INVESTMENT OPPORTUNITIES OF MONGOLIA Invest Mongolia Agency Presented by: Mr. JAVKHLANBAATAR Sereeter, Director General Invest Mongolia Agency
Dec 25, 2015
INVESTMENT OPPORTUNITIES OF MONGOLIA
Invest Mongolia Agency
Presented by: Mr. JAVKHLANBAATAR Sereeter,
Director GeneralInvest Mongolia Agency
Content
Economic overview Foreign investment environment Projects are available for funding Bulgaria’s FDI to Mongolia Invest Mongolia Agency
3Source :World Bank, 2015
RUSSIAUS$ 2,014 143
CHINAUS$ 8,358 1,351
S.KOREAUS $1,129 50
JAPANUS$ 5,959 127
MONGOLIAUS$ 11,4 3
GDP 2013 in USD billions
Population 2013in millionsMongolia has a leading land per capita in the world
Territory: 1.6 million sq. km
Population: 3.00 million (2015)
Mongolia Overview
Neighboring with two of the largest global economies- China and Russia
Large mineral resource base that can be leveraged for value- added processing for high capital returns
Huge potential in agriculture and husbandry (over 60 million livestock)
A growing banking and financial services industry through transparent and open policies
Great potential for the development of renewable energy sources Promising foreign investment opportunities in tourism, leisure and
regional development Vibrant and flourishing democratic Government and friendly FDI
environment Developing industry and infrastructure Young and well educated population
Key reasons to invest in Mongolia
FORBES Mongolia is ranked in 63th from 146 world countries.
Mongolia is ranked in 72nd from 189 world countries.
Doing Business
International Indexes
2006 2007 2008 2009 2010 2011 2012 2013 20140
2
4
6
8
10
12
14
16
18
20
3.74.5
6 6
8.2
17.5
12.3 11.8
7.4
GDP growth rate (%)
Source: NSO bulletin
Trade is balanced Foreign trade
Exports $M Imports $M Trade balance $M
Source: Bank of Mongolia, Customs general office
Foreign direct investment /in billion USD/
(2.00)
(1.00)
-
1.00
2.00
3.00
4.00
5.00
6.00
0.32 0.37 0.50 0.71 0.80
1.03
4.99
4.40
2.29
0.57
15.85%36.23%41.80%
13.01%28.06%
386.36%
-11.82%-47.95%
-75.20%FDI Percentage
Foreign direct investment /by sector/
0 10 20 30 40 50 60 70 80
73.6
16.6
3.4
1.4
1.3
0.9
0.8
0.4
0.4
0.3Information and communications
technology
Hospitality and tourism
Livestock-derived raw materials pro-cessing
Light industry
Construction
Transportation
Banking and financial services
Other
Trade and food
Geology, mining and exploration
Invest Mongolia Agency
Foreign invested companies /by number of companies/
Source: Invest Mongolia Agency, 2015
2005 2006 2007 2008 2009 2010 2011 2012 2013 20142015.040
200
400
600
800
1000
1200
1400
1600
1800
971
15051609
1551
613
769
933
774
390335 80
/Billion USD/
Mexico
Spain
Australia
Canada
Singapore
Brazil
Hong Kong, China
Russian Federation
China
United States
13
26
6
43
27
-3
92
95
101
338
38
39
50
62
64
64
77
79
124
188
FDI inflowFDI outflow
TOP INVESTORS COUNTRIES /2014/
Source: Invest Mongolia Agency
№Top investor countries
1990-2014 %Amount
/in billion USD/
1 Netherlands 29.96 4.2
2 China 26.65 3.75
3 Luxemburg 8.17 1.15
4 British Virgin Islands 7.87 1.10
5 Singapore 5.14 0.72
6 Canada 3.53 0.49
7 South Korea 2.69 0.38
8 USA 2.19 0.31
9 Russia 2.11 0.30
10 Australia 1.84 0.26
Investment Law of Mongolia, 2013 provides:
Investment Incentives
Protection of investor`s interests and rights
Tax stabilization
Investment incentives
Stability guarantees
Preferential tax treatment Accelerated depreciation and amortization that
is deductible from taxable income, Tax waiving
Investment Incentives
Tax incentivesExemption from the payment of certain taxes, including:
No import duty for machines and equipment of manufacturing, processing and industrial facilities
Employee training costs are deducted from taxable income
Investors are served through simplified registration and immigration procedures
Land lease by foreign investors from 40 to 60 years to development projects
Simplified procedures for permanent residence permit and multiple entry visa for investors
Investment Incentives
Non-tax incentives
Investor’s Protection in Mongolia
Investors in
Mongolia
WTO member
since 1997 Member of Multilateral Investment Guarantee
Agency (MIGA)
General agreement on
trade and economy with 24
countries
Washington Convention on
Investment Dispute
Settlement,
1996
Seoul Convention on
Investment Insurance,
1999
Agreement on Avoidance of
Double Taxation with 34 countries
Japan-Mongolia Economic
Partnership Agreement
(EPA) signed /2015/
Agreement on Mutual
Protection and Promotion of
Investment with 44 countries
Signed PPP projects № Project name Total Cost Concessionaire
1 “Telmen power plant” project $183.0 MLN “New Asia Group” LLC
2 “Altanbulag-Ulaanbaatar-Zamyn-Uud highway” project
$5.0 BLN “CHINGGIS LAND DEVELOPMENT GROUP” LLC
3 “Nariinsukhait – Shiveehuren” road project
MNT 88.0 BLN
“RDCC” LLC
4 “Establishment of the mining and metal processing complex” project
USD 725.0 MLN
“QSC” LLC
5 “Tuul-Songino power plant” project
CNY 1.0 BLN
“MORIT IMPEX” LLC
6 “Tavantolgoi-Khanbogd-Hangi” road project
MNT 440.0 BLN
“MCCC” LLC
7 “POWER PLANT #5” (CHP5) project
$1.2 BLN “GDF SUEZ, SOJITZ, POSCO, NEWCOM” LLC
№ Project Name Тype of PPP1 The Center for Elder Care and Advanced Illness Design-Build-Own-Operate2 Improve morgue service Design-Build-Own-Operate3 Tsogt ovoo- Tsogttsets paved road Build-Transfer4 Ulaanbaatar city Conference and convention center Design-Build-Own-Operate
5 Center for Transportation and logistics in western part of Ulaanbaatar city
Design-Build-Own-Operate
6 Center for Transportation and logistics in eastern part of Ulaanbaatar city
Design-Build-Own-Operate
7 Renovation of soum center infrastructure Build-Own-Operate8 Nalaikh Civilian and Special purpose airport Renovate/Equip-Lease-Operate -
Transfer9 Renovation and Retrofitting of Dalanzadgad airport into
International airportDesign-Build-Operate-Transfer
10 Hazardous waste disposal processing plant Design-Build-Operate-Transfer
11 Tuul river cascade reservoirs Design-Build-Transfer, Design-Build-Operate-Transfer
12 Waste to electricity plant Build-Own-Operate13 Kidney hemodialysis services Buy-Own-Operate14 Improve morgue service /Government Resolution N.313/ Build-Own-Operate
15 Medical oxygen production plant Build-Own-Operate
List of Concession projects
Shibu lijack
PROJECTS ARE AVAILABLE FOR FUNDING :
Eco- Yarmag 1
Redevelopment of ger area
Requested amount: 100 million USD
Buyant Ukhaa-2, Phase -2
Requested amount:116.6 million USD
Industrial and technology park of construction materials in Nalaikh district
Requested amount: 47.8 million USD
Building information modelling
Requested amount:1.6 million USD
Construction sector
New cleaner fuel comprehensive utilization project
Requested amount:6 million USD
Nanometal steel plant
Requested amount: 129.7 million USD
Tanil lime project
Requested amount: 12.8 million USD
Chandmani Uul Copper, Gold and Iron mine
Requested amount: 30 million USD
Dorniin Gan project
Requested amount: 40.5 million USD
Mining and heavy industries sector
Project to expand the concentrators
Requested amount: 11.4 million USD
Tumurtein Gol Project
Requested amount: 21.2 million USD
Glass factory of Dundgobi province
Requested amount: 119 million USD
Wood based panel by processing secondary raw materials
Requested amount: 20.3 million USD
Mining and heavy industries sector
Emeelt light industry and technology park
Requested amount: 262 million USD
New railroad project
Requested amount: 8,575 million USD
Light Industry sector
Road sector
Seaberry bio-farm
Requested amount: 21 millions of USD
Mutton export project
Requested amount: 105 million USD
Food and Agriculture sector
Tavan Tolgoi power plant project
Requested amount: 933.8 million USD
Zamyn Uud Free Economic Zone
Requested amount: 300 million USD
Altanbulag free trade zone
Requested amount: 193 million USD
Energy sector
Logistic & Freight sector
Republic of Bulgaria’s FDI to Mongolia
• Totally, FDI from 112 countries have been registered.
• Bulgaria is on the 20th place
Since 1990:• 21 companies from Bulgaria • Total investment - 31.1 million USD
Mining & geology ex-ploration
Service & trade
Enjineering constuction
Food production
Information and commu-nication technology
Source: Invest Mongolia Agency
FDI by sectors 98.1%
1.27%
0.56%
0.13%
00.2%
IMA’s structure
Director General
Promotion and Consulting
Division
Investment Policy, Assessment
Division
Administration, Human
Resources Division
Concession, Public- Private Partnership
Division
Project Assessing
Council
27
Mission
1. Promotion of investment
2. Protection of investors
3. Update the domestic market to foreign investors
4. Consulting support in planning their investments
5. E-consulting services
6. Issuing tax stabilization certificate
7. Review the implementation of invested projects
8. To support in continuing the investment
9. One-Stop Shop services
10. Organize field trips / Project site visit
Services to Investors
1. Provide integrated information
2. Guide Investors to business and public procedures
3. Organize Field Tours
1. Legal Consultancy
2. Project Management Consultancy
3. Aftercare assistance
1. To establish and develop the national systems of innovation policy and regulations
2. To improve the business environment for policy and strategy formulation and implementation of coordination
3. Industrial cluster development policy and strategy formulation and implementation
1. Investment Research
2. Investment & Investors Database
3. Targeted Promotion & AD Campaign
Shibu lijack
“Create a value in Mongolia”
Address: Invest Mongolia Agency
Sambuu Str.11, Government Bld.11,
Ulaanbaatar 211238, Mongolia
Email: [email protected]
Website: www.investmongolia.com