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December 25, 2014


December25, 2014

investments. 2

Attraction of foreign investments and advanced technology for the development of the electro-technical industry in the Republic of Uzbekistan. 2


National Dress Festival Highlights Current Trends in Uzbek Fashion Design. 5

“Lullabies that my mother sang” festival held in Uzbekistan. 6





Attraction of foreign investments and advanced technology for the development of the electro-technical industry in the Republic of Uzbekistan

Today the economy of Uzbekistan is part and parcel of the world economic system. The country has been intensifying its export potential from year to year, while gradually changing the structure of exports deliveries to foreign markets from raw materials to high-tech finished goods with high value added. Thanks to the step-by-step systemic implementation of the top priorities specified in the National Program of Socio-Economic Development and complex programs to ensure the outstripping development and modernization of certain industries and sectors of the Uzbek economy, the Republic ‘s economic growth is going on at sustainable rates. Furthermore, its macroeconomic stability tends to solidify despite lots of the negative crisis-engendered phenomena in the global economy that tangibly slacken its growth pace. In 2013, Uzbekistan’s GDP grew by 8 per cent and production volumes of industrial output – by 8.8 per cent, including consumer goods and farm produce – by 15.9 per cent and 6.8 per cent, correspondingly.

The consistent realization of measures to ensure the balanced stimulation of home demand and the provision of all possible assistance to indigenous manufacturers of commodities and services has resulted in a 15.9 per cent rise in production volumes of consumer goods. At the same time, turnover of retail trade and services has grown, respectively, by 14.8 per cent and 12.4 per cent. In 2013, services have already accounted for 51.2 per cent of the nation’s GDP.

In the period under discussion, the production volume of localized output has increased by 39.7 per cent, with the overall calculated effect of import-substitution amounting to US $4 billion.

In particular, in the electro-technical industry of Uzbekistan, there are 6 enterprises specializing in the production of more than 2,000 kinds of cables and wires; 9 enterprises making industrial-technical goods (such as transformers, sub-stations, switchboards, lifts, various components and units for other industries); 15 enterprises involved in the production of complex consumer electronics and radio-technical appliances (modern models of TV sets, consumer and industrial refrigerators, air-conditioners, electric kettles, electric irons etc.) and 5 enterprises rendering maintenance services and repairs.

uzbek_technical_produceOne of the components of such achievement is the national economy’s orientation towards imports-substitution and localization that have catalyzed the development of manufacturing by bringing down its dependency on certain outward factors and incentivizing local producers to fully exploit domestic production reserves and raw-material resources.

As is generally known, Uzbekistan is the most industrialized state in the Central Asian region. And the electro-technical sector is regarded as one of the country’s vital industries. The economic reforms carried out by the Uzbek leadership, combined with structural changes and efficient socio-economic policy, have led to the creation of a favorable environment for the development of radio electronics, instrument-making and electrical engineering in the Republic of Uzbekistan.

Over 40 enterprises with different types of ownership are operating in the electro-technical industry to date. In addition, a number of enterprises set up with a share of foreign investments are performing successfully in the country.

Following the cardinal economic reform brought about in Uzbekistan and the comprehensive state backing, indicators of production, exports and quality of goods at the sector’s enterprises tend to improve. In particular, before the world economic crisis broke out in 2008, the total volume of industrial output in the national electro-technical industry reached 315.0 billion Soum(currency rates of CB RU from 25.12.2014   1$= 2418.20 soums). Compare this with the year 2012, when a given indicator almost trebled – to 988.1 billion Soum, with a projected figure standing at 777.8 billion Soum. In 2011, its growth rate was estimated at 126 per cent. Correspondingly, the sector’s exports volumes in 2012 reached US $186.6 million, or a 117.4 per cent increase compared with the pre-crisis level. At the same time, the country produced 254 billion Soum worth of consumer electronics.

Uzbekistan started realizing the policy of structural transformation and outstripping development of modern high-tech industries and production facilities since the first days of its independence. A given policy aims to make indigenous goods and services much more competitive, as well as to strengthen the country’s position in the world marketplace. Among the top priorities is the production of complex consumer electronics, including up-to-date import-substituting and export-oriented electro-technical output.

For the time being, the organization of production of consumer electronics under the world famous brands is taking on special importance in the Republic. The Uzbek government is devoting a great deal of attention to this issue. To create a more auspicious environment for foreign investors, a number of special industrial zones have been established in different provinces of Uzbekistan, such as the Navoi Special Industrial Economic Zone and the Angren and Djizak Special Industrial Zones, where start-ups enjoy exemption from taxes and customs payments. Besides, they are granted a series of other privileges within the period from 3 to 10 years, depending on the volume of invested capital.

Several investment projects to organize production of new types of consumer electrical appliances are under way in the Republic these days. In particular, over the past few years, the Joint-Stock Company Uzeltechsanoat has successfully finalized 16 investment projects, to the tune of US $140.1 million, in keeping with the corresponding government decisions. Of these, 4 investment projects are designed to expand production and to introduce new types of consumer electronics. In 2013, in the course of their implementation the sector’s enterprises have mastered the production of the following categories of high quality import-substituting electro-technical output:

LCD TV sets;

Small consumer appliances;

Consumer washing machines;

New models of consumer refrigerators;

Consumer split-type air-conditioners etc.

As is evident from the afore-cited examples, the electro-technical industry demonstrates excellent achievements, because huge amounts of investments are ploughed into its enterprises. Outfitted with modern equipment, they create novel export-oriented production facilities, thus making it possible to considerably increase production of indigenous non-food export-oriented goods.

At the same time, the national consumer electronics market remains heavily dependent on imports, whose volumes have been growing year in, year out. In 2012, for instance, the volume of some categories of imported consumer electronics was estimated at US $104.97 million, 140.55 per cent higher than the 2011 level. Unfortunately, all this happens notwithstanding the wide-scale reforms carried out across all sectors of the Uzbek economy, the electro-technical industry included. The steps taken by the country’s government encompass modernization and technical and technological re-equipment of existing production facilities, realization of numerous investment projects, introduction of new types of products and the like.

According to experts’ estimates, the consumer electronics market of Uzbekistan is one of the most dynamically developing markets in the CIS and Central Asia, given the Republic’s population-growth rates. In the first quarter of 2014, the population of Uzbekistan has exceeded 30 million, in other words, some 6 million families are potential buyers of consumer electronics.

Assuming that the renovation period for a single type of consumer electrical appliances in Uzbekistan averages 5 years, meeting the population’s demand for such goods will require the production of no less than 1.2 million items a year, which is classified as large-scale production.

If we further assume that each of the 1.2 million families annually spends US $350 at an average on such purchase, then the market volume may reach US $420 million a year. A rather impressive figure! To compare, in 2012 the production volume of consumer goods turned out by all Uzeltechsanoat’s enterprises was estimated at 254 billion Soum (US $115 million).

The situation observed these days is paradoxical, indeed. With a developed radio-electronic and electro-technical industry, represented by the Joint-Stock Company Uzeltechsanoat, available in the Republic, the virtually complete control over the vast and capacious home market is given to foreign manufacturers. Presented below are some official figures from the State Statistics Committee of the Republic of Uzbekistan, which demonstrate the dynamics of consumer electronics imports to the country over the past 5 years.

Table 2


As is clearly seen from this Table, the volumes of consumer electronics imports are growing rapidly. As examples, the import volumes of big and small consumer electronics surged, respectively, by 288 per cent and 663 per cent (a 6-fold rise) between 2009 and 2013. Such fast growth rates can be explained by higher living standards of the Uzbek people and the absence of sufficient industrial capacities needed to meet their demand for a given group of commodities.

The key problem for the Republic is as follows: vast amounts of money are spent to buy imported electro-technical appliances, whereas all the necessary pre-requisites are available for their domestic production.

The electro-technical industry all over the globe is one of the fastest-growing economic sectors. Its output is used everywhere, in every sphere of life and economic activity. At one time, the electro-technical industry has fueled a rapid economic growth in a number of countries, notably in those situated in South-East Asia. It should be said in all fairness that Uzbekistan’s electro-technical market, including its consumer electronics sector, is presently on the rise, with an average annualized growth rate coming to 30 per cent. Although the home market is dominated by overseas producers, whose share exceeds 70 per cent (Table 3), indigenous companies are quickly expanding their share of the market of electro-technical commodities. Their efforts are backed by the state.

Table 3


Among the main brands of electro-technical produce available in the Uzbek market are TCL, Haier, Samsung, LG, Sony, Hitachi etc. The domestic trademarks include ARTEL, Sino and Roison.

The Chinese, Korean, Malaysian and Japanese brands referred to above are dominating the Republic’s market. According to experts’ estimates, their share reaches 70 per cent, meaning that Uzbekistan loses an enormous amount of currency reserves. At the same time, not all citizens can afford to purchase imported consumer electronics.

That’s why the production of quality import-substituting and export-oriented goods makes a significant contribution not only to the development of the national electro-technical industry, but also to the satiation of home demand for consumer electronics at reasonable prices.

(Source: “Business” newspaper)


National Dress Festival Highlights Current Trends in Uzbek Fashion Design

A number of aspiring hairdressers, clothing designers, stylists and make-up artists strutted their stuff at the National Dress Festival held in Tashkent’s Alisher Navoi National Library of Uzbekistan and the Center for Youth Culture and Arts. The juried festival gave the competitors the opportunity to demonstrate their skills along with their esthetic in the art of making people beautiful.

The goal of the festival is to promote clothing and appearance culture among the youth and show them how to blend national tradition and modern trends. The event was organized by the Osiyo Ramzi (Symbol of Asia) Association of Fashion Designers and the Ministry of Culture and Sports Affairs of Uzbekistan.

The main event – the competition of young designers – is a result of year-long work that proceeded in three rounds. Around eighty designers submitted sketches of models and materials for collections in February-March, with the jury selecting and approving promising entries. In the second round, participants presented ready samples in May-June. Finalists included designers of Tashkent Institute of Textiles and Light Industry, Tashkent Architecture and Construction Institute, Kamoliddin Bekhzod National Institute of Arts and Design, and the National University of Uzbekistan.

At the Center for Youth Culture and Art, the audience was treated to top seventeen collections created in various styles: national clothing, youth-oriented outfits, ornate designs and pret-a-porter. The demonstration was more of a glitzy show, with celebrities not only performing hits, but also parading clothing designs that made up the collections.

Top participants were awarded in five categories.

“When I first came to Uzbekistan, my biggest discovery was the unique traditional fabrics such as adras and atlas. I even bought samples of these fabrics and took them to Italy so that our students could incorporate them in their creativity,” says Arturo Dell’Acqua Bellavitis, a professor and dean of the School of Design at Politecnico di Milano, Italy. “This time I discovered remarkable works by local young fashion designers, who create modern clothes. This show has once again proven that the Uzbek fashion industry is thriving; it is making strides. I’m convinced that our collaboration will continue and yield impressive results and that we will be able to put together shows celebrating Uzbek fashion design in Milan, one of the world’s fashion capitals. First of all, we intend to organize special training courses for the students and instructors of Uzbek fashion schools, and set up exchange of specialists in the future.

“We try to add something new to every festival program,” says Holida Kamilova, head of the Festival’s Organizing Committee and Chairwoman of the Osiyo Ramzi Association of Fashion Designers. “This time we held a practical conference that focused on the role of national Uzbek costumes in the spiritual upbringing of the younger generation. It was exciting to listen to local specialists talking about the priorities of the local cotton farming and silk farming industries in the context of clothing design. The links between fiber producers and ready-made goods manufacturers are crucial to the making of high-quality products. Italian and German specialists, in turn, told those gathered about contemporary trends in the development of design and fabric-making techniques in Europe and taught master classes.”

These days the main goal given to the designers is to provide the domestic market with quality products and reach the external market by means of original ideas. The world has embraced the term ‘Uzbek fashion’, with international fashion designers relying on Uzbek elements, fabrics, cutting techniques and motifs in their creative endeavors. To shore up the positions gained, designers need to continue the hard work in this direction while keeping in mind traditional clothes, every element of which carries a particular message.

(Source: “Uzbekistan Today” newspaper)

“Lullabies that my mother sang” festival held in Uzbekistan

The National Academic Drama Theatre of Uzbekistan held a festival called “Lullabies that my mother sang me”. Note that the event organized by the Ministry of Culture and Sport, held in the country for the first time and is intended to make a significant contribution to the preservation of intangible cultural heritage of Uzbekistan.

More than 20 lullabies were presented to the attention of participants during the festival, under accompaniment of folk instrumental ensemble and symphony orchestra. Lullabies were sang by famous native actress, such as Rihsi Ibragimova, Tuti Yusupova, Azizf Begmatova, Munojat Yulchieva, Zulaikho Boyhonova, Gulsanam Mamazoitova and others.

– I believe that every mother should be able to sing lullabies. Lullabies should be taught, they have much good spirit. Today, unfortunately, mothers who put their children under a lullaby can be seen rarely. I want to say that a child, who heard lullaby since childhood will never go on a bad road, will be an example to others, – said the People’s Artist of Uzbekistan Aziza Begmatova.

Note that lullabies performed in Russian, English and Korean gave a special sound and color to the festival.



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