Last updated: 12 Feb 2013
Doing business
Current business situation
The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Mongolia. This is regularly updated, and should be checked before planning travel.
Business culture
Business tips
Mongolians are proud, independent, self-confident, and loyal in disposition. It is preferable to have someone introduce you to the person you wish to meet, but if this is not possible, then write a formal letter or email in English in advance of your planned visit. Follow-up with a phone call or email to confirm the appointment.
Arriving on time is expected by Mongolians, but don’t be surprised if your host changes the time and date unexpectedly. Hosts are often late and this should not be taken as a sign of disrespect. Be aware; however, that a significant number of senior Mongolians in business and government have studied abroad and have a Western approach to business and official interactions. In any case, a good rule is to leave about a two hour gap between appointments – this will help compensate for delays and transit times.
Most businesses have at least one person who can speak English and translate. Hotels usually have a list of people who are able to provide interpreting and translation services.
Mongolians expect to be greeted formally, with a handshake and direct eye contact. Mongolians typically use only their first name. Always provide your business card as part of the greeting process. Bowing or handing business cards with both hands, which is common in other north Asian business cultures, is generally not part of Mongolian business culture. Be confident and respectful.
Informal conversation is generally expected before getting down to business. The most common topics include the weather, outdoor pursuits, travel, sports, food and films.
Mongolians do not view formal contracts in the same way as other business cultures. They tend to see these agreements as something that can be altered should circumstances change.
Mongolians prefer a friendly, relationship-building approach to conducting business and negotiations. They are very good negotiators and do not have the same sense of time or urgency in concluding agreements as other cultures. Always provide a competitive position to start with but allow room to manoeuvre for the conclusion of negotiations.
Identify the real decision-maker before commencing negotiations. Decisions that would normally be made by lower-level managers in Western businesses are often made by the top executive in Mongolian organisations. This may slow progress and cause delays during negotiations.
Mongolians are quite formal with each other and have customary norms of behaviour that they don't expect foreigners to know. However, they will be appreciative if you make an effort to understand their relationship etiquette.
Mongolian society is hierarchical and this is evident in their organisational structure and processes, which take the form of a top-down approach to management.
The Mongolian business culture is dominated by men, although the number of women in executive positions is increasing steadily, particularly in foreign companies.
Mongolian executives often enjoy being invited out for lunch or dinner to get to know overseas contacts in a more informal atmosphere. It is a good way to break the ice and start a business relationship.
The giving of small inexpensive gifts is customary at the conclusion of an agreement. Drinks are also customary and some toasts with a shot of vodka are expected. It is acceptable to decline after a couple of shots.
Most Mongolian businessmen dress formally with a jacket and tie, and it is better to be over-dressed than under. Mongolians may not respond well if you are dressed more casually than they are. Remove your tie if the person you are visiting is not wearing one.
Links and resources
Government, business and trade
Mongolian National Chamber of Commerce and Industry – www.mongolchamber.mn
News and media
Mongolia News – http://mongolianews.com
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.