News Desk
Tashkent: On 16 April, a video conference meeting was held under the chairmanship of c Shavkat Mirziyoyev on issues of increasing exports and investments in the textile industry.
The textile industry is widely represented in all regions of the country and is one of the sectors with the largest number of jobs. Today, over 6 thousand enterprises provide employment to 570 thousand people.
In recent years, due to the active attraction of investments and new technologies, productivity in the industry has increased significantly. For example, last year textile, clothing and knitwear products worth US$8.2 billion were produced, which is 4.2 times more than seven years ago.
Also in 2023, the industry’s exports amounted to US$3.1 billion. This year, the industry entered three new markets, exporting to 83 countries.
However, an analysis of the export structure shows certain shortcomings. For example, in the export of finished goods the share of products with high added value is low.
Almost 80 percent of exports still go to traditional partner markets. Exports to Europe do not meet expectations.
To increase exports to developed country markets or brands, international standards and certifications are required. However, only 175 enterprises meet these requirements. In 18 regions, the annual production of textile products does not reach a million dollars.
At the meeting, problematic issues were analyzed and the enormous opportunities available in the industry were listed.
An analysis by the consulting company Boston Consulting Group shows that our country’s raw material base allows to produce products worth at least US$15 billion and create 500 thousand new jobs.
For example, in our country the cost of one kilogram of yarn is 28 percent cheaper than average world prices. This represents a major opportunity to increase finished product production and competitive advantage.
In addition, the industry is provided with financial support. At the beginning of last year, US$50 million was allocated for projects in the production of fabrics, dyeing and finishing, as well as the production of finished garments and knitted products. After using these funds, it is planned to allocate another US$100 million.
The head of state emphasized the need to wisely use these opportunities to increase projects and jobs in the regions.
“Our only true path in this industry is the complete processing of existing raw materials to create high added value and the reorientation of exports from traditional cheap markets to new, more expensive ones,” said Shavkat Mirziyoyev.
One of the best ways to increase production is to open branches of large enterprises in mahallas. For example, the Zarafshon Textile factory in the city of Samarkand opened 11 regional branches. The advantage of this is that there is no need to spend extra time and money on implementing standards or obtaining certifications. Therefore, it is necessary to expand this practice, it was noted at the meeting.
One of the most pressing problems for textile enterprises is access to raw materials. Our country has the capacity to process 1 million 300 thousand tons of cotton fiber, but at the moment about 1 million tons of fiber are produced. Therefore, it is necessary to reduce the cost of growing cotton and increase field productivity.
The activities of cotton-textile clusters were also discussed, and proposals to ensure their stable activities were considered.
More than 100 industry entrepreneurs attended the video conference call. The President held a dialogue with them.
Entrepreneurs expressed problems and proposals for the construction of textile enterprises, expanding the practice of returning value added tax within one day, simplifying the receipt of pre-export loans, allocating accessible financial resources and promoting domestically produced products.
Responsible persons have been instructed to carefully study these issues and develop practical solutions, and, if necessary, make proposals for improving legislation.
The Uztekstilprom Association plays an important role in the comprehensive development of the industry. It was proposed to reorganize the association so that it would be managed by a council of entrepreneurs in each direction of the textile industry. Each region will elect its own representative to the council. Association staff will help clusters and textile enterprises increase production, investment, exports and create jobs.
The importance of conducting extensive advertising campaigns in European countries, working with brands and increasing the number of exporters with international certificates was emphasized.
It is proposed to organize research and development (R&D) groups in clusters to ensure the integration of science with practice.
Information from responsible persons was heard on the issues discussed at the meeting.