Policy on sustainable investment to keep economic growth stableEconomy
Ulaanbaatar /MONTSAME/. The importance of a clear, consistent policy on investment was highlighted at the international conference held under the theme, ‘Investment Climate: Stability’, on October 22. The conference was co-organized by the Bank of Mongolia, International Finance Corporation, and the National Development Agency.
While foreign investment in Mongolia was USD 1.5 billion in 2016, it reached USD 2.7 billion, with an increase of 80 percent in 2018. Furthermore, entities with foreign investment made up 23 percent of the total tax revenue in 2018. However, as there is a potential risk of economic difficulties due to the fluctuating rate of export commodities, officials highlighted the possibility to overcome the difficulties with direct foreign investment and increase in exports.
Head of the Cabinet Secretariat L.Oyun-Erdene said, “Foreign-invested entities making 23 percent of our country’s total tax revenue shows the impact of foreign investment in the economy. Specific goals and objectives on regaining investors' confidence and attracting investment have been reflected in the Government’s plan for 2016-2020. In order to implement these goals, we are currently working on creating a favorable environment for new investors, protecting their rights, and introducing the best international practices.”
Governor of the Bank of Mongolia N.Bayartsaikhan said, “The macroeconomy of Mongolia has stabilized since 2017. As of the first half of 2019, GDP grew by 7.3 percent. Despite this, the fluctuating rate of raw commodities and foreign debt risks continue to be problematic. Thus, to attract investment and find additional sources for programs on increasing the competitiveness of export products, and diversifying the economy, creation of a favorable investment environment is currently the most important issue.”
Head of the National Development Agency of Mongolia B.Bayarsaikhan said, “In partnership with the International Financial Corporation of the World Bank, the National Development Agency has developed a report on the investment reform of Mongolia. The policy paper on attracting investment is currently being developed based on the report. It is highly important to define the vision for the sectors that will serve as a pillar of development, foreign investment, and human resource and personnel 20-30 years into the future. In this framework, the National Development Agency has begun to work on defining the vision for up to 2051.”
IFC’s Resident Representative in Mongolia Rufat Alimardanov said, “Alongside foreign investment and localization of know-how, it will be crucial to have a policy on investing in increasing domestic business opportunities. Our research showed that Mongolia is able to benefit the most from investments in sectors, such as mining, tourism, services, and agriculture. We are eager to give support in creating opportunities in the sectors, and realizing possible opportunities.”