Mongolia

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Unexpected fluctuations in cashmere prices in 2012 have dampened optimism in Mongolia’s textiles sector, despite the introduction of incentives from the government aimed at streamlining the industry. However, industry players say a planned commodities exchange will resolve the issue.
The information and communications technology (ICT) sector has been boosted in recent months by measures to enhance local online content and implement e-bidding systems for investors. However, technological glitches during the elections in June have highlighted issues with internet coverage.
Although Mongolia’s agriculture sector is feeling the benefits of new management approaches and seeing intensified production thanks to technological advances, it is still struggling to overcome issues created by under-investment and a transition from a planned to a market economy.
With the 2015 target date by which Mongolia hopes to welcome 1m visitors per year drawing nearer, officials are calling on the government to channel investment into the country’s tourism industry and take specific steps to encourage greater private sector participation.
Foreign and domestic investor interest in Mongolia’s capital markets is rising thanks to fresh progress towards the approval of a planned new securities law and plans to modernise the country’s stock exchange.
Concerns that a new foreign investment law would severely impact Mongolia’s natural resource sector and economy as a whole are beginning to ease, as industry players now see that reformed legislation is necessary for the country’s economic evolution.

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