In the last 10 years, Mongolia’s outreach to Southeast Asia has been steadily growing. Ulaanbaatar is eyeing Southeast Asian countries, such as Thailand, Vietnam, Laos, and Singapore as a new economic frontier. Southeast Asia’s robust economic outlook, combined with robust bilateral relations, can create a positive environment for Mongolia’s own economy.
Southeast Asian countries, particularly, Thailand, Vietnam, and Singapore, are major economic and financial powerhouses. Even with the current tariff disruptions, Thailand has seen its highest rate of export growth in the past 13 quarters, according to McKinsey & Company. The Mongolian government, with the intent to create new import-export opportunities, has been actively engaging with these partners under its framework of “third neighbor” diplomacy, while also using nontraditional mechanisms such as sector-focused cooperation.
Mongolia’s determination to augment relations with Southeast Asian economies is not new. In 2005, Mongolia joined the Treaty of Amity and Cooperation of ASEAN.
In March, Enkhtaivan Dashnyam assumed the role of Mongolia’s ambassador to ASEAN, a post that had been vacant since the previous ambassador departed in 2017. Enkhtaivan expressed Mongolia’s support for the ASEAN economic community and Mongolia’s strong determination to enhance cooperation with ASEAN and its member states. In particular, he stated a goal to have Mongolia “become a Sectoral Dialogue Partner of ASEAN.”
Per Mongolia’s “third neighbor” foreign policy principle, trade with regions beyond Mongolia’s immediate borders is highly desirable – a point that is all the more true in time of tariff disruptions. Becoming a Sectoral Dialogue Partner with ASEAN is crucial as it can open new avenues of cooperation. Considering Mongolia’s economic dependency on its mining industry, expanding exposure to Southeast Asian markets can be a good thing.
In May, when Mongolia’s Foreign Minister Battsetseg Batmunkh visited the ASEAN Headquarters during a trip to Indonesia, Mongolia signed a Memorandum of Understanding (MOU) with the Economic Research Institute for ASEAN and East Asia to promote a greater cooperation. The secretary general for ASEAN, Kao Kim Hourn, stated that the ASEAN secretariat is “ready to implement joint research and training programs for Mongolia to foster mutually beneficial cooperation.”
In addition to pursuing closer ties with the regional grouping, Mongolia is also strengthening bilateral economic ties with Thailand, Vietnam, Laos, and Singapore.
In 2024, Mongolia and Thailand celebrated their 50th anniversary of diplomatic ties, and Bangkok and Ulaanbaatar agreed to foster a trade mechanism that directly supports specific industries for both countries.
Trade between Mongolia and Thailand has been growing consistently. From January to September 2024, bilateral trade totaled $355.43 million, up 45.22 percent from previous years. The Thailand-Mongolia Five-Year Work Plan for Cooperation 2022-2027 plans to increase bilateral trade to $100 million by 2027.
In March of this year, in a highly symbolic gesture, Mongolia and Thailand showcased the Two Stallions sculpture, coinciding with the 25th anniversary of the sister city relationship between Bangkok and Ulaanbaatar.
2024 was also an important year for Mongolia and Vietnam’s bilateral relations as the two countries celebrated their 70th anniversary of diplomatic relations. The General Secretary of the Communist Party of Vietnam To Lam paid a state visit to Ulaanbaatar, bringing the relations to a new height.
Historically, Vietnam was the first country in Southeast Asia to establish diplomatic ties with Mongolia. Ulaanbaatar and Hanoi’s economic relations have been increasing steadily; bilateral trade turnover has tripled from $41.5 million in 2017 to $132 million as of 2023. These numbers are expected to rise in the coming years.
From August 19 to 23, the foreign minister of Laos, Thongsavanh Phomvihane, paid an official visit to Mongolia. During his visit to Ulaanbaatar, Mongolia and Laos expanded bilateral ties, with the hope to accelerate cooperation in public health, agriculture, and expanding human-to-human relations. The visit paid dividends beyond the bilateral, as Laos chairs the Forum for East Asia-Latin America Cooperation (FEALAC) this year.
One major win for Mongolia is the establishment of a new direct flight from Singapore to Mongolia, beginning in November 2025. Singapore remains a major investor in Mongolia’s mining industry.
Mongolia’s efforts in linking with Southeast Asian countries are a step up in Ulaanbaatar’s third neighbor foreign policy. When considered as a bloc, ASEAN is one of the world’s largest economies with combined GDP of $4.1 trillion. Having robust economic partners in the Southeast Asia will benefit Mongolia’s overall development.
Mongolia is pursuing diverse cooperation mechanisms with Southeast Asian economies. Expanded links with Thailand, Vietnam, Laos, and Singapore opens opportunities of collaboration, especially tackling nontraditional issues such as climate change, food security, and digital transformation. Meanwhile, Mongolia continues to eye an more robust partnership with ASEAN as an institution.