Mongolia


      

 

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 is still in a major transformation process driven by the exploitation of its vast mineral resources.

MONGOLIA BASIC INFORMATION

AREA:

1,566,000 sq km (610,740 sq mi)

BOUNDARIES:

8,158 km, with Russia 3,485 km and with China 4,673 km

AVE. ALTITUDE:

1,580 m above sea-level

PEOPLE:

Khalkha Mongols (86%), Kazaks (6%), about a dozen other Mongolian ethnic groups

LANGUAGES:

Mongolian, Kazakh, Russian, Chinese. English is widely spoken in the Ulaanbaatar.

RELIGIONS:

Tibetan Buddhism, Muslim, Christian and Shamanism

LITERACY :

82.9%

CLIMATE:

Average summer temperature +20'C, average winter temperature -26'C, average rainfall 200-220 mm. Winter lasts from November to late April, Spring from May through June, Summer from July through September.

POL. SYSTEM:

Parliamentary republic. President elected for four years. Present President Elbegdorj Tsahia, elected in 2013. Prime Minister appointed by State Great Khural for four years. Present Prime Minister Mr. Saikhanbileg.Ch was appointed in 2014.

LEGISLATURE:

State Great Khural (Parliament), unicameral with 76 members elected for four years. The last election was held in 2012.

CURRENCY:

Tugrik (MNT), about MNT 1974.22 = USD 1 (by June 2016)

ENTRY POINTS:

Chinggis Khaan (airport in Ulaanbaatar ), Sukhbaatar (railway station on Mongolian-Russian border) and Zamyn Uud (railway station on Mongolian-Chinese border)

SEA ACCESS:

Tianjin/China (1,344 km) and Nakhodka/Russia (4,037 km)

TIME:

Add 8 hours to Greenwich Mean Time

VISA:

Visa shall be issued by Mongolia Embassies and Diplomatic Missions as well as Honorary consuls of Mongolia. 

10 priority sectors which drive Mongolia into fast development

Energy sector

Energy sector of Mongolia is working sustainably with continuous and secure energy supply. Currently, all 21 aimags and 318 soums are supplied by centralized energy source while 15 soums are supplied from renewable sources and other hybrid systems. The period between 2011 and 2016 can be seen as a beginning of new development era in which large scale energy supply networks and main power lines will be built to establish an Integrated Energy System which will meet the country’s ever-growing energy demand.

Renewable Energy

For our country there is full possibility to use both of off-grid solar and wind systems. According to the US Department of Energy, National Renewable Energy Laboratory calculated study for our renewable energy resources. Including sun, water, wind and ground thermal sources it was 2600Gwt in total. However, Mongolia’s current total energy production capacity is 878.43Mwt. 95.5% or 827.4Mwt of our energy is produced by the thermal plant or diesel. But renewable energy only accounts for 37.4Mwt.

Agriculture

Agriculture constitutes 20.6% of Mongolia's annual Gross domestic product and employs 42% of the labor force. However, the high altitude, extreme fluctuation in temperature, long winters, and low precipitation provides limited potential for agricultural development. The growing season is only 95 – 110 days. Because of Mongolia's harsh climate, it is unsuited to most cultivation. Only 1% of the arable land in Mongolia is cultivated with crops, amounting to 1,322,000 hectares (3,266,000 acres) in 1998. The agriculture sector therefore remains heavily focused on nomadic animal husbandry with 75% of the land allocated to pasture, and cropping only employing 3% of the population. Crops produced in Mongolia include cornwheatbarley, and potatoes. Animals raised commercially in Mongolia include sheepgoatscattlehorsescamels, and pigs. They are raised primarily for their meat, although goats are valued for their hair which can be used to produce cashmere.

Building & Construction

Strong demand from both the public and private sectors will keep Mongolia’s construction industry busy for the foreseeable future, though the heavy calls on the building trade is stretching resources and pushing up costs. While the effect in the short run has been to delay some projects, the long-term result is expected to be a safer and more secure industry.

City planning

Mongolia may be best known for its endless steppe and nomadic culture, but a significant demographic shift is underway in which rural residents are crowding into urban centers, especially in the capital Ulaanbaatar. On February 8th, 2013 the Parliament has adopted the amendment of UB City Master Plan until 2020, and trend of 2030 year. According to the UB City Master Plan, many steps have been already taken in place. So in this sector many projects are needed and a lot of investments are required.

Mining sector   

Mining is important to the national economy of Mongolia. Coal, copper, and gold are the principal reserves mined in Mongolia. According to ResCap, a Mongolia-focused investment bank, there are approximately 6,000 known deposits of over 80 different minerals in the country, including gold, copper, coal, uranium, molybdenum, tin and iron. However as just 27% of the country has been surveyed to a scale of 1:50,000. The country’s exploration potential is vast.

Infrastructure

With renewed backing from international lenders, Mongolia is moving ahead with plans to broaden its logistics base and improve access to export markets, with a raft of transport infrastructure projects shifting into gear. Mongolia has pledged to invest heavily in an upgrade of its rail network, which is expected to boost the country’s exports – particularly of coal – with China earmarked as the lead recipient. Japan’s new rail project comes on the heels of another investment aimed at expanding Mongolia’s aviation capacity.

Environmental Technology

Mongolian natural resources are in high demand and there are many issues with respect to the environment. Mongolia became the first country to join the PAGE (Partnership for Action on Green Economy) initiative in 2013 with activities aimed to support the implementation of its national Green Development Strategy. The goal of the Green Development Policy is to advance Mongolia’s national development in an environmentally sustainable manner, building the conditions for future generations to benefit and gain in the long term and to ensure environmental sustainability through creation of growth based on green development concepts and through citizens’ participation and inclusiveness.

Industry sector

Mongolia industry sectors comprise many traditional forms of industries, with food production and textiles being the main pillars of the industry. Mongolia’s industry sector has a production growth rate of 3% (steady since 2007). The sector also employs 5% of the total work force. Mongolia’s industries include:

  • Mining (coal, copper, molybdenum, fluorspar, tin, tungsten, and gold): As of 2007, the Mongolian minerals sector contributed 20.3% to the country’s GDP, accounted for 65.4% of the country’s industrial output and 42.7% of its export revenues.
  • Cashmere and natural fiber manufacturing: With cashmere being one of the three main export items, the contribution of Mongolia’s wool and cashmere processing sector has exceeded 10% of the total industrial production. 
  • Construction materials
  • Oil
  • Food and beverages
  • Processing of animal products

Financial sector

The Bank of Mongolia (BOM, the central bank) has now become an independent and effective regulator of the banking sector. Under this strengthened regulatory and supervisory umbrella, the commercial banks are now enjoying greater public confidence in their operations, enabling them to play a positive role in deposit mobilization and efficient allocation of resources for their most productive use. The 16 commercial banks presently operating in the country are now fully privately-owned, operate autonomously under good governance codes, are competitive and profitable, and are providing efficient banking services to the general public.

Express Tower 4th floor, #405
Great Chinggis square
ChD-1, Ulaanbaatar-15160, Mongolia
Tel: (+976) 7000 9393
Fax: (+976) 7000 9393
info@mongolia-partner.de
   

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