Uzbekistan'S Stop Exporting Cotton Is A Good Performance.

The supporting policies launched by the Uzbekistan government provide better protection for the development of textile enterprises, and are also rapidly promoting the attraction of foreign capital in this field.

In this regard, industry experts believe that risks and opportunities coexist, whether the future textile enterprises will trigger a "rush to Ukraine" upsurge remains to be seen.

While capturing investment opportunities, textile enterprises must seriously study investment projects and identify investment risks.

"Because of the development needs of the cotton textile industry of this country,

According to the statistics of Uzbekistan National Statistical Commission, in the first 11 months of 2018, Uzbekistan exported 110 thousand tons of cotton fiber, valued at $213 million, accounting for 1.9% of total exports, and continued to slide.

At the same time, textile exports maintained a rapid growth trend, and exported 1 billion 178 million US dollars in the first 11 months of 2018, an increase of 15.3% over the same period in 2017, accounting for 10.4% of total exports.

This group of data reflects that Uzbekistan's cotton industry is undergoing profound pformation under the guidance of policies.

At the same time, the "2019-2021 year Uzbekistan textile industry development strategy" officially released the development direction of the country's textile industry.

The strategy is to insist on export oriented, use high technology to produce competitive technology intensive products, and encourage industries to attract capital and innovate.

It is obvious that the continuous supporting policies of the Uzbekistan government are providing better guarantee for the development of textile enterprises, and at the same time, they are also rapidly promoting the attraction of foreign capital in this field.

Then, as a key country along the "one belt and one road", can Uzbekistan win the favor of domestic textile enterprises and become a hot country for the next enterprise to invest and build factories?

Many initiatives to improve the industry environment

Encourage foreign capital to build textile factories

As we all know, Uzbekistan is rich in cotton, known as the "platinum country", and is one of the major cotton producers and exporters in the world.

It is understood that the government actively sought to pform from cotton exports to textile exports. There are two main reasons:

In order to speed up the development of textile industry, Uzbekistan has been creating important opportunities for itself in recent two years.

At the end of cotton planting, the country is vigorously promoting cotton cultivation to improve quality and efficiency.

At the end of processing and production, the government's supporting policies continue to provide better guarantee for the development of textile enterprises, and at the same time, it also rapidly promotes the attraction of foreign capital in this field.

Abu Cosmo J, an economics professor at Uzbekistan National University, said that in recent years, the Uzbekistan government has provided many preferential policies for export enterprises, including the establishment of special funds to support the export of small and medium-sized enterprises, and the provision of export credits and insurance for private enterprises. These measures have led to the rapid growth of the textile exports and the signal of opening a friendly door to overseas enterprises.

In addition to the policy factors, Uzbekistan's unique location advantages in Central Asia hinterland and Eurasia traffic arteries are also highly valued by foreign investors.

The government also made clear that in the process of developing international cooperation, the regional representatives of Uzbekistan Textile Industry Association will be established to radiate the market of CIS, Europe and Southeast Asia.

In addition, it is worth noting that the efforts made by the Uzbekistan government in recent years to prohibit mandatory labour and enhance the remuneration of cotton pickup personnel have also been recognized by the international community.

The labor department released a list of child labour and forced labour products released in late September 2018 to ban cotton production in Uzbekistan.

Analysts believe that the United States "lifting the ban" Ukrainian cotton good news, for Ukrainian textile exports to the EU, North America and Japan to lay an important foundation for the market, which is willing to invest in Uzbekistan textile enterprises is a favorable point.

Chinese textile enterprises have a precedent for investment

"Go out" for a new world

In recent years, the textile industry in Uzbekistan has developed rapidly. There are more than 7000 textile enterprises in China. According to the data of Uzbekistan Textile Industry Association, China, Turkey, Korea, Singapore and Switzerland are actively participating in the development of Uzbekistan textile industry. At present, more than 150 foreign-funded textile enterprises are operating in the country, of which 50 are purely foreign-funded enterprises.

Uzbekistan textile industry responsible person expressed the hope that China will seize the opportunity, increase investment in Uzbekistan, make full use of China's advanced technology and management experience, and promote the development of Uzbekistan's textile and apparel industry chain.

In fact, as early as in the past few years, China's textile enterprises went to invest and build factories in Uzbekistan.

In 2015,

Began to layout in the area along the way and invest in spinning projects in Uzbekistan.

In July 2015, the 120 thousand spindle combed compact spinning project was founded in the first phase of the first phase of the Li Tai Textile International Park.

In July 2017, the first phase of the park was completed and put into operation. The annual output reached 22 thousand tons of cotton yarn, and the export volume exceeded 70 million US dollars.

It is equipped with the world's most advanced and highly automated spinning process equipment, introducing the international modern production management concept and creating a modern textile enterprise with high efficiency, ecology, intelligence and circulation.

At present, the two phase of the Li Tai Textile International Park has been laid foundation and is expected to be put into operation at the end of 2019.

Mir Ziyoev

For overseas investment of enterprises,

He said: "the development of Uzbekistan has the encouragement of national policies. In relative terms, it has advantages over our side in terms of raw material resources and employment."

Facts have proved that it is precisely this step "going out" to enable Taicang to break through the bottleneck of development and realize the pformation and upgrading of enterprises and revitalized them.

Coexistence of risks and opportunities

Investment boom is still early.

In recent years, domestic textile enterprises are actively carrying out the global industrial layout and are rusing to Vietnam to invest and build factories.

In the face of increasingly complex international environment, can Uzbekistan become the next hot spot for textile enterprises to invest and build factories?

In this regard, industry experts believe that risks and opportunities coexist, whether the future will start a "rush to Ukraine" upsurge remains to be seen.

According to the reporter's understanding, investing in Uzbekistan has the following special advantages: buying Uzbekistan cotton and enjoying 15% preferential prices; socks and clothing enterprises enjoy all tax and fee concessions except for VAT; 100% of raw materials and excipients imported from Uzbekistan can not be exempt from customs duties; the equipment and spare parts that Uzbekistan does not have the ability to produce, 100% are exempt from customs duties when importing; foreign investors enjoy 10 years' tax exemption; textile export enterprises enjoy property tax exemption; professional textile and garment technology colleges offer high-quality talents; the government approves the land use for 49 years.

Experts believe that