In the period of globalization process which brings to every country both new opportunities and new challenges, it is clear that foreign investment exerts a pivotally important impact and influence on for Mongolia’s sustainable development. The Government of Mongolia, therefore, pays a special attention to the expansion of its trade and economic cooperation with the other countries and particularly to creation of favorable business conditions for foreign investment.

Mongolia is now an active member of the global community. Being a member of the World Bank since 1991, the country joined the World Trade Organization in 1997. Today it is recognized that the country has firmly laid down solid institutional foundations of free market relations and its economy has been converted into one of the most open economies in the region. All this has been brought about as a result of carrying out a wide range of policy measures and activities, including the price and trade liberalization, introduction of floating rate of its national currency, implementation of large-scale privatization (including retail sector and livestock), establishment of two-tier banking system, decrease of the budget deficit and reduced allocation of resources for the public sectors.

These measures and activities have started to bear fruition and Mongolia has been recently experiencing a constant increase in GDP. Thus, the GDP of the country increased by 5.5 percent in 2003, 10.6 percent in 2004 and 6.2 percent in 2005. The total foreign direct investment has reached 1.4 billion USD from over 80 countries as of the end of 2005. The Government of Mongolia has also elaborated a long time perspective of regional development on the basis of division of the country into geographic zones and has begun to take systematic measures towards its realization.
Nevertheless, my government admits that economic growth of the country must be accelerated and it should be reinforced by new moves, materialization of which can lead to a gradual formation of new, additional sectors in the economy. Although, the agricultural and food industry, light industry enterprises and tourism happen to be traditional branches of our economy, they still need a stronger policy support because these branches possess huge potentials to further attract the foreign investment.
In this connection, I wish to inform that the Government of Mongolia is going to hold “Investors Forum-2006” in the forthcoming September in Ulaanbaatar. This forum will primarily focus on Mongolia’s agriculture, food industry, light and heavy industries, infrastructure (ICT, energy and construction) and tourism in order to draw investor’s attention to these economic sectors.

I entertain the hope that both governmental policy-makers as well as foreign and domestic investors will cooperate in seizing the investment opportunities in these areas of the Mongolian economy and the forum itself bring about favorable environment for a long term close relationship among them based upon mutual benefits and fair business principles.
I warmly welcome You to my country and wish You every success in the accomplishment of your projected goals and future endeavors.

MIYEGOMBIIN ENKHBOLD,
PRIME MINISTER OF MONGOLIA