MONGOLIA is the most special place for the potential Investors, which has enabled business-friendly and favorable environment with its generous incentives. The Government of Mongolia is committed to fostering an attractive environment for FDI and trade through an open policy and ensuring public sector efficiency, legal certainty and sound governance.
- Diversified and growing market exists in Mongolia
- Large mineral resource base that can be leveraged for value added processing
- One of the highest- quality cashmere producers in the world
- Neighbor hooding two giant markets Russia & China
- Young and well educated working force
- Attractive FDI environment and trade through an open policy committed to reduce bureaucracy and corruption
- Developing Industry and Infrastructure
- Private Sector & Privatization /privatize major state assets, list
Mongolian conglomerates and exploration license aggregators on MSE/
- PPP & Modernizing Infrastructure
- Rule of law &Regulatory Quality &Transparency
- Ensuring guarantee for investors /tax & non tax/
- Promising mega projects
- Thriving Telecoms & IT sector
MONGOLIA’S EFFORT TO ATTRACT FDI
Managing Stakeholders Interests
- Synergy between government institutions
- Capacity building program
- Social program to promote a positive impact of FDI
- Sector diversification
- Geographical diversification
- Source country diversification
More Favorable Condition
- Reduced procedural barriers
- Financial Incentives
- Fiscal Incentives
- Regulatory Incentives
- One stop services
- Aftercare services
- Grievance management mechanism
Open Entry to the Market
- No Approval needed to enter into market and buy a local company
- No Discrimination between Foreign and Local Investors
- Fast Registration Process for establishing new entity
- Open for investment in any industry or sector without limitation or government approval Guarantees for Investors
- Intellectual Property Protection
- Free Repatriation
- Choice for Dispute Settlement
- Tax stabilization
INVESTMENT ENVIRONMENT BY INTERNATIONAL INDEXES
The ease of doing business index in an index created by the World Bank Group. Mongolia ranked 74 among 190 economies in the ease of doing business in 2019. Distance to frontier score of Mongolia resulted 67.74 from 100 scores.
|Indicator||Doing business 2019 rank|
|Starting a business||87|
|Source: Doing business Mongolia 2019, World Bank|
ECONOMIC FREEDOM INDEX 2018
Mongolia is the 129th freest country out of 180.
Business Freedom - 66.0
Trade Freedom - 75.8
Investment Freedom - 50.0
“Mongolia’s economic freedom score is 55.4, making its economy the 126th freest in the 2019 Index. Its overall score has decreased by 0.3 point, with lower scores for judicial effectiveness and government integrity exceeding improvements in government spending and investment freedom. Mongolia is ranked 29th among 43 countries in the Asia-Pacific region, and its overall score is below the regional and world averages.”
Source: Economic Freedom Index Mongolia 2019, Heritage Foundation
ABUNDANT NATURAL RESOURCES AND MINERALS
Mongolia has substantial natural resources and minerals, which promise an unprecedented growth potential. Mongolia as a one of the world’s leading mineral resources has over 8 thousands occurrences of 80 kinds of mineral deposits of 1170 minefield. It includes 1619 gold, 227 thousands silver, 36.3 million copper, 660 million iron ore, 5.9 million zinc and 250 million tons of oil reserves. The biggest deposit is Erdenet copper mine, Oyu Tolgoi, Tsagaan suvarga, Gatsuurt, Tavt, Asgat of gold, Bayangol, Tumurtei, Tumurtei ovoo, Bargilt of iron ore.
Mongolia accounts for 16.77% of the world’s reserves. On January 2019, the mining sector compounds 21% of GDP, 35% of national budget income, 71% of Gross Industrial Output, and 85% of export earnings. The Central and Eastern parts of Mongolia is relatively well studied. While western part of country is untapped, this has a great potential for discovery of new deposits.
Some 68% of FDI into Mongolia annually targets the mining sector and falling global coal and copper prices have dampened investor interest. The mining sector is obviously the prevailing sector of our economy and main base of our trade and industry. However, we face with disadvantages of being over dependent of one sector. Therefore, we consider in developing value added industrial sector in urgency.
|Minerals||Reserves (2013)||World Rank|
|Gold (ton)||2,784||Top 10|
|Zinc (thousand ton)||1,740|
|Iron (million ton)||1,404|
|Oil (million barrel)||2,438|
|Copper (thousand ton)||117,000||Top 10|
|Coal (million ton)||175,500||Top 10|
|Shale oil (billion ton)||788|
|Fluorite (million tons)||3,8||Top 10|
The Central and Eastern parts of Mongolia relatively well studied. While western part of country is untapped, which has a great potential for discovery of new deposits.
POTENTIAL & ORGANIC AGRICULTURAL SECTOR
Apart from vast mining recourses, we have also broad opportunity and potentials to develop traditional agriculture sector. The sector is one of the priority sectors to the country’s economy and cultural heritage, food and agriculture production compounds 20% of the GDP of Mongolia, 35% of total Mongolian work force, and 73.6% of Mongolian land is agricultural land.
ANIMAL HUSBANDRY: Animal husbandry has its peculiarities is that Mongolians are nomads.66.4 million live-stock. Horse - 3.9 million Cattle - 4.4 million Camel - 0.4 million Sheep - 30.1 million Goat - 27.3 million.
CROP PRODUCTION: Crop production has 50 years history with no use of chemicals and pesticides. Arable land - 1,2 million ha Land in use: 0.6 million ha.
- Milk production
- Meat production
- Flour production
- Ferment factories
- Products made by natural berries
ANIMAL ORIGINATED PRODUCTION:
- Cashmere & wool production
- Skin & Leather production