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Problems of developing the light industry of Uzbekistan and their solutions

Published: Feb 2, 2012    Views 2556    Comments 0
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There are several important stimulated factors in implementing the innovation projects in light industry companies of Uzbekistan that can bring opportunity to develop the national economy, supply people with jobs and consolidate the independence of the country.

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Executive Vice President and Director of Bergamo Acquisition Corp Sohail Parekh, has been working on a solution to help the poverty stricken underdeveloped and developing countries since 2009. After
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It is well known fact that the development of each country related to the level of organizing the economic sectors. Nowadays, one of the most important field for which much attention is devoted is a light industry, and so what are the problems in developing, and is it possible to be prevented from them?

According the results of our research, every clothes, implied 28 nomenclatures which are sold in Uzbekistan’s market are manufactured locally. Unfortunately, not all types of clothes are manufactured in quantity. Mainly, the clothes without complex design such as robes, men’s shirts, special uniforms and school uniforms are manufactured. 40% of local production is special uniforms and 60% is casuals.

There are number of influencing factors to the local production, such as lack of experienced employees, management shortcomings and the most basic factor is the scarcity of raw material supply. Weaving should be developed for the successful development of tailoring, as they are closely related to each other. At present time, in our republic the fabrics are underproduced, there are no any synthetic woolen fabrics, materials like dublerin, fliseline and other accessories are not manufactured, absence of high quality dyes, component materials and utilities suspend the effective development.

Above mentioned issues are resolving in our republic. Especially, last year the decree of our president regarding “Expanding the consumer goods market” and cabinet council’s decree “Developing the production of consumer goods” was enacted. In decrees, issues like exemption from customs duty the imported fabrics and the equipments which are not produced in our republic were contemplated. Also, the companies which import several chemicals, dyes and equipments were exempted from the customs duty. We can assume, this kind of activities will facilitate the development of light industry and will reduce the product cost.

In order to achieve the success in light industry, it is very important among the employees to have experienced designers. Fashion in textile products are changing very fast that is why the products should be in fashion, if not they will lose liquidity. In this sphere Vietnam’s experience is useful and interesting. The export of 2010 of textile products amounts approximately 9 billion USD. The reason is that 70 % of models are designed by German and Swedish designers. In order to meet the local and foreign demand, we have to learn the experiences of developed countries, and organize the groups of experienced designers by taking into consideration national and modern fashion.

It is known that in every country exists underground production, no matter how the industry is developed their share could be in the range of 5% to 25%. In order to evade the taxes they produce clothes made of contrabands. The quality of this kind of products is not bad and the most important is with reasonable price. By using the famous brands, underground producers form high demand for their products.

For developing the light industry in 2012, it is planned to satisfy the 50%-60% of market demand with local produced products. Unfortunately, in present time only 7% of market demand is satisfied with local produced products. In order to increase to share of local production, the big banks of our republic such as “National Bank of Uzbekistan”, ”Ipak Yoli Bank”, and “Asaka” are making investments for re-equipment the many enterprises and we will be able to see the results in the nearest future.

It is necessary to emphasize, that it is considered to be very difficult circumstance to emancipate the market from the import, because it is difficult to fully satisfy consumers demand by the instrumentality of local companies. It is possible to reduce the share of import but it is impossible to get rid of it, because it is very difficult to develop and improve the economy without import. We should try to keep the import level lower than the level of local production. 90%-100% of local produced products made of cotton, even in India where the cotton raising is well organized; they are adding 40-50% of synthetic fiber into the fabric.

There is a high requirement for the product quality in market economy condition. That is why, in present time it is very important to devote much attention to the quality of raw materials that are used in production of light industry products, because only by this way there will be ability to produce the competitive products. One of the main requirements for industry field, including light industry, where the consumer goods are produced, is that the products should fit the local, national and weather conditions. Because, sustainable development of light industry is related to supply the market with qualitative light industry products, to meet the demand and payable capability of people.  

There exist important stimulated factors in implementing the innovation projects in light industry companies of Uzbekistan, and it is important to mention the following factors:

• Existence of sustainable source of raw materials
• Low value of energy resources in comparison with other countries 
• Existence of not expensive and highly experienced labor
• Developed communication systems, existence of banking and legal services
• Consumption and selling the product in regionally and local
By taking into consideration above mentioned situations, we will have opportunity to develop the national economy, to supply people with jobs, to consolidate the independence of the country and to fill the state treasury with currencies by means of developing the light industry of Uzbekistan in market economy.  
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