About Mongolia
Mongolia has population of 2.8 million and is located in east central Asia. It covers 1.56 million square kilometers in area and shares a 4,677 km border with China to the south and a 3,485 km border with Russia to the north.
Mongolia is famous for its wild nature, nomadic culture, hospitable people and its rich history. With the fall of the Soviet Union, Mongolia began dramatic political reforms and transferred into a democratic free market economy in the 1990’s.
Mongolia is a resource rich country, not only for coal, but other minerals including copper, gold, iron ore, lead and molybdenum. Mongolia is the second largest exporter of Coking Coal to China.
Mongolia is an economy that is positioned for significant growth in coming years. In mid-2014 Mongolia signed a number of tripartite infrastructure agreements with Russia and China covering significant upgrades to rail infrastructure and border crossings which grew into a trilateral Economic Corridor through Mongolia. In addition, framework agreements were also signed covering the facilitation of international trade along this Economic Corridor and on cooperation for ports of entry between the three nations.
The trilateral Economic Corridor is aimed at improving levels of trade not only between the three nations but increasing land based trade between Central Asia and Europe. The Economic Corridor integrates China’s New Silk Road with Russian rail planning and Mongolian Rail Policy.
Mongolia as an Investment Destination
Investment Law
- Effective November 2013, the Investment Law aims to provide equality between foreign and domestic investors and does not distinguish between domestic or foreign investors.
- Incentivizes investment by allowing greater proportion of foreign employees, no restriction on asset movements in/out of country, provisions that protect against nationalisation of assets, and imposing high thresholds of approval for any future proposed changes.
- Provides tax stabilisation certificates for Investors for a period of time (5-15 yrs) based on size of investment, and allows for the negotiation of an Investment Agreement for large investments (> US$300m) which stabilises the tax and operational environment.
- No restrictions on investments, unless the investor is a foreign “SOE” for which 50% or more of its ownership is held by a foreign Government, in which investments >33% of the investment will require approval from Mongolian Investment regulatory, administrative body.
