Kazakhstan put Lebanon and Guatemala — share of local clothing only 2%

that is why the speaker of the Senate of Kazakhstan Dariga Nazarbayeva calls on ministries and state agencies to support domestic manufacturing — which is actually on the brink of survival. After all, potential buyers abroad.

While the beginning of the year were no signs of such a catastrophic result. In the first half it produced 10.9 million sq m of fabrics (in January-June of 2018 – about 13.4 million). But then it began peak:

  • July to 1.4 million
  • August – 636 thousand (for the first time since December of 2014 the volume was less than 1 million)
  • September – 272 thousand
  • Oct – 119 thousand
  • Nov – 112 thousand

November was the worst month in more than 6 years – less issue the last time was in August 2013. But

then it was a one-time drop, now – the continuation of negative trends

Does not add optimism to the seemingly sharp increase in production in December as the first month of 2020, the growth clearly slowed down.

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Another area of light industry, production in which reduced is the production of children’s clothing. In 2019, it produced goods for a total amount of 26 million tenge a year earlier, the index was at the level of 169.7 million and Decreased the production of underwear for 11 months it was produced 766,5 thousand units, which is 39% less than in 2018

Where it grows

In November 2019 in Kazakhstan produced more than 25,6 thousand sweaters, jumpers, pullovers and other similar products. This is a new record (the previous one was 21,3 thousand in November of 2018). In December, the figure was slightly lower – 24.5 thousand, which the General background also looks good. Just 2019, domestic manufacturers have produced 177,4 thousand units of such products, having increased capacity by 4.2%.

In may 2019 has been made 50,7 thousand units of clothing accessories. And it is the unique indicator for the entire 2015 production was less. While the monthly average in 2016-18 was just over 6.3 thousand units.

Thanks may progress the average performance in 2019 increased to 13 thousand units per month

During the year we issued 158 thousand units of clothing accessories.

Increasing the production of other types of products:

  • Manufacturing of bed linen for the year increased by 34.1% (7.5 million units)
  • Men’s outerwear (excluding knitted) – 14.3% (up to 230,1 thousand), women – 31.5% (до26 thousand)
  • Hats by 21% (to 812,8 million tenge)
  • Socks by 31% (to 15.8 million pairs)
  • Shoes – 10% (to 1.3 million pairs)

Out of the market

It would seem that the production of a significant number of positions is growing, however, the share of domestic producers in the market is extremely small:

  • In January-November 2019 the share of Kazakh companies on the market for outerwear amounted to only 1.9%
  • Underwear – 1,1%,
  • Children’s clothing is 0.4%,
  • Hosiery products – 9%
  • Jackets, sweaters and 2.1%
  • Shoes – 3,4%

Except that the market of sports apparel, domestic manufacturers feel relatively free: there’s market share is 19.8%.

Moreover, foreign textiles in Kazakhstan is becoming more. By the end of 2019 in the Republic was brought 61,9 thousand tons of clothes. For comparison: in 2018 the amount to 37.2 thousand Total value of imported goods amounted to 670,6 million $ 28.3% more than the year before. Clothing is 8, the volumes of imported goods, and sell it to Kazakhstan 100 countries, including such exotic for our economy, as Lebanon, Guatemala, Guinea-Bissau and Saint-barthélemy.

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With hope on the administrative push

In March of 2019, was presented the program of the massive support of the construction industry, light and furniture. It is designed for 3 years. It is expected that with the support measures (procurement, sales, subsidies, etc.) an additional contribution to the increase of production in light industry will average not less than 34 billion tenge per year.

The program includes in itself, of 54, divided into 9 categories. Among them: providing raw materials for the domestic enterprises, struggle against illegal turnover of goods, economic incentives, technical regulation, etc.

Stands alone section on “measures in the field of public procurement and increasing the share of local content”.

According to him

the share of local content in procurement should be increased by 20% from last year

This applies to all state agencies, state institutions, national holdings and other similar structures.

That is, the army, hospitals, railway monopoly and other authorities and agencies are required each year to increase purchases of clothing, linen and other products from local producers at least 20%.

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