Regional Economy: Uzbekistan Accelerates The Development Of Textile Industry

On April 16, President Mirziyoyev of Uzbekistan presided over the conference on promoting the development of textile industry. It is reported that in recent years, Ukraine has actively attracted foreign capital in the textile industry, encouraged the introduction of new technologies, increased financial support, and significantly improved industrial productivity. At present, there are more than 6000 textile enterprises in Uzbekistan, with more than 570000 employees. In 2023, the industrial output value will reach 8.2 billion US dollars, an increase of 3.2 times over 2016, and the export volume will reach 3.1 billion US dollars, with 83 export destination countries. However, there are still a series of problems in the development of the textile industry: the export proportion of high value-added products is relatively low; The quality of textiles is not ideal, and only 175 enterprises' products meet the standards and certification requirements of developed countries; The export market is relatively concentrated, 80% of textiles are exported to traditional trading partners, and the trade volume with developed countries such as Europe is relatively small; The supply of raw materials is insufficient, the utilization of textile enterprises' production capacity is not saturated, the national cotton yarn production capacity is 1.3 million tons, and the annual yarn output is only 1 million tons due to the cotton output limit.

The analysis of BCG shows that the cost of black yarn is 28% lower than the world average price, with obvious comparative advantages. The annual output potential of the textile industry is up to 15 billion dollars, and 500000 new jobs can be created.

It is required to fully tap the development potential of the textile industry, increase cotton output and expand the supply of raw materials; Strengthen advertising and publicity for European countries, strengthen cooperation with international well-known brands, and improve the popularity of Urumqi textiles; Increase the number of export enterprises with international certification; Carry out deep processing of raw materials to improve the added value of products; And reposition the export market, and adjust the export direction of products from the traditional cheap market to the new high-end market.

The participating enterprises put forward questions and suggestions on the construction of textile enterprises, the return of value-added tax, the simplification of financing procedures, the allocation of more financial resources, and the promotion of domestic products. Mi instructed the relevant responsible person to carefully study the problems raised by the enterprise, formulate practical solutions, and improve the legislation when necessary to support the development of textile enterprises.

(Source: website of Ministry of Commerce)