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“Best practices in export promotion: Experience in Latin America, Europe and Central Asia” State Enterprise Single Window Centre for Foreign Trade under the Ministry of Economy of the Kyrgyz Republic Mr. Nurlan Aripov - Head of Export Development and Promotion Department

“Best practices in export promotion: Experience in … promotion: Experience in Latin America, ... Raw leather Cement Non-ferrous and ... (HACCP, ISO are still not

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“Best practices in

export promotion:

Experience in Latin

America, Europe and

Central Asia”

State Enterprise Single Window

Centre for Foreign Trade under

the Ministry of Economy of the

Kyrgyz Republic

Mr. Nurlan Aripov - Head of

Export Development and Promotion

Department

Contents

Basic information of the Single Window Center

Current situation of the Kyrgyz Republic’s

in international trade

SWOT analysis of the Kyrgyz Republic in terms

of International trade

Future plan of Actions

Success export practices

Current trade promotion activities of SWC

Current Issues about trade promotion activities

1

2

3

4

5

6

7

Basic information of the Single

Window Center

1

SWC is the State Enterprise under the Ministry of Economy of the

Kyrgyz Republic.

SWC is focused on 2 main areas:

1) Trade Facilitation 2) Exports Promotion

Mission of the SWC is to “become the leading Central Asian TPO in export

information & promotion, and e-customs, supporting export growth

through its trade network in Kyrgyzstan and overseas priority markets”.

Organization structure 1

IT

Departmen

t

(8)

Service

center (5)

Regional

offices (7)

Financial

Department

(3)

Information

and

Analytical

Department

(5)

Export

Promotion

and

Development

Department

(4)

HR and

Administr

ation

Departm

ent (6)

General Director

Deputy General Director

Current situation of the Kyrgyz

Republic’s in international trade

2

2009 2010 2011 2012 2013 2014 2015

1673 1759,8 2242,2 1927,6 2006,8 1879,9

1304,4

3040,2 3222,8

4261,2 5576,3

5987 5732,5

3681,8

Export Import

Current situation of export 2009-2015 (mln., $)

Current situation of the Kyrgyz

Republic’s in international trade

2

There are three main export industries in the Kyrgyz Republic

Precious metals (Gold) Fruit and vegetable

products

Apparel and clothing

accessories

Current situation of the Kyrgyz

Republic’s in international trade

2

Main trade products and partners

Precious metals (gold)

Vegetables and fruits

Apparel and clothing

accessories

electric power

Cotton

Incandescent lamps Tobacco

Raw leather Cement

Non-ferrous and ferrous metals,

metal waste

Russia

Kazakhstan

China Switzerland

Turkey

Uzbekistan

Germany UAE

Belarus South Korea

Current situation of the Kyrgyz

Republic’s in international trade

2

Dynamics of export of major products for the period 2009-2014(mln. $)

0

500

1000

1500

2000

2500

Main ExportProducts

Preciousmetals(gold);

Fruit andvegetableproducts;

Apparel andclothing

accessories.

other

2009 1673 533,7 141,4 72,5 925,4

2010 1759,8 671,7 131,4 125 831,7

2011 2242,2 1006,2 134,4 142 959,6

2012 1927,6 562,2 144,1 156,1 1065,2

2013 2006,8 736,8 162 108,3 999,7

2014 1879,9 717 126 99,6 937,3

There are three main

export industries in the

Kyrgyz Republic

1). Precious metals (Gold);

2). Fruit and vegetable products;

3). Apparel and clothing

accessories.

Main products 2

Dairy products Honey

Potatoes, onions, garlic and leeks

(fresh or chilled), cabbages and

cauliflowers, carrots and turnip, dried

vegetables, shelled (bean);

Edible fruit, nuts, apples,

apricots, dried fruit.

Structure of GDP 2

Services 51%

Agricultural industry

15%

Industry 14%

Construction 7%

others 13%

SWOT analysis in terms of

International trade

3

Strength

Readiness of SME for

development;

The SWC staff speak

English and can work in

foreign source;

Interaction with the donor

organizations and their

support.

Weakness

Absence of specialized Export Promotion

Agency;

Test centers are not accredited in EU

countries;

Logistics services are expensive;

Lack of experience on export promotion;

Absence of foreign trade representatives

abroad;

The Kyrgyz Republic is landlocked country;

The most companies are SME and standards

(HACCP, ISO are still not implemented).

Opportunities

Membership in WTO;

Membership in Eurasian

Economic Union;

Status GSP + ;

Close to big market:

China;

Revise the role of SWC

as TPO.

Threats

Reducing the share of exports in connection with

the entry into the Eurasian Economic Union and

increasing of imports;

Instability of exchange rate;

Rise of the role of TPO in neighbor countries;

Ban on export of the products to neighbor

countries.

Inte

rnal situ

atio

n

Exte

rna

l situ

atio

n

positive factors negative factors

Current trade promotion activities of

SWC

4

Ministry of Economy of the Kyrgyz Republic, SWC and Chamber of

Commerce of the Kyrgyz Republic are in charge of trade promotion in

the Kyrgyz Republic.

On March 31, 2015 was adopted Plan of Government of the Kyrgyz

Republic on Export Development 2015-2017

The Plan is based on five priority sectors aimed at exports:

1) Dairy industry;

2) Meat industry;

3) Sewing industry;

4) Fruit and vegetable sector;

5) Sector of bottled water.

Appointment and work with representative of SWC in Moscow.

Trade Information Services

Export Promotion Services

Success export practices 5

www.jetro.go.jp

International exhibition “World food Kazakhstan” in Almaty (November

2015)

Representative in Moscow (constantly).

Current Issues about trade

promotion activities

6

Meat is restricted to export in

Russia Federation and

Republic of Kazakhstan;

Local laboratory are not

accredited in EU countries that’s

why certificates are not

recognized

Terms of payment

Low volume of

production

Current Issues about trade promotion

activities

6

Inappropriate packaging;

Not competitive price;

Weak skills in search of trade information

regarding foreign markets;

Weak skills in marketing research;

Foreign language is as a barrier.

Future plan of Actions

7

Working on creating Export and Investment Promotion

Agency;

Search and expand new foreign markets (according to

current situation);

Find and appointment of foreign trade representatives

abroad;

Provide works with potential and existing local exporters

concerning export information and promotion activities;

Implementation of bank’s tools (payment);

Training programs on enhance of capacity in export

information and promotion.