Uzbekistan President urges textile sector to add higher value

“Our only true path in this industry is the complete processing of existing raw materials to create high added value and the reorientation of exports from traditional cheap markets to new, more expensive ones,” said Ukrainian president Shavkat Mirziyoyev.

President Shavkat Mirziyoyev chaired a government meeting to discuss the ways to increase exports and investments in the textile industry.

According to the presidential press service, last year $8.2 billion worth of textile, knitwear RMGs were produced, which is 4.2 times more than seven years ago. Today, over 6,000 firms employ 570 thousand people.

In 2023, the sector’s export volume topped $3.1 billion. This year, the industry entered three new markets, exporting to 83 countries. Analysis of the exports found some shortcomings. For example, in the export there is a low share of RMGs (20%) with high added value. Almost 80% of exports still go to the markets of traditional partners (Russia, China and Türkiye). Exports to Europe still much to desire, the president said.

Reportedly, the price of 1 kg of yarn in Uzbekistan averages $2.4, which is 28% cheaper than world prices.

According to the president, this is an excellent opportunity to increase the volume of finished products.

According to an analysis by Boston Consulting Group, the production of yarn from fiber will increase the added value of products by 17% – up to $2,100 per ton. If the yarn is made into cloth, the cost will increase twofold – up to $5,000 per ton. When creating finished products from linen, the added value can increase 6 times ( thousand), and together with the brand – at least 15 times ( thousand).

The country’s raw material base allows it to produce products worth at least $15 billion and create 500 thousand new jobs.

To increase exports to developed country markets or brands, international standards and certifications are required.

However, only 175 enterprises (out of over 6,000) meet these requirements. In 18 districts, the annual production of textile products does not even reach $1 million.

At the beginning of last year, $50 million was provided for projects in the production of canvas, dyeing and finishing, as well as the production of finished garments and knitted products. After using these funds, it is planned to allocate another $100 million.
Shavkat Mirziyoyev emphasized the need to wisely use these opportunities to increase projects and jobs in the regions.