About the market

6 Reasons for the Mongolian marketMongolia

  • Mongolia is the fastest growing country in Asia in the next 5 years (up to 15.3 % p.a.)

  • GDP growth in 2013 (11,7%) ranked No. 6 in the world

  • In 2013 the mining sector had a growth of 19,8 %

  • Industrial output grew by 11% in 2013 (world rank 10)

  • Substantial projects on Infrastructure and Industrialization diversifying the GDP

  • Mongolia aims to become self-sufficient in fossil fuels by 2020

    Located in the heart of Asia as link between the important countries Russia and China, Mongolia is the perfect place for international players to make a significant step into this market and to establish business relations there. Mongolia has transformed itself to a vibrant democracy with a booming economy. Mongolia is still in a major transformation process driven by the exploitation of its vast mineral resources. The share of mining in GDP today stands at 20 percent, twice the ratio of a decade ago. GDP is expected to grow at a double digit rate over the period from 2013 to 2017. (Source Worldbank, Bloomberg, Diplomat.com)

Mining

  • 300 mine are counted in 15 places. Coal is estimated at 173.3 billion tons, putting Mongolia in tenth place on the world rankings.
  • The gross domestic product of the mining industry is 23.5 percent.
  • In the fight against air pollution, the use of methane gas is conceivable. According to the 2015 study, made by TavanTolgoi, it was estimated there might be 74.7 billion cubic meters of methane gas. Additional, in the provinces of Uvurkhangai, Bayankhongor, Ongiin Gol sav, in Nuurst Khotgor in province Uvs, a total 100 billion cubic meters of methane gas were estimated.

Energy sector

  • The demand for energy increases by 7-10 percent per year. 20 percent of the energy is imported from Russia and China. If hydropower plants, which are being discussed for a long time, or power plants based on power plant No. 5, Oyu Tolgoi, Tavan Tolgoi, were built. It would not only meet the demand for electricity, it would also be able to export electricity.
  • 13 provinces can generate 20,000 megawatts. Also another 9 provinces can generate 50,000 megawatts can generate electricity. In October 2017, Tsogttsegtsii Soum of Umnugovi province commissioned a 50 megawatt wind power plant. On 17 September 2018, a 55 megawatt wind power plant in Sainshand was put into operation.
  • The country has over 3500 rivers with a total length of 6500 km, which can produce 56.2 billion kilowatts per hour. That in turn makes 6417.7 megawatts of energy.

Construction & Infrastructure

  • The construction sector employs many workers. The 5 percent of the gross domestic product comes from this area.
  • As part of the state-sponsored project "Program for the Production of Building Materials", 310 plants were put into operation between 2012-2017.

Agriculture

  • The agricultural sector produces 20 percent of the demand that supplies raw materials for further production and food processing. 20 percent of domestic production comes from agriculture, which meets domestic demand for food and raw materials, which is 10 percent of the export.
  • Mongolia has 60 million of live stock. This area plays a significant role in the economy. Many people are employed here. It is a source of income in both on domestic and foreign markets.This area covers 80 percent of demand.The income from exports is 10 percent.

 Transport, Logistics, Infrastructure

  • The road network is 12.700 km long. The rural way is 36.000 km. The transport way for mining 600 km. The railway path is 1818 km long and is 0.2 Percentage of the world railway path.
  • In 2013, the construction of a new airport for Ulaanbaatar in Khushgiin Khundii of Tuv province began. The financial resources of 65.6 billion MNT come from JBIC. The airport, with an area of 37,000 square meters, which can accommodate an average of 3 million guests annually, will be commissioned in 2019.
  • The projects around the transport routes are pushed forward, particular the project Tavan Tolgoi got special attention. Above all, the construction of a railway network is important. New technologies are of great importance here.

Health

  • In 2018 the state awarded the health service 893.1 billion tugriks.It makes 9.3 Percentage of the state budget.
  • The government pays special attention to health care, which is why the regulations are being dealt quickly. The regulations for the foreign investors in this area are regulated by law.
  • The tax regime in this area is now pleasant for investors.