18.12.2023

On December 18, President Shavkat Mirziyoyev chaired a videoconference to discuss the development of production and services in the regions.

As a result of global events, the prices of raw materials and products necessary for our country's economy, as well as the costs of their delivery, are increasing. Therefore, it is crucial to increase the processing of our own raw materials and the production of competitive goods.

During the meeting, measures were identified to improve the working system in this direction. From now on, the Chamber of Commerce and Industry will deal with issues related to production, industrial zones and exports at the local level. Regional administrations and district offices of the Ministry of Investment, Industry and Trade will be abolished. The Export Support Agency, Export Support Fund and Uzbekexpertiza structure will also be transferred to the Chamber of Commerce and Industry.

"We are transferring the project and export system from the state to an organisation run by entrepreneurs themselves. This is necessary to ensure that businessmen are heard and that their requests and opinions are duly taken into account," said Shavkat Mirziyoyev.

The head of state pointed to new opportunities for increasing production and exports.

Currently, some types of fabrics and synthetic yarns used in the textile industry are imported. In this regard, a number of projects have been launched to increase the localization and export of these products.

For example, projects are planned for the production of fabrics and the establishment of dyeing plants worth US$350 million in Yukorichirchik district, the production of artificial fibres, weaving and dyeing plants worth US$60 million in Nukus. Andijan and Samarkand will start production of curtains and upholstery fabrics from synthetic fibres. A textile industrial zone will be created in Pakhtabad district. In Karakalpakstan and 6 regions, 15 projects are planned for the production of synthetic fibres.

Overall, it was found that the textile industry could generate an additional US$700 million in value added next year. Therefore, a new support mechanism for enterprises in this sector will be introduced. To this end, US$200 million will be allocated as resources for new value-added projects. The state will pay for the construction of wastewater treatment facilities for dyeing plants. Subsidies of up to 100 million Uzbek soums will be granted to textile companies that implement international hygiene standards.

The need to bring in foreign designers, marketers and engineers to ensure the quality of products has been emphasized.

One of the key factors for a product's successful entry into the global market is having a brand. Domestic products labelled "Made in Uzbekistan" are not highly valued in the international market because they lack a brand.

Therefore, the President emphasized the need for support not only in selling the country's products, but also in establishing brand recognition in foreign markets.

The Chamber of Commerce and Industry has been tasked with assisting local companies producing fabrics, garments, carpets, shoes, leather accessories, food products, household goods and construction materials to establish contacts with specialised sourcing companies and adapt to branding requirements.

Instructions have been given to increase the participation of local companies in international exhibitions and to open trading houses in cities of Europe and Asia.

There are also many opportunities for brands to set up production in our country. For example, next year a plant with a capacity of 2.5 million units of aluminium packaging based on German technology will be commissioned in Chirchik. This will serve as a source of materials not only for soft drinks producers, but also for companies in the cosmetics, household chemicals and food industries. During the meeting, it was emphasized that such opportunities should be used to attract prestigious brands to Uzbekistan.

New approaches are being implemented to achieve this:

- Companies that start producing branded products will be reimbursed for the costs of implementing international standards, environmental requirements and certification.

- All the raw materials they need will be exempt from customs duties, provided they achieve at least 60% localization.

- Entrepreneurs who produce at least 30% of their products under a brand name will receive benefits and preferences provided for foreign-invested enterprises.

- Payment for the work of technicians, designers, marketers and other specialists hired from major brands is not levied in Uzbekistan.

Our country has a huge raw material base for the chemical industry. At present, projects worth US$3 billion are being developed in this sector.

The electrical engineering sector is capable of implementing projects worth US$2 billion. For example, the solar and wind power plants under construction in our country, with a total capacity of 27 gigawatts, will require US$500 million worth of cable products. There is also high demand for household appliances and transformers.

Localization of production will take place next year with the launch of five US$120 million projects in Okhangaron Industrial Zone, and the construction of a US$120 million technology park in Bukhara.

Tasks have been set to increase production volumes in these sectors.

The head of state paid particular attention to the industrial development of Karakalpakstan's regions and the city of Nukus. Low-interest funds of US$100 million have been allocated for the expansion of production in this area. Twenty-three promising projects have been formulated, and specific regions of the Republic and commercial banks have been assigned to each project. The responsible officials reported on the progress made in implementing these projects.

The issues of the further expansion opportunities in the service and tourism sectors have also been discussed at the meeting.

In the first 11 months of this year, services worth 421 trillion Uzbek soums were provided, which is 13.6% more than last year. The share of services in the economy is expected to exceed 43% by the end of the year. However, these figures are not enough, as was pointed out during the meeting. There is considerable potential in finance, transport, tourism, education, health and information technology.

The Business Development Bank and the Entrepreneurship Development Company have recently been established. From January 1, 2024, microfinance banks will be set up to provide basic banking services. As a result, the volume of financial services is expected to increase by 30% next year.

Work is underway to issue Eurobonds totalling US$500 million.

In order to stimulate entrepreneurship, it has been decided to provide collateral-free loans under the "Family Entrepreneurship" programme of up to 50 million Uzbek soums to individuals who have started their own small businesses and have a positive credit history, and loans of up to 100 million Uzbek soums to those wishing to expand their businesses. A proposal to provide loans to self-employed people taking their first steps in business has also been approved.

A quarter of the total volume of services in our country is provided by the transport sector. Some 1,500 buses and 25 new aircraft have been imported this year. Private airlines have started operations and 17 new routes have been opened.

As part of this work, instructions have been given to increase the number of bus routes and flights between cities in our country, regions and neighbouring countries.

In the railway sector, tariffs have been revised and unnecessary privileges have been abolished. Six high-speed trains and 30 electric trains will be delivered. This will ensure a 20% growth in the sector next year.

The private sector in education and healthcare is developing rapidly in our country. There is an opportunity to auction vacant land for the establishment of private educational institutions and clinics.

Today, the share of IT services in our GDP is 3-3.5%. The importance of increasing the volume of services in this sector to 41 trillion Uzbek soums and doubling exports with at least 30% growth in the coming year has been emphasized.

Our country has great potential for tourism. It was stressed that in order to effectively use this potential, it is necessary to increase the number of hotels and guesthouses.

There has been a decision on the preparation of master plans for historical sites and tourist resorts, and on the allocation of additional funds for their infrastructure. In addition to repairing the roads leading to them, it is necessary to set up commercial and service points along these roads.

Experience from other countries has shown that the purchase of jewellery is often one of the main attractions for tourists. Our production is limited even though we have the right conditions. In this connection, it has been decided to organize modern jewellery complexes in each region from next year.

There is also a proposal to organize an international fashion week in our country called "Uzbek Silk".

It was noted that it is necessary to improve the comfort of our markets for tourists. The importance of transforming them into complexes where tourists can stay for a long time and become a "visiting card" reflecting our culture was emphasized.

As a result of these measures in the service and tourism sector, more than 2 million people can be employed, as was noted during the meeting.

At the meeting, reports were heard from the leaders of the sector and the region, as well as proposals from entrepreneurs.