TDH Commentary
Turkmenistan’s trade policy is one of the key factors of the country’s economic development and its foreign policy relations. The growth of trade turnover in the domestic market is evidence of the successful implementation of the tasks set for the sphere of trade, as well as improving the welfare and social standard of living of the people.
At an expanded meeting of the Cabinet of Ministers on July 12, President Serdar Berdimuhamedov stressed that in order to improve the supply of food and other essential goods to the domestic market, the production potential of the trade complex should be fully utilized. At the same time, he instructed the government to take appropriate measures to improve the quality and volume of textile products and their competitiveness in the foreign market, the introduction of a digital system for the organization of electronic trade in textiles, carpets and carpet products. Speaking about the implementation of concrete steps to expand the range of activities of the private sector in all sectors of the economy, the head of Turkmenistan also instructed to organize the work of the State Commodity Exchange and the Chamber of Commerce and Industry more effectively. In addition, President focused on the need to work out the issue of opening Trading houses abroad by promoting products produced in the country.
Macroeconomic indicators for January–June of this year prove the stability of the trade sector. In particular, according to the Ministry of Trade and Foreign Economic Relations, the growth rate of trade turnover reached 103.1 %, production – 104.5 % on a year-on-year basis.
This Ministry is dedicated to securing sufficient quantities of goods at affordable prices for the population by sourcing from domestic manufacturers and, when necessary, international suppliers. In accordance with the President’s directives, the ministry actively monitors prices, ensures product availability, promotes high-quality imports while reducing their volume, increases exports of domestically produced goods, and enforces trade regulations in markets and commercial centers.
Alongside the efforts to saturate the domestic market with essential products and boost consumer goods production, Turkmenistan is investing heavily in expanding the capacity of the light and food industries and developing the service and retail sectors. The numerous modern shopping malls, stores, markets, and restaurants built across the country reflect commitment to providing exceptional services to both our citizens and international visitors.
At the same time, new forms of retail and wholesale trade are developing – hypermarkets, supermarkets, large shopping, entertainment and service centers, which indicates the investment activity of businesses and the growth of incomes of citizens.
The Arkach Shopping and Entertainment Center, a prime example of modern architecture and sustainability, opened its doors in Ashgabat this March. Constructed by Ussat specialists, the center incorporates cutting-edge engineering and environmentally friendly materials.
Located on a total area of 4.7-hectares, this impressive complex houses a business center, underground parking, and multiple multi-level buildings unified by a central three-story structure. In addition to a wide array of shops, visitors can enjoy a variety of amenities including playgrounds, cinemas, a children’s entertainment area, a beauty salon, fitness center, pharmacy, restaurants, cafes, and a “Wedding Party” event venue.
The range of products presented at the mall, demonstrates a noticeable leap that has occurred in recent years in the private manufacturing sector. By relying on the latest technologies, the domestic business has reached a serious industrial level. This also applies to consumer electronics, household goods, and stylish ones in various design variants.
It should be noted that digital technologies play an important role in achieving economic growth in the country, and today the Concept of digitalization is integrated into all government programs and projects.
As in other sectors of the economy, the national trade system has created and is improving the legal framework for the introduction of digital technologies in the management of wholesale and retail chains.
On the basis of the Laws of Turkmenistan “On Consumer Rights Protection”, “On trade activities”, “On legal regulation of the development of the Internet and the provision of Internet services in Turkmenistan”, the Ministry of Trade and Foreign Economic Relations has introduced “Rules for the sale of goods by remote means”, which include general provisions on the creation of remote trade, including advertising goods, the conclusion of a contract for their purchase and sale, the order of delivery to the consumer. Consumer rights and other points are determined.
Specialists of the Agzybirlik tilsimaty enterprise, founded by the Computer Technology Center of the Ministry of Trade and Foreign Economic Relations together with leading Chinese companies Hengsheng Lianhua Investment Management Co. Ltd. and Tongfang Hongkong Limited, are involved in the implementation of plans for the digitalization of state-owned trading enterprises in Ashgabat. Manufactured equipment under the trademark “Agzybirlik tilsimaty”, including computers with touch screens, receipt printers, barcode printers and scanners, allows to control the organization of trade in automatic mode.
The Ministry of Textile Industry is at the forefront of the nation’s drive to diversify the economy and adopt innovative technologies. By establishing high-tech sectors and expanding the production of competitive goods using domestic raw materials, the ministry is making significant strides.
As reported at the recent Cabinet of Ministers meeting, textile industry enterprises have achieved impressive growth compared to the same period last year. Production volumes of cotton yarn and fabrics increased by 33.5% and 22%, respectively, while sewing and knitwear output rose by 4.4% and leather production by 18%.
The State Association “Turkmenhaly” successfully met its carpet production target, achieving a fulfillment rate of 101.3%.
A robust and efficient trade system, enforcing stringent standards on suppliers and manufacturers, plays a critical role in quality control, safeguarding consumer health and aligning with the nation’s public health initiatives.
The country is diligently implementing a barcode system, with tens of thousands of domestic products already labeled. Turkmenistan’s integration into the Global Standard (GSI) system underscores its commitment to being a reliable and responsible partner in international trade and economic cooperation.
The introduction of a bar coding system for products opens up new opportunities for the development of trade and economic relations, diversification of export supplies, and expansion of their range.
Since the transition to a market economy, such a form of trade as commodity exchanges has begun to develop in Turkmenistan. Over the six months of this year, the State Commodity Exchange conducted 147 trading sessions, resulted in registration of 14 040 contracts.
The Chamber of Commerce and Industry (CCI) plays an important role in the development of foreign economic relations, the formation of market relations, and the stimulation of business initiatives. Among its tasks is to assist in the effective organization of partnership between business structures and state and economic management bodies, the integration of the private sector of Turkmenistan into the international business community, the export promotion of domestic manufacturers’ products to foreign markets, attracting domestic and foreign investments, and modern technologies.
The positive dynamics of the work carried out by the Chamber in January–June is evidenced by the indicator – 111.4 %. During the reported period, 12 exhibitions and 65 forums were held. Examples of this are the exposition demonstrating the achievements of the country’s trade complex, the exhibition of Afghan goods and the Turkmenistan-Afghanistan business forum, the Turkmenistan–United Arab Emirates business forum, etc.
Entrepreneurship is a cornerstone of modernizing and diversifying Turkmenistan’s economy, driving growth in the volume and variety of competitive goods. The Union of Industrialists and Entrepreneurs, with a strong focus on agriculture, food, and processing, is instrumental in bolstering the nation’s food security.
According to the Union, agricultural and food production surged by 112.1% in the first half of the year, while industrial output increased by 103.2%.
Renowned for their high quality and environmental safety, domestic products are gaining traction in international markets. The Union’s trade missions are actively working to expand export opportunities for Turkmen businesses, attract global best practices, secure foreign investments, and foster robust international partnerships.
The country has significantly accelerated the privatization of state assets, fostering the emergence of numerous private enterprises and innovative business models.
Driven by the Union of Industrialists and Entrepreneurs, the Hil standart Business Society has established a food safety laboratory accredited to the international ISO/IEC 17025:2017 standard. The high quality and environmental safety of food products produced by domestic enterprises are evidenced by the international ISO and HACCP certificates they have received.
Turkmenistan is committed to expanding international trade and economic relations. The nation’s neutral status, under the leadership of President Serdar Berdimuhamedov, creates a favorable environment for these endeavors.
The number of Turkmen Trading houses abroad is growing. Notable examples include the Joint-Stock Companies “Trading House of Turkmenistan” in Moscow, “Turkmen-Belarusian Trading House” in Minsk, and “Turkmen-Turkish Trading House” in Istanbul.
These partnerships are instrumental in bolstering economic ties. In line with the “Program for the Development of Foreign Economic Activity of Turkmenistan for 2020-2025,” a Turkmen Trading House was established in Kazan, Tatarstan, in February 2022, focusing on wholesale and retail sales of Turkmen and Russian products.
The “Foreign Trade Strategy of Turkmenistan for 2021-2030” emphasizes developing and promoting new products under national brands on the international stage.
Turkmenistan is internationally recognized for its substantial production potential. The “Made in Turkmenistan” brand effectively enhances country’s trade image, and the superior quality of domestic products is evident. This is confirmed by the successes achieved in various fields, including in foreign trade.
Significant government investments in trade, services, and small and medium-sized enterprises are shaping a modern economy that attracts investment and improves citizens’ lives.
Thus, the socio-economic transformations carried out by President Serdar Berdimuhamedov, the introduction of market mechanisms and principles into the activities of the national economic complex contribute to the economic prosperity, which is reflected in the unprecedented growth of domestic trade, fueled by a competitive environment and thriving entrepreneurship. ///TDH, 6 Aug