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ATTRACTING FOREIGN INVESTMENTS TO THE COUNTRY’S
INDUSTRY PRACTICE ANALYSIS
Nazarova Asal Nuriddin qizi
Toshkent Davlat
Iqtisodiyot Universiteti “Yashil iqtisodiyot” kafedrasi assistenti
Tel: (93) 392-41-31
https://doi.org/10.5281/zenodo.13907145
Abstract:
This article presents an analysis of the role and importance of
foreign direct investment in the manufacturing industry of our country, as well
as its practice in recent years.
Keywords
: investment, FDI (foreign direct investment), strategic location,
investor, investment project, investment attractiveness, infrastructure.
Introduction.
Priority tasks for the development of the economy in the
Republic of Uzbekistan are closely related to the level of efficiency of the
implemented investment policy. Uzbekistan has created a favorable investment
environment for investors, a system of benefits and preferences. The fact that
the foreign investment attracted to our economy is increasing year by year is a
clear proof of this.
In order to implement large-scale investment projects, build high-tech
production facilities, large-scale work is being carried out to rapidly develop
the economy and attract foreign investments. Foreign investments increase the
level of competitiveness of the national economy and serve as a positive factor
in the country finding its place in the international division of labor, its
integration into the world economic system, and the increase in foreign trade
turnover and the further development of export potential. In addition, the
inflow of foreign direct investments and the active operation of enterprises
with their participation, know-how, new technologies, the creation of new jobs,
the increase in demand for local industry and raw materials, as well as the
improvement of the standard of living of workers working in these enterprises
can lead to a series of positive changes.
Attracting direct investment in industry is one of the most important
strategic issues of every country, especially developing countries. It is no
coincidence that in recent years, the head of state personally oversees this issue
in Uzbekistan, and separate groups are working on this issue in each region.
Literature review.
Factors such as political and macroeconomic stability in
the country, a strong guarantee of protection of the rights of foreign investors
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and a wide system of benefits create favorable conditions for entrepreneurs. In
addition, the fact that the price of raw materials, materials, energy resources and
highly skilled labor, which are important for production, are cheap compared to
neighboring countries, attracts foreign investments to our country. In addition, it
is no secret that an active policy aimed at accelerating the attraction of foreign
investments is being carried out in the Republic of Uzbekistan. Ensuring the
conversion of the national currency according to current operations and the
strategy of implementing reforms will form a favorable basis for further
liberalization of the economy in Uzbekistan and the implementation of projects
with the participation of foreign capital.
The following 3 conditions must be met for foreign investment in industrial
enterprises operating in the Republic of Uzbekistan. These conditions include:
1. The amount of the charter capital must not be less than 400,000,000
soums;
2. The founders must be a foreign legal entity or entities;
3. The share of a foreign legal entity or individual must be at least 15
percent of the total amount of the charter fund.
The requirement for the mandatory participation of a foreign legal entity in
an enterprise with foreign investments has been canceled. The amount of state
duty for state registration of enterprises with foreign investments has been
reduced by three times.
Required documents and information for registration:
1. Naming the enterprise;
2. Distribution of shares of the founders (in percentages);
3. Information about the size of the charter fund;
4. Postal address of the company;
5. An extract from the commercial registration of a foreign company in the
place where the legal entity is registered or from another document confirming
the activity of this legal entity (its content should include the following: the full
name of the legal entity, its location, this legal entity). This statement is valid for
1 year from the date of issue.
6. Power of attorney for the representative (sample taken)
7. Copy of the director's passport / Djini. Company leaders
According to the Statistics Agency, as of February 1, 2024, the number of
enterprises and organizations with foreign investments operating in our
Republic was 14,199. 4,675 of them are joint ventures and 9,524 are foreign
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enterprises. The largest number of enterprises with the participation of foreign
capital corresponds to the Russian state, that is, 3049 of them.
The above-mentioned 14,199 enterprises with participation of foreign
investments are organized as follows:
in the city of Tashkent - 9,240; in Tashkent region - 1,597; in Samarkand
region - 565; in Fergana region - 502; in Surkhandarya region - 348; in Bukhara
region - 341; in Andijan region - 309; in Namangan region - 231; in Navoi region
- 218; in Syrdarya region - 204; in Jizzakh region - 178; Karakalpakstan Resp. -
171; in Kashkadarya region - 163; 132 in Khorezm region. These data show that
regional stratification still exists in our country. A significant part of the
investments is in Tashkent city (9240). This is almost 70 times more than
Khorezm region, which records the lowest indicator.
In the dynamic landscape of international investment, Uzbekistan is
emerging as a favored destination, attracting significant capital inflows from
various countries. According to recent data released by the Statistics Agency,
investments in the fixed capital of Uzbekistan surged to UZS 107.1 trillion
($8.4bn) in the first quarter of 2024, marking an uptick in economic activity
within the Central Asian nation.
Uzbekistan's foreign investments drive surge to UZS 107.1 trillion in 1Q24
What's particularly striking is the substantial portion of these investments
originating from foreign sources, comprising a substantial 68.9% of the total
volume injected into Uzbekistan's fixed assets during the period under review.
This robust influx of foreign funds underscores the growing confidence of global
investors in Uzbekistan's economic potential and favorable investment climate.
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Breaking down the numbers, a clear picture emerges of the countries that
are spearheading this surge in investment. Topping the list is China, which
accounted for a 23% share of the total investments. The strategic partnership
between Uzbekistan and China, bolstered by initiatives such as the Belt and
Road Initiative, continues to drive substantial Chinese investments into various
sectors of Uzbekistan's economy.
Following closely behind is Russia, contributing 13.8% of the total
investment volume. The historical ties between the two nations, coupled with
Russia's keen interest in expanding its economic footprint in Central Asia, have
cemented its position as one of Uzbekistan's key investment partners.
The substantial influx of foreign investments underscores Uzbekistan's
growing appeal as an attractive destination for global capital, driven by its
strategic location, abundant natural resources, and ambitious economic
reforms.
Conclusion.
Foreign investment is the main factor of economic growth and
development for countries. However, attracting foreign investment in
production in the country's economy has its own advantages and disadvantages,
which requires a clear strategy and a supportive environment that can provide
investors with the necessary benefits and protections to invest in our country.
Based on the above, it can be said that the following five strategies that help
to attract more foreign investments to the economy of our country would be
appropriate for the more effective implementation of attracting investments to
production in the country's economy:
•
Creating a stable and predictable business environment in the country
•
Offer more incentives and tax breaks to investors
•
Development of skilled workforce
•
Investing in infrastructure
Establishing strong international relations
References:
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2. Speech by the President of the Republic of Uzbekistan Sh. Mirziyoyev in his
message to the Parliament of the Republic of Uzbekistan on December 22, 2017
//
http://uza.uz/ru/politics/poslanie-prezidenta-respubliki-uzbekistan-
shavkata-mirziyeev23-12-2017
3. World population statistics // https ://countrymeters. info/en
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