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Uzbekistan`s Textile Sector: A Giant in the Making
The report titled "Textile Giant in the Making?" outlines Uzbekistan's ambitious plans to increase exports to $9–10 billion by 2030. This growth is driven by reforms, sustainability efforts, and expanding product ranges.
Exports of finished products increased from $400 million in 2019 to $1.5 billion in 2023.
In 2023, the country produced 1.1 million tons of cotton, which was fully processed in the domestic market.
Around 35,000 hectares are cultivated according to Better Cotton Initiative standards, with another 7,000 hectares allocated for organic cotton.
More than 23,000 new jobs were created in 2023 through cluster development.
However, to secure its position on the global stage, Uzbekistan must overcome a number of challenges, including limited product diversification, logistical difficulties, and a shortage of skilled labor.
Uzbekistan has long been known as one of the world's largest cotton producers, but its transformation from a raw material exporter to a producer of high-value-added products marks a turning point.
In the past five years, the privatization of the cotton sector and the creation of 142 cotton-textile clusters have enabled 100% of the cotton harvest to be processed into yarn. This shift not only increased export volumes but also led to the creation of over 23,000 new jobs in 2023 alone.
Thanks to its strategic location between Europe and Asia and the GSP+ status, which provides duty-free access to the EU market, Uzbekistan is becoming an attractive destination for global textile giants.
Despite the achievements, Uzbekistan's textile industry faces several challenges that may slow its development.
Diversification Issue: The industry heavily depends on cotton products, limiting its ability to meet the demand for synthetic fibers and technical textiles. Expanding the product range is crucial for accessing new markets.
Sustainability Standards: Although Uzbekistan has eliminated forced and child labor in cotton production, international buyers are increasingly demanding transparency and eco-friendly production methods. Certifications like Oeko-Tex and Better Cotton Initiative are necessary to strengthen trust.
Logistics and Infrastructure: Uzbekistan’s landlocked geography increases transportation costs. Prospects lie in developing alternative routes through Pakistan, Iran, and the Middle Corridor to Europe, though this requires significant investment.
Skill Development: The rapid growth of the industry has revealed a shortage of skilled labor, particularly in advanced production and quality control. Training specialists must keep pace with industry development.
Financial Constraints: Small and medium-sized enterprises (SMEs) face challenges in obtaining affordable financing, which limits their ability to modernize and expand production.
The GIZ report offers strategic recommendations to help Uzbekistan reach its export goal of $9–10 billion:
Innovation and Product Diversification: The production of synthetic and technical textiles, as well as modern fabrics for sports and industrial clothing, will open new markets. Investments in modern technologies and equipment are key here.
Focus on Sustainability: Government programs subsidizing certification and promoting eco-friendly production methods are already yielding results. Scaling up these initiatives will strengthen Uzbekistan’s position in the global market.
Logistics Development: To achieve ambitious export targets, transport corridors must be improved and infrastructure modernized. Projects such as the China-Kyrgyzstan-Uzbekistan railway are crucial.
Workforce Skill Enhancement: Expanding vocational training programs will provide the industry with skilled workers for quality production and innovation implementation.
Financial Support for SMEs: Expanding access to government loans, grants, and export incentives will allow SMEs to adopt new technologies and increase production capacity.
Uzbekistan’s textile industry is paving the way to a bright future by combining tradition with innovation. With the right investments in infrastructure, diversification, and sustainable development, the country can become a global leader in the textile industry. As highlighted in the GIZ report, Uzbekistan is not just a textile giant in the making, but a player ready to reshape the global industry map.
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