Uzbekistan registers 503 new enterprises with foreign capital 1
New Investors, Novel Projects. 1
economy
Uzbekistan registers 503 new enterprises with foreign capital
About 503 new enterprises with foreign capital were registered in Uzbekistan in 2016, the press service of the State Statistics Committee of Uzbekistan said.
According to the committee, some 351 enterprises were created in Tashkent city, 48 – in Tashkent region, 18 – in Andijan region, 14 – in Ferghana region, 9 – in Bukhara region, 9 – in Syrdarya region, 7 – in Surkhandarya region, 5 – in Khorezm region and 10 in Karakalpakstan.
About 102 enterprises were created with capital of residents of Russia in 2016, 95 – China, 55 – South Korea, 35 – Great Britain, 33 – Kazakhstan, 31 – Turkey, 21 – India, 14 – Iran and 10 – Azerbaijan.
At the same time, 237 enterprises were created in the sphere of industry, 99 – in in the sphere of trade, 42 – in the sphere of construction, 25 – in the sphere of accommodation and catering, 15 – agriculture, forestry and fishing and 7 in the field of ICT.
As of 1 January 2017, total number of operating enterprises with foreign capital in Uzbekistan exceeded 5,000.
(Source: UzDaily.com)
investments
New Investors, Novel Projects
Singapore’s Indorama Group of Companies has signed an agreement on the establishment of a new joint venture, Indorama Kokand Fertilizers in Uzbekistan.
The project of a total investment cost of $80 million will be carried out in several phases within five years. The share of the foreign investor in the new joint venture will make up 75%, and the remainder of the shares will be funded by the Uzbek side.
The joint venture will be based on the Qo’qon Superfospfat Zavodi and produce mineral fertilizers to advanced technologies. Along with the upgrade and introduction of new technologies in the current manufacture, the project also provides for the organization of production of new mineral fertilizers like dicalcium phosphate, potassium sulphate and potassium nitrate, which were not previously produced in Uzbekistan.
Today, Uzbekistan is the region’s only producer of all three types of fertilizers – nitrogen, phosphate and potassium, as well as methanol and caustic soda, owing to the availability of raw materials and high demand of the boosting agricultural sector. Meanwhile, there is a considerable export potential for this type of products in the region and in CIS countries.
Last year, Uzbekistan launched its first large-scale production of complex fertilizers. New capacities were established on the basis of Samarkandkimyo enterprise. The total project cost exceeded $20 million, including $5 million of own funds of enterprises, and $15 million of foreign investments and loans.
(Source: «Uzbekistan Today» newspaper)
EXPORT
They Set the Tone
The country is getting prepared to establish a specialized foreign trade organization, Uztekstileksport.
As part of Uzbekyengilsanoat, the new structure will provide marketing, information and consulting services, promote light industry products for export through promotional campaigns, and broadly represent export potential in exhibitions and publications.
It also will focus on supporting Uzbek light industry enterprises in exporting their products under direct contracts and through trading houses abroad. In addition, it will also assist in supplying industrial enterprises of Uzbekistan with processing equipment, spare parts, components, raw materials, accessories and fittings that are not produced in the republic.
The textile industry enterprises will be also provided with significant benefits and preferences to intensify their development.
For example, the manufacturers of cotton, blended and silk fabrics, garments, knitwear and leather goods, hats, hosiery, textile haberdashery, fittings and accessories, are exempt from income and property taxes, single tax payment for micro and small enterprises, mandatory contributions to the Republican Road Fund by January 1, 2020.
Besides, they were released from customs duties for imported equipment, components and raw materials that are not produced in the country. To be subject to benefits, the share of the company’s revenue from the production of the abovementioned products should be at least 60% per year in the total sales volume.
The release from the mandatory sale of part of export proceeds in foreign currency to the banks as of a January 1, 2017, is perhaps the most important incentive for the industry. However, this right will granted solely to the manufacturers and exporters of cotton, blended and silk fabrics, garments and knitwear, hats, hosiery and textile haberdashery.
The document provides some customs preferences. In particular, the processing equipment, accessories and spare parts that are not produced in Uzbekistan and imported within the framework of investment projects in the light industry, are exempted from customs duties by January 1, 2020.
In addition, business entities are exempt from customs duties for imported spare parts and components for processing equipment for textile, garment and knitwear industry, however, their list should be yet approved by the Cabinet of Ministers.
(Source: «Uzbekistan Today» newspaper)
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