FOREIGN DIRECT INVESTMENT

ENVIRONMENT

MUNKHTUYA Yondonjamts 2012.05.23

Acting Vice Chairperson

Foreign Investment and Foreign Trade Agency

Foreign Investment and Foreign Trade Agency

Government of Mongolia

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CONTENT

ECONOMIC PROSPECTS AND CURRENT DEVELOPMENT OF FOREIGN DIRECT INVESTMENT (FDI) IN MONGOLIA

MONGOLIAN FOREIGN DIRECT INVESTMENT ENVIRONMENT

FOREIGN DIRECT INVESTMENT OPPORTUNITIES

GDP Growth

(National Development Innovation Committee, 2012)

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23%

16%

15%8%

8%

6%

4%

20%

INDUSTRIAL COMPOSITION OF GDP

Mining and quarrying

Agriculture, forestry, fishing

Wholesale and retail trade

Manufacturing

Transporation and storage

Real estate activities

Information and communication

Other

Macroeconomic Medium Term Outlook

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Top 3rd level for Economic Freedom Country /ranked by Transparency International, 2009/

Lowest tax rates country in Asia Pacific region / Corporate tax-10%,25%, Value added tax- 10%/

86rd country of Doing Business 2012 inquiry

7200 items can be exported to the EU markets on GSP+ scheme with zero import tariff

Attractive targets for FDI

SME production equipment and utilities are exempted from the customs tariff and VAT

• Government Resolution No.100 approved on 6th April of 2011

The Parliament of Mongolia approved the Policy of High Technology Industry and it has enabled the legal base of granting tax exemption, and credit guarantee for business entities those are running business in high technology sector

• June 2010

Tax exemptions and Incentives

Law on Concessions of Mongolia (PPP) approved

on 28 January, 2010.

puts state and local properties into economic utilization

vast business opportunities for investors

the list of concession items is approved by the state and

local administrative bodies

decisions shall be made whether to finance from state

fund, to make a guarantee, to organize a tender or to

conclude a direct agreement

Foreign legal entities or their consortiums may submit an

unsolicited proposal to enter into a concession agreement

Law of Mongolia on Concessions

Foreign Direct Investment /by year/

31 Dec 2011 (million USD)

366.50 499.90 708.90 801.10 1,025.90

4,986.00

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

2006 2007 2008 2009 2010 2011*

( Foreign Investment and Foreign Trade Agency, April 2012)

Foreign Direct Investment /by sectors/

31 Dec 2011 (percent)

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

2006 2007 2008 2009 2010 2011

Geological prospecting, oil exploration & mining

Trade and catering services

Others

Bank&financial services

Engineering construction and production of construction materials

( Foreign Investment and Foreign Trade Agency, April 2012)

0

5

10

15

20

25

30

35

40

Foreign Direct Investment /by countries/

31 Dec 2011 (percent)

( Foreign Investment and Foreign Trade Agency, April 2012)

Investment opportunities:

Tourism

Energy and Mineral

Resources

Road, Urban development

Trade & service

Light industry Food

Agriculture

ICT and Human

Development

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THANK YOU FOR YOUR KIND ATTENTION

Address: FIFTA, Sambuu Str.11, Government Bld.11,

Ulaanbaatar 211238, Mongolia

Email: fifta@investmongolia.com

Website: www.investmongolia.com