PRESS OF UZBEKISTAN
May 26, 2017
SMALL GOES A LONG WAY
In Uzbekistan, small business and private entrepreneurship have been contributing to the growth of the gross domestic product, employment, income replenishment and improvement of people's wellbeing. The products manufactured by entrepreneurs prove key for the domestic market and country's export capacity.
The development of small economy ranks among key areas of the Actions Strategy, initiated by the head of state. This work has been increasingly catalyzed in the regions of the republic.
For example, the enterprises specializing in the production of pharmaceutical, electrical products and construction materials in Khorezm were exempt from property and land taxes, as well as the infrastructure development tax and mandatory contributions to the Republican Road Fund.
As of April 1, 2017, more than 11,000 small businesses and private entrepreneurs were registered in the region. Over 700,000 people, or 82.3% of all employed in the economy, are engaged in small businesses.
19 industrial enterprises in the region specialize in food, light industry and other sectors. In 2016, they produced goods for 1.4 trillion soums, and exported for $5 million.
The analysis shows that 315,000 tons of total exports are transported by rail. In accordance with the decisions of the head of state, Uzbekistan Railways now delivers the products by enterprises registered in the Khorezm region to the state borders at current domestic tariffs. This preference helped to drastically cut the logistics costs of exporting enterprises, entails cost reduction in local products in the external market, and increases their competitiveness. With the full use of this benefit in the future, enterprises intend to deliver 70-80% of exported goods by rail.
There are also eight pharmaceutical companies in the region, which supply packaging for a dozen kinds of medicinal plants. Nearly 81 billion soums (currency rates of CB RU from 26.05.2017, 1$= 3820.46 soums) of investments in 2017-2018 will empower implementation of 29 projects there, which will envisage laying plantations for the cultivation of 25 types of medicinal plants, and production of export-oriented finished pharmaceutical products.
For example, Khorazm Super Medical limited liability company of Bagat district will establish an annual production of 6 million bīttles of iodine, the brilliant green, Valeriana tinctures next year through 300 million soums of investments. The Kordon Khumo private enterprise of Khiva district will launch the production of amoxicillin, ampicillin, azithromycin, cefpodoxime, chloramphenicol, doxycycline, erythromycin through 1.7 billion soums of investments.
375 enterprises in Khorezm region are engaged in the production of burnt bricks, doors and frames, lime, ferro-concrete products, metal gates and gratings, pavers, dry building mixtures, corrugated sheet and sheet metal, varnishes and paints, roofing materials, nonmetallic and other products. In the next two years, it is planned to implement 260 projects and create more than 2,000 new jobs.
Present-day life can hardly be imagined without refrigerators, freezers, vacuum cleaners, television sets, microwave ovens and other household appliances. They enjoy a great demand. The household appliances that are produced in the Khorezm region under the brand Made in Uzbekistan are rated popular on the global market.
They are manufacture of local raw materials using modern technologies, and playing a significant role in import substitution. A dozen of enterprises presently produce more than 15 types of products, including freezers, transformers, water filters, LED lamps, and commercial freezing equipment. In 2017-2018, it is planned to implement 19 projects through 25.4 billion soums of investments, and create over 300 new jobs.
The President provided local enterprises with various benefits and preferences. For instance, the currency raised from exports completely remains at the disposal of enterprises to enable them procuring raw materials or production technologies they need.
In short, due to the improvement of the business climate in the country, the demand for modern and competitive products produced in the Khorezm region is growing in the world market. And this allows increasing the volume of exports and contributing to the welfare of the people.
(Source: «Business partner.uz» newspaper)