CERR: Ferghana Valley Becomes the Core of Uzbekistan's High-Tech Industry
Tashkent, Uzbekistan (UzDaily.com) — The Center for Economic Research and Reforms (CERR) has published the results of a regional study focused on the development of high- and medium-high-tech industries in the manufacturing sectors of Andijan, Namangan, and Ferghana regions.
Objective of the Study
CERR's analysis aims to assess the structure of the Ferghana Valley's industrial sector, identify the export potential of high-tech industries, and examine the state of human resources. Particular attention is given to challenges and growth points related to the further development of the region’s industrial capacity.
Key Findings: Contribution and Exports
In 2024, the total volume of the Ferghana Valley's manufacturing sector reached 159 trillion soums, accounting for 21.1% of Uzbekistan's overall output. Of this, Andijan region contributed 88 trillion soums, Ferghana 44.7 trillion, and Namangan 26.3 trillion soums.
A notably high share of high-tech production was observed in Andijan region, accounting for approximately 64% of the total regional manufacturing volume. In Ferghana region, the share of high-tech production was 16.6%, and in Namangan – 9.5%.
The Ferghana Valley is home to over 13,000 manufacturing enterprises, with more than 1,100 operating in the high-tech segment. The highest concentration of such enterprises is in Ferghana and Andijan regions.
In 2024, the export volume of the region’s high-tech products totaled $688 million, marking a nearly 10% increase compared to the previous year. This figure represents more than 34% of the region’s total manufacturing exports.
The largest share of exports was generated by enterprises in Andijan region ($575.1 million), followed by Ferghana ($80.9 million) and Namangan ($32.4 million).
Directions for Further Development
Based on a survey of around 370 high-tech enterprises, key areas requiring attention were identified.
According to the results, 47% of respondents reported an increase in production volumes in 2024 compared to the same period last year. Regionally, the highest share of growing enterprises was recorded in Namangan (57%), followed by Andijan (47%) and Ferghana (40%).
At the same time, 42% of enterprises stated that they operated below production capacity in 2024.
Human resource development remains a key priority for the advancement of high-tech industries in the Ferghana Valley.
One of the main constraints for the sector’s growth is a shortage of qualified personnel. A third (34%) of enterprises reported having open vacancies, particularly in engineering and technology specialties. The most acute demand is seen in Namangan region, where nearly every second company indicated unfilled positions.
Furthermore, over 40% of enterprises reported difficulties in hiring specialists with the required skills. The most sought-after professionals remain process engineers—this need was cited by nearly two-thirds of respondents (65%). There is also an ongoing shortage of mechanical engineers and IT specialists. The primary reason for this, according to companies, is inadequate training in universities and vocational institutions, which often fail to meet business requirements.
According to the CERR survey, high-tech enterprises are already beginning to implement practical solutions. For example, 51% reported organizing hands-on training programs to improve staff qualifications, with particularly active initiatives observed in Namangan region.
Nevertheless, a systemic approach is needed to address the issues related to workforce training. The most in-demand solution remains improving the quality of education in universities and colleges and tightening control over academic programs—this was emphasized by 48% of respondents.
An important complement to this effort could be financial support for industrial internships—24% of companies believe that encouraging cooperation between educational institutions and enterprises will improve the practical readiness of graduates.
One in four companies (24%) stressed the importance of organizing industry exhibitions involving students, viewing them as a tool for early career orientation.
Additionally, 21% of respondents highlighted the need to create applied laboratories and simulation centers, as well as to introduce incentive mechanisms for process engineers, who play a critical role in modernizing production.
These proposals lay the foundation for a clear agenda aimed at strengthening institutional support, enhancing the connection between education and industry, developing human capital, and adapting academic programs to meet the needs of technologically advanced sectors.
Conclusion
CERR’s study underscores the importance of building a robust industrial and human resource base in the regions as a prerequisite for sustainable industrial growth. The findings will contribute to the development of initiatives aimed at enhancing export potential, expanding collaboration with the education system, and reinforcing the role of high-tech industries in Uzbekistan’s economy.