On October 24, a discussion was held in the format of a videoconference on the progress of the implementation of tasks to strengthen trade-economic, investment, financial-technical, transport-logistics and cultural-humanitarian cooperation with China and the Republic of Korea.
Heads of ministries, departments and industry associations took part in the discussion, which was led by Deputy Ministers of Investments and Foreign Trade A. Voitov and L. Kudratov.
The meeting participants analyzed the projects planned for implementation together with Chinese and Korean partners. Also, a detailed analysis of a number of projects, which are currently lagging behind the implementation schedule, was carried out. Based on the results, algorithms were developed for solving existing issues, indicating specific terms for eliminating problems and imposing personal responsibility on the heads of relevant ministries and departments.
It is decided at the meeting that a special working group will be created, the task of which is to accelerate the implementation of projects and initiatives with Chinese and Korean partners.
“This approach is a prerequisite for achieving the targets set by the President for cooperation with China and South Korea – by 2025, the annual volume of investments from the PRC is planned to reach $5 billion, and from the Republic of Korea – up to $1 billion. At the same time, the volume of annual exports to China by 2025 should amount to at least $3 billion, and to the Republic of Korea – at least $800 million,” the MIFT noted
The volume of investment amounted to 220.7 trillion soums, or US$ 23 billion in 2019, exceeding the target by 2 times, while the volume of fixed investment amounted to 189.9 trillion soums, or US$ 19.8 billion, a 1.3 times year-to-year increase, the Ministry of Investment and Foreign Trade said.
A significant increase in investment is due to an increase in the inflow of foreign investment and loans in the amount of 13.3 billion dollars, of which:
– foreign direct investment – US$ 9.3 billion (including US$ 6.6 billion of fixed investment).
– funds of international financial institutions – US$ 4 billion (including US$ 3.2 billion in fixed assets).
At the same time, the share of foreign direct investment in the total increased to 37% (for comparison, 10.5% – in 2018).
According to the report by the United Nations Conference on Trade and Development (UNCTAD), the global foreign direct investment volume has been declining for the third year in a row, reaching the lowest level that was observed immediately after the global financial crisis. In 2018, this figure fell by 19% (in 2017, 16%).
The largest investors were China, Russia and Germany, while the total number of investing countries into Uzbekistan surpassed 50, due to which the share of the largest investing countries fell to 34% of the total volume of direct foreign investments and loans.
In line with the Investment Program, approved by a presidential decree, in 2020, the amount of fixed investments is projected to reach 233.2 trillion soums, or US$ 24 billion, of which foreign direct investment – US$ 7.1 billion, foreign investment and loans under the state’s guarantee – US$ 2.7 billion.
By Sher Karimov