BAKU, Azerbaijan, May 20. Uzbekistan's efforts to further expand the textile sector and bring the entire value chain into the country have had a very positive impact on deliveries of the relevant machinery from Germany and Europe, a source from German VDMA (Mechanical Engineering Industry Association) told Trend.
“Textile machinery manufacturers are traditionally very well represented in Uzbekistan. The textile industry is a focal point of the Uzbek economy," the source said.
The source claims that the Uzbek government's economic reforms have improved the business environment since 2016 and are ongoing. Therefore, European machine producers ought to be more market-active and noticeable.
“Despite the many improvements in the business environment, doing business in Uzbekistan is not a sure-fire success. It takes market knowledge, a lot of personal commitment, and perseverance to be successful, and one of the biggest challenges is the competition from China, which has a massive presence in the market,” the source added.
He also noted that deliveries to the mining sector have risen sharply in the last year. This reflects Uzbekistan's investments in its mining industry (copper, gold, titanium, uranium, etc.). For example, German involvement in the expansion of the Almalyk Mining and Metallurgical Combine.
Meanwhile, Uzbekistan will allocate $100 million for the development of the textile and knitwear industries.
This is reflected in the decree signed by President of Uzbekistan Shavkat Mirziyoyev on measures aimed at moving the textile and garment knitting industries to a new level of development.
Textile industrial zone directorates would receive 10-year loans for manufacturing structures and water treatment facilities. Interest will be 4 percent for three years and 5 percent beyond.