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Two issues facing any prospective investor in a developing nation are what activity is permitted and whether the laws of that country will protect their investment. For several years Mongolia’s tremendous potential has been recognised, not just in terms of its mineral resources, but also in agriculture and renewable power generation. The country treasures its independence, but as a functioning democracy, it recognizes the need to respect the rights of its citizens and foreigners alike. Significant strides have been made in the past 20 years to produce a body of Mongolian law that achieves this aim. In this section, Clyde & Co gives an overview of the legal framework for conducting business in Mongolia and features a viewpoint from Stephen Tricks, Consultant at Clyde & Co.

Currently, Mongolian legislation allows for several forms of business entities, which include joint stock, joint venture and limited liability companies. Economic and business activities in Mongolia are regulated by a variety of laws, including the Law on Foreign Investment of 1993 and the Company Law of 1999. To establish a registered presence in Mongolia, foreign companies may also choose to operate through a representative office or branch. There are many financial, legal, commercial, and tax implications arising from the choice of business vehicle. In this section, Ernst & Young Mongolia gives an overview of the Mongolian taxation system, featuring a viewpoint from Christian Pellone, Head of Tax.

Opportunities for new media outlets blossomed following the fall of the one-party communist regime in 1989-90, with private print and broadcast players entering the market soon after. As of the start of 2012 there were 469 media outlets nationwide. Mongolia has a vast range of outlets, from national newspapers and TV channels to local radio stations broadcasting to herding communities. The country’s advertising sector, meanwhile, has been strengthening fast on the heels of economic growth, as foreign interest and subsequent investment have increased. There has also been a diversification in advertising platforms, from traditional television ads to digital billboards. With continued expansion and rising incomes, the period ahead is likely to see greater sophistication in Mongolian media, along with greater competition.

While it is much improved from its state of near-collapse following the end of the Soviet period, health care has failed to truly recover. Thanks to the work of a number of donors, a few local doctors, and small investments made by international medical groups, it has experienced some improvements. However, the health care industry is underfunded, lacking in qualified doctors, and almost devoid of preventative care. Despite the sector’s weakness, it has a number of assets that could help it over the long term, including an extensive history of traditional medicine, which is enjoying a revival. Mongolia also has many well-qualified and experienced doctors who have the technical knowledge to help push the sector forward. The education sector is underfunded and poorly managed. With the country set to come into substantial wealth from mining, it needs to spend that money wisely so that its citizens have the skills, expertise and knowledge to make a living from the industry now as well as continue to thrive after the minerals are depleted. Boosting bilingual education is a new initiative, and steps will be taken to improve the quality of higher education institutions. The government is open to foreign participation, but is most interested in tangible aid, such as school construction. This chapter contains an interview with Peter Morrow, Chairman of the American University of Mongolia

Forty per cent of Mongolia’s population is employed in the agricultural sector, which makes up 15% of GDP. The sector, which involves the raising of livestock for meat and wool, as well as the cultivation of grains and vegetables, has the biggest impact on the lives of average Mongolians. What is particularly encouraging for Mongolia is the possibility of becoming self-sufficient in terms of food, but agriculture can do more than simply meet domestic needs. It is a major source of export revenues, second only to mining and minerals. Issues surrounding foreign investment in the mining sector have thrown a spotlight on the importance of developing a diverse economic base that will enable sustainable progress. Agriculture plays an important role in this economic model. This chapter contains an interview with T. Nasankhuu, President of Monfresh Group.