Fri 10 2015 10:47:44
Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan, starting from 2000, realized over 2,500 projects for over US$4 billion within the programmes of localization of products, the Ministry of Economy of Uzbekistan said.
According to the Ministry, the first complex programme of localization of production was developed and implemented from 2000 and since that period, over 2,500 projects for over US$4 billion were realized in Uzbekistan.
The production of import-replacing products rose over 220 times in the reporting period. For last ten years, share of localized products in the volume of industrial production rose from 9.2% to almost 20%.
Localized goods are more affordable compared to their imported analogues. This allows to stimulate internal demand and saturate internal market with quality products.
Some products are also exported to abroad. In 2014, the country exported 550 types of localized goods for over US$1 billion.
The enterprises, which localized production of goods, mastered production of over 4,000 demanded industrial products, which replace annual import at the volume US$6.2 billion.
Among these products are oil and gas equipment, mini-equipment for food industry, potash fertilizers, electricity engines, cable and wire products, textile and leather-footwear products, etc.
Foreign investors such as MAN, CLASS, Lemken, Toshiba, Candy, LG, Samsung and ZTE are participating in the production of localized goods, highly demanded in Uzbekistan.
Ministry underlined that the government approved new localization programme for 2015-2019, which is directed to expand localization of goods production in Uzbekistan.
During next five years, it is planned to realize 602 localized projects and produce 1,225 new competitive and import-replacing and export oriented products.
It is planned to use potential of metallurgy, chemical, mining, processing, construction, pharmaceutical and electrotechnical industries. Some 220 projects will be implemented in these directions.
Leading industries of economy will increase share of local procurement due to localization of products and development of industrial cooperation. Within these initiatives, goods for US$5.7 billion will be purchased from local producers in 2015-2019. The projects will also create new jobs.
The ministry said that the companies implementing localization projects receive customs and tax preferences.
The localization programme should ensure additional effect of import-replacing for US$3.5 billion a year and create over 13,000 new jobs.
According to estimates, the annual economic effect of localization programme to payment balance will make up over US$13 billion by 2020, due to import-replacing for US$10.3 billion and export of localized goods for US$2.7 billion.