Ulaanbaatar, March 21, 2025 /MONTSAME/. The MONTSAME National News Agency spoke with the President and Chairman of the Board of Directors of the Mongolian National Chamber of Commerce and Industry (MNCCI) Mr. Tur-Od Lkhagvajav.

Congratulations on your appointment as the President and Chairman of the Board of Directors of the Mongolian National Chamber of Commerce and Industry. When was the Mongolian National Chamber of Commerce and Industry established, and how have the Chamber's operations evolved over time?

The Mongolian National Chamber of Commerce and Industry was founded in 1960 under the Ministry of Trade of the Mongolian People’s Republic to manage foreign trade with capitalist or Western countries at that time. Today, our Chamber operates within the confines of the Law on Chamber of Commerce and Industry, which was passed by the State Great Khural of Mongolia in 1995.

The Mongolian National Chamber of Commerce and Industry supports the country's economic development by fostering a favorable business environment, facilitating trade, economic, scientific, and technical cooperation between Mongolian and international entities, and assisting businesses in exporting domestically produced goods and products. The Chamber is a public legal entity. The MNCCI is a nationwide non-governmental organization with voluntary membership. Currently, it has over 6,400 members, of which 2,700 are located in Ulaanbaatar city and 3,700 in rural areas of Mongolia.

We are also delegated with some governmental tasks, such as issuing certificates of origin for national products, providing accreditation, and granting patents for intellectual property and copyrights. Our one significant initiative is the issuance of Force Majeure Certificates through the National Accreditation Center of Mongolia, which I would like to specifically mention, as it was quite instrumental during unforeseen events, such as the COVID-19 pandemic. So, businesses can collaborate based on mutual trust, and the Chamber itself upholds this principle by fostering trust among its member organizations and partners. 

You just mentioned that the MNCCI has over 6,400 members. Looking at the distribution by sector, which sector dominates the Chamber’s membership? Based on this, we might get a general picture of which sectors play a major role in our country’s economy.

Today, over 90 thousand entities and entrepreneurs operate in Mongolia. The Chamber's membership includes both large holdings and smaller entities. Small and medium-sized enterprises are also among our members. Over the past 4–5 years, we have actively supported startups, particularly those led by young people and women entrepreneurs. State-owned and locally owned enterprises, such as Erdenet Mining Corporation SOE, Mongolrostsvetmet SOE, and Erdenes Tavan Tolgoi JSC, which collectively account for more than 90 percent of Mongolia’s GDP, are proud members of our Chamber. Additionally, MNCCI member organizations provide employment for over one million people.

The mining and extractive industry plays a pivotal role in our country's government budget. Therefore, the Chamber supports transparency in the mining sector. We have launched programs and projects to improve corporate governance and uphold business ethics in mining companies, especially focusing on state-owned and locally owned enterprises. 

Currently, 22 policy councils operate under the MNCCI. In 2025, we established the Regional Development Policy Council. The Chamber also has affiliated local chambers in all 21 aimags of Mongolia. To drive regional development forward, we have restructured our local chambers into seven regions with designated plans and budgets for them. Starting this year, the Chamber and the Government of Mongolia will jointly host the Regional Development Forum and implement various multilateral initiatives.

Following the 2024 Parliamentary Elections of Mongolia, the Government of Mongolia has announced its Action Program. What legislative proposals is the Chamber developing, and what innovative regulations are expected to be introduced?

The Mongolian National Chamber of Commerce and Industry will partner with the Government of Mongolia under Mongolia's long-term development policy "Vision-2050," the New Revival Policy, and the Government's 2024-2028 Action Program, focusing on three main areas: first, the transition to a green economy; second, the shift towards artificial intelligence and advanced technologies; and third, the transformation of the labor force and labor market.

We are currently working on amending certain laws that directly impact the business environment in Mongolia. One of the most pressing challenges businesses face is the tax environment. The MNCCI conducts a Business Environment Survey among its member organizations every two years. The 2023 survey concluded that "The tax environment is not always favorable for businesses." In response, we are collaborating with the Working Group established by the State Great Khural of Mongolia to organize a series of discussions and develop provisions to be reflected in these laws. In addition, we are working on draft laws related to business and finance, such as the Law on Chamber of Commerce and Industry, the Law on Energy Reform, the Law on Increasing Productivity and Improving Governance of State-Owned and Locally Owned Enterprises, the Law on Labor Force Migration, the Law on Permits, and the Law on Commerce.

Mongolia does attract foreign investors. How friendly is our country to foreign investors?

The Mongolian National Chamber of Commerce and Industry has restructured its organizational framework, reducing the number of departments from 11 to three main departments to enhance efficiency. The Trade Policy Department aims at supporting foreign trade, with a dedicated center for promoting exports and imports. The Industrial Policy Department will focus on fostering industrial development, particularly the establishment of industrial parks, in alignment with the Government's objectives. The Investment Policy Department will closely cooperate with the Ministry of Economy and Development of Mongolia and the Investment and Trade Agency of Mongolia to protect the interests of domestic and foreign investors, including the development of the draft Law on Investment to create a more favorable legal environment for investors.

What are the most common concerns raised by foreign investors? What mechanisms does Mongolia use to resolve business disputes?

There are several foreign-invested Mongolian companies registered with the Mongolian National Chamber of Commerce and Industry. One of the main concerns of foreign investors is the need for political stability. With the formation of a Coalition Government following the 2024 Parliamentary Elections, it is expected that Government operations will continue steadily in the coming years. Among the most well-known initiatives are the 14 mega projects of the Government of Mongolia, for which the MNCCI is working hard to attract foreign investment and establish partnerships.

Another issue raised by foreign investors is the stability of the legal environment. We will submit a set of proposals and recommendations for the draft Law on Investment. Our goal is to have the Parliament of Mongolia discuss and approve the law that creates a favorable environment for foreign and domestic investors, ensuring its validity for at least 15-20 years and possibly even beyond 30 years without amendments.

Foreign investors also bring up the issue of dispute resolution with the MNCCI. Similar to the chambers of other countries, our Chamber operates the Mongolian International Arbitration Center. This Center is staffed by legal experts specializing in economics, finance, banking, and investment, ensuring that disputes are resolved fairly and impartially.

The world is increasingly focusing on sustainable development and green economy. What regulations do our business laws provide for incentives for foreign investors? What improvements could be made in the legal framework in this area?

The MNCCI has long supported the production of environmentally friendly products from the very beginning. The Chamber is a leader in driving the green transition. Annually, the MNCCI presents the "Greenpreneur" Award to Mongolian entrepreneurs and foreign nationals for their contributions to the development of green businesses. Starting this year, businesses contributing to the green economy will benefit from cuts in corporate income taxes. Another noteworthy initiative is the collaboration between the MNCCI and the Ministry of Environment and Climate Change of Mongolia to establish a special fund. This fund has already been introduced to the Chamber's member organizations and aims at accumulating MNT 1 trillion every year to support the green transition.

The Mongolian National Chamber of Commerce and Industry issues certificates of origin for export goods and products. What are the advantages of this certificate? How many types of goods are currently certified?

One important service that the MNCCI provides to entities and businesses is the issuance of certificates of origin. In 2024, the Chamber issued 14,575 certificates, directly supporting exports. Mongolia has the right to supply over 7,500 products to the European Union under preferential tariffs. Experts from relevant ministries and agencies in Mongolia and Japan held seven rounds of negotiations for three years, starting 2012, and established a Free Trade Agreement. Furthermore, Mongolia is working on establishing similar agreements with the Eurasian Economic Union and South Korea. A notable opportunity for Mongolia arose in 2019 when it joined the Asia-Pacific Free Trade Agreement, which came into effect in 2021.

Which countries and international organizations does the MNCCI cooperate with? How is the Chamber expanding its foreign relations and cooperation?

The MNCCI collaborates with trade and industrial chambers and trade promotion organizations of over 160 countries. It has signed memoranda of understanding with approximately 130 organizations of more than 40 countries. The Mongolian National Chamber of Commerce and Industry is a member of several prestigious international organizations, including the International Chamber of Commerce-World Chambers Federation (ICC WCF), the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI), the Asia Trade Promotion Forum (ATPF), the Asia-Pacific Trade Agreement Chamber of Commerce and Industry (APTA CCI), and the Greater Tumen Initiative (GTI), all of which facilitate close cooperation. This allows the MNCCI to engage in regional and international business networks, stay informed about economic, trade, and business trends, share information with entrepreneurs, and promote Mongolia's business environment at international fora. It also provides opportunities to voice the opinions of business owners, participate in seminars and training sessions, and foster collaboration. Also, the MNCCI works closely with neighboring countries on joint projects, exhibitions, trade fairs, and other initiatives.

Since the beginning of 2025, the Mongolian National Chamber of Commerce and Industry has organized two important business forums in Türkiye and Uzbekistan. How fruitful have the business forums and business trips to foreign countries been?

The frequency of high-level visits by the Head of State and government leaders of Mongolia has notably increased in recent years. A key part of any such visit is the business delegation. During these visits, the Mongolian National Chamber of Commerce and Industry, in cooperation with the host country's national chamber, organizes a Business Forum. During the State Visit of President of Mongolia to the Republic of Türkiye on January 15-19, 2025, we organized the Mongolia-Türkiye Business Forum. Approximately 100 business representatives accompanied the President of Mongolia. The Mongolia-Türkiye Business Forum and B2B meetings were successfully held in Ankara, the capital city of Türkiye, and Istanbul, the financial hub of Türkiye. The B2B meetings are a crucial event where business people of the two countries meet face-to-face, discuss potential collaborations, and establish partnerships. In Türkiye, Mongolian enterprises and companies conducted over 10 negotiations, resulting in agreements worth more than MNT 30 billion. This highlights the importance of business forums and B2B meetings organized by the Mongolian National Chamber of Commerce and Industry in other countries.

The MNCCI also signed a Cooperation Agreement with the Union of Chambers and Commodity Exchanges of Türkiye, which represents over 2 million businesses and organizations. This Agreement aims to enhance exports and imports between the two countries, balance foreign trade, implement joint projects and programs, and provide Mongolian manufacturers access to the Turkish market and, eventually, through Türkiye, to other countries' markets. Additionally, we have agreed to collaborate with the Foreign Economic Relations Board under the Ministry of Trade of Türkiye, with the goal of elevating bilateral relations and cooperation between the two countries. This Agreement can be seen as a roadmap for enhancing economic ties with third neighbors. 

The business forum and B2B meetings were held in Tashkent, the capital city of the Republic of Uzbekistan, during the first Meeting of the Mongolia-Uzbekistan Intergovernmental Commission on Trade, Economy, Science, and Technology Cooperation. A delegation of over 50 business people of Mongolia visited Uzbekistan. Deputy Prime Minister of Mongolia Amarsaikhan Sainbuyan paid an official visit to Uzbekistan as the Chairman of the Mongolian party to the Commission.

Around 200 business representatives from Mongolia and Uzbekistan participated in the business forum and B2B meetings. Uzbekistan is increasingly attracting global attention of investors and business people. Its economy is becoming more open, and its population is growing rapidly. Mongolian companies and entrepreneurs have started showing interest in the Uzbek market too.

To give you an example, Mongol Basalt JSC of Mongolia is building a factory in Tashkent, while the Tavan Bogd Group is opening a branch of NURA Center in Uzbekistan. "Voyage Mongolia" has established a representative office and is now selling water in Uzbekistan. Several Mongolian food companies are actively working on importing fruits, berries, and other food products from Uzbekistan. Many Mongolian companies have expressed their intention to explore this new market further and are planning to return to Uzbekistan. In such ways, we are working to connect our member companies with international markets, collaborate with the Government to create a favorable legal environment, raise awareness, and open up wider business opportunities.

Where can foreign entrepreneurs find information and advice on Mongolia's market, including business and trade opportunities, as well as the tax environment? How accessible are these services?

As I mentioned earlier, the Mongolian National Chamber of Commerce and Industry supports foreign investors and businesses in investing, trading, and developing economic relations with Mongolia. All this information can be found on our website www.mongolchamber.mn. At the same time, our Chamber has established an Institute for Economic and Market Research. The research center will conduct policy-level research. In particular, it intends to provide domestic market information to foreign investors and exporters and importers, and on the other hand, to distribute information on the markets of other countries to domestic producers and importers.

What goals are you planning to accomplish in the near future?

This year marks the 65th anniversary of the Mongolian National Chamber of Commerce and Industry. As part of the anniversary celebrations, revising the Law on Chamber of Commerce and Industry has become our priority. The MNCCI is actively involved in drafting several laws aimed at improving the business legal environment and is working towards achieving concrete results. Additionally, the Chamber is focusing on strengthening its branches in rural areas to provide support and training for local businesses. We will also organize business forums during the State Visits of President of Mongolia Khurelsukh Ukhnaa to Poland and the Czech Republic, scheduled for March 2025. Preparations for these forums are underway. Additionally, we are preparing for successful participation in both domestic and international exhibitions, trade fairs, and expos.

This year, the World Expo 2025 will be held in Osaka, Japan, under the theme "Designing a Future Society for Our Lives." The Expo aligns with the UN's Sustainable Development Goals for 2030 and expresses a commitment to raising awareness and driving action towards eliminating hunger and poverty, promoting social equality, resolving ecological challenges, and mobilizing citizens globally to contribute to achieving these goals. As the largest international event, the Expo sees the participation of over 170 countries and is held every five years. Preparations are underway to involve Mongolian businesses and companies, particularly members of the Mongolian National Chamber of Commerce and Industry in this prestigious event. The Mongolian National Chamber of Commerce and Industry is gearing up for an exciting year ahead, celebrating its 65th anniversary with a packed calendar of events, including domestic and international forums, discussions, exhibitions, trade fairs, and policy advocacy initiatives.