where business runs
The rental value of land for investors and operating enterprises on the territory of the Sughd FEZ has become two times cheaper since January 1, 2021.
Now the payment for 1 square meter is $ 0.50 (50 cents) per year. Previously it was $1.
Welcome to SUGHD FEZ!
On October 1, this year a meeting of the permanent headquarters aimed on strengthening activities of free economic zones in Tajikistan held with the participation of representatives of relevant ministries and departments, the private sector, as well as representatives of the Administration of the FEZ “Sughd” , FEZ “Kulob”, FEZ “Dangara”, and subjects of FEZ “Sughd”.
Scheduled meeting in round table format was organized by the initiative of the Ministry of Economic Development and Trade of the Republic of Tajikistan, where activities of all free zones and existing problems were discussed.
The session Chair, Deputy Minister opened the meeting of Economic Development and Trade of the Republic of Tajikistan Solekhzoda A. introduced its agenda, he also spoke about the importance and role of FEZ in the development of the economy of Tajikistan. However, in his speech, he noted a number of existing problems that hinder the growth of FEZ in the country. Then the floor was opened to the Deputy Chairman of the Sughd region A. Yakubi, who, in turn, spoke about some of the problems of the FEZ of Tajikistan and the ways to solve them.
I.Kamoliddinzoda, the Head of the Administration of the FEZ “Sughd”, made a report on the results of the activity of the FEZ “Sughd” for the 8 months of current year he and also listed a number of issues that free zones encounter on their everyday activity. After that according to the agenda of this meeting, the participants moved on to discuss the issues that were mentioned at the meeting.
After the end of the meeting, based on agenda, the participants visited the subjects of the FEZ “Sughd” – LLC JV TT “Tajprof” and LLC “Archa Mebel” where they got acquainted with their activities.
In the afternoon, the delegation went to Isfara in order to get familiarized with the state of infrastructure of canning factory in Isfara. It should be noted that it is planned to create a sub-zone for the Sughd FEZ on the territory of this cannery.
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This year, on September 18’th, the Business Forum between entrepreneurs of Tajikistan and Uzbekistan was held in Dushanbe. The event was organized by the Chamber of Commerce and Industry of both countries aimed in finding partner companies, presenting their activities, attracting investments and business development. The Uzbekistan business-delegation consisted of representatives of ministries and Public administrations of the Republic of Uzbekistan, including of more than 40 representatives of various industries and businesses of this country.
Along with representatives of competent ministries and domestic entrepreneurs, the Deputy Head of the SUGHD FEZ Administration Mirzoyon Mirzomanon has also took part in the Forum, who presented priorities and opportunities implementing activity in the FEZ of the Republic of Tajikistan. During his presentation, he also invited the neighbour entrepreneurs and investors for cooperation, stressing that free economic zones can be used as an important platform for the development of cooperation.
On August 17, 2020 the Ambassador Extraordinary and Plenipotentiary of Ukraine to Republic Tajikistan – Servatyuk Vasyl Nikolaevich and other guests on honor were visited the FEZ “SUGHD. The purpose of the visit was to familiarize the delegation with the activities of the Free Economic Zone “SUGHD” and searching contacts for bilateral cooperation.
The meeting was hosted (chaired) by the Head of Administration Kamolitdinova I. CH.The meeting was attended by the first Deputy Head of Zikriypozoda S. and the Head of the Department for international relations Eshmatov J.
Kamoliddinova I. has informed the guests about the activities of Sughd FEZ, highlighting the preferential conditions of conducting business in the SEZ. Also, during the negotiations, the guests were presented with a presentation on the development of the FEZ“SUGHD”. Presentation covered the activities of the subjects, export orientation, as well as indicators of the volume of output and services provided by the subjects of the FEZ.Then, the delegation were informed by the Head of Administration about the priority areas and prospective projects, which have a strategic importance for the development of not only the free zone, but also the entire region.
During the conversation, Mr. Servatyuk V. asked about customs procedures, conditions for import and export of products and raw materials within the free economic zone and the process of registration of subjects.
Furthermore, the meeting continued with a visit to a several of FEZ subjects. The delegation visited the subject of JSC “Ariana metal Plast”, LLC “Fartuna-Co”, LLC “Silcoat Boya”, where Mr. Ambassador was able personally to communicate with the management of the enterprise and obtain feedback directly from them about the benefits of doing business in Sughd FEZ.
On August 27, this year, Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan to the Republic of Tajikistan, Mr. Tazhibayev Askar, within the framework of his working visit to Sughd also, also has visited the Free Economic Zone “Sughd”.
At the beginning of the visit, a constructive meeting with the FEZ executives took place in the building of the Administration of the FEZ “Sughd”. The head of Administration I. Kamoliddinzoda greeted the guests and spoke about the multifaceted cooperation between Tajikistan and Kazakhstan. After that, the Deputy Head of the Administration – M. Mirzoyon briefed the guests on the activities of the FEZ “Sughd”, where some questions of common interest and opportunities for establishing mutually beneficial cooperation were discussed.
Later, the guests with the invitation of the Administration management have visited several subjects of Sughd FEZ, in particular, OJSC “Ariana Metal Plast”, JV TT “Fortuna-Ko” LLC, JV TT “Archa Mebel” LLC, JV TT “Tajprof” LLC and JV TT “Silkoat Boya” LLC, where they got familiarized with their activities and products. Mr. Ambassador Tazhibayev Askar highly appreciated the results of activities and the quality of goods and products of the FEZ “Sughd”.
At the end of the visit, Mr. Ambassador expressed a desire to continue negotiations to enhance the export of FEZ products to Kazakhstan and seek for opportunities to establish cooperation between business and investment circles of the two friendly countries.
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Journalists from the republican televisions and print publications and online sources made a press tour to free economic zones of Tajikistan. The Ministry of Economic Development and Trade of the Republic of Tajikistan organized the press tour. The goal of the tour was to demonstrate the results of the activities of Tajikistan’s leading FEZs and introducing the innovations and achievements that they have today.
On July 18, journalists arrived in the Sughd FEZ. The first enterprise they have visited was Ariana Metal Plastic engaged in production of children’s toys, which was launched solemnly in October 2018. Now the company produces children’s bicycles, strollers, walkers, cars, plastic dressers, which are gradually displacing Chinese imported counterparts from the local market. In the first half of this year, the production volume of the company reached 8 million TJS. According to the director of the company Dilorom Umarova, they do not intend to stop at what has accomplished in Ariana Metal Plast. In order to diversify the range of products, the company plans to produce various plastic household products.
Then the journalists were acquainted with the activities of the paint and varnish company Silkoat boya. The leading Tajik-Turkish enterprise produces about 120 types of products for facade and interior decoration of buildings. Products sold throughout the country, as well as exported to the countries of Central Asia. Now, the negotiations are underway to supply products to the Russian market.
Also, representatives of the Mass media visited the factory for the manufacture of PVC window profiles Ravzana Plastik, where the director of the company Ilhom Sangin told about the history of one of the first subjects which believed in the prospect of the FEZ. Now the company consistently supplies high quality certified products under the MANZIL trademark to the Tajik market.
The final point of the press tour were the enterprises of Archa and Archa Mebel, which advanced in the wood processing industry of Tajikistan by producing quality products at affordable prices. The journalists visited the exhibition complex, where a large assortment of products manufactured by enterprises are represented – wooden doors and windows, furniture for preschool, educational, administrative, medical institutions, furniture for the home, office and much more. The products of the enterprises were nominated for the best product of the year. A Chairman of the Board of Directors Mr. Narzullo Dadoboev shared with journalists the information about the company’s development strategy and plans.
On July 22, the press tour will continue its excursion in the Khatlon area, Dangara FEZ.
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In the last decade of June, a new subject of Sughd FEZ – the branch of Canadian company – Hantana Canada Inc. received a certificate that gives it the right to use tax and customs benefits presented to the subjects of Free Economic Zone “Sugd”.
The company intends to produce high-quality honey by filtering and processing it via modern technologies.
The production is going to be organized in a modern mini-factory, equipped with advanced equipment and inventory. After the process of purification of honey from impurities, the finished organic product will be packaged in glass jars with volumes from 80 ml to 700 ml and special 7 to 10 gram spoon containers. In order to diversify the range of products, the company plans to produce honey with various spices.
The declared volume of investments in the project will be more than 500 thousand US dollars, which will be carried out at the expense of own funds of a Canadian investor.
Within the framework of this project, finished products will be exported to the markets of the USA, Canada, Saudi Arabia, the United Arab Emirates and European Union countries, since these countries are the largest importers of honey. The product will be designed to meet the needs of the population, restaurants, cafes and health organizations.
Raw materials – natural honey, will be purchased from local large suppliers, with which there is already an agreement. Packaging and labels for packaging will be purchased from Chinese and Turkish manufacturers. In case of increase in export volumes, the company intends to produce its own glass packaging.
The company plans to begin production already this year and by 2020 to increase the volume to 55 tons per year. More than 20 workers will be involved in the mini-factory.
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The International Investment Forum “Kulob-2019” was held on June 14 in Kulob city of Khatlon region.
The event was attended by local and foreign entrepreneurs and investors, government officials, development partners, Tajik diasporas, specialists and experts.
As part of the forum, an exhibition of the achievements of the national economy of domestic producers was organized, where in one of these pavilions Sughd FEZ has presented the products of its enterprises to the guests.
Four panel sections continued the work of the forum, among which the topic “Free economic zones as a factor in accelerating the industrialization of the Republic of Tajikistan” was discussed among the participants of the event. The Head of the Administration of Sughd FEZ – Firdavs Olimzoda made a presentation on the activities of Sughd FEZ. Firdavs Olimzoda shared with information of ten years development experience, which can be applied to the new Kulob FEZ created at the beginning of this year.
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On June 7-8, a two-day international scientific-practical conference under the theme “Improving the competitiveness of the national economy of the Republic of Tajikistan in the context of globalization” took place in Khujand city. The event was dedicated to the 30th anniversary of State Independence and was considered relevant and timely due to the implementation of the fourth national development strategy of the Republic of Tajikistan – the accelerated industrialization of the country.
The conference was organized by the Institute of Economy and Trade of the Tajik State University of Commerce in Khujand city with the support of the Executive body of Sughd province, Sughd Free Economic Zone and the United Nations Development Program (UNDP).
The conference was attended by representatives of academic and business circles, teachers and students of republican and regional universities, foreign guests from Uzbekistan, Bulgaria and Russia. Representatives of the Administration and the subjects of Sughd FEZ took an active part in the event.
The first day of the conference was held in plenary session, where reports and presentations of the event participants were heard: the role of business associations in the development of entrepreneurship, co-working centers and their impact on the development of startups, the impact of banking products on business competitiveness, the place of universities in the development of entrepreneurship, the legal aspects of constitutional fundamentals in doing business in some SCO countries and others.
Head of the Department for International Relations and Attracting Investments of the Administration of Sughd FEZ Mirzoyon Mirzomanon made a report where he noted the importance of using the FEZ platform to accelerate the industrialization of the country and as a factor of increasing the competitiveness of industrial sectors in the context of globalization.
The second day of the Conference will be filled with sectional sessions on various topical issues within the framework of the conference’s target field.
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On February 7, this year there was held a press conference in the Administration of Sughd FEZ with the participation of representatives of local and regional mass media.
The head of the Administration Firdavs Olimzoda summarized the work for 2018 and defined the mainstream development and growth in 2019.
To date, 24 subjects (entities) in the Sughd FEZ are entitled to privileges and preferences. “Next year, based on our forecast we are planning to increase the number of our subjects up to 30” he noted.
In 2018, two large enterprises of FEZ were officially launched, where the President of the country Emomali Rahmon took part in their opening ceremony. The Tajik-Turkish enterprise “Archa-Mebel” produces a wide range of furniture. The owner invested 9 million TJS to its construction. The second enterprise is “Ariana Metal Plast” engaged in the production of metal-plastic products. The plant has already started the production of children’s cars, wheelchairs, bicycles, walkers etc. The product range will be expanded at the nearest future, and the company will produce 36 types of items, in particular, household goods, fans, and various plastic parts for cars and household appliances. The company established by domestic entrepreneurs, who have invested more than 14 million TJS for the building works.
At the eve of official opening of mentioned subjects several preparation and construction works were carried out in the territory of FEZ, such as repair and asphalting of a part of the roadway, lighting of the area, decorative gardening and decoration of the access site. Works are continued on the construction of an administrative building.
At the press conference, also annual statistical indicators were announced that marked a growth trend. According to F. Olimzoda, the volume of production in 2018 increased by 36 million TJS compared with 2017 and amounted to 116 million TJS. About 20% of production was exported to Kyrgyzstan, Uzbekistan, Turkmenistan, and Afghanistan in an amount of 17 million TJS.
In 2018, the subjects invested 19.7 million TJS. More than 500 people are employed in FEZ. Also, there were given figures that are deducted by subjects to the social and income tax budget and customs duties.
In 2018, in honor of the tenth anniversary of the creation of free economic zones in Tajikistan with the active participation of Sughd FEZ Administration the International Economic Forum “Sughd-2018” was held, where individuals and organizations made a special contribution to the development of the FEZ in Tajikistan were awarded.
It was also noted that the Administration of Sughd FEZ continues to cooperate actively with free zones of Kyrgyzstan, Kazakhstan, Uzbekistan, Belarus, and China. There are also agreements and memorandums of cooperation with international organizations leading to the implementation of joint projects.
Lastly, F. Olimzoda emphasized that the Administration of Sughd FEZ intends to fulfill the realization of goals set at the creation of FEZ.
After the completion of the report, the representatives of the media asked their questions of concern.
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