Doing Business in Mongolia – 2024

Doing Business in Mongolia – 2024

               I.         BUSINESS CLIMATE

Tremendous mineral reserves, agricultural endowments, and proximity to Asia’s vast markets make Mongolia an attractive destination for medium to long-term foreign direct investment (FDI). FDI constitutes 60 percent of the country’s total investment, and by the end of 2023, Mongolia has attracted FDI totaling $3.1 billion.

According to national statistics, as of the first half of 2022, Mongolia’s GDP stands at 12.8 trillion MNT (at 2015 par prices) and 23.0 trillion MNT (at annual prices)[1].

The significant features and advantages of Mongolia include, but are not limited to, the following:

·     Diversified and growing market exists in Mongolia;

·     Technology Innovation Hub;

·     Large mineral resource base that can be leveraged for value-added processing;

·     Developing Industry and Infrastructure;

·     Acting as a bridge between the two economic powerhouses of Russia and China;

·     A young, well-educated population;

·     The private sector and privatization, including the privatization of major state assets and listing Mongolian conglomerates and exploration license aggregators on MSE;

·     Public-Private Partnerships (PPPs) and modernizing Infrastructure;

·     Rule of law, regulatory quality and transparency;

·     Ensuring guarantees for investors, both tax and non-tax related;

·     Promising mega projects; and

·     A thriving telecoms & IT sector.

      International legal framework:

      Mongolia is actively engaged in negotiating bilateral and multilateral agreements with foreign countries and participating in regional integration activities.

      Currently, Mongolia has:

·    Signed “Bilateral agreements on investment promotion and mutual protection" with 43 countries;

·     Established “Double Taxation treaties with 26 countries;

·   Established "Agreements on Mutual Legal Assistance in Civil, Family, and Criminal Matters" with 18 countries;

·    Signed its first free trade agreement, referred to as "the Mongolia – Japan Economic Partnership Agreement (EPA)" with Japan.

Moreover, Mongolia is the member of the Seoul Convention establishing the Multilateral Investment Guarantee Agency and Washington convention on the Settlement of Investment Disputes. Consequently, in April, 2014, Mongolia has introduced its investment policy and the law to UN Conference on Trade and Development /UNCTAD/ releasing “Mongolian Foreign Investment Policy Review”.

[1] National Statistics Committee, "Gross Domestic Product", 2022 first half-year forecast performance presentation, 2022


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