Mongolia is looking to e-commerce to help overcome geographical challenges and diversify its economy, which relies heavily on mining – mainly of copper, coal, iron ores and gold.

“The digital way opens up a whole new facet for all aspects of economic diversification and especially trade,” said Tapan Mishra, the UN Resident Coordinator in Mongolia. “It is extremely important for Mongolia to leverage its trade potential by being eTrade ready,” Mr. Tapan said.

UNCTAD has worked closely with the government on an eTrade Readiness Assessment of the country. Published on 8 June, it provides insight on the progress that the Eastern Asian nation has made in laying the groundwork for a strong e-commerce ecosystem and offers a road map of action to overcome remaining challenges.

“The assessment makes a series of policy recommendations, which, if effectively implemented, will help Mongolia move away from its commodity-based economy and accelerate its digital transformation,” Shamika N. Sirimanne, director of UNCTAD’s technology and logistics division, said at the assessment’s launch in Ulaanbaatar.

Mongolia has made progress in areas that bode well for its e-commerce ambitions. The country has strengthened its ICT infrastructure, especially in urban areas, and increased internet connectivity. According to data from the International Telecommunication Union, mobile broadband subscriptions in the country rose from 80 to 116 per 100 people between 2017 and 2021. And over 70 percent of subscribers have access to 4G/LTE networks.

During the same period, the share of Mongolians aged 15 years or older shopping online grew from 7 to 42 percent – the highest growth among landlocked developing countries and one of the highest in the world, according to World Bank data. The country has also seen digital literacy increase among its youth. Half of its young men and women now possess general ICT skills, according to the UN Children’s Fund (UNICEF).

The assessment also highlights that domestic digital payments, such as e-banking, mobile banking, electronic wallets and QR code payments, are now widely used for domestic purchases.