... The problems and challenges facing Mongolia's economy are largely caused by the actions of the Mongolians themselves. These steps can make the country unattractive to investors. Even the Chinese ambassador recently had to comment on the business situation ...
On November 25, 2025, the annual meeting of the American Chamber of Commerce (AmCham Mongolia) was held at the Shangri-La Hotel, attended by representatives of companies and honored guests. Achievements and challenges from the past year were discussed, and priorities and goals for the next year were presented.
The U.S. Ambassador to Mongolia, Richard L. Buangan, spoke at the AmCham general meeting in 2025, where he stated:
“Thank you, Jay, and congratulations on your appointment as chair of this esteemed organization. Esteemed members of AmCham, thank you for inviting me to speak at your meeting. This is my fourth time here, and I always look forward to returning, even if resolving your complex business issues adds some gray hair to me. I am proud of the partnership between AmCham and the U.S. Embassy, which will continue to grow in 2026 as we celebrate the 250th anniversary of the independence of the United States. We are planning a series of events called 'America 250' and have begun collaborating with AmCham to organize these celebrations, particularly in areas where we can strengthen our trade relations. Therefore, I invite you to participate next year as we offer a calendar of events dedicated to celebrating the anniversary of the U.S. and strengthening ties between our two countries, two strong democratic partnerships in the Asia-Pacific region.”
At the beginning of his speech, the ambassador expressed gratitude to the outgoing board members, especially to his friend Randolph Koppe for his outstanding leadership in 2025. This year has been challenging for AmCham and all businesses as we faced bureaucratic barriers and political rhetoric threatening the interests of the private sector. However, Randolph, with his exceptional abilities, did everything possible to ensure that AmCham's voice was heard and your issues became known in government circles and beyond. I am proud to see the work of the AmCham board in 2025. Some of us even visited Washington in May to participate in our annual Doorknock event, which always takes place at a high level. I look forward to meeting with Randolph and other outgoing board members at future meetings, but for now, I want to thank them for a job well done.”
2025 was a difficult year, but not without successes that inspire hope for positive changes in 2026. In January, the government and parliament decided to expropriate mining assets, which could negatively affect Mongolia's reputation as an investment destination. The embassy, along with AmCham and the business community, worked to slow down this process, and so far we have managed to achieve a retreat from the government on at least this issue. There is still much work ahead, but experience shows that we can successfully raise important issues with the Mongolian authorities, demonstrating that improving the investment climate serves both national and private interests.
As stated in our Investment Climate Statement published earlier, we expressed concern about the lack of progress in improving the business environment in Mongolia. Political changes and geopolitical events continue to exert significant pressure on an economy dominated by the mining sector and reliant on energy imports. Despite GDP growth, currency reserves, and an improved sovereign rating, Mongolia's economic potential remains unrealized due to internal issues. The fight against corruption continues, the efficiency of state-owned enterprises leaves much to be desired, and the lack of long-term strategic infrastructure and human capital development hinders economic diversification. Parliament and government have not taken necessary steps to enhance transparency and improve dispute resolution practices, continuing to threaten expropriation and evade fulfilling official agreements.
These actions can make Mongolia unattractive for investment. Even the Chinese ambassador had to publicly express concern about this. When your strong neighbor to the south expresses worry, it is a signal that serious problems exist.
The investment climate is a mutual commitment between the government and the private sector: all laws, regulations, and dispute resolution procedures, as well as any agreements the government makes with business, create a stable, transparent, and predictable environment for doing business. In return, companies contribute to economic development, job creation, technology adoption, and international business practices. The private sector generates revenue for the state, improving the standard of living and creating economic opportunities for all citizens of Mongolia, not just the chosen few. That is how it should work. I have repeatedly emphasized that the economy is driven by the private sector, not the government. Mongolia's economic growth must be based on the private sector, which must be able to operate in a fair legal environment with adequate political proposals and a judicial system that protects the interests of all participants. Currently, all of this is under threat in Mongolia.
When I arrived three years ago, Mongolia was still considered an attractive place for investors, but we understood that the government needed to play its role in creating a stable investment climate. In 2022, speaking to you at my first meeting, I said: “We believe that collective efforts to reform the business climate are the best way to bring investors back to Mongolia. Improving the business climate is crucial, and it depends on AmCham.” I repeat this every year because it seems to remain relevant. You have all done your part, but the government seems not to be fulfilling its.”
Since then, Mongolia has been viewed as an attractive investment site, especially in the mining, financial, and tourism sectors, offering a democratic and technologically advanced platform for exploring emerging markets.
Mongolia has the potential to attract Washington's attention by linking its resources to global and regional markets. However, currently, interest is waning, leaving fewer opportunities for the country and its partners.
I am concerned about the lack of willingness among government officials and parliamentary members to take real steps to create a favorable investment climate, which jeopardizes Mongolia's image as a promising business center. Potential investors are beginning to consider other markets. Mongolia risks losing ground against Central Asian economies that have already made important agreements with the United States.
Nevertheless, I still have hope. Mongolia can become attractive to partners from the U.S. and the West. Here, cooperation between the U.S. Embassy and the American Chamber of Commerce is crucial.
First, we need to continue raising important issues regarding the business climate. In 2025, AmCham and the U.S. Embassy became the main voices advocating for business interests, and the government heard us. Your meetings with Prime Minister Zandanshatar Gombojav, cabinet members, and parliament demonstrated that you are a group to be reckoned with on business matters. You are experts and authoritative representatives of the private sector, and your arguments carry weight. We at the U.S. Embassy proudly prioritize the investment climate in our bilateral relations with Mongolia, and this will continue in 2026, as we have a reliable partner in AmCham.
Second, AmCham and the embassy should help the government establish realistic priorities and realize the negative consequences for the investment climate if they are not met. Your participation in discussions at the government level changes the perception of the issues facing businesses. Your knowledge can structure the complex decision-making process in Mongolia, as you have authority as business leaders.
Third, your policy documents and roadmaps offer concrete goals around which we can organize our cooperation. The AmCham team is doing an excellent job analyzing economic trends and drawing politicians' attention to pressing issues. You provide expert recommendations that help make informed decisions. We encourage you to continue developing your political insight, bringing together government, business, and media. The U.S. Embassy closely monitors your work in committees and values the opportunity to discuss issues we see as important for the future. I reach out to you every year because this is the time to reflect and assess what has been achieved. We have accomplished a lot, but the toughest challenges lie ahead. AmCham members have the power and influence to improve the business climate in Mongolia. This organization has done incredible work. I cannot express my gratitude to all of you for your support of AmCham, both financial and moral. You all make a significant contribution, and I hope you recognize the value of your membership, as we at the embassy do. We are happy to work with you. Although 2026 will bring new challenges, we will continue to meet at your events to tackle issues together. I promise that the U.S. Embassy will always be there, and we look forward to further fruitful cooperation in the new year. Congratulations on a successful 2025 and good luck in electing new board members. Happy New Year!”
Tatar S.Maidar
source: MiddleAsianNews
