Industrial cooperation - The Times Of Central Asia

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Kazakhstan and Uzbekistan Prioritize Cooperation Between Regions

On October 22, the 4th Interregional Forum, “Uzbekistan-Kazakhstan,” was held in Samarkand, Uzbekistan. The forum addressed issues such as increasing bilateral trade turnover, developing industrial cooperation, and enhancing collaboration in the water, energy, transit, and transport sectors. Speaking at the forum, Uzbekistan’s Prime Minister, Abdulla Aripov, emphasized that developing cooperation between the regions of Uzbekistan and Kazakhstan is a priority in relations between the two countries. Aripov stated that “Over the past seven years, trade turnover between Uzbekistan and Kazakhstan has grown almost 2.5-fold, reaching $4.4 billion last year. Today, more than 1,000 enterprises with Kazakh capital operate in Uzbekistan. Border regions have established direct and close ties with each other — the Republic of Karakalpakstan [in Uzbekistan] with the Mangistau region [in Kazakhstan], the Tashkent region with the Turkestan region, and the Navoi region with the Kyzylorda region. At the same time, this great potential has yet to be realized.” Kazakhstan’s Prime Minister, Olzhas Bektenov, meanwhile, announced at the forum that Kazakhstan is ready to increase exports to Uzbekistan by over $550 million, offering 40 types of high-value-added Kazakh products. Uzbekistan is Kazakhstan’s main trading partner in Central Asia. From January-August 2024, bilateral trade amounted to $2.5 billion, with more than 50% of Uzbekistan’s trade passing through Kazakhstan in transit. The forum paid special attention to the development of industrial cooperation, including 74 joint projects with a total investment volume of $3.4 billion and the creation of 14,600 jobs. Of these, 65 enterprises will be established in Kazakhstan, creating 13,600 new jobs. Examples of Kazakh-Uzbek industrial cooperation include the manufacture of Chevrolet Onix cars in Kostanay (Kazakhstan), a plant for the production of household appliances in Saran (Kazakhstan), sewing, spinning, and weaving factories in the Shymkent and Turkestan regions (Kazakhstan), and the production of autoclaved aerated concrete in Angren (Uzbekistan). Kazakhstan and Uzbekistan are also working on establishing the International Center for Industrial Cooperation “Central Asia,” which will offer “one-stop shop” for services and tax and customs for entrepreneurs from both countries.

Energy International Cooperation International investment Industrial cooperation

Expansion of Japanese Investment in Uzbekistan

On July 9, Uzbekistan president Shavkat Mirziyoyev held a meeting in Tashkent with a Japanese delegation including Tadashi Maeda, Chairman of the Board of Directors of the Japan Bank for International Cooperation (JBIC), and a representative of the Sojitz Corporation. Agreements were reached on the adoption of a three-year cooperation program with JBIC, as well as a roadmap with Sojitz Corporation for the implementation of potential projects in high-tech sectors of Uzbekistan’s economy. The Uzbek leader noted JBIC’s significant role in the implementation of investment projects in the country which today, includes a portfolio of joint initiatives worth over $3.7 billion in petrochemical and textile industries, energy, and infrastructure modernization. The president also expressed his deep appreciation of Sojitz’s implementation of projects in the country’s oil and gas sector. The Japanese company confirmed its intention to expand business activities in Uzbekistan, including, based on an agreement signed in 2022, the Syrdarya II IPP project, destined to become one of the largest power generation facilities in Uzbekistan. The Sojitz Corporation also announced its opening of a liaison office in Tashkent through which it aims to strengthen existing business as well as develop new business while striving to address regional needs across Central Asia.

Export/Import International Relations Industrial cooperation

Uzbekistan and Mongolia to Develop Multifaceted Cooperation

On June 24, the first state visit of President of Mongolia Ukhnaagiin Khurelsukh opened a new page in the development of Uzbek-Mongolian relations. Following negotiations in Taskent between President of Mongolia Ukhnaagiin Khurelsukh and President of Uzbekistan Shavkat Mirziyoyev, on deepening trade and economic cooperation, plans were announced to increase bilateral trade 5 to 10-fold in the coming years. The two leaders tasked their governments to create a joint working group on increasing trade turnover, opening official trading houses in Ulaanbaatar and Tashkent, preparing an Agreement on Preferential Trade, and instigating proposals for simplifying access to both countries’ markets. President Mirziyoyev proposed adopting a medium-term Industrial Cooperation Program, with priority given to identifying partnership in geological exploration, development, and processing of raw materials. In addition, it was mooted that comprehensive cooperation be established in agriculture and related industries and plans were discussed on the launch of large joint livestock complexes in Karakalpakstan, Namangan, and other regions of Uzbekistan. Proposals have already been prepared for the import of meat and related processed products from Mongolia, and in return, poultry meat, fruit, vegetables and other agricultural products from Uzbekistan. Negotiations concluded with an agreement to prepare a roadmap for the implementation of the above. The Mongolian president’s visit also included an Uzbek-Mongolian business forum attended by heads of ministries, government agencies, industry associations, and over 150 representatives from leading companies of both countries. As reported by the Uzbek Ministry of Investment, Industry and Trade, the forum identified several prospective avenues for increasing trade and economic partnerships in mining, agriculture, construction materials, healthcare, pharmaceuticals, food, and banking. Initiatives for the joint exploration of new rare metal and basalt deposits, as well as the creation of joint livestock and agro-clusters aimed at exporting produce were earmarked as particularly promising. Dashzeveg Enkhtuvshin, President of the National Chamber of Commerce and Industry of Mongolia, lauded the potential for expanding trade, investment, and industrial collaboration between the two countries, and encouraged entrepreneurs to intensify their interactions and pursue ambitious joint ventures.