Market of Mongolia: Overview

Immense Renewable Energy:

Potential for a regional leader

Mongolia has enough renewable energy reserves to meet northeast Asia’s regional energy demand with a suitable transmission infrastructure
Combined wind and solar power potential is estimated to be 2,600 gigawatts (GW) of installed capacity or 5,457 terawatt-hours of clean electricity generation per year
The government targets a share of renewable energy in total installed capacity of 20% by 2025 and 30% by 2030
Japan eyes Mongolia in Asian ‘Super Grid’ plans and Softbank and Development Finance Institutions alike have already made significant investments

World’s Top 10 natural resource reserves:

Estimated value at circa USD 2 trillion

Mongolia is among top 10 countries by following mineral reserves:
Gold (2784 tons)
Copper (117 million tons)
Coal (175 billion tons)
Fluorite (3.8 million tons)
Located between Russia and China, Mongolia is ideally positioned to be a strategic supplier to two of the world’s largest growth economies
Oyu Tolgoi (OT) - one of the world’s largest copper-gold deposits situated 80 kilometers north of the Mongolia-China border. 66% owned by Rio Tinto and 34% by the Mongolian Government. OT has estimated deposits worth US$200 billion
Tavan Tolgoi (TT) is one of the largest untapped coking coal reserves in the world at circa 6.4 billion tons. TT has estimated deposits worth US$300-400 billion

Signficant Agricultural Resources:

Strategic supplier to China and beyond

Top 10 globally in terms of livestock production index
Over 57.6 million livestock:
Sheep – 24.5 million
Goat – 22.9 million
Cattle – 5.1 million
Horse – 4.7 million
Organic high-value meat and annual free meat stocks worth US$500 mln – Government and DFIs committed to boost meat export
Border with Northern China with total population of nearly 400 mln
China leads in global meat imports (3.5 mln tonnes/year) of which mutton imports alone reach over US$6 bln per annum.
In 2018, China placed first significant order of 150 thousand tonnes of meat from Mongolia – equivalent to around US$500 mln
Mongolia plans to consistently increase export target volumes, with minimum target of 40,000 tons per annum
World Bank and ADB lead agricultural development support, particularly for meat export - inclusive growth

Country track record:

World’s fastest growing economy

World’s Fastest Growing Economy in 2011 with 17.3% GDP growth
World’s Best Performing Currency in 2010, up 17% y-o-y
World’s Best Performing Stock Market in 2011, growth of 120%
Fifth on Global Retail Development Index in 2015
Overall, 6th fastest GDP growth over the last decade in the world, with an average annual growth rate of 6.9%, just above China
Stable politics since 2016 fueling economic rebounding and policy continuity for the next decade
Resurgence of capital market with booming IPO and corporate bond activities since 2018
Major transition to technology driven services, capitalizing on high-potential and capacity of well-educated Mongolian young society

Market of Mongolia: Overview

Bordered by Russia and China, Mongolia boasts $1.3 trillion in untapped minerals, leading copper, gold, and coal reserves, and a growing digital and renewable energy sector. With stable policies and a free-market economy, it’s primed for investment.

Mongolia’s Key Growth Drivers

Immense Renewable Energy:

Potential for a regional leader

Signficant Agricultural Resources:

Strategic supplier to China and beyond

World’s Top 10 natural resource reserves:

Estimated value at circa USD 2 trillion

Country track record:

World’s fastest growing economy

Mongolia’s Economic Growth:

The country’s economy is resilient, with projected annual GDP growth of 6–8% over the next five years, fueled by large-scale mining, infrastructure development, and ongoing diversification.

GDP, current USD bln

23.7B USD

2024

GDP growth, %, real

6.14%

2024

GDP per capita, Current USD

6,700 USD

2024

Inflation, %

2024

FDI, net inflows, current USD bln

1.7 billion USD

2024

Net Trade Balance

-0.68 billion USD

2024

Total addressable market

Source: National Statistics office, 2024 Report www.nso.mn

Total Retail Industry

USD 10.7 billion

Total Addressable Market

USD 2.9 billion

Serviceable Available Market

USD 1.5 billion

Serviceable Obtainable Market

USD 800 Million

USD 178 Million

Regional Benchmarks and opportunities

Total GDP

USD 24 billions

Japan

56,000

Convenience stores

2,235

People per store

Vietnam

11,000

Convenience stores

2,148

People per store

Korea

47,000

Convenience stores

1,101

People per store

China

253,000

Convenience stores

5,581

People per store

Mongolia

740

Convenience stores

4,594

People per store

CVS Market Potential

Convenience store has been developing rapidly in the last 20 years in South Korea market

We expect +300% growth of convenience stores in the next 10 years in Mongolian market

People per store

Today 4,594

By 2030 2,260

International Agreement

Double Taxation Agreements (DTAs) with 26 countries to prevent individuals and businesses from being taxed twice on the same income. Additionally, 44 countries have signed Foreign Investment Protection and Promotion Agreements (FIPAs) to encourage and safeguard international investments, fostering economic growth and stability.

26+ Countries

Double taxation agreements

44+ Countries

Foreign Investment Protection and Promotion Agreements

Tax Environment

According to World Bank's "Doing Business" report, Mongolia is considered a country below the average in corporate tax rate.

Value added tax

10% - 2%* = 8% Refunded

*Among the 16 countries with lowest V.A.T

Corporate tax

Up to 25%

*Among 6 countries with lowest Corporate Tax