Uzbek signs contract to supply textile products worth $5mn to Bangladesh

The Uzbek delegation included representatives of textile enterprises of the Uztekstilprom association during their visit to Bangladesh signed an agreement for the supply of yarn worth $5 million to Bangladesh.The purpose of the trip, which took place on January 24-27, was to study the experience of Bangladesh in the development of textile and clothing-knitting industry and visit the Yarn and Fabrics Fair 2018.

The delegation held meetings with representatives of the textile industry of the Republic of Bangladesh. The sides discussed in detail the issues of trade and economic cooperation, demonstrated the economic and investment potential of the two countries, and outlined areas for cooperation at a new stage.

Within the framework of the visit, the Uzbek delegation visited the company Turag Knit Composite Ltd, which is included in the top 20 enterprises of Bangladesh, specializing in the production of ready-made garments and knitwear.

The choice of this enterprise to study its experience was not accidental. First of all, the production made here is for European markets. In addition, Turag Knit Composite Ltd complex is located in the Export Processing Zones, which gives it the opportunity to enjoy tax and customs benefits.

The Minister of Textiles and Jute of Bangladesh, Emaz Uddin Pramanik, noted that the volume of exports of textile products to his country in 2017 amounted to $28.1 billion. At the same time, its share in total exports reached 81 percent or 12.4 percent of GDP.

Textile industry of Uzbekistan is considered to be one of the most dynamic and socially important sectors and ranks high among export-oriented industries of the country’s economy. The Uzbek textile industry is mainly focused on cotton, silk and wool.

One of the policy priorities of Uzbekistan, the world’s fifth-largest cotton exporter, is further development of its textile industry. Annually, the country grows about 3.5 million tons of raw cotton, produces 1.1 million tons of cotton fiber.

Currently, Uzbekistan continues to attract foreign investments for construction of textile enterprises in the country.

In the period 2010-2014, the textile industry of Uzbekistan received and spent foreign investments worth $785 million while 147 new textile enterprises with participation of investors from Germany, Switzerland, Japan, South Korea, the U.S., Turkey and other countries were commissioned.

Uzbekistan continues to take consistent steps to increase the volume of cotton fiber processing. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernize and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create more than 25,000 jobs.