Over the last decade or so, the Tumen Region has attracted US$ 1.8 billion in foreign direct investment, including Mongolia. The figure for the Tumen River tri-border area is US $1.28 billion in actual direct investment. This is a significant amount for what was an isolated part of the world until just a few years ago. However, the Tumen Region has far from reached its potential in terms of attracting investment. Part of the problem is the lack of institutional support services int eh region, as well as a lack of proper and well-defined promotional strategy.
The Tumen River Investor Services (TRIS) Network project, financed by ROK through its special Trust Fund for the Tumen Programme, has been designed to address these shortcomings and create a more favourable investment climate in the Tumen Region. The project is already in its second phase. The first phase involved a comprehensive review of the investment environment and investor services in the region, undertaken by agencies of the World Bank, the Economic Research Institute for Northeast Asia, the United Nations Industrial Developemnt Organisation (UNIDO) and the Tumen Secretariat.
The second stage, which is executed by UNIDO, aims to institute, install and maintain professional investment support institutions across the Tumen Region. The first fully functional TRIS center was established in Yyanji, China, in August 2001.
The Mmongolian RIS center followed in October, and is Chaired by H.E.C. Ganzorig, mminister of Industry and Trade. The TRIS center in Vladivostok will hopefully be established before the intergovernmental meetings in early June, and the center in DPRK later this year. The Supervisory Boards have strong private sector participation.
The next stage of the project is formulation of individual and regional investment promotion strategies, followed by capacity building for staff of investor services centers to ensure that the service continue to be offered at the end of the project support period. Each center will be linked and share a common website and database.
The TRIS Network is intended to increase the level of awareness of potential foreign investors concerning the business conditions and specific investment opportunities in the Tumen Region overall and in each of the four areas concerned. Services offered by the TRIS centers will include guiding investors through the process from first contact to the actual investment and beyond. In combination with improvements in transport infrastructure and harmonization of laws and regulations related to cross-border trade, the TRIS Network is expected to mark a major improvement in the investment environment in the Tument Region.
A breakdown of foreign direct investment in the Tumen Region in 2001 by source country shows that ROK investment still dominates in Yyanbian Pprefecture, China. In Primorsky Territory, the proportion of investment from the United States and Japan has increased compared to the general trend over the past ten years, while the share of Southeast Asian investment has decreased. The share of Chinese and ROK investment in Mongolia has increased markedly while the proportion of European and Japanese investment has decreased. 2001 data is not available for the Rajin-Sonbong Economic and Trade Zone (DPRK), but major investment in recent years has largely been from Hong Kong, Thailand and China.

Upcoming Events

Rason International Trade Fair, 10-20 June
The first Rason International Trade Fair will take place in the Rajin-Soonbong Economic and trade Zone in 1996, and investment discussions in 1998.
The 2002 International Trade Fair will be organized by the Rason Economic Cooperation Company at the Rrason International Wholesale Market. The fair will promote cooperation among traders, investors, potential contractual or equity joint venture partners, and regional and international trade organizations. The event is sponsored by the Korea International Exhibition Corporation.
For further information, please contact Mr. Paek Song Nam, Rason Economic Cooperation Company -tel: (850-8) 21034, fax: (850-8)21041
China Tumen River Area Internaitonal Investment & Business Forum, 2-4 September
The governments of Yanbian Prefecture and Jilin Province, China will host the third Tumen River Area International Investment and Business Forum in Yanji on 2-4 Sseptember 2002. the event will be sponsored by UNIDO, the Tumen Programme, and China International Centre for Economic and Technical Exchanges.
The forum will coincide with the 50th anniversary celebrations of Yanbian Korean Aauutonomous Prefecture, which will involve a Chinese Korean customs and culture event. There will also be a Tumen River Area International Cooperation and Development Forum and business tours to Mt. Changbai /Paekdu, the Rajin- Sonbong Economic and Trade Zone in DPRK, and neighobouring areas of Russia.
For further information, please contact Mrr. Wei Songxian, Mr. Kim Songtian or MMs. Shen Hua -tel: (96-433) 282 9371 fax: (86-433) 283 7926
Vladivostok Investment Symposium, 4-7 September
Vladivostok's Seventh Investment Symposium will be held on 4-7 September 2002. the event will provide an opportunity for decision-makers in government and business to discuss investment problems in the Asia-Pacific region. The following themes will be discussed:
-the impact of economic structural change on investment flows in traditional and new economic sectors;
-development of transport and energy infrastructure as a precondition for sustainable economic growth in the region;
-the role of small and medium size enterprises in development of investment activity in Asia-pacific; and
-prospects for investment from the Asia-Pacific region to the Russian Federation.
Mongolia: Investors' Forum, 17-19 September
The Mongolian government, in cooperation with the World Bank, is organizing an investment forum in Ulaanbaatar on 17-19 September 2002. there will be a general conference as well as discussions focusing on the following sectors:
-banking, financing and privatization;
-infrastructure development;
-mining and oil; and
-food and agro-industry.
In recent years there have been indvidual investment for a focusing on mining, oil and gas, the agro-industry and tourism. For further information, please contact the Foreign Investment and Foreign Trade Agency: fifta@ investnet. Mn.