Tashkent, Uzbekistan (UzDaily.com) - In recent years, the textile and clothing industry has undergone major changes. One of the main factors was a wide range of opportunities created by the Government for entrepreneurs, improving the investment climate and the policy of entering foreign markets, as well as the Development Strategy developed by the Uztekstilprom Association and enterprises.

At present, the Uztekstilprom Association unites more than 1970 large textile and clothing enterprises. Currently, the total number of enterprises in the country is more than 7 thousand. In recent years, the industry has undergone dramatic changes, resulting in US$3.2 billion in foreign investment, exports reaching US$2.1 billion, and the industry employs over 360,000 people. Textile enterprises have been established in all regions of the country and have become one of the drivers of the economy.

As a result of deep reforms, enterprises were completely modernized, and the processing of cotton fiber grown in the country reached 100%.

As a new vector for the development of the textile industry, cotton-textile clusters were created, which completely covered the production chain from cotton to finished products. It is through the clusters that the systems of water conservation and drip irrigation, eco-cotton cultivation and certification have been widely introduced.

In order to accelerate reforms and staff training, the Uzbek-Korean Textile Technopark was established at the expense of the Government of the Republic of Korea. This technopark is aimed at training technologists and creating new types of products using new intelligent technologies.

In order to improve the quality of products and their purchases in foreign markets, the German Society for Foreign Cooperation has launched a program to bring textiles to the European market and a fashion incubator. The EU’s provision of GSP + preferences to Uzbekistan requires the introduction of international standards at enterprises, which is an important factor in the sharp increase in exports. And within the framework of this program, the certification company from the Netherlands, Control Union, is doing a lot of work in cooperation with the Association.

Jasur Rustambekov, head of the executive office of the Uztekstilprom Association, spoke about the main indicators achieved by the association in January-March 2020.

In particular, in January-March of this year, the enterprises-members of the association used 252 thousand tons of cotton fiber.

The volume of industrial production amounted to 7.5 trillion. Sumy (growth rate - 122.5%).

Including,

- 169.4 thousand tons of yarn (growth rate - 106.9 percent);

- cotton fabric 118.7 million sq. m (127.2 percent);

- knitted fabrics 39.4 thousand tons (124.7 percent);

- 112.6 million units Knitwear (110.6%);

- 63.5 million pairs of socks (116.5%);

- garments - 120.2 billion soums (109.3%).

Within the framework of the localization program, products worth 141.8 billion soums were produced. The cost of production decreased by 30.4 billion soums.

According to the investment program, 21 projects were mastered amounting to US$54.2 million (186.2% of the plan) of foreign investments, including US$49.2 million (10 projects, 244.3% of the plan for the reporting period) - direct foreign investment.

At the end of the 1st quarter of 2021, the export of textiles amounted to US$648.1 million (29% of the country’s exports), which is 143.5% more than in the previous year (US$452 million in the 1st quarter of 2020). In particular, the volume of exports in March amounted to US$243.5 million, an increase of 123.6% compared to January and 117.6% compared to February (in January-February it amounted to US$197 and 207 million, respectively).

D. Khabibullaev, Deputy Head of the Department for Implementation of Regional Investment Projects of the Uztekstilprom Association, spoke about the work done in various regions of the country. In the first quarter of this year, more than 550 new jobs were created in Kashkadarya region as a result of the commissioning of two large textile enterprises.

In particular, in Karshi district of Kashkadarya region, the production facilities of Raw materials exclusive LLC with a capacity of 4.5 thousand tons of yarn and in Kitob district of Kitob ip Yigiruv LLC with a capacity of 7.0 thousand tons of yarn were commissioned.

Today, new facilities for the production of textiles and clothing are being created in almost all regions of the country, including in remote and high-demand regions. Especially for the employment of women, the construction of sewing and knitting complexes will provide permanent work in densely populated areas.

In particular, in the first quarter of this year, more than 300 new jobs were created as a result of the launch of the O-Mee Group sewing and knitwear complexes in Kurgantepa district of Andijan region and Full Cotton in Karman district of Navoi region. In addition, Jizzakh Kentex in Jizzak, Vobkent fiber cluster in Vobkent district of Bukhara region, Norin Tex in Naryn district of Namangan region provided more than 900 new jobs thanks to the installation of modern spinning machines from leading world manufacturers.

First of all, these projects will make it possible to completely process the cotton fiber grown in the regions on site, produce products with high added value and increase the real income of the region’s population.

Speaking about the workload of the industry, D. Rustambekov said that in the last quarter, monthly exports amounted to 240 million. dollars and achieved a record result.

At the end of the 1st quarter of 2021, the export of textile products amounted to US$648.1 million (29% of the country’s exports), an increase of 143.5% compared to the previous year (US$452 million in the 1st quarter of 2014). 2020).). Of these, the volume of exports in March amounted to US$243.5 million, an increase of 123.6% compared to January and 117.6% compared to February (in January and February they amounted to US$197 and 207 million).

About 56.1% of the total volume of textile and knitted goods produced in the country is exported, and the rest is directed to the domestic market.

In the structure of product exports, yarn accounted for 54.1% (US US$350.7 million), fabrics - 4.7% (US US$30.2 million), knitwear - 8.4% (US US$54.4 million), sewing goods 31.1% (201.4 million US dollars), hosiery 1.7% (11.2 million US dollars).

In total, products were exported to 55 countries (50 in 2020), including to Russia - 33.8% (US$214 million), China - 25.5% (US$165.6 million), Kyrgyzstan - 13.1% (US$84.7 million), Turkey. - 11.3 (US$73.6 million) major partner countries. The share of these countries in total exports amounted to 83% (US$537.9 billion).

The number of entities engaged in the export of products amounted to 831, an increase of 108% or 58 (in 2020 - 773).

GSP + system of preferences - new perspectives and new milestones

By the end of 2020, 102 businesses had exported US$74.1 million worth of textiles to the EU, a 136.4% increase over the previous year (up from US$53.3 million in 2019).

At the end of the 1st quarter of 2021, 71 business entities exported textile products worth US$27.5 million.

In the structure of product exports, yarn 49.1% (US$13.5 million), fabrics 21.9% (US$6 million), knitted fabrics 16.7% (US$4.6 million), garments 11% (US$2.9 million), hosiery 1.3% (US$0.3 million).

Products were exported to 16 EU countries, the main partner countries were Poland - 56% (US$15.4 million), Italy - 19.1% (US$5.3 million), Germany - 7.3% (US$2.0 million). The share of these countries in total exports amounted to 82.3% (US$22.7 million).

When applying the General Benefits System (GSP +):

Exports are expected to grow by US$142.1 million in 2021, up 191.8% over the previous year;

In 2022, exports will amount to US$242.2 million.