Mongolian National Chamber of Commerce and Industry The

Mongolian National Chamber of Commerce and Industry The main representative body of Mongolian Business Community … Since 1960 Challenging Country - Mongolia Presented by Mrs. Magvan OYUNCHIMEG, Vice Chairperson, MNCCI

Economy: GDP Growth (National Development Innovation Committee, 2012)

GDP Growth Projection 12000 25. 0 10000 17. 3 8000 6000 14. 8 8. 6 10. 2 15. 0 14. 1 11. 4 8. 9 6. 4 4000 2000 0 20. 0 19. 9 2007 2008 2009 5. 0 0. 0 -1. 3 2006 10. 0 2011* 2012**2013**2014**2015** -5. 0 (National Development Innovation Committee, 2012)

Macroeconomic Medium Term Outlook GDP (US dollars) per capita 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2005 2006 2007 2008* 2009**2010**2011**2012**2013**2014**2015** (National Development Innovation Committee, 2012) 4

GDP Growth Forecast in the World Source: Citi Investment Bank Research and Analisys

INDUSTRIAL COMPOSITION OF GDP ( Source: National Statistics Office of Mongolia)

Foreign Trade Total Turnover ( Source: General Customs Administration of Mongolia)

Export Structure-2011 1 - Coal 9. 10. 3% 8. 1. 0% 7. 2. 0% 6. 2. 3% 5. 3. 0% 2 - Copper concentrates 3 - Iron ores and concentrates 4 - Crude oil. 4. 5. 3% 1. 47. 0% 5 - Zinc ores and concentrates 6 - Gold, unwrought or in semimanufactured forms. 7 - Leucite; nepheline and nepheline syenite; fluorspar. 8 - Molybdenum ores and concentrates. 9 - Other 3. 9. 2% 2. 20. 1% Import Structure-2011 1 - Petroleum products. 2 - Motor vehicles for the transport of goods. Motor cars and other motor vehicles principally designed for the transport of persons. Self-propelled bulldozers, angledozers, graders, levellers, scrapers, mechanical shovels, excavators, tamping machines and road rollers. 3456789 - Machinery for sorting, screening, crushing, mixing earth. Parts suitable for use solely or principally with the machinery. New tyres. Electrical apparatus for line telephony or line telegraphy. Others 2. 8. 8% 1. 17. 5% 9. 54. 4% 3. 6. 8% 4. 5. 7% 5. 2. 6% 6. 1. 6% 7. 1. 4% 8. 1. 2%

Export Destinations-2011 5 - 0. 8% 4 - 1. 0% 3 - 1. 9% 6 - 0. 7% 1. CHINA 4404561. 101 91. 4% 2. RUSSIAN FEDERATION 96342. 43315 2. 0% 3. CANADA 90787. 57867 1. 9% 4. ITALY 49816. 10106 1. 0% 5. REPUBLIC OF KOREA 37873. 25119 0. 8% 6. HONG KONG 35299. 78274 0. 7% 7. Other 102, 816. 09 2. 1% 4, 817, 496. 3 100. 0% 7 - 2. 1% 2 - 2. 0% 1 - 91. 4% Import Destinations-2011 1. CHINA 1978166. 728 30. 0% 2. RUSSIAN FEDERATION 1624705. 798 24. 6% 3. UNITED STATES 536024. 5854 8. 1% 6 - 4. 1% 4. JAPAN 490225. 7116 7. 4% 5 - 5. 4% 5. REPUBLIC OF KOREA 356725. 091 5. 4% 6. GERMANY 273639. 0133 4. 1% 7. Other 1, 338, 871. 1 20. 3% 6, 598, 358. 1 100. 0% 7 - 20. 3% 1 - 30. 0% 4 - 7. 4% 3 - 8. 1% 2 - 24. 6%

Foreign Direct Investment ( Source: Foreign Investment and Foreign Trade Agency, March 2012)

Doing Business in Mongolia (2010) Before Now • 60 days procedure • 14 materials needed • 3 -5 days procedure • 7 materials needed Mongolia ranked at 60 out of 181 economies of the world in terms of ease of doing business

Doing Business Ease of. . . Doing Business 2010 rank Doing Business 2009 rank Change in rank Doing Business 60 56 -4 Starting a Business 78 61 -17 Dealing with Construction Permits 103 104 +1 Employing Workers 44 49 +5 Registering Property 25 20 -5 Getting Credit 71 68 -3 Protecting Investors 27 25 -2 Paying Taxes 69 87 +18 Trading Across Borders 155 156 +1 Enforcing Contracts 36 35 -1 Closing a Business 110 0

Source: Doing Business Report 2012, The World Bank

Investment opportunities Energy and Mineral Resources Light industry Road, Urban development Trade & service Food Agriculture Tourism ICT and Human Development

Mining and Minerals sector

Mining

Minerals exports

Agriculture sector

Mongolian Agriculture sector in a glance 600 000 ha land has been processed for crop, wheat and vegetable production out of 1. 2 mln. ha land The output of livestock production comprises 86. 5% of the total output of agricultural production 100% of potato need is provided domestically 20% of milk need is provided domestically 50 -97% of vegetable and crop needs are provided domestically 40. 9% of GDP, 58% of total employment Total livestock has reached over 50 million herds by 2009

Policy documents and National programs in Agriculture sector Government Policy on Food and Agricultural Sector (2003) Development. The Strategy of Agricultural Sector (2006 output of livestock production 2015/ADB) comprises 86. 5% of the total output Comprehensive National Development Strategy of agricultural production (2008) Government Action Plan (2008 -2012) “Crop -3” National Program for Rehabilitation of Agriculture(2008) “ Food security” program (2009) “State policy towards herders” (2009) “Industrialization” program (2009)

Tourism sector

Mongolian Tourism sector in a glance Mongolian tourism sector was almost fully private-sector based in the last decade and a business-friendly legal environment has been effectively sustained in this sector. 4% of GDP, 1% of employment 452 tour operator companies 340 tourist camps, of which 79 are high standard camps Revenue of USD 296 mln. per year 326 hotels, of which 60 are star-rated 52 public and private universities in the sector

Tourists’ Volume in the last decade 500, 000 Total Tourists 450, 000 400, 000 Africa 350, 000 America 300, 000 250, 000 200, 000 South and East Asia, Middle East, and Asia Pacific countries 150, 000 Europe 100, 000 Others 50, 000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Main tourist destinations

Tourists’ major destinations in Mongolia Ulaanbaatar Gobi Karakorum Khuvsgul

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