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Over the past decade or so the agriculture sector – one of Mongolia’s oldest industries – has remained integral to the country’s long-term development strategy. Until just a few years ago the majority of Mongolia’s population was involved in herding or farming in one way or another, and as recently as 2011 more than 30% of the country’s workforce was employed in agriculture. While this figure is expected to decline in the coming years, largely as a result of steadily increasing rural-urban migration, a considerable percentage of the population will likely continue to be involved in agricultural activities – primarily in the livestock segment – for the foreseeable future. Generally speaking, production levels and overall food quality are improving across the sector, and exports are increasing apace. The cashmere segment in particular continues to provide high revenues for many Mongolian companies and individual herders, and opportunities for meat and other animal-product exports bode well for future growth. This chapter contains an interview with Sh. Gungaadorj, Former Mongolian Prime Minister, and Head, Mongolian Farmers and Flour Producers Association.

Holding up during difficult times and helping to take the edge off the commodity cycle, industry in Mongolia has contributed significantly to the economy. While resource prices have been dropping and related economic activity and foreign direct investment are not at expected levels, manufacturing and processing have been growing, with industrial production up almost 15% in 2013, providing a measure of countercyclical support. More investment is needed in the industry and retail sectors, and many of the most promising industries have been largely ignored by investors and the government, crowded out by mining and minerals opportunities. Still, the events of recent years have demonstrated that a more diversified economy is needed and manufacturers are evolving to capture new opportunities. This chapter contains interviews with M. Oyunchimeg, CEO, Mongolian National Chamber of Commerce and Industry; and Ts. Erdenebileg, CEO, APU Company.

Since it was liberalised in the early 1990s, Mongolia’s telecommunications sector has grown rapidly. As of the first half of 2014 the four major mobile operators reported more than 4.3m registered users in total. This figure is considerably higher than the population, which means many residents own more than one SIM card. Increases in mobile penetration have facilitated rapid technological improvements across all four mobile operators, as well as steadily rising competition. Given the growth potential in the data segment, local players are looking forward to rising revenues. Indeed, Mongolia’s nascent ICT industry – which overlaps considerably with the telecoms sector – is in the early stages of what many local firms expect to be a period of considerable innovations. Despite broader challenges facing the country, the domestic technology industry is regarded as a strategic growth area and the government has made a concerted effort to encourage the sector to invest in expansion. With this in mind, most local players see a bright future for Mongolian ICT. This chapter contains interviews with Ts. Jadambaa, Chairman, the Information Technology, Post and Telecommunications Authority; and R. Ganbold, CEO, Unitel; and a viewpoint from P. Margad-Erdene, Executive Director, ICN LLC.

Rapid economic expansion in Mongolia over the past half-decade has played out across many of the country’s constitutive industries, and construction and real estate are no exceptions. Much of this growth took place in the residential segment, which has been the focus of an increasing number of large-scale, state-led development projects in recent years. Given the attention the construction sector is drawing from the public and private sectors, most local construction firms are looking forward to higher revenues in the years ahead. Growth in the real estate sector can be attributed to a state-sponsored mortgage scheme, fast-growing demand for commercial retail space, and, more broadly, increasing urbanisation and rising incomes among the burgeoning middle class. Despite challenges, including the dip in real estate prices in late 2014 and early 2015, many property developers and market-watchers remain optimistic about the future. This chapter contains interviews with G. Batdorj, Executive Director, Khutul Cement Shohoi JSC; and B. Jugder, President, National Development Corporation.

The transportation situation in Mongolia has improved a great deal over the past few years. Substantial additions have been made to the road system, with a total of 5469 km being built between 2012 and 2016. In terms of rail a number of breakthroughs were made in 2014 that promise to expedite progress on lines that have been long delayed. Overall, real progress has been made and momentum remains strong; however, the country still faces considerable transportation and logistics challenges. Questions remain about balance and focus, and the international community is encouraging Mongolia to prioritise logistics and key infrastructure. The right pieces are being put in place and the country will soon find itself better integrated with international transport networks. This chapter contains interviews with P. Batsaikhan, Former CEO, Mongolian Railways; and T. Lkhagvasuren, Director-General, Civil Aviation Authority of Mongolia.

Despite abundant resources, Mongolia has struggled to shore up its energy security and decrease its dependence on Russia for refined fuel and electricity. The government has made some headway in diversifying fuel imports and improving its terms of trade, while several mid-stream projects could develop domestic refined fuel production. Meanwhile, important refurbishments of Mongolia’s ageing power infrastructure in 2014 will ensure adequate electricity supplies for the next three years, but new greenfield plants are needed in the long term. New wind farms will provide some respite, but larger coal-fired and hydroelectric plants at various planning stages will be key to balancing fluctuating supply and demand. As Mongolia develops a mix of larger renewables projects and decentralised off-grid systems, it is also seeking to develop its coal value chain to produce both power and coal-based fuels. This chapter contains interviews with Gérard Mestrallet, CEO, GDF SUEZ; and J. Oyungerel, Chairman, Petrovis.