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Viewing cable 07DUSHANBE1582, UNSEAMLY TAJIK TEXTILES MARKET

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Reference ID Created Released Classification Origin
07DUSHANBE1582 2007-11-02 16:41 2011-08-26 00:00 UNCLASSIFIED Embassy Dushanbe
VZCZCXRO6761
RR RUEHLN RUEHVK RUEHYG
DE RUEHDBU #1582/01 3061641
ZNR UUUUU ZZH
R 021641Z NOV 07
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC 1270
INFO RUEHAK/AMEMBASSY ANKARA 2027
RUEHBJ/AMEMBASSY BEIJING 2003
RUEHBS/USEU BRUSSELS 1265
RUEAIIA/CIA WASHDC
RUCNCIS/CIS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEHDBU/AMEMBASSY DUSHANBE 3177
RUEHBUL/AMEMBASSY KABUL 2306
RUEHML/AMEMBASSY MANILA 0174
RUEHNE/AMEMBASSY NEW DELHI 2231
RHEHAAA/NSC WASHINGTON DC
RUEHVEN/USMISSION USOSCE 2041
RUCPDOC/USDOC WASHDC 0195
UNCLAS SECTION 01 OF 02 DUSHANBE 001582 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN; 
AMEMBASSY ANKARA FOR AGCOUNSELOR; 
STATE FOR EEB/TPP/ABT GARY A. CLEMENTS; 
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA; 
USTR FOR CAROYL MILLER 
 
E.O. 12958: N/A 
TAGS: EAGR ECON EFIN EINV EIND ELAB EAID ETRD PGOV TI
SUBJECT: UNSEAMLY TAJIK TEXTILES MARKET 
 
REF: STATE 114799 
 
DUSHANBE 00001582  001.2 OF 002 
 
 
1. (U) Comment: Tajikistan's junior-size textile and apparel 
industry struggles to gain investment that would better utilize 
in-country cotton production.  Despite the government's 
continued pleas for more processing capacity, private companies 
must weave through a maze of customs, taxation, and regulatory 
entanglements in order to do business here. End Comment. 
 
2. (U) Embassy Dushanbe provides the following data on 
Tajikistan's textile and apparel sector as requested in reftel. 
Data were collected from the State Statistical Agency, Ministry 
of Energy and Industry, and press reports. 
 
-- Total Industrial Production 
2006: USD 1.325 billion 
2007 (mid-year): USD 737 million 
 
-- Textiles and Apparel Production 
2006: USD 184 million 
2007 (mid-year): USD 91 million 
 
-- Textile/apparel share of host country imports 
2006: 1.18% 
2007 (mid-year): 1.10% 
 
-- Textile/apparel share of host country exports 
2006: 12.6% 
2007 (mid-year): 10.73% 
 
-- Textile/apparel exports as percentage of overall textile 
production 
2006: 92% 
 
-- Exports in textiles and apparel to the U.S. 
2006: n/a 
2007 (mid-year): n/a 
 
Total Manufacturing Employment 
2006: 90,150 
2007 (mid-year): 89,000 
 
Total Textiles and Total Apparel Employment 
2006: 21,525 
2007 (mid-year): n/a 
 
Textile Industry - So Far, Not Sew Good 
-------------------------------------------- 
 
3. (U) Between 11-13% of Tajikistan's raw cotton production 
(18,000 tons) is processed in Tajikistan.  There are 19 textile 
enterprises in Tajikistan, four of which produce final products 
-- the remaining produce cotton yarn for export. 
 
4. (U) Tajikistan has sought foreign investment in its textile 
processing industry in order to increase the value of its cotton 
exports.  However, the government has done little in the way of 
easing bureaucratic requirements in order to attract private 
investors.  Four private Tajik companies are investing a total 
of $100 million in new textiles factories: HIMA, Olimi Karimzod, 
Guliston, and Khujand Invest.  These four factories will be able 
to process up to 25,000 tons of cotton. 
 
5. (U) One Tajik company HIMA has built a 100,000 square meter 
textile factory that according to its owner will produce 30 
English types of cotton yarn for export to Italy.  HIMA has an 
agreement in place with Italian buyers to sell 2,000 tons of 
cotton yarn for $3,600 per ton.  However, conflicting 
regulations on customs duties and VAT exemptions has halted the 
company's plans to import new equipment, and pushed off the 
plant's opening. 
 
6. (U) Local companies have sought protection from Chinese 
imports, but the government has not taken any action, and 
Chinese textiles flow across the border into Tajikistan.  Wages 
 
DUSHANBE 00001582  002.2 OF 002 
 
 
in the textile industry remain higher than the national average 
wage, and companies have not reported any decrease in export 
demand for their wares. 
JACOBSON