March 27, 2018


Mongolia Economic Forum 2018 to focus on economic diversification, tax reform, social welfare

Summary: Mongolia Economic Forum 2018 will be held on March 28 and on May 21-22, in two stages. On March 28, dialogues will be held on “Mining and its Benefits”, “Fuel, Pollution, Congestion and Solutions”, “Stable Agriculture - Development Pillar”, “Privatization and Reforms”, and “Tourism and the Liberalization of Air Transportation”. The Director of Mongolia Economic Forum NGO, B. Lakshmi, said, “Several bills have been discussed in previous forums and major changes had been made accordingly.” It is expected that forum participants will submit proposals on Cabinet's proposed tax amendments. Since the beginning of the Ministry of Finance's public consultation sessions, launched roughly 30 days ago, over 5,600 comments  have been received regarding the package of amendments to personal and corporate income tax laws.

Keywords: economic development, tax reform, Ministry of Finance   The National Post  /page 2/


GoM proposal to grant three-year visas for South Korea supported

Summary: During the third meeting of a joint committee representing the Government of Mongolia and the Government of the Republic of Korea, new proposals for visa requirements and infrastructure investment were discussed. The visa proposals include issuing three-year visas to Mongolian citizens who have travelled to South Korea more than five times in two years, or five-year visas to Mongolian citizens who have visited South Korea more than 10 times in two years. It was also suggested that the Mongolian executives of companies that pay at least 500 million MNT in taxes each year be allowed to travel to South Korea with visa waivers. Minister of Nature, Environment and Tourism N. Tserenbat said, “We made proposals to collaborate with South Korea in the environmental area, to continue projects with South Korean entities that have already been started, and to cooperate in preparing experts in tourism. Representatives from the South Korean government offered support for solving matters related to visa-free travel and increasing the number of Mongolian scholarship students.” Mongolian delegates also requested the advance of a South Korean loan of 500 million USD, which Cabinet intends to apply to building heating network lines, residential construction projects, and upgrading public transportation.

Keywords: foreign relations, GoM, Republic of Korea   The National Post /page 2/

Foreign workforce to be cut by 30 percent in 2018

Summary: The Ministry of Labor and Social Welfare and the General Authority on Labor and Social Welfare organized a meeting with over 80 entities that have a foreign workforce. State authorities granted 38,553 preliminary work permits to foreign workers in 2015, 27,526 in 2016, and 19,715 in 2017. It is estimated that there were 4,703 foreign experts and workers in Mongolia at the end of 2017. Minister of Labor and Social Welfare N. Tserenbat stated, “The number of foreign workers would be reduced by up to 30 percent in 2018, and by 25 percent in 2019.” Income from employment fees for foreign employees is deposited to the state's Employment Support Fund, and used to strengthen the domestic labor market, increase the number of employment opportunities, and to organize vocational trainings.           

Keywords: Labor Law, Ministry of Labor and Social Welfare   The Official Gazette /page 2/

online story  

Natixis: Mongolia's economy recovering        

Summary: Economic analysts suggest that tightening fiscal policy can often lead to a GDP decrease, but French investment bank Natixis notes that following Mongolia's enrollment in the IMF’s extended fund facility program one year ago, Mongolia's economy has seen recovery. After reducing its state budget expenses, Mongolia's GDP grew by 5.1 percent in 2017. Natixis reports that price increases for minerals were a main factor influencing growth. Natixis analysts predict that if the minerals  prices continue to rise, the Government of Mongolia won’t need to make strenuous effort to reduce state budget deficits.

Keywords: economic growth, GDP, IMF

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The American Chamber of Commerce in Mongolia · 8F Naiman Zovkhis Building 21 Seoul Street · Ulaanbaatar, 01 14251 · Mongolia