Mongolia - Ууд Худалдааны Талбай
Zamyn-Uud Free Trade Zone is strategically positioned at the Zamyn-Uud border town, linking Mongolia with China’s southern region. Located approximately 780 km from Mongolia’s capital, Ulaan Baatar, and a mere 8 km from China’s Erlian town, its geographic significance is evident.
Geographical Advantage and Aims
The free trade zone aspires to serve as Mongolia’s primary conduit to Chinese and South-East Asian markets. Its geographic placement facilitates streamlined trade activities and fosters economic growth prospects for the region.
Notably, on August 14, 2021, the inauguration of the ‘Zamyn-Uud Free Economic Zone’ marked a pivotal milestone. Deputy Prime Minister S. Amarsaikhan highlighted the long-standing decision from 2004 and the recent strides towards overcoming obstacles hindering the zone’s full potential. Anticipated amendments to the Law on Free Zones are poised to amplify economic activities, foster international partnerships, and enhance legal frameworks conducive to growth.
Infrastructure and Economic Impact of Zamyn-Uud Free Trade Zone
The recent completion of crucial infrastructure projects on 48 hectares, facilitated by a soft loan from China, underscores the commitment to sustainable development. These projects encompass water supply, sewerage systems, power plants, roads, and communication networks. The favorable regulatory landscape is poised to catalyze exports, foster industrial growth across sectors, drive employment opportunities, enhance tourism, and optimize transit and logistics operations.
The master plan outlines strategic land allocations for various sectors, with 68 investors selected to operate across different domains. The projected economic outcomes, including substantial GDP growth and job creation, highlight the zone’s pivotal role in regional economic development and cross-border trade facilitation.
Additional Details for Zamyn-Uud Free Trade Zone
- Total area: 900 hectares
- Wastewater treatment: Capacity 3,040 cu. m
- Water supply: Water treatment plant with capacity 3,200 cu. m
- Free trade/bonded area: Whole area has free trade zone status
- Tax incentives: Goods imported to FTZs are not subject to value added tax (VAT), customs and excise taxes. If goods are to be transferred from the customs territory to the FTZs, there will also be no such taxes on those goods and any previously paid taxes will be reimbursed accordingly based on related documents.