Senators promise to help with long-term government contracts in exchange for commitments

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A special delegation from the Senate of the Parliament held its first working visit to the light industry enterprises of Kazakhstan. And made a number of conclusions. First the government orders needed to support the domestic market. Second, you need to combine the efforts of suppliers of raw materials and manufacturers of products. Third, it is important to improve the quality of products and studying consumer trends.

Incorrect trend: no public procurement, we will not survive!

The delegation of senators of the Parliament in the last week visited the cities of Aktau, Atyrau and Shymkent. February 24 MPs called for the Almaty light industry. In Almaty city and region is concentrated the lion’s share of all companies in this industry.

At the meeting with businessmen of Almaty Serik Ryskeldinovich Dzhaksybekov, Senate Deputy of the Parliament, Chairman of Committee for economic policy, innovative development and entrepreneurship, confessed that he did not expect that in Kazakhstan such a huge number of light industry enterprises.

“The share of light industry in GDP is only 0.5%. We are puzzled by this. And we decided to see what was going on in the industry. We held a series of meetings in the Senate, visited the facilities of Nur Sultan, Aktau, Atyrau, Shymkent.

We are deeply concerned about? We think

is incorrect trend — the orientation of the state order

International experience shows that government orders are trying to place in domestic enterprises. And rightly so. This should be done. But the trend of “We need a government order, otherwise we will not survive” we are concerned”.

The Senator recalled that when an enterprise is created at first study the market. Analyzed all the risks and drawn up the strategy and budget. Not only the strategy of creating business and sales strategy: who will buy your products, whether it is society, etc.

“We found that everywhere there is a Director of companies — a strong, serious and know their business. But no art Directors, no sales. Technologist may not be a sales specialist. We were told that due to the fact that no order, and no way to contain these specialists.

Last week we with the world Bank agreed on creation of strategy of development of the industry. Analysis will be done — as it was, the present and the future in perspective.

I think it will be easier for the state to regulate the processes in light industry. We will try to light industry were able to obtain a state order for 5, 6 or 10 years.

But

enterprises should assume a reciprocal obligation. To take concrete steps to expand production and provide our market with good products

As for pricing. Not always the product produced here can compete with the prices of goods on the market. The markets for smuggled goods, and he, accordingly, cheaper.”

Dzhaksybekov said that for giving the state of the fight against smuggling has already made several requests to the government.

“We will continue to consult with you and the government what measures can even apply to reduce the phenomenon of smuggling. So you can set trends in open combat with your foreign competitors. We are concerned about the problem of raw materials. We are told that all raw materials are imported from abroad.”

Kazakh brands. They need to know

56 companies of light industry. The main part is concentrated in Almaty. They are all United in the consortium of the enterprises of light industry. In fact, through this Association businesses get government contracts. In 2016, the company signed long-term contracts of 5 years. But every year, state agencies try to separate them.

In the southern capital working group of the Senate visited several enterprises. Among them are: LLP “Kazspo-N” brand “Zibroo”, LLP “exclusive hats Salon “Elegant” and LLP “RA Universal-Is”.

Kazakhstan brand Zibroo was established in 1996. It is a private enterprise which produces garments. The factory has a shop where you can buy products — designer jackets, sports and ski suits.

The brand is well known as a manufacturer of sportswear for Olympians, military and spectherma. It employs only 100 people.

In 2019, was released products totaling 610 million tenge. Of them 139.3 million was paid for taxes. Average wage of employees over the last month — 180 thousand tenge.

LLP “exclusive hats Salon Elegant was created in 2007, but actually exists since the Soviet times. The owner of this private company — Bakhyt Alimbekova — in this industry for a long time. And in fact, it is the only in Kazakhstan enterprise on production of headwear. Today it employs 35 people, but the potential capacity of 70 or more employees.

Last year it was released 65 thousand hats. The average salary for the last month is 175 thousand tenge.

LLP “Universal RA-Reklama” was established in 1995. It produces a variety of fabrics, including textile fabrics, windproof fabrics, weaving accessories and clothing. A staff of about 500 people. Average salary for the last month — 150 thousand tenge.

Want to work for the soul, and the state order – airbag

Almost all of the entrepreneurs talked about the impossibility to open their shops or rent retail space. So 40 sq m in shopping center “Mega” landlords require 2 million tenge per month.

According to the President Bakhyt the Elegant Alimbekova, the state orders from the defense – is a kind of safety cushion, without which it is very difficult to work on promotion. It allows you to provide work for employees.

“But in order for us to promote in Kazakhstan, the desired discounts on the shopping area. Our people love the big shopping malls, and we want we have identified there area for real rates. It’s a shame, we live here, but can’t trade”.

The hat on the products of the company have regular customers abroad. Israel, Japan, Germany. But it is only 10%. Ideally, the company dream to export 50% of its production.

“I want to work for the people, for the soul.”

Recently signed a contract with the marketplace “Ali Baba” and hope to promote the product through them.

Our raw material goes for pennies abroad

The President of the Association of light industry enterprises of Kazakhstan Lubov Hudova said that the textile light industry meets the needs of the market by only 10%. All the rest import. Footwear industry provides only 1.5% of the market.

“In Kazakhstan, there is wool, there are skins, but no processing plants

Processed only 14% wool, tannery processed only 20% of the raw materials. Everything else is almost a penny goes abroad.

And we say that we need to create a value chain within the country, from skinning to the finished product. That is, until the finished leather, which is intended for sewing shoes, fancy shoes and clothes. We could create thousands of jobs. But what actually happened? The government subsidizes the sheep, the farmer raises cattle… but the wool for penny goes to other countries.”

The fight against trafficking is a fight against windmills

According to Judoboy, in 2015, when Dariga Nazarbayeva was headed by the Majilis of the Parliament, during the parliamentary hearings have been worked out highly recommended. All this was said in great detail.

“But Dariga Nursultanovna went away, and immediately forgot about these Protocol decisions. And today, 5 years later, the problems have not disappeared. They’re not new. Until we resolve the question of smuggling, it will be a fight against windmills.

On the one hand, we are businesses. And the country comes tons of goods from abroad. It is not certified and not tested for safety. In the domestic market there is no body which would monitor the compliance of the products with all norms”.

She believes that if Kazakhstan will be created the value added chain of wool processing, the state will receive more revenue than from the sale of oil.

“Because wool is a reproducible product. It is possible to produce even simple insoles for shoes, because they are in demand. The entrepreneur can make money and create more jobs. This is advantageous to the state! It is possible to make the Yurt. To our shame, felt for them was imported from Kyrgyzstan. And such moments are many. In our country is no production of worsted fabrics to the same school and military uniforms. Such we import 100%. There should be targeted state support”.

To combine efforts

Sharapidenovich Manap Kubenov, the Deputy of Parliament of the Senate, member of the Committee for economic policy, innovative development and entrepreneurship, said that the development of light industry — one of the important problems of the economy.

“Once the share of light industry in GDP was 25%. Today it is not. We have raw materials — leather, cotton, wool, and establish a trade does not work.

And because our main goal is to combine the efforts of suppliers of raw materials and manufacturers of products. We want to see in what direction to move in the development of light industry”.

According to the Senator on defense order is not more than 7% of total production. Therefore, we must focus on the common needs of the population. People need to be dressed and shod. And there’s a good raw material base.

“We are convinced that there is a good manufacturing plant. Surprisingly, much of what we produce is exported. And it is mainly raw materials. It is necessary to go from raw supplies. Need to make sure that we go abroad not raw materials, and the finished product with Kazakhstan’s brand”.

Measures of state support

The MP said that studying the experience of their neighbors.

“But we must understand that in Kyrgyzstan, a different economy. We have products of higher quality, but it loses in the price. In Kyrgyzstan and Uzbekistan other tax base. We are going to study all this and resolve gradually. Somewhere at the government level, somewhere in law. But from the producers themselves, we require quality products”.

Kubenov noted that the Shymkent factory Azala for the production of cotton fabrics is modern and powerful. It can release popular in Kazakhstan products of good quality.

“And today the factory Zibroo in Almaty, we asked where they get raw materials. It turned out, Uzbekistan and Turkey. In addition, there is a very weak marketing service.

Our population knows practically no Kazakh brands. Because the producers have problems with retail space. They are very expensive to create their flagship stores.

While in our country there are huge shopping malls, but they have a very expensive rent

But you can understand the landlord — they took loans. Perhaps in this case, you need to connect to the government and to support them”.

Why for 30 years did not become better

“The transition from one socio-economic formation to another involves some losses — as in the economy, and spiritual development. This is a natural process. In General, the economy of Kazakhstan is developing in the right direction”, — said the Deputy.

On the question of why we give in the Belarusian light industry, he replied:

“In Belarus, state planning and state stores. Yes, planning is a good thing. At the same time Belarus have won, but lose. Because in this world everything is dictated by the market. After some time, the Belarusian economy may begin to falter. Here the manufacturer can develop independently of the state. He’s already found your way.”

“We want to understand why Zibroo, for example, may and others may not. The company produces excellent products. Products in the Atyrau and Aktau are also different quality. This is a positive example.”

Ordering from the defense

“In recent years, most state structures — the Ministry of defense, power structures, KTZ — oriented domestic producers.

We (the Parliament) recommend to the Ministry of defence to order from local producers. Let them choose fabrics, styles claim. If it can do Chinese, why our will not be able to? And, in principle,

the contractors and local manufacturers working together. Defense industry, law enforcement agencies in order to give their standards

The standards our domestic producers work successfully. The question is that the standards will change. The manufacturer need to focus and to work in concert with customers.”

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