Kyrgyzstan to create two technopolises for textile and garment industry

BISHKEK (TCA) — Two sewing technopolises will be created in Kyrgyzstan — one in Voenno-Antonovka village of the Chui oblast (near Bishkek) and the other at the Bishkek Machine-Building Plant.

The project developer, Legprom (Light Industry) Association, which includes about 700 sewing shops, will supervise the technopolises activity. The State participates by allocating land and developing laws regulating the industry.

According to the State Committee for Industry, Energy and Subsoil Use, the Bishkek Technopolis will be built within three years and the other one in more than five years, since it is necessary to solve communication problems including connection to electrical networks, water systems, construction of roads, etc.

Territory to be allocated

On June 29, Prime Minister of Kyrgyzstan Sooronbai Jeenbekov inspected the Bishkek Machine-Building Plant OJSC (BMBP) and the Bishkek Stamping Plant (BSP) located in the same territory, and instructed to accelerate the allocation of land in the BMBP territory for the textile and clothing Technopolis.

In Soviet time, the Machine-Building Plant named after Vladimir Lenin was unique in its production capacity and potential. To resume efficient production, it is necessary to divide the management and territories of the existing two plants, and the BSP, the strategic enterprise, should work in accordance with the established procedure maintaining the regime of secrecy, Jeenbekov said.

The plants are now experiencing financial difficulties in production, have multi-million dollar debts and cannot sell their finished products stored in warehouses, the Prime Minister said. The business is interested in the MBP territory for the implementation of industrial projects, including the textile and clothing Technopolis.
Jeenbekov instructing the relevant state authorities to resolve the issue of allocating land plots in the BMBP territory for Technopolis.

The implementation of the Technopolis project will help increase the textile and clothing production by more than 30%, create 10,000 new jobs, and increase tax revenues.

On June 29, Prime Minister Jeenbekov signed a Resolution according to which a land plot located in Voenno-Antonovka village will be transferred for 49 years to the Association of Light Industry Enterprises of the Kyrgyz Republic (Legprom).

According to the resolution, a land plot of 40.74 hectares will be transferred from the agricultural land category to the category of lands for industry, transportation, communications, defense, and other purposes.

Growing sector

The benefits that the Government granted the sewing companies (work on a patent basis and exemption from taxes when importing sewing equipment) have had a positive effect. The textile and clothing sector is among the fastest growing priority sectors of the Kyrgyz economy. Individual entrepreneurs working with patents produce more than 90% of textile and clothing products.

According to the National Statistical Committee of Kyrgyzstan, since the beginning of 2017, the garment production has increased by 22%. In 2013-2014, in connection with the crisis, the production fell, but since 2015 it has been increasing annually.

Local garment manufacturers export their products not only to Russia and Kazakhstan but also to the European markets. There are sewing companies which have orders from Germany and Austria.

Working within the EEU

Kyrgyzstan’s entry into the Eurasian Economic Union has changed the whole model for the future development of the country, and like other EEU member countries, Kyrgyzstan has to go through the difficult stage of adaptation to new integration rules. Kyrgyzstan’s sewing industry needs to reach a new level to gain access to the EEU large trade market.

New trends appear in the sewing market oh Kyrgyzstan. Small sewing shops are under threat of bankruptcy while large shops are developing into factories. Companies that participate in international exhibitions and introduce innovative methods of production and Internet sales are developing. Some local companies have their own representative offices in Moscow and other large Russian cities, and cooperate with Russian retail chains. The most popular goods supplied to Russia are uniforms for public services, military and school uniforms, which are purchased in advance and in large quantities.

The EEU has strict requirements for customs clearance, certification, technical parameters and other standards which are tougher than the domestic ones. In Kyrgyzstan, very few companies meet the EEU and European standards.

New opportunities

Local sewing companies have big orders, but sometimes they cannot fulfill them because of the poor production capacity and shortage of sewing workers including technologists, fashion designers, and seamstresses. Work within the technopolis will help implement big orders. Each company will fulfill its own order, but if a big order comes, it will be distributed among all enterprises.

The sewing companies also need proper working conditions. The Technopolises will have modern workshop buildings and training centers, combining theoretical and practical training.

It is planned that the Bishkek technopolis will unite 20-25 enterprises, and 40-45 enterprises will be in Voenno-Antonovka.

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