Current economic situation of Mongolia - Brief Introduction

BRIEF INTRODUCTION

CURRENT ECONOMIC SITUATION OF MONGOLIA

CONTENTS:

1. About Mongolia: General Information

2. Economic forecast for Mongolian market (GDP, inflation, growth of industrial

production)

3. Most potential industry sector in Mongolia

4. Industry sectors which receive the most investments in Mongolia (mining, energy,

transport, infrastructure, healthcare, communications)

5. Names some major projects and describing the items (value USD), industry sector,

project description

6. Mongolian biggest companies (sector)

***

1. ABOUT MONGOLIA: GENERAL INFORMATION

Population: 2.8 million

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

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

Average altitude: 1,580 m above sea-level

Terrain: Vast semi-desert and desert plains, mountains in west and

southwest, Gobi Desert in southeast

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 rate: 82.9%

Climate: Average summer temperature +20'C, average winter

temperature -26'C, average rainfall 200-220 mm.

Political system: Parliamentary republic. President elected for four years.

Present President Elbegdorj Tsahia, elected in 2009. Prime

Minister appointed by State Great Khural for four years.

Present Prime Minister Mr. Batbold. Su was appointed in

2009.

Legislature: State Great Khural (Parliament), unicameral with 76

members elected for four years. The last election was held

in 2008.

Judicial system: Mongolian judicial system consists of Constitutional Court

, Supreme Court, Aimag and capital city courts, soum and

district courts.

State structure: Mongolia is a unitary state and divided administratively

into Aimags (21) and a capital city; Aimags are subdivided

into soums; soums into bags; and a capital city into

districts; districts into khoroos.

National currency: Tugrik (MNT), about MNT 1320 = USD 1 in Sep 2010

Fiscal year: January 1 - December 31

Main 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)

Normal working hours: 09.00-13.00 and 14.00-18.00

Electric current: 220 volts/50 HZ

Weight and measures: Metric System

Visa arrangements: Visa shall be issued by Mongolia Embassies and

Diplomatic Missions as well as Honorary consuls of

Mongolia , or can be obtained at the airport at a cost of

US$53 but must be accompanied by an invitation.

Year of establishment

of diplomatic relation

Mongolia-Republic of Finland

July 15, 1963

General Honorary consul of

Mongolia in Finland

Mr.Henrik Jankes (since 2000)

2. MONGOLIAN ECONOMIC FORECAST (GDP, INFLATION, GROWTH OF INDUSTRIAL PRODUCTION )

There is enormous potential of the Mongolian economy in many aspects. Exploitation of the

gigantic wealth in Mongolia’s soil will certainly bring a lot of investment and a lot of

revenues to Mongolia.

GDP is to grow at least five times when just the current projects with OT (Ouy Tolgoi-

mining) as the main project, start to generate revenue. Another benefit estimate is for GDP to

double every two years for the next 10 years. Within a decade Mongolia's average income

could triple to US$10,000 a year.

Currently, GDP per capital has reached approximately USD 3000. If the economy remains

stable, there will be a possibility to reach USD 5000 by 2012.

In the first half 2011, GDP increased by 29.1% or 1073.5 bln.tugrug to 4762.5 bln.tugrug

at current prices, compare to the previous year.

• Transportation and construction sectors grew at 39.9% and 38.4%, respectively, while retail

and wholesale trade grew at 24.7%, with Mongolians spending more on consumption as a

result of higher incomes.

• The mining and manufacturing sectors recorded respectable growth rates of 8.3 and 12.9%

year-on-year (yoy) in the second quarter, respectively.

One of the major dangers of a fast growing economy of Mongolia is overheating and high

levels of inflation.

Current inflation is 9.6%. Core inflation, excluding volatile energy and food prices, increased

even faster, by 13.7% yoy.

The World Bank is warning that Mongolia’s reliance on trade with China, coupled with high

rates of inflation, could overheat the economy. The World Bank says inflation could reach 20

percent by the end of the year.

3. MOST POTENTIAL INDUSTRY SECTOR IN MONGOLIA

The Government declared 2002 to be the year of "Domestic Industry Promotion". Mining,

wool, cashmere, skins, hides, meat processing, crops and tourism industries have been

determined as priority sectors.

In the first 7 months of 2011, the total industrial output increased by 69.3 bln.tog or 6.8

percent compared to the same period of the previous year. The increase in the industrial

output was mainly due to 0.1-78.2 percent increases in mining and quarrying products

such as copper with concentrate, crude oil, coal and iron ore; and 0.3 percent to 8.6 times

increases in industrial main products of manufacturing sector such as bread, steel

casting, combed down, milk, sausages, juice, decoration and medal, knitted goods,

alcohol, soft drinks, sawn wood, cement, carpet, beer, cigarettes, concrete mortar, and

electrical wire.

MINING SECTOR:

• A booming mining industry, especially the Oyu Tolgoi copper mine, spurred these imports,

especially of transport equipment and machinery. This pushed Mongolia’s trade deficit to

US$ 1349 million in July 2011.

Oyu Tolgoi Investment Agreement which was established and the projects have been

launched. Currently, the process of construction work of the project runs at 50 percent. In the

construction work of the Oyu Tolgoi Project, a total of over 11,000 Mongolians are

participating by direct and contract form. By the end of this year, about 600 people will have

jobs at the open pit. When basic production starts to implement the project successfully, over

90 percent of the total workers, or more than 3500 Mongolians, will be provided with jobs.

Mongolia will earn a total profit of USD29.1 billion from the Oyu Tolgoi Project, of which

USD19.2 billion will come from taxes. Mongolia will get 59 percent of the total profit of the

Oyu Tolgoi project in the form of taxes, fees, royalties and dividends.

• On the export side, coal has surpassed copper as the largest export, comprising 38% of all

exports, having grown 129% yoy in July.

• China is the sole destination for Mongolia’s coal exports and it is the largest thermal coal

consumer in the world. Mongolia’s exports of coal are expected to grow with new coal mines

coming on board.

TRADITIONAL ECONOMIC SECTOR:

The diversity of Mongolia’s economic sectors is constrained by its climate, geography,

territorial size, geopolitical location, natural resources, cultural heritage and limited market

size.

Agriculture Agricultural production currently comprises of 31 percent wheat and wheat products, 30

percent meat products, 27 percent dairy products, 2 percent skins and hides, 2 percent fruit

and vegetables, 2 percent livestock feed and 1 percent animal and plant oils.

There is great potential for exports of high value-added industrial products based on red

meat, cashmere, yak hair, sheep’s wool, and camel hair .

The Red Meat Processing Industry:

Some 40 percent of the Mongolian labor force continues to be involved in mostly nomadic

livestock herding.

The Mongolian constitution states that the land belongs to the State, so the herders cannot

own, or lease, the land on which they graze their animals. Herders increase their livestock (43

mln. head of livestock) numbers in order to survive economically. This has led to 71 per cent

of the land being subject to some form of degradation and desertification and a lack of meat

producing ability in Mongolian animals:

Of the 43.3 million head of livestock in Mongolia, 46.1 percent were goats, 42.4 percent

sheep, 5.8 percent cattle, 5.1 percent horse, 0.6 percent camel.

Mongolia currently faces a problem of overproduction of meat due to an increase in the

domestic animal population. The Mongolian Meat Association estimates that the maximum

amount of meat Mongolia may have to export in 2010 is 111,400 tons. The price for exported

Mongolian meat is about US$1.00/kg, which is three to four times lower than the price

received by Australian meat exporters, depending on the type of meat (e.g. goat, beef, mutton,

etc.).

According to world meat trading estimates by the FAO this amount of meat should easily be

absorbed into the world trading system. However, there are production difficulties and food

safety issues to be resolved before export of meat can be successfully engaged in.

According to the latest available estimates for 2010 by the Food and Agricultural

Organization (FAO), world production of meat will be approximately 283 million tons.

Mongolia’s contribution to world meat exports is very small (0.5 per cent).

Actual meat exports during the last six years averaged around 7.8-13.1 thousand tons and

apparently reached 18,000 tons in 2010. Major export markets include Russia, Japan, Korea,

and China. There are 28 meat processing plants and over 70 meat workshops in the country

with capacity for 85 thousand tons per annum. Yet processed meat is as low as 7.8 thousand

tons. Potential is said to exist for heat processed and frozen cut exports.

Dairy production:

Dairy production increased by 24 percent since 2000, but current demand cannot meet

supply. There are 90 dairy processing facilities operating throughout the country with the

capacity of 70 tons per day (30 million liters per year.) However, only 20 SME processing

facilities operate throughout the year to provide milk and yogurt.

The dairy supply chain and distribution are critical issues to overcome in order to serve the

domestic market. Dairy companies are apparently able to benefit from tax-free imports

on equipment, VAT exemption, interest-free loans, and subsidies for production.

Cashmere: After China, Mongolia is the world.s second largest raw cashmere producer, preparing around

1,153 tons of cashmere each year. The sector produces 5.3 percent of the country.s GDP.

There are currently annual reserves of some 6,600 tons of cashmere.

In 2009, Mongolia had almost 42 million head of livestock, of which goats accounted for 46

per cent. Related to the increasing number of goats, Mongolia produced 6,700 tons of raw

cashmere, accounting for about 28 per cent of the total world supply. The number of cashmere

goats increased almost 300 per cent between 1990 and 2009.

Mongolia currently only uses 15-20 percent of its domestic raw cashmere supply. The

remaining quantity is exported to China. Traders buying for the Chinese market offered

higher prices than domestic processors. The problem is to offer herders an adequate price to

continue to supply high-quality cashmere while at the same time ensuring sufficient supplies

reach domestic processors to allow the expansion of the high-quality end of the market.

Compared to Chinese cashmere, Mongolian cashmere is considered to better because of its

length (micron of 16.5 and 35-37 mm in length) but not as fine. The quality of scoured

cashmere and woven cashmere products meet international standards and many locally made

products have international quality certificates.

There are 82 enterprises with local or foreign investment operating in the sector; 60 percent

engaged in scouring and washing, while the remainder processes woven garments, blankets,

and other types of finished cashmere products.

Of 54 cashmere processing facilities operating in the country, 48 are joint investments with

foreign countries.(26 with China, others with USA, Japan, Italy, the UK and

Switherland)

Cashmere sector seeks the opportunity for receiving technical support in the areas of

production, sales, sales representation, management, branding, market research, and

financing.

Wool Processing:

Mongolia has about 15 million sheep.

The wool processing industry processes more than 20 thousand tons of wool (sheep, camel,

goat, yak, camel, etc.). 70% of the wool originates from sheep. Because Mongolian sheep

wool is coarse and abundant, it is used for manufacturing felt carpets and rugs. More than

716,000 square meters of pure woolen carpets are produced, 20% of which are exported to

foreign markets. Sheep wool is also used for felt and boot production. In recent years, the

production of wadding items for blankets, mattresses, and mats has rapidly developed.

There are 45 factories with domestic and foreign investment operating in the wool processing

industry. Of these, 40 percent engage in early-stage processing and 60 percent in the

production of final products.

Camel wool:

The number of camels in Mongolia has declined dramatically in the past decades. In 2010

there were about 255,000 camels, which produce an estimated 700 tons of “female” wool a

year.

The quality of wool is determined by the age and sex of the camel. Mongolian herders

distinguish “male” and “female” wool. Most is used to make ropes and animal halters, bags

and as insulation in traditional quilted jackets.

The three biggest companies in Ulaanbaatar together process less than half of Mongolia’s

camel wool– about 310 tons a year.

With assistance from the European Union, the Mongolian government has established “Gobi

desert camel wool” as a “geographical indication” – a kind of trademark that guarantees the

origin of the wool (UNDP, 2008). This certification requires that all processing steps are

done in Mongolia. Registered producers can use the geographical indication logo as well as

their own trademarks.

Yak wool: Yaks are an indispensable part of animal husbandry in the high mountain regions where they

are used both for transport and for their productive capabilities. In recent years, the textile

industry has greatly increased its demand for yak fibre. The yak has a high degree of

adaptation to the ecosystem. No other domestic animal can feed on the vegetation growing at

2,000-4,000 metres, in territory marked by steep, treacherous slopes, moorland, bogs and

lakes. The morphological and physiological characteristics of the yak endow it with an ability

to resist cold, to scrape through snow for fodder and to graze very short grass.

Domestic processing factories have started producing high-quality products for both domestic

and foreign markets. This has raised the demand for yak wool, but the supply has been

relatively low. The international yak market is expected to have a bright future, because the

wool is seen as an exotic fibre and fits into the recent revival of natural fibres. The fashion

industry is looking for new and innovative fibres, with the potential for higher margins. The

best example of this kind of development is vicuna fibre, sourced mainly in Peru. The demand

for other exotic fibres, such as mohair and alpaca, is also increasing. Yak wool, which is

warmer than sheep wool, might be the next natural fibre to be taken up by fashion designers.

Textile: The textile industry accounts for 23% of Mongolia’s manufacturing sector.

There are two major carpet producers (one in Ulaanbaatar and one in Erdenet) and several

blanket producers. Their production capacity for scouring, spinning, knitting, weaving and felt

making is far in excess of current production.

Leather: Mongolia currently produces 9.8 million raw skins and hides, of which 43.8 percent (4.3

million) are sheepskin, 38.7 percent (3.8 million) goatskin and 5 percent (0.5 million)

cowhide. Products valued at US $41 million were exported. This represents 1.3 percent of

GDP and 8.6 percent of total exports. Most exports are semi-processed.

More than 58 companies are engaged in the leather processing industry; however, operating

capacity is only between 10 and 40 percent of total capacity.

TOURISM: The Mongolian government has put forward objectives to develop tourism, as a one of

priority sectors of the Mongolian economy: the income of the tourism sector reached 210

million USD, forming 10 per cent of the Gross Domestic Production.

The tourism sector, perhaps given its cross-cutting nature across many other sectors, the egos

in play, personal agendas, and the political appointment of mid-level government officials,

has not been an easy one for any donor to work in. There have been numerous changes in the

past 10 years to the structure of public sector institutions and significant growth in the number

of associations and NGOs working in tourism.

Today, there are over 600 tour operators, 320 hotels, 200 tourist camps, and 182 guides,

who have been certified. Over 40 state and private universities prepare specialists for tourism

mainly in managerial level.

4. WHICH INDUSTRY SECTORS RECEIVE THE MOST INVESTMENTS IN

MONGOLIA (MINING, ENERGY, TRANSPORT, INFRASTRUCTURE,

HEALTHCARE, COMMUNICATIONS)?

Over ten thousand foreign companies (including the oil sector) have been registered from 104

countries with the total direct investment of 4.8 bln USD by the end of 2010. 76.8 % of the

total investment made during 2005-2010 period. FDI, in 2010, has reached 1,025 mln USD of

769 companies.

Rio and Ivonhoe are investing $2.5 billion in Oyu Tolgoi (OT) in 2011 on top of about $1

billion to date with expected total investment of $5 billion and production in 2013. (Note:

Mongolia’s GDP is approximately $5-6 billion)

Source: FIFTA /Foreign Investment and Foreign Trade Agency of Mongolia/

In terms of sectors, mining and geological prospecting took almost the half of the total

investment and counts 65.3 %, trade and catering service -18.9%, banking and finance -2.7 %,

light industry -2.2 %, construction and production of construction materials-1.5 %, processing

of animal originated materials-1.1%.

11.00 37.00 54.00 40.00 44.00 84.00 90.60 126.00 172.51 205.37 237.07

316.00 366.00

499.00

708.00 801.00

1,026.00

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

US$

mil

Year

FDI INFLOWS IN MONGOLIA

FDI

Geologic…

Trade and …

Others

Bank and …

Light …

Engineeri…

Processin…

Informati…

Transport…

Productio…

3,158,716.42913,702.04

231,785.68

131,390.33

107,908.16

74,317.26

55,411.01

36,108.56

28,039.30

21,984.49

FDI by sectors in US$ mil (1990-2010.12.31)

5. NAMES SOME MAJOR PROJECTS AND DESCRIBING THE ITEMS

(VALUE USD), INDUSTRY SECTOR, PROJECT DESCRIPTION?

Project 1

Project 2

Project 3

Project 4

Project 5

Project 6

Project 7

Project 8

Project 9

Project 10

Project 11

Project 12

Project 13

Project 14

Project 15

6. MONGOLIAN BIGGEST COMPANIES (TOP 20)

# 2010 Web link Main sector

1

Erdenet

MiningCorporation

www.erdenetmc.mn Mining

2

МCS Group www.mcs.mn Electronics, Real estate,

Food,

Telecommunication,

Energy, Construction

Mongoliin Alt

Corporation

www.mak.mn Mining - Gold

4

Energy Resource

LLC

www.energyresources.mn Energy plant, mining

coal

5 APU Sh.CO. www.apu.mn Beverage

6 NIK LLC www.petrovis.mn Fuel trading

7 Mîbicom Group www,mobicom.mn Telecommunication

8 Boroo Gold Co.,Ltd www.centerragold.mn Mining

9

Tavan Tolgoi

Group

www.tavantolgoi.mn

Minig

10

Just Group www.justgroup.mn Fuel trading, meat

processing, mining

11 Petrovis www.petrovis.mn Fuel trading

12 Magnai trade www.magnaitrade.mn Fuel trading

13 Sod Mongol Group www.smgroup.mn Fuel trading

14

Monnis

International

www.monnis.com

Trade

15

Nomin Holdings www.nomin.mn Retail store chain,

construction, cashmere,

carpet

16 Wagner Asia www.wagnerasia.com Equipment distribution

17 Shunhlai Group www.shunhlai.mn Fuel trading

18 Tsairt Mineral www.tsairt.mn Mining

19

Tavan Bogd Group www.tavanbogd.com Trade, flour mill,

banking, tourism

20

4th

Thermal power

station

www.energy.mn

Power Energy

Source: MNCCI

MONGOLIAN TOP 20

COMPANIES /with branch companies/

No. TOP20 Branch companies Established

Year Main operation

1 Erdenet Mining 1978 Mining

2 MCS Group

MCA Group 1993

Computer tenchnology, electric,

telecommunication, mining

MCS Electronics 1999

internet, trade of computer and

equipment and software

Unitel Group 2011

mobile telecommunication, fixed phone, satellite communication, IPTV, broadband and fiber

optic network.

Spirt Bal Buram Beverage

MSC Coca Cola 2001 Beverage

MCS Asia Pacific Bevery

Beer(sengur, jalam har,

tiger…)

Univision 2011 IPTV, INTERNET and FIXED-LINE PHONE

MCSCOM LLC Internet Service

Provider

ORBITNET LLC Satellite Internet and Data Communication

Service provider

Skynet COM 2007 fixed-line phone sector

Monsat 2003 “Iridium, Bgan, Isat, Globalstar” system

services

Skynetworks LLC 2004 Fiber Optic Broadband networking company

Telemax LLC Wimax based Wireless

Broadband Internet Service provider

3 Energy Recourse 2005 Mining

4 Mongolian Alt Corporation 1993 Gold mining

5 APU-JSC APU Co.,LTD 1924 Beverages

Apu Trading 2003 Trading

6 NIC Co., ltd 1982

importation, distribution, and

marketing of gasoline, diesel, aviation fuels, gas oil and lubricants

7 Mobicom

Group

Mobicom Co.,LTD 1996

mobile communication services, internet

services, and satellite communication

services.

Newtel Company 2000 network service

provider

Mongol Content LLC 2005 digital content business

Ulusnet LLC 2005 Internet servicing

8 Boroo Gold Co.,Ltd 2004 Gold mining

9 Tavan Tolgoi Group 1966 Coal mining

10 JUST Group

Just Group 1999

oil product import and distribution industry,

construction and international trading

Just Oil Ltd Oil products trading

Olon Ovoot Gold LLC 2009 Gold mining

Savings Bank 1940 Banking service

Erd Tana LLC 2006 Constraction

Makh Market LLC Meat processing

11 Petrovis LLC

Petrovis Co.,LTd 1997 Petrolium

Petro Matad LLC Crude petrolium and natural gas industry

Unigas LLC 2004 servicing gas coal

Primedaatgal LLC 2004 Insurance

Gei Gei Pi LLC 2007 Restaurant

12 Magnai

trade Group

Magnai trade Group 1994 import of crude

petrolium and natural gas

MT Petroleum LLC importing and

distributing petroleum products

MT Oil LLC 1999 importing and

distributing lubricating oil

MT Drilling LLC 2005 geosynoptics drill hole

MT Market LLC 2007 fast food and mini

market

MT Auto LLC 2003 servicing and delivery

fuel

MT Security LLC 2006 security servicing

MT Deko LLC 2001 manufucturing and trading apartment

furniture

ARB Mongolia LLC 2006 importing spare parts

G Mobile LLC 2006

mobile communication services, internet

services, and satellite communication

services.

13 Sod Mongol Group 1999 importing and trading of fuel, intertainment

and tour

14 Monnis

International Co., Ltd

Monnis International Co,LTd

1998 car servicing,

equipment of mining and trading

Monnis Mining LLC Mining

Monnis Properties LLC 2006 Constraction

Monnis Motors LLC 1998 importing car and

spare parts

Monnis Com LLC 2008 computer trading

Monnis Insurance LLC 2010 insurance servicing

Aero Mongolia LLC 2001 air transport

Energy Concern LLC 1974

execute project, researching wind and

solar energy and giving advice

MSPL LLC 2010 Logistic

15 Nomin Group

Nomin Co.,Ltd 1992 trading, manufacturing, servicing and financial

sectors

Nomin Electronics LLC 1992 trading

Nomin Foods LLC 1997 supermarketing

Nomin Fasion LLC 2003 fashion

Nomin Home Style LLC 2004 trading home

furnishings

Nomin Standart LC 2002 importing construction

materials

Nomin Motors LLC spare parts servicing

Nomin Cosmetics LLC 2009 personal care and cosmetic products

Ulaanbaatar Impex LLC

1993

Storage services, Railroad services,

Custom controlled yard , Customs protected

storage service Cooling

storage service

Erdenet Carpet LLC 1981 Carpet

Ulaabaatar Carpet LLC 1961 carpet

Nomin Insurance LLC insurance servicing

Nomin Union LLC 2000 credit and saving union

Nomin Realter LLC

antique ware sales, auction sales, escrow

account service, commercial

advertisement, legal consulting, insurance

and financial consulting

16 Wagner Asia TT 1994 importing spare parts

17 Shunhlai Group 1993 importing

18 Tsairt Mineral LLC 1998 Mining(zinc core)

19 Tavan bogd

Group

TAVAN BOGD 1995

trade, service, manufacturing,

tourism, hospitality, banking and real estate

sectors

Tavan Bogd Trade Co., Ltd

2002 Import and Distribution , investment, real state

development

Tavan Bogd Co .,Ltd 1995

selling of FinePix brand digital photo camera from “Fujifilm” and

XEROX is printing and copying for office

documents and Double A paper

Tavan Bogd International

1998 Cosmetic, houshold

trading

Tavan Bogd Cosmetics Co .,Ltd

1998 importer of Household and Beauty Products

Tavan Bogd Motors Co., Ltd

2004 Car sales, car sevices, spare parts sales, tyre

sales

ZAMine Services LLC 2010 official distributor of Hitachi Construction

Machinery

Ulaanbaatar Flour Co., Ltd

2002 wheat flour supplier

Ulaanbaatar Printing Co ., Ltd

1997

All types of school notebooks, printing,

design and layout prepration shop

servicing

Juulchin Tourist Corporation

1954 tourism

Air link Mongolia Co.,Ltd

20 sales of air ticket and

tourism

Mongol Mashine Consertium Co., Ltd

2001 lender of office spaces, warehouses, a garage and a production plant

Ulemj Ih Co., Ltd supermarketing

20 4th Thermal Power Station power station

FINNISH COMPANIES WHICH EXPORT TO MONGOLIA

In 2010, the trade turnover reached US$13mln., showing an increase by 3.5 times

from the year 2009.

- Import from Finland costing US$ 10.6 mln.

- Export to Finland costing US$ 2.7 mln.

Import goods from Finland: mostly machines and techniques for factories and mining

and paper/products.

Export to Finland: ready-made clothes, shoes, wool and cashmere products.

Finnish Companies in Mongolia:

“Outukumpu” company has supplied a copper-melting technology to Mongolia.

“Sandvik” Sweden-Finland joint company of mining equipment has opened its

representative in Mongolia.

“Kristec” company exports paper/paper products to Mongolia. /since 1998/

“Tikkurila” company has its official distributor in Mongolia. /since 2008/

“Honka” company also has its distributor. /started 2007/

------------------------------------------------------

EXPORT PROMOTION ORGANIZATIONS IN MONGOLIA:

SWEDEN – through their Embassy in China

AUSTRIA – through their Embassy in China

NORWAY, DENMARK, SWITZERLAND, BELGIUM, HOLLAND – No

Annex:

“Doing business index”

World Bank Managing Director Dr. Juan Jose Daboub: “In doing business, Mongolia does okay. I

understand that Mongolia aims at becoming a top-10 destination for doing business in Asia in 2012. That is

welcomed”

THANK YOU FOR YOUR

ATTENTION

FINCENTER, ULAANBAATAR,

MONGOLIA

Nov 2011

Current economic situation of Mongolia - Brief Introduction

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