Wood Processing Industry

May 11, 2007 at 10:13 am Leave a comment

The wood processing industry has a long historical background starting from 1924 and it considered as one of the oldest industries in Mongolia.

The total area covered by forest is 12.9 million ha (8.2 percent of territory of Mongolia). The total size of the forest reserve is 1.4 billion m3 and its average annual growth has reached 12.0 million m3.

Wood products are widely used by construction, energy, mining, and agricultural sectors.

At present, approximately 128 enterprises are actively operating and have more than 4,000 are employed in this sector. In terms of investment, 87 enterprises are domestic invested companies and 41 enterprises are joint ventures. Eighty-five enterprises out of 128 are operating in rural areas, 43 enterprises exist in Ulaanbaatar.

Due to insufficient forest reserves, the Government of Mongolia is paying more attention on promoting the import of wood and raw materials by exempting them from import customs duty.

In order to improve the quality of the products, the Government is also encouraging the importation of advanced technology, by exempting the technological equipment and machinery from import VAT and customs duty.

The Government of Mongolia is paying a great deal of attention to maintaining the sustainable development of the wood processing industry. The government has approved two large-scale programs to be implemented until the year 2015. The Ministry of Industry and Trade is giving high priority on the implementation of these programs in order to enhance the processing level of timber, improve the quality, and increase the range of products.

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Entry filed under: Wood Processing Industry.

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Information contained in this web site are partly derived from a CD-ROM "Guide to Investment and Trade-Mongolia", produced by Foreign Investment and Foreign Trade Agency (FIFTA). All trademarks are properties of their own respective owners.

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