Mongolia offers the following competitive advantages to foreign investors:

· Strategic location. Mongolia borders the resource-rich, vast Siberian region of Russia to the north and rapidly emerging China to the south. Easy access to the large international markets of these two neighbors and important global players.

· Extensive natural resources. Mongolia’s is blessed with rich mineral resources such as gold, copper, uranium, coal, molybdenum and oil and great abundance of animal origin raw materials, especially, world well-known cashmere, wool and leather. Pristine nature with rich traditional and cultural heritage.

· Export opportunity. Mongolia, is a beneficiary country for the GSP+, which grants the rights to enter the EU market at a zero rate without quota or other quantitative restrictions for around 7 200 products

· Competitive business costs. Inexpensive raw materials and low operating costs along with a competitive labor cost. Per hour manufacturing costs significantly lower than that of most other nations. Economical rate for the rent of industrial premises and office space.

· Young and well educated population. Mongolia’s young people under the 35 years of age, composing 70% of the population. High literacy rate exceeding 95%. Educated, experienced and highly competitive workforce along with efficient labor laws.

· Stable political environment. Mongolia is the first nation among Asian countries with former socialist systems, who has peacefully adopted a multi-party democratic system. The Government is best characterized by its consistent attitude towards transparency and governance continuity. The principles of respect of human rights, fundamental freedom and private ownership enshrined in the new Constitution. Legal guarantees that secure the foreign investors’ rights regarding invested assets and capital.

· Conducive investment climate.FDI is protected by the Constitution of Mongolia and the Foreign Investment Law along with the international treaties and agreements to which Mongolia is bound.