I call upon brands, retailers to explore Uzbekistan for their sourcing needs
The Uzbekistan Textile and Garment Industry Association (Uztextilprom) stands as a pivotal institution within the nation’s rapidly growing textile and apparel sector. Established by a council of seven prominent businesses, the association has grown significantly and now includes approximately 2,000 member enterprises, with 1,522 dedicated to sewing and knitting, 448 engaged in textile production, and six focusing on machine manufacturing.
As a foundation of Uzbekistan’s industrial strategy, the association plays a key role in fostering international collaboration and expanding export capabilities.
It also serves as a bridge between local textile producers and global investors, importers, and businesses. By facilitating connections and building partnerships, the association ensures that Uzbek textile enterprises are well-positioned to engage with international markets, which is achieved through various initiatives, including organising industry events such as forums, conferences, seminars, and exhibitions. Such events provide opportunities for Uzbek businesses to interact with representatives from global entities, renowned brands, and retailers, as well as industry experts and specialists. Through such engagements, the association is helping to improve the visibility of Uzbekistan’s textile sector on the global stage.
A major highlight in the association’s calendar is the biannual Textile Week, an event designed to showcase the achievements of Uzbekistan’s textile, apparel (knitwear) sectors, which not only brings together local and international industry leaders but also serves as a platform for manufacturers from around the world to explore opportunities for collaboration.
Uztextilprom is also at the forefront of strategic collaborations with international organisations such as the International Textile Manufacturers Federation (ITMF), the International Finance Corporation (IFC), the World Bank, and many others. These partnerships are focused on projects aimed at enhancing the performance of Uzbek textile enterprises in areas such as dual education, standardisation and certification, sustainability, supply chain traceability, and productivity. By working with these global entities, the association ensures that Uzbekistan’s textile industry remains competitive and meets the evolving demands of the international market.
In addition to its role as a facilitator of international trade, the association also operates several companies offering a range of services, including export support, international certification acquisition, marketing, design services, and more. Such efforts put in by the Uztextilprom, combined with a robust infrastructure, are helping Uzbekistan’s textile sector to unlock its full export potential today.
Fibre2Fashion caught up with the Acting Chairman of Uztextilprom Mirmukshin Sultanov on the sidelines of the ITMF and IAF joint conference, Samarkand, for a candid discussion on Uzbekistan’s textile industry and its prospects. Here are the excerpts.
Since this is Fibre2Fashion’s first visit to Uzbekistan, could you offer an introduction to the country’s textile sector and highlight its core strengths?
First and foremost, welcome to Uzbekistan! It is truly a pleasure to have you here, and we are honoured to host such a prestigious event as the ITMF and IAF joint conference in Samarkand. This gathering is a testament to the enormous strides our textile industry has made and a recognition of Uzbekistan’s evolving role on the global arena.
Uzbekistan has long been known as a key player in cotton production worldwide. However, in a remarkably short time, we have transitioned from simply producing raw cotton to transforming it into finished fabric. In fact, Uzbekistan is unique in this regard—we are the only country that converts all our domestically produced cotton into fabric. While other cotton-producing nations such as India, Pakistan, Türkiye, Egypt, and China tend to export their raw cotton, we have taken that extra step to add value by producing fabric from the cotton that we grow domestically. This transformation has positioned Uzbekistan as a unique entity in the global textile and apparel sector today.
However, given our increasing volume of apparel manufacturing and exports, our current demand for cotton is about 30 per cent higher than what we produce, which has now led us to start importing cotton from neighbouring countries. We are in active discussions with countries like Azerbaijan and Türkiye to source cotton. We are also exploring the possibility of importing US cotton as well, despite the higher costs.
Uzbekistan has established itself as a strong player in the knitwear and home textiles for long, both of which are thriving today. However, we are also now focusing on expanding our woven sector as well. As part of our vision for 2030, we are committed to developing the woven sector, particularly for suits, other garments, and man-made fibres.
Although woven sector is still in its early stages of development in Uzbekistan compared to some of its competitors, the Namangan region stands out as a notable hub for suit manufacturing. Some of the most renowned global suit brands work with producers from Namangan, which speaks to the region’s growing reputation in this field.
Another of Uzbekistan’s greatest competitive advantages is our strategic location. We are situated close to Europe and the CIS countries, making logistics much more efficient. On top of that, we benefit from free trade agreements, including with the CIS and Europe.
The combination of raw material availability, proximity to the major markets and trade agreements is a key factor that makes Uzbekistan a competitive player in the global textile market.
The CIS is a massive market but there are opportunities in other markets as well. In the given scenario how does your strategy balance the importance of the CIS market with potential growth opportunities in other regions?
We have a significant presence in the CIS, but we are keen on diversifying our market reach beyond, recognising the immense potential for growth in other destinations. Our ultimate goal is not only to expand our footprints within the CIS but to increase our presence globally.
A key point raised during the conference (ITMF-IAF joint conference in Samarkand) was Uzbekistan’s impressive progress in compliance. We are now fully compliant with international standards and have successfully moved beyond the cotton boycott. The cotton campaign issues are behind us, and we no longer face any barriers regarding compliance.
Uzbekistan has embraced initiatives like Better Cotton, Better Work, and even the SLTP (Sustainable Labor Transformation Program), which solidifies our commitment to ethical and sustainable practices.
This makes Uzbekistan an ideal sourcing destination for brands looking to create mutually beneficial partnerships.
Our apparel manufacturing sector is so promising that many companies including names like Youngone Corporation (from South Korea), which has a very strong presence in Bangladesh, are setting up new operations in Uzbekistan as they see the potential to replicate the success they achieved in Bangladesh and elsewhere, here in Uzbekistan as well.
We also have all the necessary raw materials, and our strategic geographical location gives us an added advantage.
Uzbekistan is also economically and politically a very stable country. Our GDP is increasing by at least 5 per cent annually. What’s more, our government’s pro-industry policies further enhance our competitiveness. As Chairman of the Textile and Garment Association, I can personally attest to the government’s firm support. Rather than us pushing for government assistance, they proactively ask how they can help us grow the industry. If any issue arises, it is resolved quickly, thanks to our dedicated committee for industry support.
Today, Uzbekistan is an attractive and efficient destination for textile and apparels. We offer everything needed for success—raw materials, a compliant and supportive industry, and proximity to the key global markets, apart from policy and government support.
So, what message would you like to give out to the brands and retailers?
I call upon fashion brands and retailers to come and explore the immense potential Uzbekistan has to offer, and I can assure them that they will not be disappointed. Our industry is already fully compliant with international standards, but if they still have any specific requirements, we are highly flexible and open to discussions to meet those needs as well. Uzbekistan is ready to adapt and grow alongside the brands and retailers.
One of the key advantages we offer is tariff-free access to the European market for cotton garments. A study by the International Finance Corporation (IFC) highlighted that Uzbekistan is the most competitive among Europe’s garment suppliers, particularly in terms of freight costs and import duties. The government policy that subsidises transport costs, also adds to Uzbekistan’s appeal as a highly attractive sourcing destination.
Our progress has not gone unnoticed by international buyers as names such as The Walt Disney Company has added Uzbekistan to its list of approved sourcing countries, reflecting our strides in improving working conditions and becoming a competitive player in the global apparel market.
Last year, our textile exports reached approximately $3.5 billion, spanning over 75 countries and by 2026, we aim to increase this figure to $6.5 billion.
The decision by the ITMF and IAF to host their joint conference in Uzbekistan, underscores our growing importance in the global textile arena.
Interviewer: Deepankar Shyam
Published on: 21/10/2024
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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