Tashkent, Uzbekistan (UzDaily.com) —  Uzbekistan is rewriting its history on the global textile stage. According to a recent report by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the country’s textile and garment industry has shown impressive growth, with exports reaching US$3.9 billion in 2023.

The report, titled "A Textile Giant in the Making?", outlines Uzbekistan’s ambitious plans to increase exports to US$9–10 billion by 2030. This growth is driven by reforms, efforts toward sustainable development, and an expanding product range.

Exports of finished goods have grown from US$400 million in 2019 to US$1.5 billion in 2023.

In 2023, Uzbekistan produced 1.1 million tons of cotton, all of which was processed domestically.

Approximately 35,000 hectares are cultivated according to Better Cotton Initiative standards, with an additional 7,000 hectares dedicated to organic cotton.

Over 23,000 new jobs were created in 2023 thanks to the development of cotton-textile clusters.

However, to solidify its position on the global market, Uzbekistan faces several challenges, including limited product diversification, logistical issues, and a shortage of skilled labor.

Uzbekistan has long been known as one of the world’s largest cotton producers, but its transformation from a raw material exporter to a producer of high-value-added products marks a turning point.

Over the past five years, the privatization of the cotton industry and the establishment of 142 cotton-textile clusters have enabled the country to process 100% of its cotton harvest into yarn. This shift has not only increased export volumes but also contributed to the creation of over 23,000 new jobs in 2023 alone.

Thanks to its strategic location between Europe and Asia, as well as its GSP+ status, which provides duty-free access to the EU market, Uzbekistan is becoming an attractive destination for global textile giants.

Despite these achievements, Uzbekistan’s textile sector faces several difficulties that may slow its development:

1. Diversification Issues: The industry heavily depends on cotton products, limiting its ability to meet the demand for synthetic fibers and technical fabrics. Expanding the product range is crucial for accessing new markets.

2. Sustainability Standards: While Uzbekistan has eliminated forced and child labor in cotton production, international buyers are increasingly demanding transparency and environmentally friendly production methods. Certifications like Oeko-Tex and Better Cotton Initiative are necessary to build trust.

3. Logistics and Infrastructure: Uzbekistan’s landlocked location increases transportation costs. Alternative routes through Pakistan, Iran, and the Middle Corridor to Europe offer potential, but their development requires significant investment.

4. Skilled Workforce Development: The rapid growth of the sector has highlighted a shortage of skilled labor, particularly in advanced manufacturing and quality control. Specialist training must keep pace with industry growth.

5. Financial Constraints: Small and medium-sized enterprises (SMEs) face difficulties in accessing affordable financing, which limits their ability to modernize and scale up production.

The GIZ report offers strategic recommendations to help Uzbekistan achieve its goal of US$9–10 billion in exports:

- Innovation and Product Diversification: Manufacturing synthetic and technical fabrics, as well as modern fabrics for sportswear and industrial clothing, will open new markets. Investment in modern technology and equipment plays a key role here.

- Focus on Sustainability: Government programs that subsidize certification and promote eco-friendly production methods are already yielding results. Scaling these initiatives will strengthen Uzbekistan’s position on the global market.

- Logistics Development: To achieve ambitious export targets, improving transport corridors and modernizing infrastructure is essential. Projects like the China-Kyrgyzstan-Uzbekistan railway line are crucial.

- Workforce Skill Enhancement: Expanding vocational training programs will provide the industry with skilled labor to produce high-quality goods and innovate.

- Financial Support for SMEs: Expanding access to state loans, grants, and export incentives will allow SMEs to implement new technologies and increase production capacity.

Uzbekistan’s textile sector is paving the way for a bright future, blending tradition with innovation. With the right investments in infrastructure, diversification, and sustainability, the country could emerge as a global leader in the textile industry. As highlighted in the GIZ report, Uzbekistan is not just a textile giant in the making, but a player ready to reshape the global industry map.