As the sewing sector loses market share to imported products every year, it is considered prudent to support this industry. The President’s Office, the Standing Committee on Industrial Policy of the State Great Hural, and female members of the State Great Hural have collaborated and visited the leading companies in the sector, such as “Creative Works” LLC and “Urban Business Group.” This is the fourth case where they have worked together and listened to the suggestions and requests of national manufacturers and wealth creators.
Between 1992 and 2007, the sewing sector provided jobs for 30,000 people, but it has since declined and now only supports 2,600 jobs. With the transition to a market economy, most factories were privatized, and unemployed citizens began working in the sewing sector, which at that time contributed 29% to the domestic gross product. However, today we are 90% dependent on foreign countries for clothing and sewn products.
In other words, Mongolians consume a total of 1.2 trillion tögrög worth of sewn products, with only about 10% of this supplied by domestic factories. Therefore, if the sector is supported, it is possible to keep this capital within the country, create more jobs, and open up opportunities for domestic clothing and fashion products to compete globally.
During a presentation on the state of the industry, the leaders of the leading sewing companies “Creative Works” and “Urban Business Group” mentioned that if the government focuses on exempting imported fabrics, materials, and equipment for sewing products from customs duties and VAT, supporting workforce training, and providing financial support, it would be possible to meet domestic demand, even if not at the scale of Turkey, which supplies an entire continent with clothing.
Mongolians working in the sewing sector are recognized for their skills worldwide. They are capable of design, sewing, and tailoring, and there is nothing they cannot do or that is discarded. However, the young generation, in particular, is increasingly attracted by higher salaries, large markets, and development opportunities abroad, leading to a significant issue. Thus, the company leaders are focusing on retaining them and addressing human resource issues.
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