Issues of further development of the Turkmen-Korean trade and economic cooperation were discussed during a business meeting of chairman of Halk Maslahaty Gurbanguly Berdimuhamedov with the major Korean companies, which took place in Seoul on 29 November 2022.
The representatives of Hyundai Engineering, Hyundai Corporation, Hyundai Motor, Export-Import Bank of Korea KEXIM, LX International Corp., Omnisystem Co Ltd, Daewoo Engineering & Construction, Korea Marine Equipment Research Institute (KOMERI),MESCO”, National Institute for the Development of Korean Medicine, clinic “Chilgok” at the National University of Gyeongbuk, Center for Convergent Technology “KITECH”, “KD Navien” attended the forum.
“The current meeting is designed to help enhance the traditional partnership and establish new contacts. Today there are ample opportunities for radically expanding cooperation in the production, technological and investment spheres,” Arkadag said, welcoming the forum participants.
Here are the main points of Berdimuhamedov ‘s remarks:
Turkmenistan is implementing an “open door” foreign economic strategy, which together determines the existence of serious prospects for profitable investment of capital in Turkmenistan. One of the main goals of this policy is to give new incentives and impulses to the intensification of the national economy with a long-term effect. And in this aspect, attracting foreign investment to the country is given priority.
In this regard, Turkmenistan has an undoubted attractiveness for Korean businessmen, which is due not only to the presence of a powerful resource base and a favorable geographical location.
Turkmenistan has created optimal and favorable conditions for expanding international economic partnership in various fields. Investors are provided with substantial support in the form of tax, customs, visa, insurance and other benefits.
Despite the negative trends in the international conjuncture, the country maintains a steady GDP growth rate of 6.2%.
The attractiveness of the Turkmen market is largely due to the social and political stability and well-coordinated activities of state institutions. Important aspects of the ongoing reforms are the diversification of the economy and the gradual transition to the production of goods with high added value.
An increase in the share of innovative industries, the introduction of energy-saving technologies, telecommunications and space, water desalination are promising areas of cooperation with foreign partners, including Korean ones.
More than 13 projects with the participation of Korean companies totaling over US$ 11 billion have been registered in Turkmenistan.
The largest Korean companies – Hyundai Corporation, LX International Corp., Daewoo Engineering and Construction – have been successfully operating in the Turkmen market for a long time in such important segments as transport, gas, chemical industry, etc. Turkmenistan will encourage and support this partnership.
The successful major projects with the participation of LX International Corp. include the construction of a gas chemical complex for the production of polyethylene and polypropylene in the west of Turkmenistan, the installation of road safety systems and the provision of consulting services.
To date, about 2 thousand passenger cars and buses have been purchased by Turkmenistan from Korea. Turkmenistan is ready to increase the import of Korean-made cars and equipment. Turkmenistan considers the purchase of a new large batch of oversized buses and passenger cars.
There are great prospects for joint activities in the implementation of projects in high-tech industries, including telecommunications and space, water desalination.
Turkmenistan supports the interest of Daewoo Engineering & Construction in participating in the Ashgabat City project. Other Korean companies are also invited to participate in urban development projects.
There are great opportunities for Korean partners to engage in transport infrastructure projects, in particular, the railway. The use of the logistics potential of the Turkmenbashi seaport may become attractive for Korean business circles.
Healthcare, agro-industrial complex, electric power industry, tourism were also named among the priorities.
Turkmenistan is also interested in Korea’s experience in building a financial system.
The representatives of the leading Korean companies expressed interest in the implementation of urban development programs and the concept of “smart cities” in Turkmenistan.
They also showed their willingness to share experience in the field of optimization of the oil and gas industry and the introduction of advanced technologies.
Transport and logistics, fuel and energy complex, scientific and educational sphere, technological equipment of medical institutions were identified among the key areas of cooperation.
Following the results of the forum, a number of documents were signed:
- Memorandum of Understanding between the Union of Industrialists and Entrepreneurs of Turkmenistan and the Korean International Trade Association;
- Memorandum of Understanding between the State Border Service of Turkmenistan and Hyundai Corporation;
- Memorandum of Understanding between the agency “Turkmenawtoulaglary” (Turkmen motor transport) and Hyundai Corporation on expanding trade, economic, scientific and technical cooperation;
- Memorandum of Understanding between the State Water Management Committee of Turkmenistan and Hyundai Corporation;
- Memorandum of Understanding between the Union of Industrialists and Entrepreneurs of Turkmenistan and Hyundai Engineering on drafting, providing equipment and building an ammonia and urea production plant in the Balkan province;
- Memorandum of Understanding and Confidentiality Agreement between the State Concern “Türkmenhimiýa” and the company “Daewoo Engineering & Construction”. ///nCa, 30 November 2022