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Perfection of the mechanism of attracting foreign investments in light industry of the Republic of Uzbekistan
Section 3. Investments
Razikov Akmal, senior researcher Department of "Corporate management" Tashkent Institute of Textile and light industry E-mail: [email protected]
Perfection of the mechanism of attracting foreign investments in light industry of the Republic of Uzbekistan
Abstract: This article describes issues related to the attraction of foreign capital, measures to ensure the development of new types of competitive products to stimulate the investment processes, thus improving the way of attracting foreign investment mechanism in the light industry of the Republic of Uzbekistan.
Keywords: export potential, investment policy, range, quality, investment projects, preferences, financial position, transformation, fiscal policy, certification.
Introduction: Uzbekistan has a number of competitive advantages in the production of garment and textile products. For the realization of the existing potential directed restructuring in these sectors, which are actively involved foreign investors.
Improvement of attracting foreign investment mechanism in the light industry of Uzbekistan is one of the main factors in enhancing the competitiveness of the national economy, to strengthen the place of the global market, the integration of the system of international economy, the expansion of foreign trade, the development of export potential, and ultimately economic growth, to improve the welfare of the population.
In addition, the attraction of foreign investments and the organization of activity of the enterprises with their participation will lead to a proliferation of new technologies and innovative ideas, progressive methods of management and marketing for production enterprises in the industry, create jobs, boost demand for local raw materials and industrial products as well as to advanced training of employees in these enterprises, an increase in tax revenue and the payment of the state budget, as well as a number of positive developments related to the social development of the regions.
Analysis: As noted by the President ofUzbekistan Islam Karimov in his book "Uzbekistan on the path of economic reforms", "the implementation of restructuring of the economy is inextricably linked to an active investment policy, as expansion of export potential become a reality only if the investment policy of the strong".
The country has set up a stable legal framework for economic activity, simplification of licensing procedures, business registration and certification ofproducts, a large number of various benefits and privileges for joint ventures and foreign enterprises:
- The opportunity to buy into productive use cotton fiber with a discount of 15% of the cotton fiber, purchased at world prices formed in accordance with the quotes "A" index and the Uzbek component, which is published in the "Cotton Outlook the" a deferred for 90 days.
- Exemption from customs payments (except customs clearance fees) for imported equipment, components, raw materials not produced in the country and the materials used for the production of up to 1 January 2016;
- Delay in the payment of customs duties (except customs clearance fees) for up to 60 days from the date of acceptance of the customs declaration in the production of textile goods, not included in the list approved by the Cabinet of Ministers of the Republic of Uzbekistan;
- Authorization to purchase of freely convertible currency (with charge VAT at the zero rate) textiles, semi-finished products (yarn, fabric, knitted fabric and cotton waste) in the domestic market at a price not lower than the world, prevailing at the time of conclusion of the contract, meaning that it is not less than 80 percent of products made from these semi-finished products will be exported;
- Are exempted from paying import duties imported for own use of chemicals, dyes, fittings and accessories, as
Section 3. Investments
well as other support materials that are not produced in the country.
In our opinion, inclusively to the above, it is necessary to create favorable conditions for attracting foreign capital (primarily in the form of foreign direct investment), mainly in export-oriented industries and production in terms of currency self-sufficiency and self-financing enterprises of textile and light industry with the participation of foreign capital; geographical optimization of national exports and achieving a balance of trade with major foreign economic partners.
It is necessary to provide investors not only to stimulate the real benefits and privileges (tax, customs, etc.), but also to provide a liberal, stable, predictable and transparent legal regime established by the relevant international standards. The value of foreign direct investment is determined by the ability to carry out investments in excess of national saving and updating of industrial base.
Bringing new technology in the form of foreign direct investment, as well as increased funding from domestic resources strategically important projects will greatly simplify the problem of expanding the production of new competitive products. Equally strong arguments in favor of the inflow of foreign investments is the ability to use the know-how, modern methods of management and organization of production, transnational corporations access channels to global markets to expand exports.
Foreign investors in order to ensure greater competitiveness of its products on world markets are taking measures to accelerate the development of the industry and of its subsidiary enterprise that will ultimately lead to an increase in competitiveness and exports in favor of the state. In addition, the FDI do not create external debt of the state. But companies need to invest in order to export-oriented production was in the amount of not less than 80% of production to ensure the timely return on investment and loans.
To encourage capital formation should either remove investment barriers, or create preferences (favorable) for the processing branches. Encouraging further development of the financial infrastructure (banking system, stock market and insurance market) will result in the transformation of domestic resources, that will be the main factor of growth of investments in the development of industry.
It should be noted the problems associated with foreign capital:
1) unsatisfactory financial situation in the business sector;
2) problems with the convertibility of the national currency and the constant expectation of foreign exchange rates of growth relative to the bag;
3) many foreign investors evaluate our tax system as a complex and confusing, because despite a number of benefits, they pay many other taxes;
4) The tendency of "aging" of the funds, the accumulation of a large amount of equipment, whose term of service is superior to standard terms used in the practice of developed countries;
5) one of the main reasons for the low efficiency of the financial market in the Republic is the lack of available financial resources;
6) significant number of registered joint venture have not started the financial and economic activity are not fully included in the means of their authorized capital, poorly developed production facilities;
7) to protect the entire investment sector from unfair partnership necessary inventory and certification of investment activity;
8) increase in exports of industrial products should be relatively higher than imports;
9) need to take account of the global market leads to the implementation of projects for the production of new types of industrial products due to non-profitability of goods sold and investment projects;
10) absence of advisory, investment and financial companies, financial advisers and brokerage firms in sufficient numbers is one of the main problems of the investment process.
In this regard, it is necessary to take the following measures to ensure the development of new types of competitive products for stimulating investment processes:
1) reduction in the tax burden to exporters of finished products;
2) wide use of tenders for the implementation of innovative technologies, which will increase the share of realized fast payback of innovative projects in general economic activity, focused on the growing demand;
3) active implementation of government programs to support manufacturing industries, aimed in 1st place to reduce the tax burden ofhigh-tech industries that will create preconditions continued growth and modernization;
4) purposeful use of fiscal policy expressed in the provision of enterprises producing high technology products, targeted investment tax credits and benefits;
5) development of the stock market will attract investment, including portfolio, as for large foreign capital plays an important role the stock market, since in this case the investor can obtain detailed information about
Current state and the ways of development of sewing-knitting branch of Uzbekistan
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-
