Wednesday, February 12, 2014

DEVELOPMENT OF LIGHT INDUSTRY IN KYRGYZSTAN

DEVELOPMENT OF LIGHT INDUSTRY IN KYRGYZSTAN

Heavy light industry

Textile and garment industry of Kyrgyzstan from year to year then undergo ups and downs. In 2005, the republic had 186 enterprises, and by 2010 their number was reduced to 135. Despite this, the volume of industrial production increased from 2 billion 261.8 million to 6 billion 369.4 million soms.

A couple of years ago, businessmen favored textile production, currently only sewing - more profitable to buy imported fabrics to manufacture than their own. So you can completely negate the processing of raw materials and the production of textiles. In the garment industry is also a lot of problems, because of which it is close to the edge.

Small stitches

The quality of our products because of the brand know `Made in Kyrgyzstan #39;. But he built up by then, we can say the blood of local entrepreneurs. Now they are targeting is to conquer the European market. Kyrgyzstan#39;s entry into the Customs Union will contribute to this, but at the same time this has serious risks.


As already mentioned, the fabric of our clothing makers are buying abroad, so will have to pay for their imports at high rates.

The Ministry of Energy and Industry of the Kyrgyz Republic understand that one wishes to keep garment manufacturing business is not enough. It takes political will of officials. `When joining the TA Kyrgyzstan intends to obtain preferential treatment for light industry. Industry and Energy Ministry is interested to import conducted at low interest rates. Need to write a phased development of the textile and garment industry, by 2015, to reach a new level.


We have to agree with members of the TC more than 4 thousand items and 150 documents. Despite the difficulties, we must support the garment and textile industry #39;, - said at one of the round tables Deputy Minister of Energy and Industry of the Kyrgyz Republic Saparbek Assanov.

Clothing makers prefer to act aggressively, they are asking the government for them to open a credit line for 7-10 per cent per annum. `In Kyrgyzstan, the textile industry is poorly developed. We are more profitable to import fabrics, you can use your own. Upon accession to the Customs Union industry will experience great difficulties, so the need to support entrepreneurs preferential loans. In addition, you should create a favorable environment for investment.


Local investors will not be able to raise their own light industry #39;, - said the executive director of the Association `` Souztextile Maria Kapustin.

The language of the master, as a matter of left-handed

The main problems in the industry are technological backwardness, dependence on imported raw materials, high interest rates on loans, low competitiveness of domestic products, the lack of qualified personnel. KR prefers its own raw material export, though, reworking it, we could provide sewers. Then join the Customs Union would be painless for the industry.


But every year 95 percent of the collected 101.3 tons of raw cotton and 11.1 thousand tons of wool for export. `In 2011, the cotton processed only 22.5 thousand tons#39; - explained the agency` 24.kg `Head of the Department of Light Industry Ministry of Industry of the Kyrgyz Republic Fatima Sadamkulova.

According to her, the Ministry of Agriculture intends to increase cotton acreage to 40,000 hectares. #39;Entrepreneurs are ready this year to produce 120,000 tons of raw cotton and 16.6 tons of wool, but if you do not set up businesses on their processing, almost all of this stuff again go for export. Necessary to attract investors for fiber processing and recovery of silk production in the Osh region `- added Fatima Sadamkulova.

Branch Director of the Association of Light Industry `` in Osh Idar Amatov said that in the south of equipment and facilities for garment production is not. `Because of the lack of designers cutters use a single template for two sizes of clothes - he added. - Such goods they can sell on the local market at a low price. No entrepreneur can enter the export `.

The shortage of staff is not only Osh. Despite the fact that the vast majority of sewing shops are concentrated in the capital, training deals only 4 professional lyceum. The professionalism of their graduates is poor. `When exams at high schools invite entrepreneurs, many students fail the assessment.


This is an indicator of their training #39;- said Farhad Raimzhanov.

Technopolis in the city

It is obvious that the problems in the garment industry did not appear in one day, and accumulated over the years. So back in 2008, the ROC government has decided to support the production through the construction of new plants, combined in technopolis. For this it was necessary to allocate about 10 hectares of land.


4 years have passed, but the question still remains open.

As planned by garment workers in the industrial town will include about 30 companies from 7 thousand jobs. In technopolis will operate modern equipment, logistics systems, storage, dining room, medical center - all to international standards.

`` Light Industry Association appealed to the state authorities with a proposal to set aside land in residential areas of Bishkek. This proposal is even discussed at a cabinet meeting, which resulted in the City Hall, Chui oblast administration and Gosarhstroyu together with Ministry of Industry was asked to discuss the allocation of land for construction. After 3 months, City Hall reported that identified several sites, but for detailed work on the issue Legprom `` shall submit a draft of Technopolis.

The project is prepared, but the land for its construction was not identified. In the municipality have reported that such a large portion present in Bishkek. Clothing makers have agreed to reduce the number of people wishing to unite businesses to place them at least 2 hectares of land, but confusion in the plans and structures put an end to the project.

The promised three-year wait

On the eve of the Day of Light Industry, Prime Minister Omurbek Babanov again ordered to find land for a technopolis in Bishkek, Sokuluk or Alamudun areas. For the realization of this project needs about $ 10 million. Entrepreneurs and then go towards the government.


They are willing to assume all costs: make half of his own pocket, and the other - to take a loan from the state.

Director of the Association of Light Industry `` CD Farhad Raimzhanov still hopes that the government will find the ground. `When we were planning to create a technopolis, it would enter 26 companies. Now there are more than 30. All sewers are going to invest the money as soon as a plot `, - he explained.

The authorities were less dexterous - has not prompted any area in the Chui region, nor in Bishkek. But officials have counted up to the last tyins profit from garment production. `In 2011, manufactured goods of light industry 7 billion soms. Exports of apparel products is one of the important components of the economy of the country, the volume of which increased annually.


In 2011, exports of goods by $ 143.7 million `- said Prime Minister Omurbek Babanov.

On five pillars

In Kyrgyzstan, the bulk of industrial production (up 91 percent) made ekonomikoobrazuyuschimi five branches, four of which represent the scope of the manufacturing industry: iron and steel production, 56.2 percent, food products, beverages and tobacco - 10.5 percent, textile production - 4.5 percent, building materials - 4.8 percent.

Chui holds the record for production - 39.9 percent. In the Issyk-Kul region, the share of production is 27.6 percent, in Bishkek - 17.4, Jalal-Abad oblast - 8.6. Industrial production is underdeveloped in Naryn, Osh, Batken and Talas. Kyrgyzstan mainly exports gold, garments, cotton, wool, hides, food processing and production engineering.


It should be noted that imports exceed exports.

The Ministry of Economy and Antimonopoly Policy of the Kyrgyz Republic developed the concept of industrial development for 2012-2015. The document sets out the main industry issues and no specific recommendations on how to achieve improvement.

The country#39;s authorities to easily assess what contribution to the national budget brings the industry, but how hard entrepreneurs earn the money, they can not appreciate. Until that happens, the industry is slowly but surely will fall apart.