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MONGOLIA ECONOMIC FORUM 2018 KICKS OFF

MONGOLIA ECONOMIC FORUM 2018 KICKS OFF
21
May

MONGOLIA ECONOMIC FORUM 2018 KICKS OFF

The Mongolia Economic Forum 2018 started on May 21 at the State House. More than 1000 representatives are attending the forum hosted by the CEO club. The forum addresses issues including megaprojects that have been on hold for years, accelerating development of stock market, eliminating business environment from bureaucracy, revision of some laws, tax environment and investment policy. Opening the forum Prime Minister of Mongolia U.Khurelsukh emphasized the importance of defining and maintaining sustainable policy by uniting forces. “Private sector generates 80 percent of Mongolia’s GDP. In 2017 trade, mining, agriculture and processing sectors increased by 35 percent, real economic growth rate reached 5.3 percent and foreign exchange reserves increased to USD 3 billion. In addition, since its formation our government settled the debt of MNT 2.8 trillion. This is the result of cooperation between the Government and the entrepreneurs.”

The key presentation ‘Investment policy: Global Trends and a New Path for Mongolia' was introduced by the Christine Zhenwei Qiang, Practice Manager for the Global Investment and Competition Unit of the World Bank Group’s (WGB) Macroeconomics, Trade and Investment Global Practice. She agreed with the Prime Minister that everybody needs to synergize and initiate a new vision for FDI. Christine Zhenwei Qiang emphasized that Mongolia’s investment is concentrated in one sector. In particular, the fact that two third of the total investment is from Canada and China shows the vulnerability and dependence of the economy. Mining product processing, agriculture, e-commerce and tourism are considered competitive sectors of Mongolia. Moreover, she highlighted the key suggestions, saying “According to our global survey investor's confidence is the most important factor for FDI. Political risks increase when Government changes its policies and regulations all the time, decreasing the investor's confidence. Also Mongolia needs an Investment promotion agency.

National Development Agency is performing certain functions but it is not sufficient. We propose to establish a targeted agency with a clear function, budget and staff so that Mongolia could build a good branding.” Head of the Cabinet Secretariat G.Zandanshatar introduced the Integrated Investment Policy of Mongolia and Programs to be implemented. The Investment Program 2018-2021 includes a total of 113 projects worth of MNT 38.3 trillion, 70 of which will be implemented newly and 11 financially unresolved projects. After the presentation the forum panelists started discussions on the investment policy and programs to be implemented. They emphasized importance of diversifying the economy, intensifying implementation of the megaprojects, qualifying the staff and improving feasibility studies and implementing the major projects with equity investment.