Transcript Uzbekistan

The Opportunities of the Uzbek Market,
Principal Sectors & Access Conditions
by
Farrukh Omonov
Head of Business Development Department
Chamber of Commerce and Industry
of the Republic of Uzbekistan
OUTLINE OF UZBEKISTAN
Area: 447,400 sq kilometres;
Population: app. 32 mln.
Uzbekistan: 56th largest
country in the world by area and
the 42nd by population;
Uzbekistan is the 5th largest
country by area and the 3rd
largest by population in the CIS
region.
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CENTRAL GEOGRAPHICAL LOCATION TO
THE LARGEST MARKETS
CA & Afghanistan: 90 mln people
CIS
Europe
•Minsk
•London•Berlin
•Brussels
•Mosco
w
Central Asia
CIS: 300 mln
people
•Astana
•Kiev
•Paris
•Ankara
•Jerusalem
•Cair
o
•Tehra
•Baghdad n
•Amman
Middle East
& Africa
•Riyad
h
•Doh
a
•Abu
Dhabi •Musca
t
•Beijin
g
•Bishke
k
•Ashgabat
•Tokyo
•Seoul
•Kab
ul
•Shanghai
South-East
and South
Asia
•Bangkok
•Phnom Penh
•Singapore
•Jakarta
•Manila
MACROECONOMIC STABILITY AND DYNAMIC
INDUSTRIAL POLICY
GDP growth rate (in % to previous year)
9.5
7.3
9,0
8.1
8.5
8.3
8.2
8.1
8
•
GDP has increased 4.1 times during the years of
independence;
•
Sustainable high rates of economic growth retain
at the level not less than 8% annually for the last
years;
2006 2007 2008 2009 2011 2012 2013 2014 2015
10,8
Industrial Production growth rate
(in % to previous year)
12,1 12,7
9,1
• The volume of industrial output increased
3.7 times for the years of 1990-2015;
• Average annual growth rate of industrial
output has compounded 9.4% for the last 10
years, exceeding GDP growth rates.
9,6
8,5
8,3
7,9
6,4
2006
2007
2008
2010
2011
2012
2013
2014
2015
4
MACROECONOMIC BALANCE
Inflation rate
(in % at the end of the period )
• a moderately tight monetary policy kept
inflation below 7-8 percent;
21,6
7,8 6,8
6,8
7,8
7,4
7,3
7,6
7,0
• balanced state budget – executed with a surplus
since 2005;
6,8
6,1 5,6
• total amount of external debt of Uzbekistan
does not exceed 18,0% of GDP.
2002 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Budget Balance (in % to GDP)
External Debt (in % to GDP)
1,1 1,0
0,5
0,1
0,4 0,4 0,3
0,2 0,3
0,2 0,1
-0,4 -0,4
-0,8
- 1,5
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Middle East and
North Africa
Uzbekistan
80
60
40
20
0
Latin America
and the Caribbean
Central and
Eastern Europe
CIS
Developing
Countries
(ASEAN)
5
SHARE OF ECONOMIC SECTORS IN GDP (%)
Others: 5%
Industry:
24%
Service:
53%
Agriculture:
17%
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«DOING BUSINESS» REPORT
INTERNATIONAL EXPERTS EVALUATION
According to the World Bank «Doing Business» report for
2015, globally Uzbekistan stands at 87 in the ranking of 189
countries.
Uzbekistan is in top ten countries that improved the indicator of
the quality of the regulatory environment for business.
In accordance with the report of the World Economic Forum,
Uzbekistan is among the five countries with the fastest growing
economies in the world based on development outcomes for
2014-2015 and forecasts for 2016-2017.
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"E-GOVERNMENT" SERVICES
BUSINESS REGISTRATION
Tax
Committee
my.gov.uz
Ⅰ
online
channel
Statistics
committee
Cadastre
committee
applicant
server of the
registration
office
Utility
companies
Other gov.
agencies
Legal and technical base were created and provision of
methodological support was introduced from 1 January 2014
MEASURES TAKEN TO IMPROVE THE BUSINESS
ENVIRONMENT AND PROVIDE GREATER FREEDOM FOR
ENTREPRENEURSHIP IN UZBEKISTAN
3 procedures
Indicators of the top
ten countries according to
the report
"Doing Business"
1-3 procedures
from 14 to 4 days
1-13 days
0% of income per
capita
0-25% of income per capita
Reducing the number of procedures for
registering property
Reducing the time spent on the registration of
property
Reducing the number of tax payments
1 procedure
1-7 procedures
7 days
2-38 days
7 payments
3-29 payments
Reducing the number of documents for export
4 documents
3-7 documents
Reducing the number of documents for import
5 documents
3-5 documents
Measures
Reducing the number of procedures for the
registration of new enterprises
Reducing the time spent on the registration of
new enterprises
Reducing the initial costs of creating new
enterprises
Results
UZBEKISTAN RANKING IN
«DOING BUSINESS» REPORT
№
Indicators
DB-2016
DB-2015
Changes
1.
Business registration
42
64
▲22
2.
Obtaining construction permits
151
149
▼-2
3.
Getting electricity
112
108
▼-4
4.
Property registration
87
113
▲26
5.
Crediting
42
105
▲63
6.
Advocacy
88
87
▼-1
7.
Taxing
115
117
▲2
8.
International trade
159
158
▼-1
9.
Contracts’ execution
32
32
0
10.
Insolvency resolution
75
75
0
87
103
▲16
Total ranking
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SHARE OF SMALL BUSINESS IN GDP
AND INDUSTRY (%)
GDP
52,5
Industry
54,6
56,7
56
55,8
48,2
42,1
38,9
34,6
35,6
31,1
22,2
23
18,8
15,4
14,6
11
2002
2004
10,9
2006
2008
2010
2012
2013
2014
2015
11
SME’s EXPORT GROWTH (%)
26
26,8
2014
2015
19,1
12,4
10,7
10,2
2000
13,7
7,5
7,3
2002
2004
2006
2008
2010
2013
12
SME’s SHARE IN TOTAL EMPLOYMENT (%)
69,3
72,3
75
75,0
74,4
75
75,1
76,5
77,9
2008
2009
2011
2012
2013
2014
2015
60,9
49,7
2000
2004
2006
2007
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SME SHARE IN INVESTMENT ACTIVITY (%)
40
32,7
35
30
26,5
25
20
15
15,4
16,3
2000
2002
34,8
36,3
28,5
24,6
18,8
10
5
0
2004
2006
2008
2010
2013
2014
2015
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DECREASE OF TAX BURDEN
For the past years the aggregate tax burden decreased by almost 3 times. Moreover the Government
provides additional tax incentives for exporters, small business enterprises and companies engaged
in new investments and starting production of new goods and products
Taxes
Legal entities income tax
Individual income tax
Tax rates
in 2015
8%
7.5%-22%
Value added tax
20%
Single social payment
15%
Single tax payment for small enterprises
5%
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PRIORITIES FOR SUSTAINABLE ECONOMIC
DEVELOPMENT OF THE REPUBLIC OF UZBEKISTAN
DURING 2015-2020
1. Retaining macroeconomic stability, domestic and external balance of the economy;
2. Active industrial policy, aimed for structural changes, rapid growth of the share of
processing industry with the production of high value added goods (textile industry,
etc);
3. Implementation of modern innovative technologies, including environment-friendly
and energy-saving;
4. Modernization and development of the industrial infrastructure, particularly
transport, power industry, water use and sewer systems, as well as means of
communication;
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PRIORITIES FOR SUSTAINABLE ECONOMIC
DEVELOPMENT OF THE REPUBLIC OF UZBEKISTAN
DURING 2015-2020
5. Intensification of agricultural sector at the expense of the introduction of new
technologies for water conservation, farming efficiency and crop productivity
(fruit and vegetable processing);
6. Further liberalization of the economy and improvement of the business
environment for promoting small business and private entrepreneurship, as
well as attracting foreign investment;
7. Supporting further development of automobile industry in Central Asia
(General Motors, MAN, ISUZU, etc);
8. Active investment on raising human capital in education, health and physical
training spheres.
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PRIORITY INVESTMENT SECTORS FOR SME IN
UZBEKISTAN
Automobile
Alternative
industry (production of assembling parts)
energy (biogas, solar and wind energy)
 Agriculture
(agricultural engineering, modernization
equipment, fruits & vegetables processing, packaging)
of

Electrical industry (production of electrical items and devices,
electrical and energy-saving technology)
 Textile
industry (production of apparels and garment accessories)
Tourism
industry (creation of resorts, small hotels and other
tourist infrastructure, development of ecological and other forms of
tourism, etc)
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PRIORITY INVESTMENT SECTORS FOR SME IN
UZBEKISTAN
Public
catering (franchising, coffee shops, bars, national and foreign
cuisine restaurants, etc.)
Leather
industry (production of foot-wear, sports goods and etc.)
Construction
industry (production of ready-made materials)

Chemical industry (manufacture of chemicals, enterprise chemical
production, etc)
Food
stuffs production (milk & meat products, flour production,
grains processing, fruit & vegetable juices, dried products, mineral
water, etc.)

Pharmaceutical industry (production of infusion solutions, pills,
antibiotics, etc.)
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FACTORS OF SUCCESS IN UZBEKISTAN
1. Political & macroeconomic stability
2. Sound legal base
3. Rich raw material base
4. Diversified industrial base
5. Advantageous geographical location
6. Well educated human resources
RICH RAW MATERIAL BASE
Uzbekistan possesses unique resources:
 Solid raw materials, including
 ferrous and non-ferrous
 Over 1644 of deposits and
 100 sorts of mineral resources
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ENERGY ADVANTAGEOUS
10 thermal stations and 28 hydropower
plants fully provide the needs of the
economy;
Total energy capacity 12472 MWt;
Additional capacity – 1101 MWt
(2013-2016);
Coal reserves – 80-100 years.
High Prospects for
Renewable Energy
Average prices for:
Electricity - $0.06 per kWt/h
Gas - $0.06 per m3
Coal - $42.5 per 1 ton
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WELL EDUCATED HUMAN RESOURSES
66 universities and
institutions
850 directions
300 thousand students
INHA University of
Korea
Westminster International
University
Singapore Institute of
Management Development
Turin Polytechnic Institute
Oil&Gas Institute named
after Gubkin
Moscow State University
Russian Economic
University named after
Plekhanov
BILATERIAL INVESTMENT COOPERATION WITH
EU MEMBER-STATES
953 companies in cooperation with EU
283 with 100% capital of EU
224 accredited EU companies
Turnover with the EU member-states – 2,5
billion $USD:
export – 452,1 million USD (nonorganic chemical
and oil products, cotton fiber, fruits and
vegetables, services and etc)
import – 2,0 billion USD (mechanical and electro
technical equipments, pharmaceutical products,
transportation, services and others)
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COOPERATION BETWEEN
UZBEKISTAN AND PORTUGAL
IN TRADE AND ECONOMIC SPHERE (USD mln.)
YEARS
TURNOVER
EXPORT
IMPORT
2012
13,5
12,0
1,5
2013
14,1
13,2
0,9
2014
9,9
8,3
1,6
2015
10,6
9,1
1,5
• STRUCTURE OF EXPORT: textile, cotton and services.
• LIST OF IMPORT: electric and mechanic equipment, cork, paper
and cardboard, shoes, pharmaceutical materials.
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LEGAL BASE ON INVESTMENT
Law “On Foreign Investments”, 1998
Law "On Investment Activity”, 1998
Law "On Guarantees and Measures to Protect the Rights of
Foreign Investors”, 1998
Law «On Free Economic Zones”, 1996
Over 50 normative legal documents on regulating of investment
activity adopted in Uzbekistan
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“NAVOI” INTERNATIONAL AIRPORT
11 flights per week
• Delhi, Mumbai,
Bangkok, Frankfurt,
Istanbul, Dubai, Doha,
Dhaka, Hanoi,
Moscow, Milan,
Brussels, Zaragoza,
Inchon, Tjanszin.
1st stage – Cargo processing ability – 300 tons/day
2nd stage – Cargo processing ability – 1 000 tons/day
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WWW.CHAMBER.UZ
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THANK YOU FOR YOUR
KIND ATTENTION !
4, Amir Temur Ave., 100047,
Tashkent, Uzbekistan
Tel.: (+998 71) 2320901, 1506000
Fax: (+998 71) 2320903, 1506007
E-mail: [email protected]
Web: www.chamber.uz
Chamber of Commerce and Industry
of the Republic of Uzbekistan
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