In the past 10 to 15 years, the international textile industry has experienced major changes. In today’s textile industry, only those countries that can minimize the factors that determine production costs can become industry leaders.
In recent years, the competitiveness of Uzbekistan’s textile industry has been continuously strengthened, mainly due to government support, including preferential and preferential policies, measures to deal with the crisis and a good investment environment; skilled workers, a long tradition of textile production; and convenient access to high-quality raw materials sources, stable energy supply, natural gas power production infrastructure; rapidly growing domestic market, as well as foreign markets, such as the CIS and European countries. Factors that promote the vigorous development of the textile industry include the low consumption rate of funds in the textile industry, which lowers the entry threshold for small and medium-sized enterprises, accelerates the development of the industry, and creates a competitive market.
The Uzbekistan Light Industry and Textile Federation has 285 member units, and its products cover six major areas of the textile industry, including cotton spinning, silk, knitting, clothing, etc. Uzbekistan’s successful experience lies in sound marketing strategies and effective cost reduction measures.
Based on international experience, including the development experience of new textile countries, Uzbekistan has drawn on the research results of relevant international organizations and consulting agencies and formulated a series of measures to eliminate economic and financial crises. The development direction of its textile industry is, first of all, to focus on expanding the production of resource-intensive products, such as towels, home textiles, knitting, sewing, etc., and to strengthen scientific and technological innovation. Secondly, further reduce production costs, including ensuring preferential prices for raw materials, auxiliary materials, equipment accessories and energy. Thirdly, we should give full play to our competitive advantages and aim to meet the needs of domestic and foreign markets when implementing investment projects. Finally, we will further improve the business environment and investment attractiveness, while purposefully creating a Uzbek textile brand and supporting enterprises to go global.
In recent years, the Uzbekistan Light Industry and Textile Federation has made great progress. The output of cotton and cotton processing exceeds 350,000 tons. At the same time, 75% of textiles are produced by joint ventures or wholly foreign-owned enterprises. It has the most advanced textile machinery in the world and has a very rich variety of export products, from cotton yarn to finished products. The annual export volume of Uzbek textiles is US$700 million, and the export destination countries are also constantly increasing. In addition to traditional markets such as Turkey and Germany, new markets have been added in recent years, such as China, Iran, Greece, etc. In 2012, Uzbekistan’s textile industry received direct investment of US$179 million, of which South Korea accounted for approximately 16%. New enterprises are equipped with modern production equipment, and the textile industry has developed rapidly.
(Speech by Kasimov Ilizot, Commercial Counselor of the Embassy of Uzbekistan in China, at the 2014 Textile Raw Materials Conference)
