1. Foreign investment policy in Mongolia
by JAVKHLANBAATAR SEREETER
Director General
Foreign Investment Regulations & Registration Department, Ministry of Economic Development
Ulaanbaatar, 1st March, 2013
The Ministry of Economic

2. Content How Does Mongolia Protect Foreign Investment?
How Does the FDI Perform?
What Are the Main Principals of FDI Policy?
Why You Should Invest in Mongolia?
The Ministry of Economic

3. Foreign Investment Legal Framework
International
Agreements
Bilateral Investment Protection Agreements
National Laws on Foreign Investment
Washington Convention on Investment Dispute Settlement
Seoul Convention on Investment Insurance
WTO Agreements (including TRIMs)
Most-Favoured Nation Treatment
The Ministry of Economic

4. Foreign Investment Legal Framework
International Agreements
National Laws on Foreign Investment
Bilateral Investment Protection Agreements
Mongolia has a Bilateral Investment Protection Agreement with 43 countries.
The Ministry of Economic

5. Foreign Investment Legal Framework
National Laws on Foreign Investment
International Agreements
Bilateral Investment Agreements
The Foreign Investment Law of Mongolia (1993)
The Law Regulating Foreign Investment in Entities in the Strategic Sectors (2012)
The Ministry of Economic

6. Foreign Investment Legal Framework
National Treatment
The Foreign Investment Law of Mongolia
No-Expropriation
Free Repatriation
The Ministry of Economic

7. Foreign Investment Legal Framework
The Law Regulating Foreign Investment in Entities in the Strategic Sectors (2012)
Acquisitions & Transactions
Mining
Banking & Financing
Media & Telecommunications
Certain Thresholds
Approval from the Govt. & Parliament
The Law is enforce from the date adopted. The relevant entities have to comply with the Article 8.2. which is about informing their shares in the strategic sectors of the Law without waiting the Implementing Regulations !
The Ministry of Economic

8. Foreign Direct Investment Performance
FDI by Sectors in
The Ministry of Economic

9. Foreign Direct Investment Performance
FDI by Countries №
Top Investors %
Total /USD/ 1
China
31.71
3.65 bln 2
Netherlands
23.16
2.67 bln 3
Luxembourg
9.01
1,04 bln 4
British Virgin Islands
7.48
0.86 bln 5
Singapore
5.45
0.63 bln 6
Canada
4.23
0.49 bln 7
Republic of Korea
2.93
0.34 bln 8
USA
2.54
0.29 bln 9
Hong Kong, China
1.80
0.21 bln 10
Japan
1.60
0.18 bln
The Ministry of Economic

10. Foreign Direct Investment Performance
FDI from Poland / / st (110 countries) №
Sector name
FDI
COMPANIES %
Total 1
Culture, education, science, and press
58.67
1,540.80
6.25 18 2
Trade and catering service
24.27
637.40
56.25 3
Geological prospecting and exploration
9.02
236.89
3.13 4
Agriculture
2.21
58.00 5
Engineering construction and production of building materials
1.54
40.50
9.38 6
Production of foods and beverages
1.52
40.00 7
Furniture
1.20
31.39 8
Electronics manufacturing
0.81
21.17 9
Processing of animal originated raw materials
0.38
10.00 10
Tourism
Total foreign direct investment
100.00
2,626.15 32
The Ministry of Economic

11. Foreign Direct Investment Performance
How Mongolia ranks on Doing Business topics
Source: WB Doing Business Report 2012
Source: WB Doing Business Report 2013
The Ministry of Economic

12. Foreign Direct Investment Performance
FDI Regulatory Restrictiveness Index 2012
Source: OECD, FDI RR Index 2012
The Ministry of Economic

13. Foreign Direct Investment Performance
How Mongolia ranks on Doing Business topics
WB Doing Business Report 2012
WB Doing Business Report 2013
The Ministry of Economic

14. Foreign Direct Investment Performance
The Ministry of Economic

15. New government resolutions for infrastructure
Projects
Investment
Tavan tolgoi power station
350 mil usd
Auto road reconstruction /in UB/
92.3 bln tugrkis
“New railway project” by Mongolian railway
55 mil usd
Program of “New Development” to support the national production of building materials -
Oil refinery industry in Darkhan city will be built in 2015, the capacity is 2 mil tones oil per year.
The Ministry of Economic

16. AUTOROAD PROJECT

17. RAILWAY PROJECT – 1800km Khuur-Numrug route
Tamsagbulag
Altanbulag
Jargalant
Khandgait
DARKHAN
DALANZADGAD
Khanbogd
Tsogt Ovoo
Gashuun Suhait
DORNOGOVY
TUV
DUNDGOVY
MANDALGOVY
SUKHBAATAR
Matad
Bichigt
Havirga
DORNOD
Ereentsav
Yarantai
ULGII
Ulgii
Uench
UMNUGOVY
ZAVKHAN
GOVY-ALTAI
Burgastai
Naranbulag
CHOIR
MURUN
Khatgal
BAYANHONGOR
UVURHANGAI
Khankh
ERDENET
Tsahir
Battsengel
TSETSERLEG
ARVAIHEER
ARHANGAI
HUVSGUL
BAYAN-ULGII
ULAANGOM
ULIASTAI
KHOVD
UVS
BULGAN
SAINSHAND
CHOIBALSAN
BARUUN- URT
UNDURKHAAN
ZUUN MOD
KHENTII
SELENGE
Baga-Ilbenh
Oyutolgoi
Tavantolgoi
Tsagaan suvarga
Shivee huren
Zamyn-Uud
Ulaanbaatar
Ulaanbaishint
Khuur-Numrug route
Sainshand-Baruun Urt-Khuut-Choibalsan route
Khuut-Bichigt route
ТT-Tsagaan Suvarge-Sainshand route
Nariin suhait
Nariin Sukhait-Shivee Kuren
ТT- Gashuun Sukhait

18. POWER NETWORK

19. Investment opportunities
Issued successfully ‘Chinggis bond’ in the international markets with following significance:
2 fold increase in foreign reserves that supports macroeconomic stability
Provides basis for stabilization of national currency, allowing inflation expectations to stabilize for the first time in 5 years
This gives turn policy to the Bank of Mongolia to decrease policy rates and increase money supply, which will support overall economy
Increased potential credit sources in the economy
Allows financing the Social Insurance Fund and effective implementation of notional personal accounts system
Allows introduction of classical mortgage finance system
1/3 of Bond projects will be implemented from Foreign Direct Investment
The Ministry of Economic

20. Investment opportunities
Law on Concessions of Mongolia (PPP) adopted 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
The Ministry of Economic

21. Investment opportunities
The Law of Innovation adopted on 22 May, 2012.
This law lays down the legal ground for the principles, governance, organization, financing, state support for innovation activities as well as for utilization of intellectual property as an economic asset. Due to the adoption of this law relevant amendments to support innovation activities have been also introduced to the existing law on foreign investment.
The Ministry of Economic

22. Key Factors Attracting FDI
High Growth
Developing Country
/Opportunities/
A gate to emerging markets in East Asia like China & Russia
Comparatively Low Tax & Less Restrictive Market
A resource rich country in mining, agriculture & husbandry
A strong democracy
The Ministry of Economic

23. Key Factors Attracting FDI
Securing Stability
- Economical
- Political
- Diversification
Decrease Costs - Invest more in Infrastructure - Educate people - Increase Productivity
Institutional Efficiency
- No Corruption
- Transparent
- Less Bureaucracy
The Ministry of Economic

24. Expectations from FDI’s
Job creation
Technology transfer
Value addition
Different Sectors
Environment Friendly
The Ministry of Economic

25. Thank You !