ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of March 6, 2013 No. 123

About the Development program of textile and sewing production of the Kyrgyz Republic for 2013-2015

For the purpose of forming of favorable conditions for development and increase in competitiveness of textile and sewing production, employment of the population the Government of the Kyrgyz Republic decides:

1. Approve enclosed:

- The development program of textile and sewing production of the Kyrgyz Republic for 2013-2015;

- The actions plan on program implementation of development of textile and sewing production of the Kyrgyz Republic for 2013-2015 (further - the Actions plan).

2. To the ministries and departments quarterly, no later than the 15th following reporting quarter to represent to the Ministry of Energy and Industry of the Kyrgyz Republic information on implementation of the Actions plan.

3. To the Ministry of Energy and Industry of the Kyrgyz Republic quarterly, no later than the 25th following reporting quarter to submit the generalized report on accomplishment of the Actions plan in Government office of the Kyrgyz Republic.

4. This Resolution becomes effective from the date of official publication.

5. To impose control of execution of this Resolution on department of the industry, fuel and energy complex and subsurface use of Government office of the Kyrgyz Republic.

Approved by the Order of the Government of the Kyrgyz Republic of March 6, 2013 No. 123

The development program of textile and sewing production of the Kyrgyz Republic for 2013-2015

1. General provisions

Textile and sewing production (further - TShP) - priority industry of processing industry. The strategic part in republic economy owing to variety of reasons is assigned to this industry.

First, TShP is oriented to use of local raw materials which potential for conversion is considerable.

Secondly, TShP is especially capacious industry regarding use in the form of establishment of system of the preferential taxation on labor power, and it provides employment of the population.

Thirdly, TShP products, in view of narrowness of the domestic market and owing to the competitiveness, are export-oriented.

Considering these circumstances, entrepreneurs of industry are given the state support on the basis of the voluntary patent and acceptable rates on payment of insurance premiums that allowed to stabilize production of sewing products and to keep competitive advantages in the markets of Russia and Kazakhstan.

For the last five years production of TShP increased almost twice at the expense of the sewing industry, and export deliveries of products increased in time 2,6.

According to official figures, more than 110 thousand people, most from them of the woman whom the flexible working schedule arranges are engaged in TShP the high salary paid weekly is enough. For the purpose of strengthening of competitive line items of industry this Development program TShP for 2013-2015 is developed.

In this Program special significance is attached to forming of favorable conditions for development of textile and sewing production, first of all, in regions of the republic that, undoubtedly, shall find reflection in growth of professional level of local population and reducing internal and external migration. Important significance is attached to export development, development of the new markets, training for industry, activation of social dialogue between the companies of TShP and state bodies, and also to increase in share of domestic goods in the domestic market.

2. Main objectives of the Development program TShP for 2013-2015

Main objectives of this Program are:

- increase in competitiveness of TShP, diversification and expansion of export;

- forming of favorable conditions for development of textile production;

- development of TShP in regions of the republic;

- activation of social dialogue, partnership of the companies and state bodies.

3. Priority tasks and the directions of development of TShP for 2013-2015

1) Carrying out negotiation process with state members of the Customs union concerning establishment of favorable conditions for the Kyrgyz producers of TShP. For the purpose of realization of this task it is necessary to set prefential treatment for import of fabrics, fitment and other materials for sewing production in case of the entry of the Kyrgyz Republic into the Customs union. Along with it, it is important to organize the specialized laboratory on testing of products of TShP accredited according to requirements of the Customs union. The organization of trainings for production workers according to international standards of quality, technical regulations of the Customs union will be required. At the intergovernmental level it is necessary to sign the international agreements on technical regulation and standardization for direct application in the territory of the Kyrgyz Republic of technical regulations of the Customs union. Entry into structure of the Customs union puts in the forefront questions of search of the new raw materials markets and materials in Russia and Belarus for Kyrgyz sewing, hosiery носочных and knitted productions, and also accomplishment of large orders on delivery of clothes to these states.

2) Preserving voluntary patent system of the taxation and the accepted procedure for social assignments for workers of TShP.

These conditions established in 2005 positively proved in the conditions of individual entrepreneurship of TShP and became one of the determining factors of development of sewing production at the present stage. Further it is important not to allow changes of existing rules towards deterioration.

3) Creation of sewing technopolis in the city of Bishkek or Chuy Region.

Provision of the parcels of land in zhilmassiva for the organization of sewing technopolises (concentration of the sewing companies in the autonomous territory with the corresponding infrastructure and communications) will allow to remove problem of deficit of production rooms for the purpose of expansion of release of demanded products within large orders. Along with it, the problem of completion of personnel in industrial production and employment of inhabitants of densely populated areas is solved. Success of this share can be extended afterwards and to regions that shall affect reducing migration of able-bodied population positively.

4) Investment attraction in TShP.

Expansion of the broad advertizing campaign including production of videos and movies, preparation of the catalog of investment projects and their distribution through network of the diplomatic and trade missions abroad shall play special role. The organization of investment forums is important. Considering rapid development of weaver's production in China and the available capacity of domestic textile subindustry, it is reasonable to activate actions for attracting investors.

5) Development of effective funding mechanisms for the TShP projects.

In the specified aspect realization of funding mechanism through the producer of finished goods is supposed what will allow to organize the scheme: entrepreneurs of TShP (sewers, trikotazhnik, textile workers) are agricultural producers (producers of raw materials). Availability of the instrument of maintenance of projects implementation in textile and sewing production, ensuring access of entrepreneurs to credit resources on small interest rates and for rather long term is important.

6) Reanimation of textile production.

Development of national textile production will allow to reduce partially dependence of sewers on import of fabrics. In the specified period it is provided to create conditions for this process. In the future, release of fabrics from natural fibers and tailoring from them will create opportunity for development of the new markets, exit of the Kyrgyz clothes to elite consumption levels, diversifying export components. Besides, it will allow to develop allied industry - agricultural industry. Development of textile production is possible through realization of separate pilot projects, in particular, on extension of the scheme of conversion of cotton-fiber, recovery of silkworm breeding and fine-fleece sheep breeding.

7) Training of personnel and specialists of the lowest, average and top management of TShP.

In this direction strengthening of capacity of educational institutions of different level is required. The special part shall be assigned to questions of coordination and interaction of educational institutions and companies in the field of staffing of TShP. In particular, increase in number of trainees on specialties is necessary: the seamstress, the cutter, vyazalshchik, the setup man in system of vocational training according to the short-term program and also to consider the possibility of creation of industrial practice complexes based on the existing professional lyceums and productions. The number of the students directed to study in higher education institutions of Russia, Belarus and Turkey in the specified directions is reasonable to increase.

8) Development of TShP in regions of the republic.

Being resource-intensive and labor-consuming at the same time, TShP exerts effective impact on the decision not only economic, but also social tasks. In this connection the attention shall be paid to development of this industry in regions through realization of package of measures for investment attraction, carrying out rates on personnel training of the lowest and average link, creation of fund of the sewing equipment providing possibility of updating of leasing, the organization of trainings for new technologies, designing of clothes, management, the organization of sales, to the perspective directions of fashion and design.

9) Development of workmanship in the republic.

Now the situation in craft production of elements of national clothes, objects for life, including floor and wall products from felt, the wool and cotton yarn relating to the sphere of TShP requires to itself close attention. According to expert evaluation, the amount of release of similar products grows from year to year. Need of rendering effective support to this segment and development assistances of this activity ripened that causes feasibility of inclusion it to the sphere of TShP.

10) Activation of social dialogue and partnership between subjects of the market.

It is offered to create the permanent dialogue platform under the auspices of the state body supervising policy issues of development of processing industry with involvement of public associations and organizations of producers. It will allow to discuss promptly problems of TShP and to make the decisions concerning all aspects of activity of industry up to development of the corresponding projects of regulatory legal acts.

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