News
The textile sector of Uzbekistan: a giant in the making
Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan is rewriting its history on the global textile stage. According to a recent report by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the country's textile and garment industry is showing impressive dynamics, with exports reaching $3.9 billion in 2023.
The report titled "Textile Giant in the Making?" outlines Uzbekistan's ambitious plans to increase exports to $9–10 billion by 2030. This growth is being driven by reforms, efforts toward sustainable development, and expanding product range.
Exports of finished goods increased from $400 million in 2019 to $1.5 billion in 2023.
In 2023, the country produced 1.1 million tons of cotton, all of which was fully processed in the domestic market.
Approximately 35,000 hectares are processed according to Better Cotton Initiative standards, with another 7,000 hectares allocated for organic cotton.
Over 23,000 new jobs were created in 2023 due to the development of clusters.
However, to solidify its position on the global stage, Uzbekistan faces a number of challenges, such as limited product diversification, logistical difficulties, and a shortage of skilled labor.
Uzbekistan has long been known as one of the world's largest cotton producers, but its transformation from a raw material exporter to a high-value-added product manufacturer has been a turning point.
In the past five years, the privatization of the cotton industry and the creation of 142 cotton-textile clusters allowed 100% of the cotton harvest to be processed into yarn. This transition not only boosted exports but also contributed to the creation of over 23,000 new jobs in 2023 alone.
Thanks to its strategic location between Europe and Asia, and the GSP+ status, which provides duty-free access to the EU market, Uzbekistan is becoming an attractive destination for global textile giants.
Despite the achievements, Uzbekistan's textile industry faces a number of challenges that could slow its development.
Diversification Issues: The industry largely relies on cotton products, limiting its ability to meet demand for synthetic fibers and technical fabrics. Expanding the product range is crucial to entering new markets.
Sustainability Standards: While Uzbekistan has eliminated forced and child labor in cotton production, international buyers are increasingly demanding transparency and environmentally friendly production methods. Certifications such as Oeko-Tex and Better Cotton Initiative are needed to build trust.
Logistics and Infrastructure: Uzbekistan's landlocked position increases transportation costs. Prospects exist for alternative routes through Pakistan, Iran, and the Middle Corridor to Europe, but their development requires significant investment.
Workforce Development: The rapid growth of the industry has revealed a shortage of skilled labor, particularly in advanced manufacturing and quality control. Workforce training must keep pace with industry development.
Financial Constraints: Small and medium-sized enterprises (SMEs) face difficulties in accessing affordable financing, limiting their ability to modernize and scale production.
The GIZ report presents strategic recommendations that will help Uzbekistan achieve its $9–10 billion export goal:
Innovation and Product Diversification: Manufacturing synthetic and technical fabrics, as well as modern fabrics for sports and industrial clothing, will open up new markets. Investments in modern technologies and equipment are key.
Focus on Sustainability: State programs supporting certification and promotion of environmentally friendly production methods are already yielding results. Scaling these initiatives will strengthen Uzbekistan's position in the global market.
Logistics Development: To achieve ambitious export targets, it is essential to improve transport corridors and modernize infrastructure. Projects like the China-Kyrgyzstan-Uzbekistan railway line are critical.
Workforce Skill Enhancement: Expanding vocational training programs will ensure the industry is equipped with skilled workers for quality production and innovation.
Financial Support for SMEs: Expanding access to state loans, grants, and export benefits will enable SMEs to introduce new technologies and increase production capacity.
Uzbekistan's textile sector is paving the way for a bright future, combining traditions with innovation. With the right investments in infrastructure, diversification, and sustainability, the country can become a global leader in the textile industry. As highlighted in the GIZ report, Uzbekistan is not just a textile giant in the making, but a player ready to change the global industry map.
