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Development of trade is a factor of growth of market economy
Comments
Development of trade is a factor of growth of market economy
Published 28.12.2017
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The trade is important branch of national economy providing large tax income to the budget what supports financial stability of the state. This sector has leading positions in small business both by the number of enterprises and by number of personnel involved in this sphere. The share of trade in the structure of internal gross production made more than 10 percent last year (around 8 percent in 2015). By the outcomes of 11 months of 2017, comparing with the same period of 2017, the growth rate of the GDP was 106.5 percent, particularly 10.9 percent in transport and communication sector, 9.6 percent in trade, 8.9 percent in service sphere, 5.8 percent in industrial sector, 5.1 percent in agriculture and 1.4 percent in construction. According to the State Statistics Committee, the growth rate of retail sale was 16.9 percent in 2016 while for 11 months of this year, this index is equal to 18 percent. Thus, total trade turnover by the Ministry of Trade and Foreign Economic Affairs made 4 billion 466.5 million manats from January to November including 1 billion 663.6 billion manats in retail and 2 billion 802.9 million manats in wholesale trade. Comparing with the same period off the last year, the growth rate is equal to 19.9 and 10.4 percent accordingly. Enterprises of the Union of Industrialists and Entrepreneurs of Turkmenistan (UIET) made industrial production to the amount of 765.4 billion manats, agricultural and food production to the amount of 1 billion 312 million manats. Comparing with the same period of the last year, the growth rate was 36.5 and 31.9 percent accordingly. Trade turnover by the UIET is equal to 660.3 million manats what 8.5 percent more than in 2016. The works in service sphere are made to the amount of 918.8 million manats what exceeds the same period of the last year on 15 percent. Owing to successful realization of the state programmes on the development of industrial sector, agriculture and production of import substitutive and export goods, comprehensive support of private sector of the economy, small and medium business, the volumes and variety of goods made in the country were considerably increased. In its turn, it led to serious changes of demand environment on internal consumer market where the positions of domestic producers have considerably improved. For example, the growth rate of production in the last year was 103.3 percent comparing with 2015 while the same index is 106.4 percent for 11 months of this year. Positive dynamics is observed in production of met, flour, bakery, pasta, confectionary, vegetables as well as pharmacological items, cement, cotton fibre and other. Another important tendency is that the volumes of export of local goods increased to 6.1 percent. At the same time, the import of goods was reduced on 21 percent by the establishment and development of the facilities producing import substitutive goods including the materials, food and different consumer items. By present time, the members of the UIET have drawn 1.89 billion manats of the investments in agricultural and food production spheres and established more than thousands of enterprises where 36 199 people work. These enterprises oriented to the substitution of import and improvement of export potential of the country make production to the amount of 2.29 billion manats per year. These are the confectionary, fruits and vegetables, ice cream, juices, soft drinks as well as wool and leather items. In industrial sphere, the members of the UIET have drawn 3.08 billion manats of the investments, opened 593 facilities that accommodate 11 200 working occupancies. The enterprises produce construction materials, textile, washing liquids, metal production, furniture, carpet items, paper, earthenware, glass dishes, aluminium, polyethylene and plastic goods, batteries, household equipment. More than 2 thousand enterprises, the member of the UIET, are involved in constructon sphere where they provide 53 000 people with work. 1913 facilities have been built by the entrepreneurs in 2012 – 2017. Further increment of the role of private sector in national economy is defined as one of the key directions of the Programme of social and economic development of Turkmenistan in 2018 – 2024. This Programme stipulates to entrust the members of the UIET with the construction, reconstruction and accumulation of production powers of 56 industrial, agricultural, trade and service enterprises. Today, the number and qualification of entrepreneurs is rapidly growing in Turkmenistan, the competiveness is growing in this sphere as well what allows expanding the variety of local goods that successfully replace foreign analogues in internal market. The President noted that at the same time, practical activity in industrial and agricultural spheres have to be oriented to not just import substitution but to growing development of production based on new technologies as well. In other words, not only to the solution of present issues but also to the provision of food safety of the country in the future, the Head of the State said, having requested relative leaders to analyse existing resources and to elaborate perspective plans of entrepreneurship activity. Together with steadfast work for the provision of goods abundance and filling of internal market with necessary production, increment of consumer goods production and production powers of light and food industry, large investments are drawn in the development of service sphere and trade. Numerous modern shopping centres, markets and catering facilities built in Ashgabat and the regions provide high quality service to the population and foreign guests of the country. At the same time, new forms of retail and wholesale trade like hypermarkets, supermarkets, big shopping and entertainment and service centres are developed what indicates the investment activity of business as well as the growth of the income and improvement of life level of the population. Dictating high quality standards to the suppliers and manufacturers, developed and efficient trade practically serves as the participant of production quality control system that goes to consumers and thus, making its contribution to the efforts of the state for health protection of the population. In this context, it is worth mentioning that in 2015, National Barcode Organization became the members of GSI, Global Standard International Organization, which is important instrument of market regulation of quality and competiveness of goods and services. Also, Turkmenistan received its barcode. Now, all production made in our country is market with the barcode beginning with 483 number. Large work for implementation of barcode system is carried out nowadays. Around ten thousand items of trade production made by local manufacturers have already received relative coding. Joining of Turkmenistan to GSI international system also reflects the fact of the recognition of our country as reliable and responsible member of international trade and economic partnership. Taking into consideration growing volumes of production and demands on high quality Turkmen goods, new opportunities for the development of trade and economic relations, diversification of export supplies and expansion of its variety are opened with the implementation of barcode system. Such form of trade as commodity stock exchange trade started developing with the transfer to market economy in Turkmenistan. In 2016, the State Commodity and Raw Materials Exchange of Turkmenistan held 245 trades where more than 15.3 thousand contracts to the total amount of 21.8 billion manats have been registered. The cost of export and import transactions was 13.1 billion manats and the cost of construction contracts to the amount of 4.7 billion manats. 227 trade sessions where 17 633 contracts to the amount of more than 21 billion 170.5 million manats were registered has been held for 11 months of this year. Important role in the development of foreign economic relations, in formation of market relations and in stimulation of business initiative is given to Trade and Industrial Chamber. There are support in efficient organization of the partnership with entrepreneurship structures and the state administration, in integration of private sector of Turkmenistan in international business community, export promotion of the production of local manufacturers, attraction of internal and foreign investments and modern technologies among the objectives of this structure. Recently, positive dynamics in all above-mentioned directions has been observed what is stipulated by positive tendencies in national economy. Having signed around 70 bilateral agreements on cooperation with foreign trade and industrial chambers and associations, the TIC of the country actively promotes the interests Turkmen producers and industrialists in international market, plays big role in establishment and intensification of the contacts with foreign partners serving as the organizer of different forums, exhibitions, meetings and conferences. Catering service, hotel business, business and domestic services sphere received big development in Turkmenistan. Modern technologies, various types of food services like restaurants, cafes, canteens, fast food services, fitness bars, tea bars representing national and various countries cuisines are actively implemented in this sphere. With growing of the competiveness, the level of service also grows, various contest and festivals are held.

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