Today, a meeting with entrepreneurs engaged in the light industry took place at QazTrade JSC, where entrepreneurs learned about the capabilities of QazTrade in providing government support measures for exporters.
In particular, the lending and subsidising of enterprises operating in the light industry are done through the Development Bank of Kazakhstan and Damu. Regarding the update of production facilities, companies can contact QazIndustry JSC. As part of state measures, it is possible to obtain partial reimbursement of development and/or expertise costs, increase the efficiency of production organisation, and invite a foreign employee to carry out commissioning. KazakhExport JSC provides services for financing, insurance and guaranteeing export contracts.
All non-financial support measures are concentrated in QazTrade: consulting, analytical and service support, access to electronic trading platforms and reimbursement of part of the costs to exporters.
Business representatives had many questions and requests to the company.
Gulmira Uakhitova, Chairman of the Board of the self-regulatory organisation Union of Legal Entities and Individual Entrepreneurs “National Association of Light Industry Enterprises “Qaz Textile Industry”, appealed to the General Director of “QazTrade” JSC Azamat Askaruly with a request to assist in negotiations with Russian retailers.
“For admission to their trading networks, they (retailers) set very strict conditions for deliveries and volumes. Therefore, they can be tough to fulfil. And this closes Russian networks for Kazakhstan’s manufacturers of light industry,” she said. Uakhitova asked the General Director of QazTrade to act as an intermediary in drawing up the contracts.
A wide range of requests was related to the provision of export support by organising Kazakhstan’s entrepreneurs’ participation in specialised exhibitions abroad. Industry representatives asked for assistance in the participation of Kazakhstan’s companies in two shows in Moscow: in September this year and in February next year.
Also, entrepreneurs were interested in analytical reports that QazTrade compiles on the export attractiveness of markets in other countries.
“We have been working with Russia for a long time. So we know the specifics of the market and its potential. But we would also like to know the potential of other directions: Armenia, Tajikistan, the Baltic states. We believe that our products can compete in Baltics with European products. But it is necessary to understand the specifics of the market, including the regulation” the entrepreneurs addressed to the QazTrade management.
QazTrade, together with the Committee for Technical Regulation and Metrology, compiles country profiles that fully describes the specifics of the import of various goods to one or other countries in a convenient language.
QazTrade reported that work is already underway on analyses of the light industry market. “Upon completion of the work, we will submit all materials to the National Association,” said Assel Yegemberdieva, Deputy General Director of QazTrade.
It was also agreed that another similar meeting would take place in the near future, where companies providing financial support measures will present their capabilities. “State support not only in sales but also in marketing and R&D is essential for us” representatives of National Association of Light Industry Enterprises stated.
For reference:
Trade in light industry products in Kazakhstan for 2020 amounted to $ 1.7 billion, which is 5.7% lower than in 2019 ($ 1.8 billion).
Export of goods from Kazakhstan in 2020 decreased by 38.7% and amounted to $ 60.5 million. Imports of goods to Kazakhstan in 2020 decreased by 3.8% and amounted to $ 1.7 billion.
Russia (47.5%) and China (15.4%) account for the bulk of domestic exports. In imports, the situation is similar: we import 47.1% of our products from China, 23.2% from Russia and about 12.5% from Turkey.
Recently, there has been a tendency to reduce the export of textiles, bed linen and cotton yarn; there is an increase in the export of nonwovens, waste cotton fiber, ropes, etc.
For the first quarter of this year, trade turnover amounted to USD 552 million, showing an increase of 60.8% over the same period last year.
According to the analysis of the QazTrade, the additional potential of export of light industry products to the world is more than USD 250 million.
The main priority countries are Germany (US $ 28.6 million), Ukraine (US $ 23.2 million), Russia (US $ 16.3 million), Romania (US $ 15.5 million). USA) and about 13 other countries (168.2 million USD).
JSC “QazTrade” is a key institution for the development and promotion of the export of non-primary products, which provides a wide range of services:
– consulting and analytical support;
– export acceleration program;
– service support measures;
– reimbursement of part of the costs of exporters;
– access to electronic platforms.