The negotiation between Thailand and Mongolia on the Agreement for the Promotion and Protection of Investments started in 1992 and has recently been concluded with mutual satisfaction of both sides. The signing ceremony of the said Agreement will be held on 8 December 2010 at 09.30 hrs. at Buakaew Room, at the Ministry of Foreign Affairs. The Agreement will be signed by H.E. Mr. Kasit Piromya, the Minister of Foreign Affairs on behalf of the Royal Thai Government, and H.E. Mr. Gombojav Zandanshatar, the Minister of Foreign Affairs and Trade of Mongolia on behalf of the Government of Mongolia, during the visit to Thailand of the Mongolian Minister of Foreign Affairs and Trade on 7 — 9 December 2010.
The Agreement for the Promotion and Protection of Investment between Thailand and Mongolia is based on international standards. It is expected to become an important tool to promote investment between Thailand and Mongolia, by ensuring the Thai investors that their investment in Mongolia will be protected and treated no less favorable than the treatment accorded to the national investors or the investors of the third country. The Agreement, at the same time, will provide the same protection to Mongolian investors in Thailand. The Agreement covers main issues including Scope of Investment Protection, Promotion of Investment, Treatment of Investment, Compensation for Losses, Expropriation, Transfer of Currency, Subrogation, and Dispute Settlements.
Mongolia represents a potential investment opportunity for Thai investors. Not only has Mongolia many natural resources, but the Mongolian government’s investment policy is also favourable to foreign investors. Mongolian’s current investment policy encourages private investments and access to new markets. Foreign investors are allowed to hold 100% shares of investments in infrastructure and transportation sectors. More importantly, Mongolia is also a major resource provider for mining industry, as it has abundant natural resources and precious mineral deposits such as copper, gold and uranium. The Mongolian’s government also allows attractive measures for foreign investors investing in this kind of industry in Mongolia, such as the reduction of corporate tax.
The Agreement for the Promotion and Protection of Investment between Thailand and Mongolia will, therefore, build confidence of the investors from both countries, which consequently contributes to increasing flows of investments between them. The signing of this Agreement will also send positive signal about the investment climate of Thailand.
For further information, please contact the Press Division, Department of Information, Ministry of Foreign Affairs, Tel.02-6435170, Fax.02-6435169, E-mail: div0704@mfa.go.th