Prospects for Localization of Production in the Engineering Industry Were Discussed at a Forum in Astana
In Astana, within the framework of the Kazakhstan Industry Week exhibition held on September 21-23 this year, a panel session took part on the topic “Investment potential of Kazakhstan in terms of localization” with the participation of the Deputy Minister of Foreign Affairs of the Republic of Kazakhstan Almas Aidarov.
Participants have discussed current issues of companies in the process of product localization, as well as the investment potential of Kazakhstan in the engineering industry. More than 100 people took part in the event.
Almas Aidarov, in his welcoming speech, spoke about the measures taken by the government of Kazakhstan to attract investment to the country, and on ongoing process of relocation of foreign companies to Kazakhstan.
“Currently, we are negotiating with 310 companies that have left the Russian market, with 52 of them we have come to an agreement to open production in our country. Work in this direction is continuing, as we consider it very important to maintain the presence of these companies in the EAEU market,” said Almas Aidarov.
In addition, the Deputy Minister of Foreign Affairs of the Republic of Kazakhstan spoke about the successful experience of companies in the engineering industry that have opened production in Kazakhstan. However, this is still not enough for the successful implementation of the import substitution policy.
“Imports of goods to Kazakhstan last year amounted to about $40 billion. $17 billion, or more than 40% of the import of processed goods in Kazakhstan belongs to engineering industry. This is due to the absence of a number of machine-building production facilities, neither high-tech or mass production. It is also important that due to the low localization of a number of machine-building industries, large volumes of imports are supplemented by the production of components for subsequent assembly at domestic production facilities. This represents a huge untapped potential for domestic production and import substitution,” Almas Aidarov concluded his speech.
The Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan to the Italian Republic, the Republic of Malta and the Republic of San Marino Yerbolat Sembayev, Deputy Chairman of the Board of JSC "Kazakhstan Industry and Export Center "QazIndustry" Asset Adakhayev, Member of the Board of Astana Motors Keith Simmons and InPhoTech CEO Tomasz Nasielowski also spoke at the panel session.
The prospects for localization of production were also discussed at the round table “Industrial cooperation in the EAEU space. New challenges and opportunities”. Ruslan Ibraimov, Deputy Chairman of the Board of KAZAKH INVEST, acted as an invited speaker and noted the importance of expanding and deepening economic cooperation with neighboring countries.