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competitiveness www.ecrc.mn Economic Policy and Competitiveness - - PowerPoint PPT Presentation

Feb 05, 2023 555 likes •832 views

Mongolias economy and competitiveness www.ecrc.mn Economic Policy and Competitiveness Research Center OUR VISION The Economic Policy and Our vision is to enhance Mongolias Competitiveness Research Center (ECPRC) established in 2010.

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Mongolia’s economy and competitiveness

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Economic Policy and Competitiveness Research Center

The Economic Policy and Competitiveness Research Center (ECPRC) established in 2010. Formed by a consortium of Mongolia’s prominent and market leading companies in response to our nation’s increasingly globalized economy and rapid growth. Our vision is to enhance Mongolia’s

national economic competitiveness to enable a

strong, sustainable business environment and socio-economic framework; one that improves the quality

  • f life of all citizens.

OUR VISION

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Economic Policy and Competitiveness Research Center

  • Consistent research
  • Reports, presentations
  • Database
  • Strategy, research
  • Public awareness on the issue

Provides specialized research services:

  • Economic and financial modeling
  • Survey/Focus group studies and results analysis
  • Industry cluster studies
  • Policy/ Regulation/ Legal analysis
  • Local project management and partnering

OUR RESEARCH SERVICES

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  • Location: Northern Asia between Russia

and PRC

  • Area: 1,564,114 sq.km, 20 times the size

Czech Republic of 78,866 sq.km (19th largest country)

  • Capital city: Ulaanbaatar
  • Population: 2.9 million, of which over 1.3

million in Ulaanbaatar (68% urban, 32% rural)

  • World’s largest densely populated

country: 1.9 individuals per sq.km

  • Literacy rate: 98.3
  • Government: Parliamentary democracy

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Mongolia

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Economy

7 6,2 8,8 10,3 11,5

6,4% 17,5% 12,4% 11,7% 0% 10% 20%

  • 5

10 15 20 2010 2011 2012 2013*

GDP & GDP growth

GDP, US$ billions GDP growth $2 266 $3 145 $3 630 $3 968 2010 2011 2012 2013

GDP per capita, US$

  • With huge amounts of unexploited natural resources (gold, copper, coal and more)

the Mongolian economy is estimated to grow massively in the years to come.

  • GDP 2013 = US$ 11.5 billion
  • GDP growth 2013 = 11,7%
  • GDP per capita 2013 = US$ 3,968
  • Industries:

– Mining (coal, copper, molybdenum, fluorspar, tin, tungsten, and gold); – Processing of animal products, cashmere and natural fiber manufacturing; – Construction; – Food and beverages;

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One of the fastest growing economies globally

Source: The Economist, Jan 2014

  • Mongolia's economy continues to experience comparably high growth rates among

the world countries.

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Foreign Trade

  • Export 2013 = US$ 4.3 billion
  • Import 2013 = US$ 6.3 billion
  • Total turnover 2013 = US$ 10.6 billion
  • Main exports:

– Coal, copper, iron ore, gold; – Livestock, animal products, cashmere, wool, hides; – Crude oil;

China 93% Canada 3% Russia 2% Others 2%

Main Export Partners

China 29% Russia 24% USA 8% Japan 7% Korea 8% Others 24%

Main Import Partners

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Mining Sector

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Strategic Deposits

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  • Strategic Deposits (including Oyu Tolgoi and Tavan Tolgoi, world’s largest untapped

deposits its kind)

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Agricultural Sector

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  • Mongolia’s agricultural sector is a major source of revenue base, contributing to the

diversified drivers. 73% of the total territory of 1.5 million sq.km is being utilized for agriculture 45 million heads of live-stock 14.5% of total GDP

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FDI

13 0,7 0,8 1,0 4,7 4,5 2,0

  • 1

2 3 4 5 2008 2009 2010 2011 2012 2013 FDI, US$ billion

  • Forecast to be one of the world's

fastest growing countries over the next five years, Mongolia is turning into a hot destination for foreign investment across a multitude of sectors.

  • Some of the biggest untapped mining

projects in the world belong to Mongolia, and have started to go from exploration to extraction phase.

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Ease of doing business in Mongolia

Source: Doing Business, World bank, 2014

171 175 181 181 182 183 185 185 189 45 45 55 58 72 86 88 80 76

  • 100
  • 90
  • 80
  • 70
  • 60
  • 50
  • 40
  • 30
  • 20
  • 10

20 40 60 80 100 120 140 160 180 200 2006 2007 2008 2009 2010 2011 2012 2013 2014 Number of countries covered Mongolia's rank

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Mongolia in World Competitiveness

Statistics Executive Opinion Survey

4 main factors

331 criteria

Singapore Qatar Thailand Malaysia Mexico Korea Chile Peru Slovakia Kazakhstan Bulgaria Slovenia Ukraine Russia Mongolia

Compared with

14 other

countries

2010

2011

2012 2013

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Mongolia in World Competitiveness 2013

2010

2011

2012

100 96 95 91 88 86 84 82 80 77 76 76 74 72 62

Singapore Malaysia Qatar Korea Thailand Chile Mexico Kazakhstan Russia Peru Slovak Ukraine Slovenia Bulgaria Mongolia

2013

In 2013, Mongolia ranked in same place, but overall competitiveness score increased from 39 to 62.

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Mongolia in World Competitiveness 2013

Direct investment flows inward Real GDP growth / GDP growth per capita Female labor force Investment in telecommunications

1st

Mongolia’s Strongest Competitiveness Factors

15th

GDP per capita Diversification of the economy Exchange rates Inflation Future energy supply High-tech exports Pollution problems

Mongolia’s Weakest Competitiveness Factors

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Mongolia in World Competitiveness

Economic dependence

Economy dependent on mining exports to China, and subject to fluctuating commodity prices and demand.

Inflation

Monetary policy needs to be tightened to address double-digit level inflation. Competitiveness Challenges of Mongolia

Exchange rate instability

Exchange rate instability is high.

Investment in infrastructure

Needs investment in infrastructure, especially in energy, due to upcoming mining and housing projects.

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Opportunities

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Mongolia is a Land of Opportunities

One of the fastest growing economies globally Abundance of unexploited natural resources Relatively young population with a high literacy rate among emerging economies Leading land/capita Neighboring with two largest global economies and commodity markets Potential for energy sources (wind power, solar energy, hydro power)

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Public-private partnership projects

SECTORS # Infrastructure 10 Road and transportation 16 Railway 1 Pipeline transport 1 Airport 2 Energy 13 Environment 3 Education 3 Health 1 Culture and sports facilities 4

  • Public-private partnership projects will be implemented by concession agreement

(eligible for tax exemption or tax incentives )

Source: Invest Mongolia Agency, June 2014

Expected investment return

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Tax Regime and Incentives

Corporate income tax 10% 25% 3 bln MNT 10% 25%

Altanbulag free trade zone Sainshand industrial zone Zamyn-Uud free trade zone Tsagaannuur free trade zone

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Tax Regime and Incentives

  • If more than 500bln MNT within last three

years

Investment Agreement

  • First 5 years tax free

Economic Free Zones /Altanbulag, Zamiin Uud/

  • Customs Duty, VAT free

Equipment & Machineries for SME’s /regulated by list per year/

  • VAT
  • Corporate Income Tax
  • Customs Duty
  • Royalty

Tax Stabilization Certificate /from Ministry

  • f economic

development/

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www.ecrc.mn

  • www.ecrc.mn
  • www.meforum.mn
  • http://business-in-mongolia.mn/
  • www.investmongolia.com

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Useful links

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Thank you for your attention

Facebook / ecrcmn Twitter / ursulduhchadvar YouTube / ecrcmn 976-11-321927 www.ecrc.mn info@ecrc.mn