Mongolia to simplify FDI for state-backed firms
Saikhanbileg Chimed, a member of parliament and the chief of the cabinet secretariat, said, under proposed legislation, investment by foreign state-backed firms in Mongolia's strategic industries would be vetted by the Ministry of Economic Development.
The Mongolian government expects to pass a new foreign direct investment law this year to streamline the approval of investments by foreign state-backed firms, according to a senior official.
"The process is quite time consuming now, (and) the new law will simplify and quicken the process," he said, adding that the industries covered included banking, mining and telecommunications.
Current law stipulates that foreign state-backed firms buying more than a 49 per cent stake in an asset in the industries need approval from parliament, he said.
The parliament is in recess and will resume in October.
The proposal to cut red tape comes as the country grapples with slower economic growth, as commodities prices, especially those of its key exports - coal and copper - fall.