- Our Journalist S.Odbayar is reporting from Mongolian Economic Forum 2015. -
Investment Environment and Path Ahead Panel is being presented at Great Hall.
Moderator Ts.Tumentsogt, President of CEO Club emphasizes on the ways how Mongolia can restore its credibility in this time declined foreign investments.
First presentation is on the Foreign Direct Investment Risks by Ch.Ankhbayar, Senior Risk Analyst at Mandal General Insurance.
"FDIs has not been in decline only in Mongolia, but also the trend is globally slowing down, whereas in Mongolia FDI decline is very sharp. The main reason for FDI drop in Mongolia is basically can be concluded as the decline in the commodity prices leading this market to slowdown. In this regard, Chinese market should come into the spotlight as being one of the biggest market for Mongolian commodity.
Chinese economic policy and reforms.
Main reforms are directed at the green development, leading to closure of the coal power plants to reduce the air polution and the next reform is being made at reducing the number of the steel smelters. This trend poses great threat to the commodity prices as the demand from the Chinese market will decline over the years.
FDI decline with current inertia will comprise only 5 percent of the GDP by 2016.
IF Mongolia can attract FDI equal to USD 2 – 4 billion it will drive the MNT
depreciation down and lead to appreciation agaisnt USD by 24-48 percent.
FDI inflow greatly depends first on the next supercycle, which is in turn dependent on the Chinese commodity market. Second is increasing the country credibility through good governance, which is more dependent on internal environment."
Second presentation is on Ways to Improve the Investment Environment by S.Javkhlanbaatar, Head of Investment Agency.
"The emphasis is given on the notion that FDI is not only the inflow of the cash, but there is also the outflow, where in Mongolia currently is not having a sofisticated registry system on the outlowing funds.
Number of the foreign invested companies registered in the past few years have declined as well. The reasons for the decline of the FDI:
- Drop of prices of main commodities on the global market
- Halted projects
- Uncertainty – changing legal environment, negative message and unfavorable attitude.
Policy approach:
- Adhere to the interests of the participants
- Diversification
- More favourable conditions and use of proper leverage
- Protection for the participants by creating a buffer."
- Our Journalist S.Odbayar is reporting from Mongolian Economic Forum 2015. -
Investment Environment and Path Ahead Panel is being presented at Great Hall.
Moderator Ts.Tumentsogt, President of CEO Club emphasizes on the ways how Mongolia can restore its credibility in this time declined foreign investments.
First presentation is on the Foreign Direct Investment Risks by Ch.Ankhbayar, Senior Risk Analyst at Mandal General Insurance.
"FDIs has not been in decline only in Mongolia, but also the trend is globally slowing down, whereas in Mongolia FDI decline is very sharp. The main reason for FDI drop in Mongolia is basically can be concluded as the decline in the commodity prices leading this market to slowdown. In this regard, Chinese market should come into the spotlight as being one of the biggest market for Mongolian commodity.
Chinese economic policy and reforms.
Main reforms are directed at the green development, leading to closure of the coal power plants to reduce the air polution and the next reform is being made at reducing the number of the steel smelters. This trend poses great threat to the commodity prices as the demand from the Chinese market will decline over the years.
FDI decline with current inertia will comprise only 5 percent of the GDP by 2016.
IF Mongolia can attract FDI equal to USD 2 – 4 billion it will drive the MNT
depreciation down and lead to appreciation agaisnt USD by 24-48 percent.
FDI inflow greatly depends first on the next supercycle, which is in turn dependent on the Chinese commodity market. Second is increasing the country credibility through good governance, which is more dependent on internal environment."
Second presentation is on Ways to Improve the Investment Environment by S.Javkhlanbaatar, Head of Investment Agency.
"The emphasis is given on the notion that FDI is not only the inflow of the cash, but there is also the outflow, where in Mongolia currently is not having a sofisticated registry system on the outlowing funds.
Number of the foreign invested companies registered in the past few years have declined as well. The reasons for the decline of the FDI:
- Drop of prices of main commodities on the global market
- Halted projects
- Uncertainty – changing legal environment, negative message and unfavorable attitude.
Policy approach:
- Adhere to the interests of the participants
- Diversification
- More favourable conditions and use of proper leverage
- Protection for the participants by creating a buffer."