1. MINISTRY of INDUSTRY
COMPETITIVENESS OF THE INDUSTRIAL SECTOR AND THE POLICY AND SMALL MEDIUM-SIZED ENTERPRISES ( SME )
BATTOGTOKH D., PhD
General Director, Department of Strategy and Planning, Ministry of Industry
Ulaanbaatar

2. The new legal environment and reforms
“Law on the Free Economic Zone / Revision / ”- endorsed by the Plenary Session of the Parliament on February 2nd, 2015
“State Policy on Industrialization” approved by the Parliament Resolution #62 on June 19th, 2015
“Law on Supporting the Industrialization”- endorsed by the Plenary Session of the Parliament on July 9nd, 2015
Agreement on Free Trade (AoFT) The Cabinet Meeting approved the ratification of the agreement on economic partnership between Mongolia and Japan.
“Trade Law” draft was discussed and approved by the Government Session and was submitted to the Parliament on April 15th 2015 where it has been discussed.
“Revision of the Law on Small, Medium Enterprises (SME) ” conception draft was discussed by the Cabinet meeting and was approved.
In order to reform the legislation on the Industrial and Technological Parks the draft of the “Law on Industry and Technology Complexes” is being developed.

3. SMALL MEDIUM-SIZED ENTERPRISES ( SME )
2/17/2019

4. Competitiveness of the Industrial sector and the policy
SME SECTOR DEVELOPMENT
24 billion ₮
SDF
12 billion ₮
CGFM
2005
SME program
( ) 50
billion ₮
Ml, Department of SME
2013
2012
150 billion ₮
2011
SME Agency
2009
2007
SME legal
2008
SME fund
2006
( )
SME division
2014
1999
1993
( )
100
30 billion ₮
Suмfond
Competitiveness of the Industrial sector and the policy
SME program /draft/
( )

5. THE NUMBER OF ENTITIES
Business registration database has registered entities, there have been companies. It depends /84.3 %/ enterprises of small and medium - sized enterprise sector.

6. 54237 small and medium - sized industries are 1-9
GROUP OF STAFF NUMBER
54237 small and medium - sized industries are 1-9
employing industrialist
2/17/2019

7. MEANS TO SUPPORT SMALL MEDIUM ENTERPRISES
Non financial
Business Incubation Services ( rent deduction, training on business and entrepreneurship etc.)
To train the work force through Vocational training centers in order to employ at the SME
To involve into exhibitions and fair in order expand the market and support the sales network
To provide for the SMEs the exemption from customs duties and VAT on their equipment
To provide professional consulting services for the SMEs’ owners
Financial
To provide soft loans through the local government funds and the SME development funds
To provide guarantor’ services for the business owners and SMEs having shortage of collateral for the banks
To provide Financial leasing services
To involve into public funds for the local (sum, district) development by providing discounted loans
To provide with the small loans and interest deduction activities

8. New Program Objectives /2014-2016/
SME DEVELOPMENT PROGRAMME 2014 – 2016
New Program Objectives / /
improve the legal environment for the development of small and medium - sized enterprises
developing Clusters
the development of research and developing innovation
Empowering small and medium - sized enterprises
provide access to increased financial resources
support to expand markets

9. Legal and regulatory environment:
SME DEVELOPMENT PROGRAMME 2014 – 2016
Legal and regulatory environment:
SME equipment VAT and duty-free –Government decree 14 / 191
SME priorities - Government decree 15 / 336
Government support program for Utilities - Government decree 14/278
Imports of customs tax rates in some products - Government decree 16/185
Procurement:
"Tsagaan sar”, "Made in Mongolia" and “National brand products" is a regular exhibition and trade in organized every year. Since 2015, China 2 , Japan 1 times exhibition made.
Loans :
: loans 1968 project 301,67 billion MNT. This preserved 8001 jobs, created jobs and 551 small businesses in the new operation .
2016: 330 sum of 46 billion have been granted loans amounted to promote household production.

10. Technology innovation loans
POLICY LOANS:
Industry of Minister order of the day on 05-April number 57 “Procedures to provide policy loans"
Equipment loans
Technology innovation loans
Working capital loans
Industrial building loans
Policy loans

11. POLICY LOANS: Casting Industry - Steel balls - metal parts, base metal
Metal processing Industry
- all types of metal structures
- Equipment
- Machinery and mechanism assembly
- Other metal factory
Petrochemical industry
- Plastic and rubber factory
- Coal gasification and gas, packaging , shipping
- Chemical fertilizers and other chemical products
Wool , cashmere industry
- Wool , cashmere yarn , fabric and garment factory
- Wool , cashmere yarn , textile factory
- Wool insulation materials , felt factory
- Wool carpet factory
Leather industry
- Leather raw material preparation , quality preservation and maintenance of factory
- Leather and solid waste recycling factory wastewater
- All leathers of fur processing factory
- All leathers of leather goods factory
Textile products and garment industry
- Various types of uniforms and kits
Building materials industry
- Lime , dry mix production
- Building exterior facades factory
Timber industry
- Timber imports , imports of timber factory
- Forestry all types of waste timber factory
Pharmaceutical industry
- Medicine factory
- medical products factory

12. POLICY LOANS: Packaging Industry
- Packaging , labels and label factory
Recycling Industry
- Food quality plastic packaging factory
Food Production Industry
- Meat and meat products
- Milk and milk products
- Fruit and vegetable products
- Vegetables
- Honey
Creative industry
- National historical and cultural features new products
High technology and innovation industry
- Information technology factory
- Nano-technology factory
Medicinal Industry
- Providing pharmaceuticals factory/ GMP standards /
- Drug and biologic and cosmetic products
Tourism
- Regional Tourism
All the commercial networks
- Supply and sales , and electronic retail chain stores

13. CONSTRAINTS TO SME DEVELOPMENT

14. Draft SME Development Programme 2016 – 2020

15. DRAFT SME DEVELOPMENT PROGRAMME 2016 – 2020
Objective: to facilitate an increased contribution of SMEs to gross domestic product (GDP) and employment by enhancing their competitiveness in local and international markets.
Duration: The program covers the period
Specific Objectives:
To improve SME-relevant laws and regulations
To enhance entrepreneurship and skill levels
To improve access to finance
To foster innovation and technology adoption
To promote access to markets
To strengthen the institutional infrastructure

16. Thank you for your Attention
2/17/2019