Two sewing technopolises being created in Kyrgyzstan

05 Jul '17
3 min read

Two sewing technopolises are being created in Kyrgyzstan - one in Voenno-Antonovka village of the Chui oblast (near Bishkek) and the other at the Bishkek Machine-Building Plant. The Legprom (Light Industry) Association which includes about 700 sewing shops will supervise the project. Land will be given by the State which will develop laws for the industry.

According to the State Committee for Industry, Energy and Subsoil Use, the Bishkek Technopolis (technology park) will be built in three years and the other one in more than five years since electrical networks and water systems need to be laid besides construction of roads, Kyrgyz media reported.

Prime Minister of Kyrgyzstan Sooronbai Jeenbekov recently inspected the Bishkek Machine-Building Plant OJSC (BMBP) and the Bishkek Stamping Plant (BSP) located in the same territory, and instructed to accelerate the allocation of land in the BMBP territory for the textile and clothing Technopolis, the reports said.

In Soviet time, the Machine-Building Plant named after Vladimir Lenin was unique in its production capacity and potential. To resume efficient production, it is necessary to divide the management and territories of the existing two plants, and the BSP, the strategic enterprise, should work in accordance with the established procedure maintaining the regime of secrecy, Jeenbekov said.

The plants are now experiencing financial difficulties in production, have multi-million dollar debts and cannot sell their finished products stored in warehouses, the Prime Minister said. The business is interested in the MBP territory for the implementation of industrial projects, including the textile and clothing Technopolis, according to the reports.

The implementation of the Technopolis project will help increase the textile and clothing production by more than 30 per cent, create 10,000 new jobs, and increase tax revenues.

Jeenbekov had recently signed a resolution according to which some land in Voenno-Antonovka village will be transferred for 49 years to the Association of Light Industry Enterprises of the Kyrgyz Republic (Legprom). The benefits that the government granted the sewing companies (work on a patent basis and exemption from taxes when importing sewing equipment) have had a positive effect. The textile and clothing sector is among the fastest growing priority sectors of the Kyrgyz economy. Individual entrepreneurs working with patents produce more than 90 per cent of textile and clothing products.

According to the National Statistical Committee of Kyrgyzstan, since the beginning of 2017, the garment production has increased by 22 per cent. In 2013-2014, in connection with the crisis, the production fell, but since 2015 it has been increasing annually. Local garment manufacturers export their products not only to Russia and Kazakhstan but also to the European markets. There are sewing companies which have orders from Germany and Austria.

Kyrgyzstan’s entry into the Eurasian Economic Union has changed the whole model for the future development of the country, and like other EEU member countries, Kyrgyzstan has to go through the difficult stage of adaptation to new integration rules. Kyrgyzstan’s sewing industry needs to reach a new level to gain access to the EEU large trade market.

New trends appear in the sewing market oh Kyrgyzstan. Small sewing shops are under threat of bankruptcy while large shops are developing into factories. Companies that participate in international exhibitions and introduce innovative methods of production and Internet sales are developing. Some local companies have their own representative offices in Moscow and other large Russian cities, and cooperate with Russian retail chains. The most popular goods supplied to Russia are uniforms for public services, military and school uniforms, which are purchased in advance and in large quantities. (SV)

Fibre2Fashion News Desk – India

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