Entrepreneurship - the driving force behind the market economy of Turkmenistan
Entrepreneurship - the driving force behind the market economy of Turkmenistan
Published 29.09.2022

The development of the non-state sector of the national economy, increasing its role through the widespread introduction of modern market mechanisms, support for entrepreneurial initiatives are among the priorities of the progressive socially oriented policy pursued by President Serdar Berdimuhamedov. The measures implemented in this direction open up great prospects for Turkmen businessmen to achieve high results in various fields.

The announced indicators testify to the growing potential of the sphere of small and medium business. According to the Union of Industrialists and Entrepreneurs (UIET), the growth rate of agricultural and food production for seven months amounted to 167.9 percent, industrial - 109.2 percent. These indicators for eight months of the year amounted to 168.6 and 114.8 percent, respectively.

The volume of services rendered to the population increased by an order of magnitude. It should be reminded that over 27,000 representatives of the domestic business community are currently members of the UIET. The private sector employs more than half of the employed population of Turkmenistan.

Today in our country, which builds its economy on the principles of market relations, favorable legal, economic, financial and social conditions have been created for the effective and dynamic development of this segment of the national economic complex. This is confirmed by the improvement of the legal basis of entrepreneurship, the tax system, the simplification of export-import operations, the procedure for transferring land plots, preferential lending and facilitating the procedure for processing credit, customs and trade transactions for entrepreneurs.

These measures are carried out in line with the consistently implemented State Program to support small and medium-sized businesses for the period 2018-2024, aimed at ensuring high rates of economic growth and social progress by enhancing the activities of private producers in Turkmenistan.

As part of the diversification of the national economy, state programs are being effectively implemented to increase the production of import-substituting products, increase the volume of exports of domestic goods, and create an electronics industry. Members of the UIET make a worthy contribution to the implementation of these programs.

In this regard, it is worth mentioning the annual Exhibition of Achievements of the Union of Industrialists and Entrepreneurs of Turkmenistan, traditionally timed to coincide with the day of the formation of this organization.

Getting acquainted with the exposition of the review, the range of products and industrial goods produced by representatives of domestic business circles, the President of the country emphasized that practical measures for the development of the private sector in Turkmenistan would be consistently continued.

These measures are necessary, first of all, in the context of the successful solution of the tasks outlined in the Program “Revival of a New Era of a Powerful State: National Program for the Socio-Economic Development of Turkmenistan in 2022-2052,” President Serdar Berdimuhamedov stated.

In this context, it is indicative that in June President Serdar Berdimuhamedov signed a Resolution, according to which entrepreneurs of Turkmenistan will receive state support. 150 million US dollars have been allocated for this.

During the Exhibition of Achievements of the UIET, private commodity producers of our country signed 63 contracts with foreign partners for a total of 145 million 398 thousand 770 US dollars. Of these, 16 are export contracts for 3 million 247 thousand 441 US dollars and 47 are import contracts for 142 million 151 thousand 329 US dollars.

Along with this, it should be noted that the members of the Union of Industrialists and Entrepreneurs signed 51 agreements on mutual internal trade for a total of 36 million 174 thousand 933 manats. They mainly concern trade in food products and means used in production.

The importance of developing international contacts of the UIET is also evidenced by the meetings held in the first half of the year with foreign colleagues on various online and offline platforms. In this regard, we recall that during the official visit of President Serdar Berdimuhamedov to Moscow in June, representatives of Turkmen entrepreneurship also held a meeting with Russian partners. As a result, a Cooperation Agreement was signed between the trading network of supermarkets "Halk Market" (Turkmenistan) and Agroholding "Rusagro" (Russia), aimed at intensifying bilateral trade and economic contacts, including in the food sector, through business circles.

In July, during the Turkmen-Uzbek interregional forum in Bukhara (Uzbekistan), a number of documents were signed on further enhancing cooperation between entrepreneurs of the two countries, which include export-import trade agreements.

One of the most successfully mastered industries by Turkmen businessmen is the sphere of construction and production of building materials. Members of the UIET are building industrial and social facilities - residential buildings and factories, schools and kindergartens, medical centers and sports facilities, roads and civil aviation infrastructure facilities, etc.

Among the largest state orders being implemented today by private construction companies are the construction of the Ashgabat-Turkmenabat highway, the new administrative center of the Akhal velayat, the Ashgabat City facilities and the 17th phase of the capital’s development, the construction of a new recreation park “Tashkent” along Magtymguly Avenue, a park complex ща Magtymguly Fragi. These days, members of the UIET are rapidly building the second stage of the Lebap cement plant, located on the territory of the Koytendag etrap, and many other industrial enterprises.

During the first half of the year, a number of socially significant facilities were put into operation. Thus, on March 24, the head of state took part in a solemn event dedicated to the opening of the next stage of the Myalikguly Berdimuhamedov cottage estate in the north of the capital, intended for employees of the Ministry of Internal Affairs. In April, with the participation of President Serdar Berdimuhamedov, a multidisciplinary hospital for 400 beds was solemnly commissioned in the city of Turkmenbashi, and in May, a multidisciplinary hospital for 450 beds and an oncology clinic for 150 beds in the Dashoguz velayat.

The complex of cottages “Rowaç” was solemnly opened with the participation of the head of state on August 1, in the National Tourist Zone “Avaza”, located on the Caspian coast of Turkmenistan. As part of this event, the head of state also visited an exhibition of dishes of national and foreign cuisine, which was organized by UIET member enterprises specializing in public catering, as well as with samples of private sector products.

Entrepreneurs contribute to strengthening the food independence of our state, and also strive to achieve their goal - to turn Turkmenistan into a country with a powerful export-oriented economy.

Agricultural producers are consistently increasing the production of melons, vegetables and fruits, including exotic species.

The high quality and environmental safety of food products of domestic enterprises are evidenced by the international certificates ISO and HACCP received by them.

It should also be noted that the members of the UIET have developed proposals for the implementation of investment projects for the creation of agricultural, food and industrial enterprises. Including in such areas as the cultivation of vegetables, grapes and fruits using water-saving technologies, the construction of livestock and poultry complexes, modern greenhouses and refrigerated warehouses for storing food products.

Within the framework of the “open door” policy pursued by our neutral state, domestic entrepreneurs are provided with great opportunities for the further development of mutually beneficial cooperation with foreign businessmen. The fact that Turkmenistan has the status of an active observer in the World Trade Organization opens up broad prospects for the development of production structures in the country, increasing export opportunities, attracting foreign investment and more intensive integration into the system of international economic relations.

Year by year, Turkmen entrepreneurs increase the export potential of their products, the range of which is constantly expanding. In addition to agricultural products, the export-oriented segment includes textile products and various food products; industrial products are dominated by isogam, liquid bituminous mastic, polystyrene foam, polypropylene bags, liquid industrial mixture, batteries, etc.

As experience shows, the modernization of the private sector of the economy in the country, attracting investments into it brings positive results. In this context, the example of manufacturers of domestic household appliances - gas and electric stoves, ovens, microwave ovens, smart TVs, is in no way inferior to foreign counterparts and is in great consumer demand. At the same time, the members of the UIET have successfully mastered the production of modern industrial and electronic products, payment terminals, online training programs, and smart home technologies.

Entrepreneurs invest in the development of the service sector and trade, provide the population with a wide range of household, advertising and publishing services.

The work of members of the Turkmen business community involved in handicrafts, arts and crafts contributes to the popularization of the national cultural heritage. In this regard, the participation of the UIET in the organization of the annual competition among craftswomen in the art of making a national felt carpet - koshma, the results of which were summed up in early August in the cultural and entertainment center of the Union of Industrialists and Entrepreneurs, should be noted.

With the full support of the state, domestic entrepreneurship has favorable prospects for further growth in the production and non-production sectors, in the field of exports and the development of import-substituting industries, promoting the service sector and ensuring the country's food independence.

The planned opening of a higher educational institution of the UIET testifies to the ever-increasing opportunities for private business. In the first ten days of July, a solemn laying of the foundation of this university took place. The construction of a modern complex is planned, consisting of four educational and two buildings of student dormitories, each of which is designed for 300 places, as well as a library, a canteen, indoor and outdoor sports complexes. The commissioning of the facility is scheduled for September 2025.

Turkmen entrepreneurs face new challenges related to the introduction of innovative technologies, the digital system, the implementation of measures defined in the National Program for the Socio-Economic Development of Turkmenistan in 2022-2052, including the implementation of major state orders and investment projects.

At the meeting of the Government, dedicated to the results of 6 months of the year, President Serdar Berdimuhamedov noted the importance of revitalizing the activities of the Fund for Support of Small and Medium Enterprises of the country, established in Turkmenistan at the suggestion of the UIET in 2018 with the aim of developing business, transferring the economy to a market economy and organizing innovative industries.

The head of state emphasized the importance of strengthening work to increase the output of consumer products, especially agricultural products, and improve the provision of the domestic market with food and other essential goods.

Separate instructions related to assistance to UIET enterprises, as well as consistent support for small, medium and large businesses by creating a favorable business environment.

Among the key requirements are the creation of modern industries and new jobs in every velayat, etrap and city, the expansion of exports of high-quality products manufactured in Turkmenistan.

The President of the country also stressed the need to intensify efforts to reduce the state's share in the economy and expand the share of the private sector in it.

Domestic entrepreneurship has big plans for the future, ahead is the solution of important tasks set by President Serdar Berdimuhamedov in the context of the developed and constantly improved mechanisms for effective public-private partnership, which serve as a reliable guarantee of their successful implementation.

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