PTE

1. FOREIGN DIRECT INVESTMENT
IN MONGOLIA
with special focus on mining sector
Tergel Bold-erdene

2. MONGOLIA
 A landlocked unitary sovereign state in East Asia
 Mongolia is sandwiched between China to the south and
Russia to the north
 It is the second-largest landlocked country
Population of the country is more than 3 million
(3,131,724)

4. ECONOMY
 Over the past 20 years, Mongolia has transformed into
democratic country with free market from the socialist
country
 GDP per capita $12,100 (2015)
 GDP $36.07 billion (2015)
 Ranked 128th by its GDP

5.  GDP growth
8.0% (2014)
2.3% (2015)
0.1% (2016)
2.0% (2017)
 Ease-of-doing-business rank 64th (2017)
 Main import partners: China 39.9% Russia 28.4% Japan 6.4% South
Korea 6.2%
 Main export partners: China 84% Switzerland 9% Others 7%
 Export raw materials: copper, coal, molybdenum, tin, tungsten, oil , gold
and cashmere

6.  Since 1990, after the opening of the market, Mongolia attracted
investment which is equal to 16.6 billion USD
More than 30
percent of the
foreign direct
investment comes
from China, 9
percent Luxemburg,
23 percent
Netherlands, 36 is
others including
Russia, Japan and
Korea.

7.  More than 1,500 foreign companies from 61 countries invested in
Mongolia
 77 percent of the foreign direct investment is flows into the mining sector
 $2 trillion of mining commodities in the ground, and this could easily
establish a $100-billion economy by 2025
 mining sector dependence makes Mongolian economy quite sensitive
 Commodity prices in international market have direct influence on
Mongolian economy and FDI
 FDI was measured by USD 4.7 billion in 2011 but in 2016 it drops into
USD 232 million
 FDI decreased by 95 percent in few years

9.  (1) Establishing investment friendly legal basis- rooting out and
destroying the virulent corruption that threatens the foundational
institutions of the modern Mongolian state and putting in place a
more inclusive and more effective rule-making methodology for use
in implementing business legislation
 (2) Facilitating the emergence of private-sector small and
medium size enterprises as the primary engine of the economic
diversification
 (3) Infrastructure - vastly improving Mongolia's physical
infrastructure

10. CONCLUSION
Infrastructure is vital for attracting FDI
Economic situation in Mongolia is quite risky right now
IMF offered stand by arrangement
 From 2017 FDI to Mongolia is set to recover slightly
Unfortunately, debt of the Mongolia is now equal to
86.3% of its GDP

11. REFERENCES
1. https://www.oxfordbusinessgroup.com/news/mongolia-year-review-2016
2. http://investmongolia.gov.mn/wp-content/uploads/2016/04/Invest-
Mongolia-Guide-book-2016.pdf
3. http://www.tradingeconomics.com/mongolia/foreign-direct-investment
4. https://prezi.com/idqej2y7ovvh/presentation/
5. http://www.worldbank.org/mn/country/mongolia/brief/mongolia-mining-
infrastructure-investment-support-project
6. http://www.ikon.mn/n/pir
7. http://openmongolia.mn/?p=1583

12. Thank you!