany. Based on my experience then, I wrote the book “Jumpstart”. The experiences I noted in my book were implemented during the privatization of the Bolivian mining sector. Bolivia had made it constitutionally illegal to sell ownership of its mines. In this circumstance, we gave advice on how to involve private businesses and investors in the privatization efforts.

The solution was to establish a joint company. In order to make use of the experience and technical capability of private companies, the government established a joint company. The government reached an agreement on what the machinery, technical equipment, and know-how of the company was worth and established a joint company accordingly. I came to Mongolia in order to share this.

Mongolia issued a 1.5 billion USD bond and also enrolled in the extended fund facility program with IMF. What are your views on the program?

This is not a solution, only a sign of more hardships to come. If a person with a low-income receives a loan from one person and uses a loan from another person to pay it off, where will that get them? Country-wise, it will cause the country to be directly influenced by someone else. Norway does not waste its reserves and invests in the global stock market. This helps maintain a relatively low interest rate. Venezuela, on the other hand, has caused artificial inflation due to uncontrolled spending from its oil revenue. The country is on the brink of bankruptcy due to its reliance on oil and decreasing oil prices on the global market.

If Mongolia spends its mining revenue on products such as vehicles or televisions, it is not beneficial. Investors see that there is an economic bubble that has formed in Mongolia that is about to burst, and therefore, they believe it will not be profitable to do business. It would not be outlandish to say that debt is poison. Increasing debt causes a bleak future. It might be time for Mongolia to tighten its belt and increase taxes in order to overcome this hardship. If Mongolia is able to overcome its current crisis, a great and prosperous future is waiting.

How do you see the potential of tourism in Mongolia?

I have heard that many tourists from German speaking countries such as Germany and Switzerland come to Mongolia. Germans wish to see and marvel at the ancient culture and beautiful nature of Mongolia. “The Story of the Weeping Camel” being shown in Germany moved a lot of people emotionally. Mongolia has the opportunity to attract tourists from all over the world. The development of rural infrastructure is key in developing the tourism sector.

Improving the services of rural hotels is also important. Many people come to see the history of the great empire that once was. Not only during Naadam, but year-round, organizing interesting sights will be helpful.

The government must be actively involved in tourism to attract investment and support the sector policy wise. The cooperation between the national government and local governments will help Mongolia see results. Germany is one of the countries with a very developed tourism sector.

There are many companies that send our citizens to many different countries. It is possible
to work together with them. Of course, they will have their requirements and standards. Using those avenues, it is possible to develop the tourism sector much further. Since tour operator companies have a vested interest in operating long-term, it will help establish a sustainable source of income for Mongolia.

What must be done to support domestic manufacturing?

Mongolia would be hard-pressed to establish say a vehicle factory and compete globally. But, Mongolia has the chance to initially supply all of its domestic demand. You can build your own buildings and roads. Of course, you do need experts that have experience in this matter.

On a related note, the Chinese market is large but we must not forget that the European Union’s market is even larger. Of course, China will always be an important economic partner for Mongolia but it is also important to diversify.

New bridge, providing 120 km shortcut opens to traffic www.montsame.mn

Ulaanbaatar /MONTSAME/ A 437.02 meter long steel/concrete composite bridge, which has 40 meters long steel cross beam and 44 tons of load capacity, is now open to traffic in Selenge soum, Bulgan aimag.

Godiva opens new branch in Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ Grand opening ceremony of a new branch in Ulaanbaatar city of premium chocolate brand Godiva took place at the Shangri-La Mall on September 14.

Acting FM Ts. Munkh-Orgil depart for UNGA session www.montsame.mn

Ulaanbaatar /MONTSAME/ The 72nd Regular Session of the United Nations General Assembly will convene at UN Headquarters in New York, the U.S, on September 19-25.