The Government of Mongolia considers foreign investment as one of the driving forces of the sustainable economical development. In the era of globalization and competition, when every country strives to attract and retain sizeable foreign investment, Mongolia, located between the two giant markets of Russian Federation and China, is also striving to attract more foreign investment.
Mongolia has been created a favorable external and internal legal environment for foreign investment. A member of WTO since 1997, Mongolia acceded to the “Washington Convention on Investment Dispute Settlement of 1965” in 1996, joined the “Seoul Convention on Investment Insurance of 1985” in 1999 and a member of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group and investors will thus be eligible for risk insurance through MIGA.
Mongolia respectively signed the “Agreement on Mutual Protection and Promotion of Investment” with 42 countries, “Agreement on Avoidance of Double Taxation” signed with 34 countries.
According the Law on Foreign Investment /passed in 1990 and subsequently revised in 1993, 1998, 2002 and in 2008/ the foreign investor may run any business in all areas of production and all services, other than those prohibited by the laws of Mongolia; establish wholly foreign-owned business entities or joint business entities with Mongolian investors. The Constitution of Mongolia protects FDI and the Foreign Investment Law complemented by relevant legislation and regulations, as well as international treaties and agreements to which Mongolia is bound and thus it is prohibits nationalizing and illegally confiscating assets and capital of foreign investors. Foreign investors receive treatment equal to that enjoyed by domestic investors as regards rights to own, utilize and exploit assets and capital.
With the purpose to improve the competitive capacity of the country, to create new workplaces, to decrease informal economy and to bring the legal environment close to the international standards, the Parliament of Mongolia amended set of tax laws and corporate income tax has been reduced by 5% each and became 10% and 25%.
Investment tax credit equal to 10 percent shall be granted for investment in priority sectors of Mongolia appoved by the Government resolution #311 in 2008.
As a result of Mongolian Government policy to support the foreign investment, the volume of foreign investment in Mongolia is increasing steadily each year.
While crisis is deepening in the world financial market, the Government of Mongolia is trying forthwith to take immediate actions to overcome financial and economic difficulties and action plan is being implemented in order to pass the turbulent time without serious obstacles in economy. One of the crucial roles of action plan to recover the country’s economy is allotted to the measures that have to be taken in construction, urban development and infrastructure sectors and involvement of foreign and domestic investors in big development projects is pivotal to the development of these sectors.
With the purpose to introduce the current situation, existing opportunities, legal environment of construction, urban development and infrastructure sectors of Mongolia, the “Great Development and Investment Forum: Mongolia – 2009”, an international forum is held in Ulaanbaatar on 09-10 April 2009.
The Forum will bring together top level government officials, experts, professionals, manufactures, importers and exporters of construction and related to it sectors products and services to discuss and exchange the views and ideas, to give an insights of Mongolian construction and related to it sectors. Furthermore, the following major projects and programs and other investment seeking projects will be introduced to the foreign and domestic investors during the forum.
- 990 km-highway: Altanbulag-Ulaanbaatar-Zamyn Uud connecting northern and southern border port-cities through Ulaanbaatar
- 1317km highway, connecting Southgobi, Bayankhongor and Zavkhan provinces with Russia and China
- 370 km railroad connecting Tavantolgoi, Ouytolgoi and Sainshand
- 100 thousand households apartment
- Cement factory with capacity to produce 1 mln. tons per year
- Steel plant with capacity to produce 500 000 tons per year
Construction sector of Mongolia is booming the last few years and the Government of Mongolia is inviting you to take part in “Great Development and Investment Forum: Mongolia – 2009” to identify the best investment opportunities and to access these opportunities. Wide range discussions will be held on current situation and legal environment of infrastructure and construction sectors, investment opportunities and development challenges. Promotion of investment seeking projects and programs from the Government, Capital city, province and private enterprises will also be covered.
Furthermore, foreign manufacturers and businessmen are welcomed to display and promote their products and technologies at the “Building and investment expo 2009” international exhibition to be organized during the GDIF. For detailed information, please visit www.gdif.mn