In Tokyo, Turkmen and Japanese businessmen discussed the peculiarities of the establishing and functioning of free economic zones (FEZ) in Turkmenistan, opportunities for investors in these zones.
Representatives of the Union of Industrialists and Entrepreneurs of Turkmenistan informed their Japanese colleagues about the introduction of the “single window” system for the provision of public services and the adopted Law “On free economic zones”.
On the basis of the Law, specific privileges were developed, which would be used by enterprises operating in the FEZ. Among them are the regime of free pricing for all types of goods and services, special currency and tax regimes, the regime of a free customs zone without paying customs duties, etc.
Special attention was paid to the 10-year grace period of land rents to be granted to companies. So, they will be excused from rent for 3 years, and for the next 7 years the fee will be charged at a rate of 50%.
At the same time, the state guarantees the stability of conditions for investment and business activities in the territory of the free economic zone and the free export of profits.
Within the framework of the implemented import substitution policy, Turkmenistan already has a number of dynamically developing industrial zones, which may interest partners from Japan and other countries. Among them are the industrial zone of the Akhal region, where there are 157 plants and factories producing more than 500 types of products, and the industrial zone of the Balkan region – 25 enterprises producing more than 200 types of products.
But the industrial growth potential is not limited to existing industrial zones. Among the mentioned promising areas are chemical industry, extraction of natural resources, mineral and hydro mineral resources, joint production of household appliances, etc.
It is also planned to expand cooperation in the field of innovative technologies, sustainable investments, and development of new export markets. To this end, we continue to develop the legal sphere, improve the conditions for the creation of joint ventures, conclude production sharing agreements, and long-term financing.
The private sector of Turkmenistan’s industry attracts increasing attention of foreign investors. During the period between 2012 and 2018, this sector’s output has grown from $ 63.8 million to $ 311.6 million.
Currently, the SIET includes at least a thousand enterprises operating in various fields of industry, invested more than $ 1 billion in the implementation of industrial projects for the production of various products, including building materials, plastic products, chemical products, furniture, textiles and carpets, electrical equipment and other consumer goods.