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Why Is Uzbekistan Eager To Transform Into A Textile Powerhouse?

"Because of the development needs of the domestic cotton textile industry, Uzbekistan will stop exporting cotton from 2020." Uzbekistan’s President Milziyoyev’s clear statement once again showed the Ukrainian hope to transform and upgrade from the traditional cotton-producing countries. A firm determination for the textile power.


According to data from the National Statistical Committee of Uzbekistan, in the first 11 months of 2018, Wukang exported 110,000 tons of cotton fiber, with a value of 213 million US dollars, accounting for 1.9% of total exports, and continued to decline. At the same time, textile exports maintained a rapid growth trend, with exports of 1.178 billion US dollars in the first 11 months of 2018, an increase of 15.3% over the same period in 2017, accounting for 10.4% of total exports. This set of data reflects the profound transformation of the Ukrainian cotton industry under policy guidance.


On December 14, 2017, President Milziyoev signed the Presidential Decree on Accelerating the Development Measures for the Textile and Knitting Industry, which pointed out the direction for the future development of the Ukrainian textile industry from the top design. A few days ago, the Uzbekistan Textile Industry Development Strategy of 2019-2021 was officially released according to the presidential decree. The strategy is to lead the export-oriented, use high-tech to produce competitive technology-intensive products, encourage industry to attract investment and innovation, strengthen the deep cooperation of the industry and other tasks to lead, through the gradual implementation of relevant measures, strive to achieve the textile industry output value by 2021. 60% growth, cloth, knitwear and hosiery production increased by 50%, 80% and 230%, respectively, and the export target increased to $7 billion by 2025.


The Ukrainian government actively seeks to transform from cotton exports to textile exports for two main reasons: first, to value the added value of textiles, and second, to see its own huge potential in the textile field. As a traditional cotton growing country, the textile industry can not only fully utilize the raw material cost advantage of self-produced cotton, but also quickly realize the upgrading and promotion of local industries through the combination with foreign advanced technology and capital, and promote the economic development of various places.


In order to accelerate the development of the textile industry, Uzbekistan is also constantly creating important opportunities for itself. At the cotton planting end, Wu is vigorously promoting cotton planting to improve quality and efficiency. On the one hand, through screening for non-friendly cotton land, cotton planting will continue to be concentrated in suitable areas to increase cotton planting scale and benefits; on the other hand, by tightening the construction of reservoirs and other measures to ensure that cotton is fully irrigated during the growth process to enhance cotton yield and quality. .


At the processing and production side, the government's continuous support policies are providing better protection for the development of textile enterprises, while also rapidly increasing the attractiveness of foreign capital in this field. According to data from the Ukrainian Textile Industry Association, many countries such as Turkey, South Korea, China, Singapore and Switzerland are actively participating in the development of Ukrainian textile industry. At present, more than 150 foreign-invested textile companies are operating in Uzbekistan, 50 of which are purely foreign-funded enterprises. .


In addition to policy factors, Uzbekistan's unique location advantage in the hinterland of Central Asia and Eurasian traffic routes is also highly valued by foreign investors. The Ukrainian government is very clear about this, so it is clearly stated that in the process of developing international cooperation, the regional representative body of the Ukrainian Textile Industry Association will be established to radiate the CIS region, Europe and Southeast Asia.


It is worth noting that the Ukrainian government’s efforts in prohibiting compulsory labor and raising the salary and treatment of cotton pickers in recent years have also been recognized by the international community. In the list of child labor and forced labor products announced by the US Department of Labor in late September 2018, the cotton produced in Uzbekistan was “banned”. Analysts believe that the good news that the United States "eliminates" Umbrella will lay an important foundation for Ukrainian textile exports to the EU, North America and Japan.