Gankhuyag G. - Mongolia’s Next Growth Engine l Mongolia Investment Forum: New York 2026

https://www.youtube.com/watch?v=06inY_dCtvc

Summary

TL;DR — Mongolia is shifting its economic focus from raw material export to industrialization and value creation, with industrial parks identified as the key growth engine. The country possesses vast mineral resources and renewable energy potential but faces challenges in processing and manufacturing, creating significant investment opportunities.

Key points

• Mongolia aims to move beyond raw material extraction towards industrialization and long-term value creation through the development of industrial parks.

• The state-owned Erdinis Mongol group, a major player in the mining sector, is spearheading the development of these industrial parks through its subsidiary, ITP.

• While Mongolia has abundant mineral resources (copper, coal, iron ore) and renewable energy potential (wind, solar), its current processing rates are very low, leading to high raw material exports and finished goods imports.

• The government is offering significant tax and non-tax incentives to attract investors to the industrial park zones, including customs duty waivers, tax exemptions, and simplified residency processes.

• Six distinct industrial park projects are planned, focusing on sectors like copper processing, steel manufacturing, building materials, and coal processing, requiring substantial investment.

• Investment opportunities range from co-investing in primary plants to 100% private ownership of downstream plants and infrastructure projects, with a potential for an industrial park investment fund.

Takeaway — Mongolia is actively seeking foreign investment to develop its industrial parks, leveraging its rich resources and offering attractive incentives to transition into a manufacturing and value-added economy.