nCa Report
Ashgabat, 19 March 2018 (nCa) — The union of industrialists and entrepreneurs of Turkmenistan was established in March 2008. Mandated to serve as the bridge between the public and private sectors, the union has completed ten years of its very productive existence.
A number of activities were held to draw the attention to the achievements of the union and underline the commitment of the government to make the best of this very successful experiment.
On 16 March 2018, President Berdymuhamedov addressed a gathering of the members of the union. In addition to praising their work in support of the government’s export-promotion, import-substitution drive, he announced a number of decisions for bolstering the private entities, mainly the small and medium enterprises SMEs).
On 17 March 2018, an exhibition featuring the products and services of some 182 enterprises from Turkmenistan started in Ashgabat.
This report contains the following:
- Main points of the speech of President Berdymuhamedov at the gathering of union members, and the summary of proceedings of the event
- Various decisions announced by Turkmenistan to support the private sector
- Exhibition
President meets entrepreneurs
[This part of the report is taken from the dispatches of TDH, the official news agency of Turkmenistan]
President Gurbanguly Berdimuhamedov met the members of the Union of Industrialists and Entrepreneurs and, having made a speech addressed to the representative of national business, made analytical assessment of 10 years of the activity of this organization and outlines priority targets of national development, in which achievement non-governmental sector of the economy has the key role.
At the meeting, the President gave utterance to new decisions that have been taken to support Turkmen entrepreneurship, signed the documents aimed at further contribution of private structures to the realization of strategic programmes and conferred the state awards to the best representatives of the UIET.
The meeting of the Head of Turkmenistan with the business circles was held in the head office of the UIET with the participation the Chairperson of the Mejlis, members of the Government, ministries, heads of different organizations and mass media, numerous representatives of the Union and the Party of Industrialists and Entrepreneurs.
Having addressed the participants, President Gurbanguly Berdimuhamedov congratulated everyone on the 10th anniversary of the Union of Industrialists and Entrepreneurs of Turkmenistan and on coming opening of the exhibition and the conference.
For the past years, the UIET turned into big non-governmental organization. Today, it unites more than twenty thousand entrepreneurs. The country carries out steadfast work for the development of businessmen associations and support of entrepreneurship initiatives, the Head of the State said, having noted that the share of non-governmental sector of the economy in the GDP has considerably grown for the last years. Not counting fuel and energy complex, it made 62 percent.
Total number of private companies in the country exceeded 18 thousand. It gave work for almost 150 thousand people. For the years of the activity, the Union of Industrialists and Entrepreneurs has invested 15 billion 360 million manats to national economy. This process is successfully continued today.
The President also mentioned the role of the Party of Industrialists and Entrepreneurs that was founded in 2012, which representatives are represented in National Parliament. At present time, the Party nominates the candidates to the Mejlis deputies as well as to the local power authorities, hence actively participating in coming elections on March 25.
The Head of the State made special mention of deserving contribution of the UIET to successful V Asian Indoor and Martial Arts Games in Ashgabat in 2017. Participation of the entrepreneurs on construction of the facilities in white0marbe capital, Avaza National tourist zone and other regions of our beautiful country is also worth special mention, President Gurbanguly Berdimuhamedov said, noting high quality of hundreds of social and industrial facilities. It includes libraries and hotels, shopping and entertainment centres, sports complexes and international airports of original design and many others. The specialists of private companies build and put into operation more than 600 facilities per year.
In addition, the entrepreneurs take part in the development recently established branches of the economy including in in industrial processing of mineral resources using advanced technologies.
The share of private producers in provision of food security is big. They successfully implement the state programmes adopted in this direction, Turkmen leader stated bringing following figures as an example: at present time, 63 percent of agricultural products and more than 60 percent of industrial goods are made by non-governmental branches of the economy. More than 90 percent of the works in trade and service sphere are made by the entrepreneurs.
Quality and environmentally friendly production of local manufacturers is on great demand at foreign markets. The majority of these goods is exported.
The representatives of non-governmental branches gained big experience in quality construction that meets international standards. It opens the perspective for confident entry to international markets, the Head of the State noted, having brought up such examples as the kindergarten in the Republic of Moldova, secondary school in Astrakhan region of the Russian Federation, which have been built by our entrepreneurs.
Speaking of big work carried out by the members of the UIET for the realization of the export capabilities, attraction of advanced world practice and use of various forms of active international cooperation in entrepreneurship sphere, President Gurbanguly Berdimuhamedov listed the opening of the representative offices in the People’s Republic of China, United Arab Emirates and Austrian Republic among the outcomes of this activity.
By the initiative of the UIET, trade representatives and shopping centres have been opened in Xining City, China, capital of Georgia Tbilisi and Afghan Mazar-e-Sherif. All of these support wide attraction of foreign investments to our country, the Head of the State made a conclusion from what was said above.
Turning to the objectives in the nearest future, the President said that the Union of Industrialists and Entrepreneurs has to take leading position in the market economy of Turkmenistan and t become an important mechanism of the provision of deserving level of social and living conditions of the population as well as support successful integration of our independent state to the system of global economy.
The entrepreneurs play special role in innovative energy economy, the Head of the State noted, having encouraged the businessmen to establish high technology facilities using local raw materials.
Our entrepreneurs have to make the facilities for production of import substitutive production and to invest made money to the production that is based in advanced technologies. They also have to be aware of the current situation and tendencies of the market relations and master new branches of the economy.
Having highlighted again the significance of small and medium business in the implementation of large-scale government programmes, President Gurbanguly Berdimuhamedov focused on such important fields of national economy as agricultural complex, construction industry, food and textile spheres, transport, tourism, trade and service.
Introducing advanced technologies and innovative developments, national business has to participate actively in the realization of big urban construction projects, the President said.
We welcome the establishment of joint ventures with foreign partners for the increment of production powers and bringing of national production to the world markets. We create all conditions for active attraction of foreign investments, opening of representative offices ourside the country. The President of Turkmenistan said that the Government would continue rendering comprehensive assistance and paying special attention to further development of the entrepreneurship including modernizing existing legislation stimulating the investment activity of Turkmen companies and organizing the most favourable environment for the entrepreneurship, elaborating and adopting new legal bills.
To support his statement, Turkmen leader informed on the adoption of the State programme on support of small and medium entrepreneurship in Turkmenistan in 2018 – 2024 and the plan of relative activities for this period.
These systematic measures are to support successful realization of the Programme of President Gurbanguly Berdimuhamedov on social and economic development of the country for seven years, the improvement of market bases of Turkmen economy and the expansion of production powers of private sector.
Under loud applauses, the President of Turkmenistan signed the Resolution of adoption of new programmes that is another Government measure for encouragement and stimulation of business community to the growth and opening of the potential. The Head of Turkmenistan made another important information on his decision to entrust the entrepreneurs taking into account their high skill to realize the projects of construction of speed highway Turkmenabat – Ashgabat and potassium fertilizers plant in Gaurdak.
Representatives of local business, who are entrusted with responsible objectives by the President relying on their professionalism and comprehensively supporting their activities, accepted these words with the great enthusiasm.
President Gurbanguly Berdimuhamedov signed the Resolution on allocation of the state credit finances to the Union of Industrialists and Entrepreneurs for the realization of the above-mentioned projects, what was another evidence of huge attention that is paid in our country to the formation of strong competitive and socially responsible business and creation of the most favourable environment for tis development.
According to the documents, the Central Bank of Turkmenistan will allocate the credit to the amount of 2 400 000 000 US dollars to the UIET through Rysgal Joint Stock Commercial Bank for 2 years with 1 percent of the interest and five year grant period for the financing of the construction of high speed highway Ashgabat – Turkmenabat.
The credit to the amount of 600 000 000 US dollars for 11 years with 3 percent interest and 4 years of grant period will be allocated for the financing of the construction of mining and ore dressing complex for production of potassium fertilizers at Tubigatan potassium deposit in Lebap Velayat.
In addition, having signed relative documents including on the construction new facilities in Ashgabat by the members of the UIET, the Head of the State approved the proposal on the establishment of the fund of small and medium entrepreneurship support in the country as well as approved the list of certain industrial and construction goods, which are subject to the custom duties when imported to Turkmenistan, and the rates of such duties.
After, the President made another important statement on hand over of Avaza National tourist zone to the jurisdiction of the Union of Industrialists and Entrepreneurs of Turkmenistan.
This fundamental decision of the Head of the State was greeted with loud applauses. In fact, it means the beginning of active stage in the development of young resort on Turkmen coast of Caspian Sea. Today, when initial period of the establishment of National tourism zone, which is under closer patronage of the State, has been successfully completed, this grandiose project initiated by the Head of the State has entered new level of growth and, while trusting such large-scale and remarkable work to the UIET, the President of Turkmenistan is looking forward to high efficiency of this measure in near- and long-term perspective
According to Turkmen leader, this are the flexibility and mobility of business, its subtle feeling of market situation, fast learning, energy and imitativeness, which are necessary for current changing economic realities in order to make fast move forward and to make raise to new development. The state has taken all necessary measures for this; it gives green light to the bravest plans and initiatives under such considerable and priceless support rendered by President Gurbanguly Berdimuhamedov.
After, the Head of the State announced that highly appreciating the input of the entrepreneurs to the development of the economy, he decided to confer the State awards to the most deserving businessmen.
Having given the floor to Chairperson of the Mejlis A. Nurberdiyeva who read out relative Resolution, President Gurbanguly Berdimuhamedov presented the state awards to the representatives of the UIET who achieved the most considerable results.
Heads of private companies and associations «Ussat-Inžener», «Aktab», «Batly-Gadam», «Erada», «Hilal», «Baýly-Gurluşyk», «Altyn Gala Gurluşyk», «Abraýly önüm», «Eziz-Dag», «Altyn hojalyk», «Hasar» and «Parasatly» were awarded with the medals of Turkmenistan «Watana bolan söýgüsi üçin» for large success in the consolidation of the independence and sovereignty of Turkmenistan and increasing of economic power of the country.
On behalf of the members of the UIET, Chairman of the Union A. Dadayev addressed the Head of the State, having expressed deep gratitude for the attention and care indicated by the personal congratulation of the Head of the State on the 10th anniversary of the foundation of the organization. This was unforgettable moment and historical event in life for Turkmen entrepreneurs. For the first years from its foundation, the UIET has united 500 members, which started the arrangement of the activity in different branches of national economy. In that period, the share of the entrepreneurship in the economy was less than one percent while today, it exceeds 60 percent. It all became possible in the result of steadfast efforts and support of President Gurbanguly Berdimuhamedov, due to which national entrepreneurship activity is rapidly developing.
Directing initiatives, valuable proposals of Turkmen leader has brought private sector of the country to the way of harmonic development. The Head of the UIET said addressing the Head of the State: “we accept the success achieved by Turkmen entrepreneurs as your personal merits”.
Toady, with the growing activity in all branches of the economy, national business started actively participating in social and political life of the country; political party of Turkmen entrepreneurs has been established.
The representatives of private sector work hard putting all efforts to justify high trust of the President, the Chairman of the UIET continued, having assured that all set objectives would successfully fulfilled.
Efficiently using the capabilities created by the State, Turkmen entrepreneurs enter international level mastering modern technologies of production and marketing. National Barcode Organization was created with the participation of the UIET. The barcode of the production made in Turkmenistan actively operates in the world markets. At present time, it is planned to open national laboratory for ISO certification that is the guarantee of the competiveness of goods in foreign markets.
Equipment and material base of Turkmen business, infrastructure of private production sector provided with the most advanced equipment from foreign manufacturers are improved. Recently, large administration, business and shopping complex comprising of around 100 buildings and built by Turkmen entrepreneurs have been opened in the north of Ashgabat.
Having noted again that such large-scale development of the entrepreneurship in the country became possible as the result of the huge support of President Gurbanguly Berdimuhamedov, the Head of the UIET expressed the gratitude for the attention and the conditions made on government level for active entering of Turkmen businessmen to the world markets and said on the presentation of beautiful ahalteke horse Gorelde to Turkmen leader on behalf of the members of the Union, having handed over relative pedigree certificate.
Finishing the meeting and giving good encouragements to young and mature businessmen, experienced private producers and those who just started their business, the Head of the State highlighted that the entrepreneurship has all capabilities today for further development of our country that goes along the way of democratic reforms and social and economic transformations.
“Therefore, we expect new successes from you in all spheres of activity and the improvement of economic potential of our Mother land!” – The President said.
The Head of the State expressed his confidence that international cooperation would receive more development and the solidarity of our people will be strengthened in the year under the slogan “Turkmenistan is the heart of the Great Silk Road”. The Head of the State cited immortal and prophesy words of the great poet and thinker Magtumguly Fragi about beautiful future of Turkmen state and that the fortune of Turkmen nation would be raised only by the solidarity.
So it will be – our friendly nation is waited by the good future and it will achieve the great successes. So it has to be as we have chosen the right way of the development. We confidenty move forward along this way. We have to make more decisive steps forward and forward! – The President of Turkmenistan called upon.
Having congratulated again on the 10th anniversary of the Union of Industrialists and Entrepreneurs, President Gurbanguly Berdimuhamedov wished everybody strong health, family happiness and great success in work.
UIET given plot of land in Ashgabat on permanent basis
The Union of Industrialists and Entrepreneurs (UIET) has been allocated a plot of land of 8 hectares, located along the Tehran Street in Ashgabat, to construct a group of buildings consisting of trade and entertainment, business centers, and a modern residential house.
Pursuant to the document, the State Committee for Environmental Protection and Land Resources and the Ashgabat City Administration are prescribed to duly formalize the allocation of the said plot of land.
Use of this plot of land:
The President of Turkmenistan signed a Resolution allowing the Ashgabat City Administration to conclude a contract with Beýik-Bina Individual Enterprise to design and construct a group of buildings consisting of the trade and entertainment, business centers, and a modern residential house along the Tehran Street in Ashgabat; to improve the surrounding territory, roads and pavements, elevated bridges, fountains, children’s playgrounds, artificial man-made channel and green areas leading to the group of buildings.
The document prescribes to begin construction works in April 2018 and commission the facilities fully ready for operation in April 2021.
Fund created for support of SMEs
With the aim to develop entrepreneurial activities in the period of market economic relations, support small and medium-sized entrepreneurship and create innovative industries, the President of Turkmenistan signed the Resolution approving a number of relevant proposals of the Union of Industrialists and Entrepreneurs to establish a fund for supporting small and medium-sized entrepreneurship in the country.
State program on support of small and medium entrepreneurship for 2018-2024 approved
The President of Turkmenistan signed the Resolution approving the State Program for the Support of Small and Medium-sized Entrepreneurship in Turkmenistan for 2018-2024 and a plan of relevant activities for this period.
The document was adopted in accordance with the Law of Turkmenistan “On State Support of Small and Medium-Sized Entrepreneurship”, in order to successfully implement the Program for the socio-economic development of the country for 2018-2024, further ensuring high rates of socio-economic development of the country, activating business activities in various sectors of the national economy, increasing the range and volumes of goods produced by small and medium-sized enterprises, increasing their competitiveness in foreign markets, promote the development of private entrepreneurship.
List of construction and industrial goods, subject to customs duties for import to the country was approved
The President of Turkmenistan signed the Resolution approving a list of some construction and industrial goods that are subject to customs duties when imported into Turkmenistan and the amount of customs duties.
The Ministry of Finance and Economy and the State Customs Service are instructed jointly with the Ministry of Justice to prepare and submit to the Cabinet of Ministers, within a month, proposals for amendments and additions to the legislation of the country arising from this Resolution.
The Decree enters into force on April 1, 2018.
UIET will be allocated loans for the construction of the Ashgabat-Turkmenabat highway and potash complex in Lebap
The President of Turkmenistan signed the Resolution by ordering the Central Bank of Turkmenistan, at the expense of the state funds through the Joint-Stock Commercial Bank “Rysgal”, to allocate to the Union of Industrialists and Entrepreneurs of Turkmenistan (UIET) a loan of up to 2,400,000,000 (two billion four hundred million) US dollars for a period of 20 years with 1 percent per annum and a five-year grace period for financing the construction of a high-speed Ashgabat-Turkmenabat highway.
The President of Turkmenistan signed the Resolution by ordering the Central Bank of Turkmenistan, at the expense of the state funds through the Joint-Stock Commercial Bank “Rysgal”, to allocate a loan of up to 600,000,000 (six hundred million) US dollars to the Union of Industrialists and Entrepreneurs of Turkmenistan for a period of 11 years with 3 percent per annum and a four-year grace period for financing the construction of the Tubigatan potash salt deposit in the Lebap velayat the Mining Ore Processing Plant for the production of potash fertilizers.
Avaza National tourism zone to be handed over to UIET
At the meeting with the members of the Union of Industrialist and Entrepreneurs held on March 16, President Gurbanguly Berdimuhamedov made an important announcement – Avaza National tourism zone would be handed over to the jurisdiction of the Union of Industrialists and Entrepreneurs of Turkmenistan.
This fundamental decision of the Head of the State means the beginning of active stage in the development of young resort on Turkmen coast of Caspian Sea. Today, when initial period of the establishment of National tourism zone, which is under closer patronage of the State, has been successfully completed, this grandiose project initiated by the Head of the State has entered new level of growth and, while trusting such large-scale and remarkable work to the UIET, the President of Turkmenistan is looking forward to high efficiency of this measure in near- and long-term perspective.
Exhibition featuring products and services of private sector of Turkmenistan
About 182 entrepreneurs of Turkmenistan brought their products and services to showcase at the exhibition of UIET, which started on 17 March 2018.
They represent the diversity of the entrepreneurial activity in the country, spanning the agro-production, food and processing industry, construction industry and electrical equipment production, as well as in trade, tourism, education, social services, transport and logistics sectors.
There is the remarkable effort to introduce innovation in the production sector.
The participants of the exhibition include the traditionally known companies such as Ajaýyp bina, Ajaýyp gurluşyk, Aktab, Dor bedew, Ussat inžener, Rysgally zähmet, Döwlet gurluşyk, Hyzmat merkezi and other enterprises and economic companies, all of which have done a number of construction projects across the country.
There are also the fast upcoming industrial companies such as “Şahym-Şa”, “Saka”, “Türkmen şöhle”, enterprises “Giňdere”, “Arma”, “Erjel-Begenç”. They are all engaged in the import-substitution drive, led by “Derýaplastik”, which produced more than 800 products related to sanitary ware, cable, hoses and joints.
A wide range of building materials manufactured using innovative technologies are represented by individual enterprises Çaly, Ukyply kärdeşler. From year to year, the company “Ak hünji” is expanding the production of expanded polystyrene products.
There is also the production line of “Zürýada hyzmat”, producing the traditional construction materials by using the modern technologies.
Among the furniture makers there are “Aýbölek”, “Abraýly önüm” and “Çigildem”, as well as “Sary agaç”, “Mary agos”, “Hilal” represent their products in the interiors of apartment houses and offices. Some of them are already exporting their furniture to the neighbouring countries.
In the area of food products there are “Guş toplumy”, a complex for the breeding and processing of fish “Hazar balyk”, the enterprise “Ajaýyp ussat halal önümleri”, the poultry farm “Hoş zaman”, CJSC “Bereketli” and “Täze aý önümülli” and others.
The pavilions of manufacturers of fish products are of great interest. Among the “live” exhibits – an African catfish and a sturgeon from CW “Elin balyk”. Traditionally, the results of breeding work in the field of animal husbandry are presented at the exhibition “Ajaýyp ussat halal önümleri”. The economic company “Sahabatly” presented the animals of its complex – goats, from whose milk it produces healthy products. The high quality of domestic products produced by domestic enterprises: Guş toplumy, Hasar, Parahat, Halys, Täze aý and other food products is confirmed by the international certificates ISO and HACCP obtained by them.
In a wide assortment – soft drinks and drinking water of the enterprises “Akdaş miwe içgileri”, “Arçalyk”, “Berk Akar”, juices of trade marks “8 ýap”, “Sawa” from CW “Miweli oba”, “7 gün” apaprak “, natural vegetable and fruit juices and nectars under the trade brand” MFT “, etc.
In the exposition of the enterprise” Parahat “, in addition to the popular juices” Joş “,” Eçil “, cold tea, sausages, healthy products – baby food fruit and vegetable purees), as well as several varieties of ketchup and tomato paste made on the basis of fruit and vegetable concentrates produced here as well from natural local raw materials.
Novelties are also shown by well-known manufacturers of dairy products: the enterprises “Aýaz baba”, “Elin”, CW “Sahabatly”, “Shavat”. Visitors of the exhibition were able to taste a wide range of canned products – the novelties of the plant “Owadan ülke”, as well as the enterprises “Bereket” and CW “Eakyn dost”.
Especially attractive are the pavilions of the producers of the favorite delicacies of children and adults – ice cream brands “Salkyn”, “Erteki”, “Täzeaý”, etc. Visitors to the exhibition are pleased to try different varieties of honey that has absorbed the healing properties of plants growing in different regions of the country. Placers of various confectionery products – at the stands of the enterprises “Hasar”, “Misgär” and CW “Bars”, “Duýgy”, “Paýhas”. Popular types of bread and bakery products in the original festive decoration are represented by “Tomus”, “Saglyk”, “Halys”, as well as “Kämil market” and numerous entrepreneurs.
In the exhibition pavilions – a variety of fruits, vegetables, melons, grown on farmland, leased by the state to members of the JVCA, and in modern greenhouse farms, the number of which grows year after year. On the basis of the use of advanced irrigation technologies, high-quality supplies and machinery, such areas of agricultural business as vegetable growing, horticulture and floriculture are actively developing. The pavilions of the “Parasatly” and “Nurly meýdan” societies, the “Ter” company, and the “Sanjar” enterprises illustrate this. Especially attractive are strawberry berries from PI “Bäş nur”. For the first time in the review – the enterprise “Ezber daýhan”, specializing in the field of seed production and production of greenhouse vegetables.
At the exhibition site there are representatives of the private sector, which provides a wide range of various services to the population and organizations. Among them are CW “Awtoýoly”, which advertises motor transport services, CW “Imdat elektronik” and enterprise “Turkmen Transit”, offering services in the field of IT technologies. Separate sections of the exhibition are devoted to transport and logistics – the actual business direction, which acquires special significance in the light of the large-scale work being carried out in our country to develop these areas. The Association “Türkmen Tranzit”, which was formed this month, entered the exposition site for the first time. This structure is aimed at providing a wide range of logistics services, as well as protecting the rights of transport workers.
Representatives of the private sector provide the population with a wide range of public, advertising and publishing services, which is also reflected in the current exposition.
Opportunities for visitors to the exhibition, and first of all potential foreign partners, are represented by private tour operators – Owadan syýahat, which is actively working in this segment, and its young colleagues who participated for the first time in the exhibition – Halkara dostluk, Oguz abat, Güneşli syýahat “,” Rowaç-AW “. Today, tourism is one of the promising areas of activity of the JVT. In the context of the motto of the Year – “Turkmenistan is the heart of the Great Silk Road”, tour operators offer routes to historical sights along the ancient highway. This theme also determined the direction of the fashion show from CW “Gül Zaman”.
On display is the structure of the UIET, covering its core base of members, the joint stock commercial bank Rysgal with branches in all the provinces, the school of entrepreneurship which provides vocational training in some 50 trades, the trade house Bäsdeş, and the association Birleşme gurluşyk which oversees the construction sector.
UIET and the national organization of Turkmenistan on barcodes GS1 Turkmenistan facilitate the producers in getting the ISO 9001 certification.
The newspaper Rysgal covers the business and industrial sector of Turkmenistan.
The party of industrialists and entrepreneurs of Turkmenistan, established in 2012, has 14 deputies in the parliament. It is contesting the forthcoming parliamentary elections and hopes to expand its representative base. /// nCa