Field Visits Bring First-Hand Information: How Big Is The Opportunity For Spinning Enterprises To Invest In Tajikistan?

According to Xinhua news agency, not long ago, Chinese ambassador to Tajikistan Liu Bin submitted his credentials to President Rahmon of the Tajikistan, and said that China is ready to work with Tajikistan to earnestly implement the important consensus reached by the two heads of state and the agreements signed by both sides, so as to push the comprehensive strategic partnership between China and Tajikistan to a new level.

Rahmon also said that China is a comprehensive strategic partner and close neighbor of the tower, and developing relations with China is the priority direction of the tower's diplomacy.

At present, China has become the largest source of investment and major trading partner of the tower.

Tajikistan's textile and apparel supply chain is relatively complete, from cotton production to spinning, weaving and the production of terminal products are relatively sound, China and Tajik have a good foundation for industrial cooperation.

Recently, China's textile industry "one belt and one road" International Cooperation Development Research Center, led by the chief researcher Wang Hua, quickly organized to Tajikistan and launched an in-depth industrial investment cooperation survey.

As a result, the China textile daily reporter gave an exclusive interview with Wang Hua to understand the latest situation of the local textile and garment industry and enterprises in Tajikistan, and provide reference information for the industry to cooperate.

The foundation of industrial cooperation is relatively solid.

At present, China and Tajik have highly political mutual trust, laying a good foundation for economic and trade cooperation.

Tajikistan was the first country to respond to the "one belt and one way" initiative.

At present, the motive force of the economic development of the pagoda mainly comes from industry, and industrial investment mainly comes from China.

Wang Hua said that in the past 3 years, large industrial enterprises that are being built or completed in China are basically invested by Chinese enterprises.

China has become the largest source of investment in the tower, and has invested more than 2 billion dollars in the tower, and has become one of the main trading partners of the tower.

As a result, Tajikistan put forward the development goal of pforming from an agricultural country into an industrial country and formulated the national development strategy before 2030, and announced that the "one belt road initiative" would be deeply linked to the national development strategy before 2030.

Wang Huaqiang said that textile and clothing manufacturing and handicrafts are industrial sectors with historical traditions in Tajikistan.

Unlike many other Central Asian countries, the supply chain of textile and apparel in Tajikistan is relatively complete, and the industrial cooperation between China and Tajikistan is well established from the cotton production to the production of spinning, weaving and terminal products.

In addition, Tajikistan has a long history of cotton cultivation. Cotton has been the main crop of the pagoda. It is the second largest economic pillar industry in the country after aluminum and occupies an important position in the national economy.

At present, the country has established a system of raw cotton production, which has the foundation for the development of the textile and garment industry.

At present, there are about more than 60 cotton ginning enterprises in Tajikistan, producing about 120 thousand tons of high quality cotton fiber each year.

In these cotton fibers, the local textile enterprises can only process about 12 thousand tons a year.

For Chinese enterprises, investment in the tower can take advantage of local raw materials.

From the perspective of labor strength, Tajikistan's local labor skills are more skilled than other Central Asian countries. They can not only produce basic clothing such as uniforms, shirts, jeans, but also complete more complicated embroidery and printing processes.

In view of the great potential of the development of the textile and garment industry, the government of Tajikistan believes that the industry is a priority sector for future development, with the goal of diversifying export products and creating new employment opportunities with a view to achieving sustainable growth.

To this end, the government has put forward two favorable policies conducive to the development of the spinning and weaving industry, namely, the comprehensive cotton processing plan and the Tajikistan light industry development plan.

The former aims to increase the production and comprehensive processing of cotton fibers in Tajikistan. The latter, by improving the regulatory conditions, enacted effective legislation to attract foreign businessmen to create businesses.

At present, Tajikistan provides free production of land for foreign-funded textile enterprises. Its products are exported to any country for 5 to 10 years, and electricity charges are also reduced to a minimum.

Industrial chain upstream cooperation opportunities optimistic

Tajikistan cotton has been introduced into China along the ancient Silk Road. Now, under the impetus of the "one belt and one road" initiative, Chinese enterprises have brought advanced cotton planting and textile technology there. The two sides have jointly built the largest textile industrial park in Central Asia, the Sino Thai Tajikistan Agricultural Textile Industrial Park, which has injected new vitality into the long history of this industry.

Wang Hua said cotton prices in Tajikistan are only 2/3 of Chinese cotton prices, and wages are only 1/10 of China, and electricity prices are less than half of China's domestic prices.

China and Thailand Tajikistan Agricultural Textile Industrial Park has fully enjoyed the welfare benefits of these industries.

The park was officially launched in July 2014, with a total investment of 2 billion yuan. It was jointly built by China Zhongtai group, Xinjiang production and Construction Corps and Tafang enterprises. The three phase of the project includes 200 thousand acres of cotton fields and 3 ginning plants.

At present, the first phase 60 thousand ring spinning project and the two phase 5760 air spinning project have been put into operation, producing 22 tons of cotton yarn every day, and all the products are exported to Russia, Turkey and China.

The three phase of weaving, knitting, printing and dyeing and clothing will start construction this year, in order to fully enjoy the advantages of the local industrial chain.

It is particularly worth mentioning that the cotton drip irrigation technology under the assistance of the Chinese government has been successful in the tower, and the government of Tajikistan will promote this technology throughout the country.

Wang Hua mentioned that Henan tahuang Agricultural Development Co., Ltd. invested by Tajikistan Huang pan Industrial Group Co., Ltd. has high output of cotton and its linen percentage reaches 40%, and its output per mu reaches more than 300 kilograms.

Tajikistan has started to use advanced irrigation technologies such as sprinkler irrigation and drip irrigation in China.

The focus of the investigation is Kulow Yapu Textile Co., Ltd. is an air spinning factory built by the Prime Minister of Tajikistan personally supporting the construction. Due to the huge influence of the factory in the local industry, the government of the city of chooa cloth asked Chinese enterprises to focus on increasing production capacity in the investment of Kulow Yapu Textile Co., to further expand production and provide more jobs for the local people.

Wang Hua introduced that "the city of Tajikistan" is an important cotton producing area and textile industry cluster in the city of Tajikistan. At the end of last month, the government of the Tajikistan announced the establishment of fifth free trade areas in the city of the city of "central" and asked to focus on the construction of the textile industry park in the central tower.

Rational use of tools to strengthen risk prevention

It is understood that Tajikistan is a mountain country, mountainous area accounts for 93% of the land area, does not have the conditions for the development of grain and fruit and vegetable planting industry, but it is suitable for cotton production.

Tajikistan is one of the main cotton producing areas in CIS countries. It is famous for its high-quality long staple cotton and short staple cotton. Its cotton yield is high, its fiber is fine and its quality is good.

In recent years, the total output of cotton in Tajikistan has been declining because of the factors such as capital restriction, fluctuation of cotton price and policy guidance.

In particular, the expansion of grain cultivation in Tajikistan in the past few years has led to a decline in cotton planting area and output.

Wang Hua said that in 2018, Tajikistan was also affected by natural disasters, and the output of cotton was only 300 thousand tons.

This should cause Chinese enterprises to be vigilant.

Wang Hua suggested that Chinese textile enterprises should enhance their sense of risk and hardship in the process of going out to invest, so as to make the feasibility study so that the rate of return on investment can be within the scope of the enterprise.

He suggested that textile companies should take the investment routes of mergers and acquisitions to enhance their competitiveness.

This can reduce investment risks, recover costs quickly, and share with local industrial development.

At the same time, attention should be paid to selecting suitable financing institutions, such as the Asian Development Bank, China Export and Credit Insurance Corp, and financial institutions with local credit guarantee, which can ensure the smooth flow of capital chain and avoid unnecessary losses caused by international exchange rate fluctuations.

Wang Hua also suggested that the textile enterprises that go out should set up the development concept of "top-level design of government and practice of enterprises at the grassroots level" and focus on the investment projects actively supported by the government of Tajikistan.

For example, different parts of the country have different industrial advantages, there are areas suitable for the development of cotton spinning industry, there are areas suitable for the development of printing and dyeing industry, and there are also suitable areas for the development of the garment industry.

Chinese textile enterprises should have a definite goal in the course of investment.

He added that we should see that there are three major development strategies for Tajikistan, that is, to go out of the mountains, to become self-sufficient in agriculture and to realize industrialization.

For example, the Sino Thai Tajikistan Agricultural Textile Industrial Park has made many early harvest, and will form a chain of cotton planting, spinning, weaving and garment production in the future.

Therefore, as long as China's textile enterprises grasp the development status of the pagoda industry and make up for the short board of the local industry, they can achieve industrial cooperation well.