COMMENT: Uzbekistan’s textile legacy with global economic potential

COMMENT: Uzbekistan’s textile legacy with global economic potential
Uzbekistan has an ancient and rich textile culture going back to its days as a Silk Road waystation. / bne IntelliNews
By Acting Chairman of Uzbekistan’s Association of Textile and Garment-Knitwear Industry Enterprises Mirmukhsin Sultanov in Tashkent September 3, 2024

Uzbek textiles have been renowned for their quality, authenticity, and exclusivity for over 100 years, reflecting the nation's rich history and traditions. Uzbekistan's textile industry remains a cornerstone of the national economy, a strategically vital sector that continues to produce globally sought-after products.

The industry’s competitive potential has been a driver in attracting foreign investment in the creation of new enterprises, providing employment for the population, and increasing exports. In recent years, the industry has seen a significant boost in productivity, driven by the active attraction of investments and the adoption of new technologies. For instance, last year, the production of textiles, sewing, and knitwear products reached a value of $8.2bn, which is 4.2 times higher than it was seven years ago.

The industry’s contribution to GDP has steadily risen from 7.6% in 2019 to 9.02% in 2023, highlighting its growing economic importance. The industry’s share of total industrial production has grown from 12.1% in 2019 to 17.2% in 2023, reflecting its increasing role in the industrial sector.

With growing international demand for Uzbek textile products, the industry is not only boosting the national economy but also creating thousands of jobs and fostering innovation across the supply chain. The textile industry is widely represented in all regions of the country and is a significant contributor to job creation. Today, over 6 thousand enterprises provide employment to about 570 thousand people.

This year alone, from January to July, Uzbekistan exported more than $1.7bn worth of textile products to 85 countries, such as: Germany, Italy, Poland, Spain, UK, Switzerland, Austria, France, Kazakhstan, Azerbaijan, USA, Canada, Brazil, Vietnam, Singapore, South Korea, Australia, Japan, Saudi Arabia, UAE and many others. The Uzbek government has demonstrated strong support for the textile industry, allocating $50mn last year for projects in fabric production, dyeing and finishing, and the production of finished garments and knitwear. A further $100mn is earmarked for future investments in the sector.

According to a Boston Consulting Group analysis, Uzbekistan's raw material resources could support the production of goods worth at least $15bn and create another 500,000 new jobs, highlighting the industry's substantial potential for growth in the coming years.  

The establishment of the Association of Textile and Garment-Knitwear Industry Enterprises of Uzbekistan in 2017, as mandated by the Decree of the President of the Republic of Uzbekistan, marked a pivotal moment for the industry's substantial growth. A significant achievement and the culmination of extensive efforts was the termination of the boycott against Uzbek textiles, a landmark event for Uzbekistan.

In 2022, the international coalition Cotton Campaign announced the cancellation of the global boycott of Uzbek cotton. The official statement was made on March 10 in Tashkent at a joint briefing at the Ministry of Employment and Labour Relations of the Republic of Uzbekistan.

“We commend President Shavkat Mirziyoyev’s leadership in initiating and implementing the historic reforms needed to end state-imposed forced labour and reform Uzbekistan’s cotton sector,” said Bennett Freeman, co-founder of the Cotton Campaign and former US Deputy Assistant Secretary of State for Democracy, Human Rights, and Labour.

Freeman noted that the results achieved by Uzbekistan in recent years served as the basis for lifting the boycott of Uzbek cotton.

The boycott, which lasted for 12 years, was ultimately halted due to the government's decisive action to eradicate child labour and forced labour from Uzbekistan.

These measures enabled Uzbekistan to achieve even greater outcomes and secure new partnerships. This year, Uzbekistan joined the Better Cotton program, and for the first time, Uzbek representatives participated directly in the annual Better Cotton Conference 2024. This participation underscores Uzbekistan's growing global recognition.

As the global community places its trust in Uzbekistan today, we will not cease our efforts to progress.

The future of Uzbekistan's textile industry looks brighter than ever, with continued investments and government support driving the sector to new heights. The rapid modernization of production processes, combined with the country's rich resources and skilled labour force, positions Uzbekistan as a key global player in textiles. With an expanding raw material base, increasing foreign investments, and an ever-growing workforce, Uzbekistan’s textile legacy is poised to evolve into a cornerstone of global trade, further solidifying the country's reputation as a major textile hub on the world stage.

About the author: Mirmukhsin Sultanov is the Acting Chairman of the Association of Textile and Garment-Knitwear Industry Enterprises of Uzbekistan.

 

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