Light industry

Trends at the moment:

Light industry is one of the world's leading industries, which are the constant growth due to the steady increase in demand for products, small capital needs, fast-response, dynamic capital turnover, the ability to affect the problem of employment of the population.

The level of consumption of products of light industry takes the second place after food products. Therefore, the world's leading countries pay special attention to the development of light industries and have substantial support expressed in the preferential taxation, attraction of investments, promotion of export of finished products etc.

It is a comprehensive industry, comprising more than 20 sub-sectors that can be grouped into three main groups: textile, sewing, leather and fur, Shoe. the Largest share in the structure of light industry products of the apparel and textile sub-sectors.

For the successful development of light industry in Kazakhstan there are favorable factors and assumptions – the production of natural raw material - cotton fibre, wool and leather production, export fabric and yarn, clothes to global goods markets where there is demand for the specified products from natural raw materials.

According to customs statistics, exports of light industry products in 2019 were 197.6 million U.S. dollars, a decrease of (-) 2.6 percent compared to 2018.

imports of light industry products in Kazakhstan by the end of 2019 were 1738,6 million U.S. dollars, an increase of 26% compared to 2018.

production Volume of light industry in the Republic of Kazakhstan in 2019, according to operative data, amounted to 112.7 billion tenge in nominal expression on 15% above the level in 2017. Growth is observed in all sub-sectors of light industry.

In comparison with 2018 growth amounted to 13.4%, where the increase is observed across all sub-sectors of light industry. In the manufacture of textiles, growth was 13%, in the manufacture of clothing by 15.6% and in manufacture of leather and related products by 8%.

Figure 1. Dynamics of production of light industry of Kazakhstan for the 2017-2019 biennium., billion tenge

In the production of light industry products the basic share falls on textiles – 53% (59.5 billion tenge), followed by manufacture of wearing apparel with a share of 37% (42,3 billion) and manufacture of leather and related products with a share of 10% (10.9 billion tenge).

Figure 2. the Structure of production in light industry

Traditionally, the cultivation of cotton is in the Turkestan region, as a result, the main enterprises for processing of cotton is concentrated in this region. In addition, among the natural textile fibers, cotton fiber is the largest group in terms of production in the country.

Almost the entire production of cotton in Kazakhstan (about 90%) is export-oriented. Main businesses for the processing of raw cotton are: LLP "Cotton processing factory "Myrzakent", LLP "AK-Altyn" JSC, "Corporation makta", LLP "KhansuarInvestCompany", LLP "bagara-makta". At the moment, about 10% cotton fibers is used, the main enterprises engaged in production of cotton fabric LLP "AZAL textile", LLP "AZAL cotton", which cover about 15% of the domestic market. Other enterprises of the industry – too "ahbk - Kargaly", LLP "Universal".

the Main enterprises in the garment sub-sectors: "Cablegram", LLP "Bolshevik", LLP "Kazspo-N" LLP, "Semiramis", the Academy of fashion "Symbat", LLP "MIMIORIKI", LLP "Arily", LLP "Universal", LLP "exclusive hats Salon EleGant", LLP "Mediateks-N", too PC "Inspiration", LLP "GLASMAN", LLP "GOLDEN NOMAD", LLP "Garment factory "Gauhar", LLP "Zhamal - AI", LLP "Alem BT", LLP "ESKO", LLP "PEAK Utariya", LLP"Zanaris", etc.

The volume of export of light industry products in 2019 were 197.6 million dollars decrease (-) of 2.6% compared to the 2018. The rate of export of Kazakh products, light industry starting from 2016 has a tendency to decrease.

Figure 3. Dynamics of exports of light industry products for 2014-2019, in million. USA

Main export commodity light industry cotton, which occupies 57% of total exports in the light industry (112,9 million U.S. dollars).

Figure 4. Main export goods of light industry of Kazakhstan

The main -exporting countries, Kazakhstan, light industry products, which supplied almost 80% of our production is: China, Russia, Turkey, Latvia, Moldova.

Import
the Amount of import of light industry products in Kazakhstan by the end of 2019 were 1738,6 million U.S. dollars, an increase of 26% compared to 2018

Figure 5. Dynamics of volume of import of light industry products in Kazakhstan in 2017-2019 million dollars. USA

Imported to Kazakhstan mainly finished goods such as shoes and clothes. the Share of garments in total volume of import of light industry products – 48%, of footwear - 21%.

Figure 6. Import of light industry goods to Kazakhstan (in millions of dollars.USA)'

Existing measures of state support of development of the industry

In the Republic of Kazakhstan are different measures of state support to enterprises of the processing industry, including light industry enterprises: financial support, provision of grants, public procurement and more.
Economy simple things: In the framework of the state program "Economics of simple things" provides financing through second-tier banks at 6% and a term of 7 years financing at 6% with a grace period of 1 year.
JSC "Kazakhstan center for industry and export "QazIndustry" provides measures of state support within the framework of the Rules of granting state support to subjects of industrial and innovative activities.

the Preferences of the special economic zones:

Tax incentives (corporate income tax, land tax, property tax);

Customs preferences (import of raw materials and equipment);

Land with ready infrastructure (rent-free land);

The simplified procedure of hiring foreign labor (foreign labor force outside the quota).

JSC "national managing holding "Baiterek" provides support through financial support to priority sectors of the economy, supporting SMEs and support export activities of Kazakhstani enterprises.

JSC "Development Bank of Kazakhstan" provides services for the financing of investment projects and export transactions, financing of the ongoing activities, interim and mezzanine financing, lease financing, and provision of guarantees.

JSC "entrepreneurship development Fund "Damu" support in the form of loans, subsidies and loan guarantees.

JSC "Export-credit insurance Corporation "KazakhExport" performs the functions of an export credit Agency that creates financial mechanisms for supporting access of Kazakhstan of manufactures to foreign markets. Main activity of the organization is to provide the manufacturing industry with insurance protection against the risk of non-payment in foreign trade operations, guarantees the security of export transactions.

LLP "foreign trade chamber of Kazakhstan" in the framework of the development and promotion of export, "the Exporter-2020" assists in the derivation (production) of Kazakhstan products for export.

Training with higher and postgraduate education for the light industry carried out 8 higher educational institutions in the framework of the specialties of "technology and designing of products of light industry", "technology and design of textile materials":