The Present Situation And Development Prospect Of Kazakhstan Light Industry Textile Industry

On 30 June, at a regular government working conference, the Vice Minister of industry and trade, Mr. kazunov, made a report on the status quo and development prospects of Kazakhstan's light industry. Hu duo, President of the association of light industries, made a supplementary speech. Premier Masimov gave instructions, and plated the main contents of the above reports and statements as follows.

The report of the Vice Minister of industry and trade, al. Carsuov, is that the light industry is the only industry with declining production in the processing industry of Kazakhstan.

From 2000 to 2007, the proportion of textile and clothing industry in total industrial output dropped from 2% to 0.6%.

At present, ha light industry products are being gradually squeezed out of the domestic market.

The biggest decline in production was in 1996, and output value dropped by nearly 85.7%, and 60% light industry enterprises were in a state of loss.

This trend continues until 1999.

Later, the Kazakhstan government adopted support measures, by revising the tax law, canceling fines, extending the tax payment period, implementing the zero value-added tax rate, and exempting the import tariff of raw materials, which has a positive effect on the resumption of production.

However, with the cancellation of state support measures in 2002, light industry has gone downhill again.

In 2007, the output value of textile and clothing industry in Kazakhstan was 35 billion 500 million, which was 15.3% lower than that in 2006.

The main obstacles and problems restricting the development of Harbin light industry include: high wastage rate of production equipment, large capital consumption, low competitiveness of products, high labor cost, underdeveloped raw material foundation, and lack of investment enthusiasm.

At present, the man-made and physical wastage rate of Harbin's production equipment is about 60-80%. Even after the technology pformation or the turnkey project in the 80s of last century, its equipment has been used for more than 10-20 years.

Under the situation of increasing competitiveness of foreign products, ha's light industry is becoming more and more prominent in terms of resources and technology.

Compared with foreign enterprises exporting light industrial products to Kazakhstan, the state economic environment faced by Kazakhstan manufacturers is also at a disadvantage.

At present, many countries have implemented systematic support policies for light industry, such as China's customs tax policy is more flexible, low tax and tariff free practices are adopted, tariff free or low tariff is prescribed, and export is exempt from customs duties except some raw materials and semi finished products.

Another example is Russia's aggressive tariff policy and flexible tax policy. For example, in 2001, to prevent the large-scale export of leather raw materials, Russia increased its export tariffs to 500 euros per ton, and imposed zero tariffs on the import of leather and shoe making equipment and parts, and reduced the value-added tax of children's fur clothing to 10%.

In Kyrgyzstan, light industry enterprises only need to pay a small amount of fixed taxes by franchising, and their products are actively seeking to occupy a place in Ha textile market.

In Turkey, the government has changed the tax policy to protect domestic products from the impact of Chinese products. Since January 1, 2005, 42 import products from China have been set limits, and the raw materials and product tax have been waived from the light industry enterprises since 2006.

In recent years, the government of Kazakhstan has adopted a resolution on the healthy development of light industry.

For example, the cotton planting industry has shown a good momentum, that is, &laquo, ONTUSTIK&raquo and free economic zone have been established in South ha state. In the last five years, ten thousand jobs will be added, and the enterprise income tax, land and property tax will be exempted, and the zero tax rate of value-added tax will be implemented.

Since 2002, seed cotton production has been expanding.

In 2007, the sown area of cotton increased by 20.5% compared with 2002, and cotton production increased by 22.4%.

A good example is Kazakhstan's financial support for light industry.

Currently, Kazakhstan Development Bank provides financing for 7 investment projects in the light industry, with an amount of US $196 million.

Kazakhstan's leasing company has leased project financing to 6 light industry sectors, with a total sum of US $125 million. The Kazakh investment foundation has implemented the pformation project of semi wool primary processing plant.

This year, import tariffs on light industrial raw materials and processing equipment were down, including tariffs on printing and dyeing materials and textile accessories.

At present, Kazakhstan can not only restore the past production level of light industry, but also produce high value-added goods.

Ha has good prerequisites and conditions for developing light industry, such as ha has leather raw materials, Asia Pacific region, Europe and CIS countries have stable demand for cotton yarn; HA's close neighbor Russian market is large, its market capacity is nearly US $about 10000000000; besides, there are also Asian and Middle East selling markets.

The Ministry of industry and trade, together with the national economic federation "ATAMEKEN" and the light industry association, jointly formulated a draft of light industry comprehensive development measures, and put forward the system support for light industry.

This draft has been referred to relevant state organs for consultation.

The Ministry of industry and trade put forward the following suggestions: 1, use the customs tariff adjustment method to flatten the economic conditions of light industrial products producers and importers; 2, tax incentives for light industry.

Light industry should be separated from other processing industries and given special status in the new tax law. 3, capital guarantee for light industry is to pass the new light industrial lease financing scheme.

In addition, special loans for small and medium enterprises in light industry should also be provided.

Finally, we should abolish the permit system for initial processing of seed cotton and lint and establish a regulation to eliminate industry barriers. Only in this way can we raise the ability of attracting foreign capital in light industry, upgrade the existing fixed assets on a large scale, and set up an incentive mechanism for the production of new products.

Hu DUWA, President of Harbin light industry association, said that the economic and budgetary Department has no foresight to formulate unified tax standards for all industries.

The standard metrology, product inspection and certification system must be thoroughly reformed.

In particular, the import of footwear should be given enough attention. Ha 75% imported footwear from China, which jeopardizing the health of residents, especially for children.

The establishment of children's footwear demonstration enterprises can prevent the import of harmful footwear to children, and can increase the output of children's shoes at least more than one time.

Kazakhstan Premier Masimov instructed the Minister of industry and trade to take the lead in establishing the "Light Industry Development Committee" and completed the drafting of the government's resolution before September.