She noted that even with the resolution of funding issues, the establishment of laboratories, and improvements at the border, high production costs remain a significant obstacle to competing with countries like Uzbekistan and China.
“Previously, the development of the industry was supported by several factors, such as a favorable exchange rate of the ruble and more lenient tax regimes. However, under current conditions, businesses need to adapt and focus on systematic cost reduction,” emphasized Tursunakunova.
According to her, the production cost consists of the cost of raw materials, payroll, and rental expenses. Due to events in Ukraine and changes in the market, the volume of orders has decreased, and wages in the industry now mainly depend on the volume of work performed rather than a fixed rate.
Tursunakunova also highlighted the importance of production processes, emphasizing the need to transition from individual tailoring to conveyor production. This approach will allow for increased production volumes, ensure stable quality, and significantly reduce costs through the specialization of operations.
Additionally, she suggested activating the development of technoparks with special tax and customs regimes, similar to free economic zones. This would allow for the import of raw materials and fittings without paying VAT, provided that they are further processed and exported as finished products, which would significantly reduce production costs.
“By reducing production costs, Kyrgyzstan will be able to enhance its competitiveness in regional and international markets,” she concluded.
