On the second day of the Tashkent International Investment Forum, a panel discussion “Electronics and electrical engineering: a look into the future” was held. It became another event within the framework of the Tashkent International Investment Forum, which brought together more than 1.5 thousand major investors and high-level guests from 56 countries.
During the discussion, the participants – domestic and foreign experts discussed how to increase the level of localization of production, create joint ventures with well-known global manufacturers, and also analyzed the factors that make up attractive conditions for foreign investors attracted to develop the production of electronic products, embedding in global chains for the production and supply of components.
– Last year we invested 150 million dollars in the development of electrical engineering. Such large companies as Siemens and Samsung have entered into an agreement with our companies for the development of electrical engineering, – said Aziz Voitov, First Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan. – This area is developing rapidly, more than 900 companies work in it. There are national companies – Artel, “O’zelektroapparat-Electroshield”, FOTON, which not only work in the domestic market, but also export products to neighboring republics. This suggests that in the future Uzbekistan is able to compete with global brands in the field of electrical engineering. Copper is a metal necessary for the production of electrical engineering. To meet the needs of manufacturers, we are opening new copper mines, copper production companies. The state creates conditions for foreign investors in the form of a 50% reduction in the tax burden.
The international market of the electrical industry is one of the most dynamically developing segments of the international economy. Its volume in the world is estimated at almost 1.2 trillion dollars. According to international studies, the production of industrial goods and services with high added value is most developed in countries that have a convenient geographical location and are leaders in R&D costs as a percentage of GDP. Uzbekistan also pays great attention to the development of this sphere, and its participants set themselves ambitious plans.
Mirziyod Yunusov, Chairman of the Board of the Association “Uzeltehsanoat” emphasized that electronics and electrical engineering are one of the key areas of the economy of Uzbekistan. The productivity of the industry is growing and we can already see how it affects other areas. It is noteworthy that everything – from energy to equipment for the operation of the power plant and the provision of household services – is carried out by domestic manufacturers. More than 900 companies operate in this industry, 400 of which are affiliated with our association. Our standards tend to be international. In any country, value-added goods are the basis of the strategy, and Uzbekistan is no exception. Many companies are already changing their strategy and focusing on the production of goods with high added value. Some have changed the role of traditional production and provide a wider range of services, up to retail. And this industry not only expands the geography of exports, but also improves the quality of exported products. To develop the sector, we must increase spending on research. Create conditions for private companies to invest in human capital. Today, the economy of Uzbekistan has an attractive image – low risks, high potential of the regional market, government support, which fuels the interest of investors. We have the ability to attract foreign companies and give them access to resources. Uzbekistan has recently joined to the EU Generalized System of Preferences GSP+.
Sarvar Akhadov, director of Texnopark LLC, is sure that now it is necessary to develop “green” production and produce efficient products using the energy of solar panels. It is important to produce ozone-free refrigerators to reduce the damage to our ecosystem. This will undoubtedly attract investors, as will the already existing policy transparency, red tape cuts and tax breaks.
– The attractiveness of Uzbekistan for investors can be even higher, – says Kim Ui Tack, member of the Supervisory Board of Artel Electronics. — To stimulate them, market accessibility and price competitiveness are needed. The country has a very high demand within the region, there are trade agreements with all neighboring countries. The price policy in Uzbekistan is very competitive, there is state support. There are certain aspects that require attention, for example, it is important to increase the number of qualified specialists, so private companies invest in the education of their employees.