Dedicated worldwide Protecting Investment in Mongolia

Transcription

1 Dedicated worldwide Protecting Investment in Mongolia Michael Quiring, Ulaanbaatar, Rödl & Partner * 1

2 Protecting Investment in Mongolia 1 Current Investment Climate 2 International, Binational and National Sources of Law 3 Different Forms of Investment 4 Guaranteed Measures for Investment Protection Rödl & Partner * 2

3 1. Current Investment Climate in Mongolia Germany is the second most important country of origin for FDI coming from the EU Ranked sixth as supplier of imported goods to Mongolia (3,0%) German language ist one of the preferable languages in Mongolia (DDR) Rödl & Partner

4 Advantages Challenges - Large raw material reserves - High potential for producing and exporting green energy - High efficiency of the labour market - Young and qualified workforce - Education in East Germany - Legislation: Unsystematic combination of different legal systems - Unusual approach to implementing contracts: Contracts are often not so detailed; not really mandatory During negotiations business partners only accept by courtesy the terms of another -> New negotiations are often neccessary The business culture is affected by spontaneity and flexability Rödl & Partner * 4

5 Advantages Challenges German speaking Mongolians (caused by the strong connection to East Germany) - Progressive reforms in all areas of law ( disadvantage as well) - Change of majority in the parliamentary elections in June 2016 prospectively advantageous for investment climate - "two parties system" (DP and MVP) - first-past-the-post-system - Corruption: Rank 72 (168 states in total) on the Corruption Perceptions Index 2015 by Transparency International - Risk of being banned on leaving the country in case of criminal investigations - Judicial uncertainties regarding the recognition of decisions from international arbitration courts Rödl & Partner * 5

6 Political Stability and Absence of Violence/Terrorism Source: Rödl & Partner * 6

7 Rank 56 out of 189 on the Ease of doing business Ranking 2016 Published by the World Bank Group Individual Topics Ease of Doing Business Rank 2016 Protecting Minority Investors 8 Starting a Business 36 Registering Property 44 Enforcing Contracts 80 Getting Credit 59 Paying Taxes 91 Dealing with Construction Permits 25 Resolving Insolvency 89 Getting Electricity 134 Trading Across Borders 74 Source: Rödl & Partner * 7

8 Protecting Investment in Mongolia 1 Current Investment Climate 2 International, Binational and National Sources of Law 3 Different Forms of Investment 4 Guaranteed Measures for Investment Protection Rödl & Partner

9 International and Binational Legal Sources for Protecting Investment International Commitment of Mongolia Member of the WTO since 1997 Ratified the Convention Establishing the Multilateral Investment Guarantee Agency (MIGA) Ratified the Convention On The Settlement Of Investment Disputes Between States And Nationals Of Other States German-Mongolian Cooperation Treaty on Promotion and Mutual Protection of Investment (=BIT) Double Taxation Treaty Convention on Corporation in the Commodities, Industrial and Technology Sector Acceded to the International Centre For Settlement Of Investment Disputes (ICSID) Convention on the Recognition and Enforcement of Foreign Arbitral Awards Rödl & Partner * 9

10 Convention on Corporation in the Raw Materials, Industrial and Technology Sector German Federal Government supports German investors by offering: Export-credit insurance Guarantee on investments Untied loan guarantees Establishing two committees to facilitate the implementation of the convention German-Mongolian Government Working Group for Corporation in the raw materials sector ( Art. 7 of the Convention) German-Mongolian Economic Committee for Corporation in the Raw Materials, Industrial and Technology Sector (Art. 8 of the Convention) * Rödl & Partner * 10

11 National Legislation with Regard to Investment Protection Legal Base for Commercial Activity: Law on Corporations Law on Foreign Investment ( ) Law on Accounting complying with the International Accounting Standards (IAS) Mongolian Tax Law ( ) Law on Mineral Resources from 2006 Land Ownership and Real Estate Property: Law on Privatisation of Land Ownership Law on Fees on Land Use Protection of Commercial and Intellectual Property: Copyright Law Patent Law (i.a.: Patent Corporation Treaty since 1991) Law on Transfer of Technology TRIPS agreement from the WTO Rödl & Partner * 11

12 Previous Reforms of the Mongolian Legal System Russian, American and German structures inspired the reforms of the Mongolian legal system and were combined with domestic legal practices Substantial reform of the tax system in 2006 (generous towards foreign investors due to the urgent need of investments) New Law on Foreign Investment (2013) introducing i.a. equality of treatment between national and foreign investors: reacting to the sharp decline of FDI following the previous and strict Law introduced in 2012 Rödl & Partner

13 Protecting Investment in Mongolia 1 Current Investment Climate 2 International, Binational and National Sources of Law 3 Different Forms of Investment 4 Guaranteed Measures for Investment Protection Rödl & Partner

14 We would be pleased to send you the complete presentation on a separate request to almaty@roedl.pro And we are looking forward to answering further questions in a personal conversation. Rödl & Partner

15 Ihr Ansprechpartner MBA (Dipl.-Kfm.), Tax Manager (DE) Associate Partner Head of International Auditing OOO Rödl Analytics Business Centre LeFort Elektrozavodskaya ul. 27, Building Moscow, Russia Phone: +7 (495) Telefax: +7 (495) jens.wergin@roedl.pro Michael Quiring (stellv. Niederlassungsleiter) Rödl & Partner Business Center Kulan Pr. Dostyk 188, Büro Almaty, Kasachstan Telefon +7 (727) Telefax +7 (727) michael.quiring@roedl.pro Jeder Einzelne zählt bei den Castellers und bei uns. Menschentürme symbolisieren in einzigartiger Weise die Unternehmenskultur von Rödl & Partner. Sie verkörpern unsere Philosophie von Zusammenhalt, Gleichgewicht, Mut und Mannschaftsgeist. Sie veranschaulichen das Wachstum aus eigener Kraft, das Rödl & Partner zu dem gemacht hat, was es heute ist. Força, Equilibri, Valor i Seny (Kraft, Balance, Mut und Verstand) ist der katalanische Wahlspruch aller Castellers und beschreibt deren Grundwerte sehr pointiert. Das gefällt uns und entspricht unserer Mentalität. Deshalb ist Rödl & Partner eine Kooperation mit Repräsentanten dieser langen Tradition der Menschentürme, den Castellers de Barcelona, im Mai 2011 eingegangen. Der Verein aus Barcelona verkörpert neben vielen anderen dieses immaterielle Kulturerbe. Rödl & Partner

16 We and the Castellers de Barcelona The human towers are like us: every single individual counts when working together and when supporting our clients. Rödl & Partner