Specialist deficiency is the major bother
Shavkat Mirziyoyev, the President of the Republic of Uzbekistan, organized a meeting on January 24 to discuss priorities in the leather and footwear industry.
The industry is of grand magnitude in the production of consumer goods. The network has prospered significantly in recent years as a result of breakthrough in technology and localization. For example, in 2017, 760 billion UZS worth of leather and footwear products were produced, while in 2021 the figure was 4 trillion 415 billion UZS. During the same period, exports boosted from $ 105 million to $ 421 million US. In other words, production has escalated almost 6 fold and exports 4 fold. Moreover, there was an escalation in the share of finished products from 32% to 78%.
However, there are many untapped opportunities in this network. But there are some problems challenging manufacturers. In particular, there is no system of accounting for raw materials, and the lack of automated kitchens affects the quality of leather. There is a shortage of designers, technologists and skilled seamstresses, modern equipment, chemicals and components.
As it was noted the export of leather and footwear products is expected to reach $ 500 million US this year and $ 1.2 billion US in the next three years.
"This is a huge objective. There is a market, a large amount of raw materials and a demand to achieve this goal. Only for this we need to create all the conditions for entrepreneurs" - said the President.
To this end, the previously granted tax and customs benefits are set to be extended until 2026. Part of the cost of attracting foreign experts will also be reimbursed. The importance of establishing wholesale warehouses and trading houses abroad was stressed, for which a 4% loan in foreign currency for 3 years will be provided.
Today, the share of women's footwear in the volume of leather products produced in Uzbekistan constitutes only 23%, and children's footwear - only 8%. Therefore, it was instructed to encourage this area through tax breaks.
"Specialist deficiency is the major bother. Hence, all regions need to have a clear plan and set up a system of training in the field"- Shavkat Mirziyoyev noted.
Tasks have been set to establish a modern training and production laboratory at the Tashkent Institute of Textile and Light Industry, to improve the skills of specialists abroad, and to train mid-level workers.
