Identifier
Created
Classification
Origin
07DUSHANBE1582
2007-11-02 16:41:00
UNCLASSIFIED
Embassy Dushanbe
Cable title:
UNSEAMLY TAJIK TEXTILES MARKET
how-toVZCZCXRO6761 RR RUEHLN RUEHVK RUEHYG DE RUEHDBU #1582/01 3061641 ZNR UUUUU ZZH R 021641Z NOV 07 FM AMEMBASSY DUSHANBE TO RUEHC/SECSTATE WASHDC 1270 INFO RUEHAK/AMEMBASSY ANKARA 2027 RUEHBJ/AMEMBASSY BEIJING 2003 RUEHBS/USEU BRUSSELS 1265 RUEAIIA/CIA WASHDC RUCNCIS/CIS COLLECTIVE RUEATRS/DEPT OF TREASURY WASHINGTON DC RHEFDIA/DIA WASHINGTON DC RUEHDBU/AMEMBASSY DUSHANBE 3177 RUEHBUL/AMEMBASSY KABUL 2306 RUEHML/AMEMBASSY MANILA 0174 RUEHNE/AMEMBASSY NEW DELHI 2231 RHEHAAA/NSC WASHINGTON DC RUEHVEN/USMISSION USOSCE 2041 RUCPDOC/USDOC WASHDC 0195
UNCLAS SECTION 01 OF 02 DUSHANBE 001582
SIPDIS
SIPDIS
STATE FOR SCA/CEN;
AMEMBASSY ANKARA FOR AGCOUNSELOR;
STATE FOR EEB/TPP/ABT GARY A. CLEMENTS;
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA;
USTR FOR CAROYL MILLER
E.O. 12958: N/A
TAGS: EAGR ECON EFIN EINV EIND ELAB EAID ETRD PGOV TI
SUBJECT: UNSEAMLY TAJIK TEXTILES MARKET
REF: STATE 114799
DUSHANBE 00001582 001.2 OF 002
UNCLAS SECTION 01 OF 02 DUSHANBE 001582
SIPDIS
SIPDIS
STATE FOR SCA/CEN;
AMEMBASSY ANKARA FOR AGCOUNSELOR;
STATE FOR EEB/TPP/ABT GARY A. CLEMENTS;
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA;
USTR FOR CAROYL MILLER
E.O. 12958: N/A
TAGS: EAGR ECON EFIN EINV EIND ELAB EAID ETRD PGOV TI
SUBJECT: UNSEAMLY TAJIK TEXTILES MARKET
REF: STATE 114799
DUSHANBE 00001582 001.2 OF 002
1. (U) Comment: Tajikistan's junior-size textile and apparel
industry struggles to gain investment that would better utilize
in-country cotton production. Despite the government's
continued pleas for more processing capacity, private companies
must weave through a maze of customs, taxation, and regulatory
entanglements in order to do business here. End Comment.
2. (U) Embassy Dushanbe provides the following data on
Tajikistan's textile and apparel sector as requested in reftel.
Data were collected from the State Statistical Agency, Ministry
of Energy and Industry, and press reports.
-- Total Industrial Production
2006: USD 1.325 billion
2007 (mid-year): USD 737 million
-- Textiles and Apparel Production
2006: USD 184 million
2007 (mid-year): USD 91 million
-- Textile/apparel share of host country imports
2006: 1.18%
2007 (mid-year): 1.10%
-- Textile/apparel share of host country exports
2006: 12.6%
2007 (mid-year): 10.73%
-- Textile/apparel exports as percentage of overall textile
production
2006: 92%
-- Exports in textiles and apparel to the U.S.
2006: n/a
2007 (mid-year): n/a
Total Manufacturing Employment
2006: 90,150
2007 (mid-year): 89,000
Total Textiles and Total Apparel Employment
2006: 21,525
2007 (mid-year): n/a
Textile Industry - So Far, Not Sew Good
--------------
3. (U) Between 11-13% of Tajikistan's raw cotton production
(18,000 tons) is processed in Tajikistan. There are 19 textile
enterprises in Tajikistan, four of which produce final products
-- the remaining produce cotton yarn for export.
4. (U) Tajikistan has sought foreign investment in its textile
processing industry in order to increase the value of its cotton
exports. However, the government has done little in the way of
easing bureaucratic requirements in order to attract private
investors. Four private Tajik companies are investing a total
of $100 million in new textiles factories: HIMA, Olimi Karimzod,
Guliston, and Khujand Invest. These four factories will be able
to process up to 25,000 tons of cotton.
5. (U) One Tajik company HIMA has built a 100,000 square meter
textile factory that according to its owner will produce 30
English types of cotton yarn for export to Italy. HIMA has an
agreement in place with Italian buyers to sell 2,000 tons of
cotton yarn for $3,600 per ton. However, conflicting
regulations on customs duties and VAT exemptions has halted the
company's plans to import new equipment, and pushed off the
plant's opening.
6. (U) Local companies have sought protection from Chinese
imports, but the government has not taken any action, and
Chinese textiles flow across the border into Tajikistan. Wages
DUSHANBE 00001582 002.2 OF 002
in the textile industry remain higher than the national average
wage, and companies have not reported any decrease in export
demand for their wares.
JACOBSON
SIPDIS
SIPDIS
STATE FOR SCA/CEN;
AMEMBASSY ANKARA FOR AGCOUNSELOR;
STATE FOR EEB/TPP/ABT GARY A. CLEMENTS;
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA;
USTR FOR CAROYL MILLER
E.O. 12958: N/A
TAGS: EAGR ECON EFIN EINV EIND ELAB EAID ETRD PGOV TI
SUBJECT: UNSEAMLY TAJIK TEXTILES MARKET
REF: STATE 114799
DUSHANBE 00001582 001.2 OF 002
1. (U) Comment: Tajikistan's junior-size textile and apparel
industry struggles to gain investment that would better utilize
in-country cotton production. Despite the government's
continued pleas for more processing capacity, private companies
must weave through a maze of customs, taxation, and regulatory
entanglements in order to do business here. End Comment.
2. (U) Embassy Dushanbe provides the following data on
Tajikistan's textile and apparel sector as requested in reftel.
Data were collected from the State Statistical Agency, Ministry
of Energy and Industry, and press reports.
-- Total Industrial Production
2006: USD 1.325 billion
2007 (mid-year): USD 737 million
-- Textiles and Apparel Production
2006: USD 184 million
2007 (mid-year): USD 91 million
-- Textile/apparel share of host country imports
2006: 1.18%
2007 (mid-year): 1.10%
-- Textile/apparel share of host country exports
2006: 12.6%
2007 (mid-year): 10.73%
-- Textile/apparel exports as percentage of overall textile
production
2006: 92%
-- Exports in textiles and apparel to the U.S.
2006: n/a
2007 (mid-year): n/a
Total Manufacturing Employment
2006: 90,150
2007 (mid-year): 89,000
Total Textiles and Total Apparel Employment
2006: 21,525
2007 (mid-year): n/a
Textile Industry - So Far, Not Sew Good
--------------
3. (U) Between 11-13% of Tajikistan's raw cotton production
(18,000 tons) is processed in Tajikistan. There are 19 textile
enterprises in Tajikistan, four of which produce final products
-- the remaining produce cotton yarn for export.
4. (U) Tajikistan has sought foreign investment in its textile
processing industry in order to increase the value of its cotton
exports. However, the government has done little in the way of
easing bureaucratic requirements in order to attract private
investors. Four private Tajik companies are investing a total
of $100 million in new textiles factories: HIMA, Olimi Karimzod,
Guliston, and Khujand Invest. These four factories will be able
to process up to 25,000 tons of cotton.
5. (U) One Tajik company HIMA has built a 100,000 square meter
textile factory that according to its owner will produce 30
English types of cotton yarn for export to Italy. HIMA has an
agreement in place with Italian buyers to sell 2,000 tons of
cotton yarn for $3,600 per ton. However, conflicting
regulations on customs duties and VAT exemptions has halted the
company's plans to import new equipment, and pushed off the
plant's opening.
6. (U) Local companies have sought protection from Chinese
imports, but the government has not taken any action, and
Chinese textiles flow across the border into Tajikistan. Wages
DUSHANBE 00001582 002.2 OF 002
in the textile industry remain higher than the national average
wage, and companies have not reported any decrease in export
demand for their wares.
JACOBSON