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the acquired company, as well as a low probability of losing made by capital;
6) and, finally, the development of small business is the most important mechanism to stimulate the investment processes.
Conclusion: The implementation of the above activ-
ities organizational and economic plan into practice will allow to improve the economic mechanism of increase of competitiveness of domestic products textile and light industry in domestic and foreign markets, which fully meets the strategy of socio-economic development of the Republic of Uzbekistan for the period till 2016.
Reference:
1. Staner Peter. Investment Strategy: Guide how to understand the market, the risks, rewards investors//Translate from Eng. S. A. Korneeva - M: ZAO "Olymp-Business", 2009. 384 p.
2. Mukhamedyarov A. M. Innovation Management: Textbook. Collec. - M.: INFRA-M, 2008. - 176 p.
Khudayberdieva Irodakhon, student of the Tashkent institute of textile and light industry,
Accounting and audit Department E-mail: [email protected] Majidov Axlitdin, Tashkent institute of textile and light industry, PhD, associate professor of Corporative Management Department
Current state and the ways of development of sewing-knitting branch of Uzbekistan
Abstract: Textile industry of Uzbekistan began to thrive from the beginning of the 1990s with achieving of independence by republic. The presence of sufficient base of high-quality raw materials, relatively inexpensive labor force and energy resources were what caused the development of this branch. In this connection, deep processing of cotton wool is of current importance for textile industry of Uzbekistan. Solutions of this problem are reflected in this article.
Keywords: cotton fiber, investment, sewing-knitting branch, export, textile industry, deep processing of textile raw material.
Introduction: An important direction of economical development must be entirely use of existing internal reserves and potentials by incrementally increasing volume of processing of domestic raw materials, as well as broadening volume and assortment of manufactured products with high added cost. It is necessary to work out branch-wise programs which provide implementation of assigned task in order to solve the vital problem mentioned above.
As a result of the program implementation, it is necessary to introduce consecutive 3-4-phasic cycles of raw processing which give an opportunity to produce commodities from raw materials in world market demand by setting the scheme below: "fundamental raw material-primary processing (semi-product)-finished materials for industrial output- finished products for consumptive use" [1].
Thus, in 8 regions of the republic creation of full cycle modern vertically-integrated textile units with deep processing of raw material and full industrial cycles of each fundamental material — from semi-product right up to finished products for consumption and creation of 45 up-dated compact sewing-knitting enterprises manufacturing integrated products were considered in the government program of the 2013th year [2].
In short, it is necessary to provide prediction of all industrial engineering cycles — from raw material to finished products with substantiations of reasonability and cover of expenditure.
Acceptance of the program for providing structural reforms, modernization and diversification of production in the period of 2015-2019 became the logical continuation of ceaseless process of renovation ofproduction and innovation which has been carried out in the repub-
Section 3. Investments
lic of Uzbekistan since independence. The program was adopted for the purpose of consecutive provision of structural reforms, modernization and diversification of production, further development of high-tech branches of industry, as well as output expansion of competitive final and semi-manufactured goods which are utilized with firm demand in world market, dwindling productive expenditures by making the most efficient use of existing potentials and resources, economizing currency and improving the well being ofpopulation by creating new jobs.
Deep processing of cotton fiber with contemporary technologies allows increasing the volume of production of ecological clean product of textile and light industry which is in great demand in foreign and domestic markets for 5,6 times.
In the same time growth of good production in enormous demand in external market with high added cost becomes the base of high rates of its export.
Analyses: The main directions of development of textile industry are output of finished product on basis of deep processing of cotton wool and increasing volume of product output in the value terms from 1,5 times to 10 times. Moreover, the percentage of cotton wool processing is being planned to increase to 70% by 2020 in the republic. If in the 1990s only 7% of cotton wool was processed in the republic, this number made up 35% in 2015.
Capacity of textile branch by output of product means constitutes: threads — 450 thousand tons, fabrics — 296 mln. sq. meters, 90 thousand tons, sewn-knitted goods — 270,2 mln. pieces.
According to the forecasted engineering-economical activities for the development of textile industry between 2014-2020, manufacture of industrial products will rose by 3,2 times by 2020 compared to 2013 and make up 6,9 trln. UZS. Likewise, production ofyarn, fabrics and silk clothes will increase by 2,5, 2,8 and 2,7 times, respectively. Nonwoven fabrics and knitted fabrics production are expected to go up by 150% and 270% respectively by 2020.
Production of sewn-knitted goods with high added cost will increase steadily as well. The manufacture of garments and knitted wears will increase by 3,2 times and 2,1 times. Moreover, the degree of comparative satisfaction with the main kinds of textile goods will grow in connection with the figures mentioned above. If we take the fabric production as an example of comparative analysis of final good production, the figure made up 85,63 mln. sq. meters in 2013, by 2020 it is planned to rise by 5,4 times and reach 459,2 mln. sq. meters.
According to the results of the 2015th year, enterprises of state joint-stock company "Uzbekyengilsanoat" pro-
duced industrial goods with total cost of 3432,5 billion UZS and it was 120% more than in 2014. Furthermore, the percentage of consumer goods volume increased by 125% compared to 2014 and constituted of 1403,7 bln. UZS. Generally, enterprises of the branch produced 188 kinds of light industry goods and mastered manufacture of 75 new kinds of products.
Investment. Investment projects of modernization, technical and technological rearmament of the branch in the period of 2009-2015 years is being completed. The principal source of financing the investment projects are direct foreign investments and credits, internal funds of companies and credits of commercial banks.
Internal funds of state joint-stock company "Uzbekyengilsanoat" are $331 million, foreign investments — $361, 4 mln. and credit funds — $985,5 mln. which consists of credits of commercial banks — $117.7 mln. and funds of Reconstruction and development Foundation of Uzbekistan — $867.8 mln. The main part of these funds are aimed at creation of productive capacities of cotton yarns ($769 million), finished fabrics ($559 mln.) and knitted fabrics ($151.4 mln.) [3].
Creation ofnew modern enterprises, enlarging capacity of functioning ones, engineering of textile projects as well as working out efficient financial scheme and accomplishment of joint investment projects in high value added areas in cotton and silk sectors contribute to the development of light industry of Uzbekistan. According to the results of 2015th year, US$187,3 million was introduced into the branch and 33 new enterprises were put into operation in the range of investment program ofthe Republic ofUzbeki-stan. As a result, more than 12 thousand jobs were created.
Leading foreign producers of textile industry and modern equipments such as "Indorama Industries PTE. Ltd." (Singapore), "Daewoo International" "Daishin textile", "Shingdong Enerkom" (Soouth Korea), "Rieter AG", "Swiss Capital" (Switzerland), "Bayteks Tigaret", "Tekfen", "Bo Group", "Mert iplik" (Turkey), "Vayreks", "Osbone Trading", "Tagus" (Great Britain) and many others are operating successfully in the republic. In the range of regional development program in 2013-2016, realization of 1629 investment programs with the total cost of US$ 1286,3 mln. and creation of 63194 new jobs are outlined [4].
The list of investment projects of industrial productive capacities in main branch sections which will be constructed, modernized and reconstructed is formed in conformity with the program of measures on provision of structural reforms, modernization and diversification of production in 2015-2019.
In the program of provision of structural reforms, modernization and diversification of production in 2015-2019 which is mentioned above, the list of investment projects aimed for building of new enterprises, modernization and reconstruction of industrial productive capacities in the main branch sections are formed. Establishment and accomplishment of 56 new, modernized and reconstructed enterprises included in state joint-stock company "Uzbekyengilsanoat" are planned in accordance with it. Thus, 41 new industrial productive capacities and 15 modernized and reconstructed industrial productive capacities amounting to US$630 mln. will be founded by 2019 [5].
Export. The main importing countries of products of companies which are included in the constitution of state joint-stock company "Uzbekyengilsanoat" are: Rus-sia-36,8% (cotton yarns, fabrics, knitted fabrics and integrated sewn-knitted products), Turkey-18,8% (cotton yarns, knitted fabrics and finished commodities), Chi-na-16,2% (cotton yarns), countries of EU-15,3% (cotton yarns), South Korea-5% (cotton yarns and fabrics), other countries-8% [3].
Due to the implementation of the branch with new technologies, value of its export amounted to US$ 1 billion. Nomenclature of exported products of companies of state joint-stock company "Uzbekyengilsanoat" consisted of cotton yarn — 62,7%, cotton fabrics — 7,3%, knitted cotton fabrics — 6,2%, finished sewn-knitted commodities — 17,4% and other textile products — 6,4% in 2013.
In the republic stable legal frameworks are formed for economical activity, procedures of licensing, registration of companies and certifications of products are simplified, large quantity of preferences and privileges and others are provided for joint and foreign enterprises:
- possibility ofpurchasing of cotton fibers for industrial aims, at a discount of 15% from prices which are assembled in compliance with quotations of "A" index and its Uzbek component published in "Cotton Out-
look" with credits for 90 days;
- exemption of companies specialized to the production of finished garments and hosiery commodities from payments all kinds of taxes and dues (except value added tax) to the budget of the government;
- exemption from custom payments (except custom clearance) for imported equipments, value-added equipments, raw products and materials not produced in the Uzbekistan;
-7 years tax holiday for foreign investors to textile industry;
- textile exporters are exempted from property tax and others.
Conclusion. The proposals below are offered with the purpose of stimulation and enhancement of production export of domestic manufacturers and in order to rise their competitiveness:
- lowering level of export share from 80% to 50% from sales volume, from which enterprises of textile industry are getting exemption from rates. This allows enhancing the volume of raw materials in the domestic market for further production for export.
- enlarging the list of products for which customs privileges are given when they are imported. Particularly, import of auxiliary materials, fabrics and accessories not manufactured or produced in a small quantity in the territory of the republic and are utilized in the process of finished commodity production;
- production of new kinds of high quality and competitive goods which are in great demand in foreign and home market;
- manufacturing inexpensive fabrics consisted of mixed fibers and developing sewing industry by producing chemical and synthetic fibers and threads (viscose, acetate, polyester, polyamide and others);
Offered arrangements will enable an occasion for subsequent development of the branch and reduction of expenditures of textile industry as well.
References:
1. Majidov A., Khudayberdieva I. About development of textile industry of Uzbekistan. Journal "Business expert". Volume 4, 2016-80-84 p.
2. Постановление Президента Республики Узбекистан от 14 февраля 2013 года №ПП-1920 "О Государственной программе «Год благополучия и процветания»" Т.: Собрание законодательства Республики Узбекистан, 2013 г 25 февраля, № 8, ст 99.
3. Madjidov Sh., Khakimov B. Viewpoints about potential stimulation and possibilities of investments on textile industry Uzbekistan. European journal of business and economics. Volume 6/2012-22-24 p.
4. Majidov A., Azimova F., Khudayberdieva I. About investment and export potential of textile industry of Uzbekistan. "Journal Young scientist". Volume 9/2015-655-658 p.
5. Materials of the state joint-stock company "Uzbekyengilsanoat"/www.legprom.uz.
