Exporting to Mongolia

Mongolia’s economy has continued to grow since 2014, with growth expected to continue through to 2024 (IMF, 2018). Mining is a large economic sector for Mongolia, and the renewable energy sector is also expanding. The overall business environment improving.

Natural resources

Mongolia has large mineral deposits including gold, copper and coal. Much of the country is still to be surveyed. There’s potential for British companies in mining exploration, extraction and production, supplying mining equipment and technologies and providing related research and consultancy services.

Renewable energy opportunities

Mongolia has abundant solar and wind power resources, along with some hydropower opportunities. British companies can get involved in this sector by using their expertise and knowledge to provide new technologies and services.

Strong economy

In 2017, the IMF provided Mongolia with funding worth around $5.5 million (IMF, 2017). The country’s growth in GDP was 6.9% in 2018, driven by supportive external conditions and sharply rising domestic demand (IMF, 2019).

Ease of doing business

81st

out of 190 countries (World Bank, 2019)

Currency

Tögrög

Business language

Mongolian

You are likely to need a translator

GDP per capita

$4,026

UK is $42,558 (IMF, 2018)

Economic growth

6.9%

(IMF, 2018)

Time zone

GMT +8

Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in Mongolia have identified particular opportunities for UK businesses in the following sectors.

Doing business in Mongolia

Preparing to export

Tax

The UK and Mongolia have signed a double taxation agreement, meaning the same income is not taxed twice.

VAT

VAT is 10% on goods and services, and on imports into Mongolia. You’ll need to register as a VAT-paying company if your turnover reaches 10 million tögrög (around £2,900).

If you’re registered for VAT, it may be possible to zero-rate the goods you export to Mongolia, provided certain conditions are met.

Regulations

The Mongolian Agency for Standardization and Metrology (MASM)(website in Mongolian) has responsibility for standards. Labelling in English or Russian is acceptable. For medicine, you must include instructions in Mongolian.

Operating in Mongolia

Intellectual property

As a first step, we advise you to speak to an intellectual property lawyer if you think you need patent protection when exporting.

Mongolia has joined the World Intellectual Property Organization (WIPO), and signed and ratified most treaties and conventions. However, in practice, infringements can be left unchallenged.

Payment terms

Mongolians use cash and electronic payments to conduct trade. Although the tögrög is the official currency for all domestic transactions, dollars may be used for some exchanges. These payments can be in hard currency or through wire transfers into and from Mongolian bank accounts.

Letters of credit remain hard to obtain due to weaknesses in banking supervision and difficulties in collecting defaults. Please click here for more information on methods of payment in Mongolia.

Considerations

UK companies entering into agreements in Mongolia should get professional legal advice. See a list of lawyers and translators in Mongolia.

Next steps

DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.