Textiles: 3 numbers (and just as many reasons) to invest in Uzbekistan

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The white gold – this is the nickname of the cotton in Uzbekistan. And the Uzbeks know why they call it that way.

Cotton, in fact, plays a key role in the economy of the country.

Some numbers on cotton production in Uzbekistan

  1. Uzbekistan produces about 1.1 million tons of cotton per year.
  2. Uzbekistan is the world’s sixth largest producer and second largest exporter
  3. 70% of the cotton is exported and 30% is used by the local industry. The cotton is sold to China and other major countries, such as Russia, South Korea and Bangladesh.

Due to factors mentioned above, Uzbekistan is developing a strong textile industry, leading Uzbek companies to specialize in various sectors. In Tashkent, but also in other cities, we can find companies that produce cotton yarn, fabrics, garments and other products made of cotton.

Manufacturing in Uzbekistan: here’s why it is convenient

Uzbekistan is a State that gives great support to foreign investors.

Companies that want to enter in the textile sector, or better, cotton sector, they can negotiate with the Ministry of Textiles a package of subsidies that generally includes:

  • 7 years of total tax holiday;
  • possibility to repatriate dividends in hard currency;
  • preferential terms for the purchase of cotton;
  • a free of charge proposal of a location greenfield or, more easily, brownfield.

 

Photo: flickr/rumpleteaser

 

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