Mongolia is a land-locked country with a small population of 2.8 million and a thriving market-based economy. Although Mongolia currently enjoys stable economic growth and moderate inflation, Foreign Direct Investment (FDI) is vital to ensure the continuous economic development of the country. Because of this, the Government has taken the necessary measures to make sure that all sectors of the Mongolian economy are open to foreign investors and that foreign investment is protected from nationalization or expropriation.

The priority sectors for attracting foreign investment into the country, as identified by the Government of Mongolia, are food & agriculture, tourism, light & heavy industries, infrastructure, ICT, construction and energy.

Mongolia is abundant with natural mineral resources such as gold, copper, uranium, coal, molybdenum, phosphor, and oil. Not surprisingly, its largest industry is mining. Mongolia also holds the distinction of being the world’s second-largest producer of cashmere with a global market share of 30%. With its relatively untouched natural environment and well preserved nomadic culture, Mongolia is an extraordinary tourist destination.

Mongolia offers many competitive advantages to investors including access to two large markets, namely the neighboring resource-rich Siberian region of Russia and China, the fastest growing economy in the world. Investors will also appreciate its stable political environment and an investor-friendly legal framework that secures foreign investors’ rights regarding invested assets and capital.

A land rich in tradition and culture, Mongolia has extensive natural resources, from rich mineral resources to raw materials of animal origin raw materials.

The cost of doing business in Mongolia is also one of the most competitive in the region with inexpensive raw materials and operating & manufacturing costs that are significantly lower than that of the other nations. Likewise, the rental rates of industrial premises and office space are also considerably low. In terms of labour, Mongolia has a young and educated population which adds up to a ready and highly competitive workforce.

Another attractive investment feature is that all FDI is protected by the Constitution of Mongolia and the Foreign Investment Law along with the international treaties and agreements to which Mongolia is bound. As Mongolia is a full member of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group, its investors are eligible for risk insurance through MIGA.

The Mongolian government offers an unparalleled investment package for both local and foreign investors. So this is a great opportunity for Malaysian investors to tap the hidden potential of this unique country. MASSA will be organizing a business mission to Mongolia from June 26 – 29 2007. Join this mission to tap on the abundant business opportunities in Mongolia. For more information on doing business in Mongolia, log on to:

Investment & Export :
www.invesmongolia.com & www.exportmongolia.net
National Statistics Office of Mongolia :
www.nso.com
Mongolia Tourism Board :
www.mongoliatourism.gov.mn
Government Organizations of Mongolia :
www.pmis.gov.mn
Privatization & Restructuring Guidelines for 2005 – 2008 :
www.spc.gov.mn/english/index.htm