BAKU, Azerbaijan, October 7. Azerbaijan's Ministry of Economy has issued investment promotion documents for more than 610 projects so far, Head of the Industry Department of the Ministry of Economy Vusal Baghirov said at the seminar "Development of the Textile Sector and Promotion of Global Integration," Trend reports.
According to him, the Ministry of Economy has implemented a number of support measures for the textile sector, and the most important of these is the establishment of industrial parks, industrial enterprises, and support for entrepreneurs operating there.
The official highlighted the presence of nine designated
industrial parks and four strategically established industrial
districts within the territorial confines of Azerbaijan.
The Mingachevir Industrial Park represents a strategic initiative
tailored for the advancement of the textile sector.
"Here, as in other industrial parks, 10-year tax and customs exemptions are applied. Also, the state provides infrastructure. In addition, in order to develop cotton growing, state subsidies are provided for technical equipment for the construction of cotton fields," he explained.
Baghirov pointed out that 10-year tax and customs exemptions have been applied in the liberated territories since 2023.
Of these, textile and clothing manufacturers are included in the same category, as they are subject to these tax and customs exemptions.
"There is an investment promotion mechanism related to modernization. This mechanism has been applied since 2016. Thanks to this mechanism, entrepreneurs receive seven-year exemptions," he clarified.
"It's planned to create more than 40,000 jobs and invest more than 7.4 billion manat ($4.3 billion).
Besides, according to the relevant decision of the Cabinet of Ministers, it's planned to exempt the import of a number of fixed assets, equipment, and devices from VAT. Approximately 25 percent of the devices on this list belong to the textile sector," he added.
To note, the Azerbaijani textile sector represents a burgeoning segment of the nation’s non-oil economic landscape, underpinned by a rich historical legacy of yarn production, apparel manufacturing, carpet weaving, and leather craftsmanship. This includes the esteemed Kelaghayi silk headscarves and carpets, which have been recognized as integral components of UNESCO's Intangible Cultural Heritage.
The industry is experiencing a transformative phase characterized by an emphasis on augmenting cotton yield and developing export-centric commodities, propelled by fresh capital influx, global partnerships, and a comprehensive strategy aimed at economic diversification beyond hydrocarbon dependency.
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