Export expansion strategy is discussed at the Ministry of Trade of Turkmenistan
A meeting of representatives of the public and private sectors of the economy was held at the Ministry of Trade and Foreign Economic Relations. The participants discussed the results of work and new proposals to promote the geography and structure of export of Turkmen goods and increase the volume of export.
The improvement of logistics, the formation of effective channels of sales from the manufacturer to the consumer were among the main topics. The emphasis was placed on linking all enterprises involved in this chain into a single system – from raw materials processing and finished goods production to Trading Houses of Turkmenistan abroad.
“We have made great progress in the equipment and re-equipment of factories and plants. Gradually we re-issue goods in accordance with international standards – we do labelling, packing and prepackaging in accordance with ISO certificates – the International Organization for Standardization. We have established a system for transportation of any kind of products to shipping points, both land and sea,” a representative of the TurkmenExport organization said. “Now we should arrange uninterrupted interaction between all these participants.”
To do this, economists and bankers explained in details what next steps to be taken. According to experts, Turkmen goods lack advertising. Due to the high quality, products of oil and gas chemistry as well as textiles from Turkmenistan demanded on the world market could be more actively promoted abroad if domestic manufacturers are provided with good information support. That is, they should know more and understand better the global market conditions, and they should know more about them in order to better understand their capabilities and competitive advantages.
Large international exhibitions and forums that take place almost every month in different parts of the world are one of effective tool for such advertising. Of course, Turkmen enterprises are already participating in some of them, but experts noted that the presence should be expanded.
– It is worth to notice that Turkmenistan is not the only manufacturer of a particular product. Therefore, a place in the market must be won, offering goods of the same high quality, but for more attractive price, for example. It can be achieved by reducing export duties. Or by simplifying a number of procedures and financial support mechanisms like by introduction a system of accepting letters of credit and bills of exchange as an alternative to prepayment as payment terms.
The development of flexible financial instruments would immediately increase attention to “Made in Turkmenistan” products such as polypropylene and polyethylene produced by the Kiyanly plant, carbamide fertilizers by the gas chemical complex in Garabogaz, various types of fuel from the Turkmenbashy Complex of Oil refineries, etc. It was also proposed to focus on the conclusion of long-term contracts for the supply of recycled hydrocarbons.
– The possibilities of Turkmenistan to produce and sell products to foreign consumers are enormous. The capacities of land transit routes and those provided by Turkmenbashi seaport open up broad prospects. We need to take advantage of them, playing in accordance with existing rules of the world market. Of course, these are generally accepted mechanisms for expanding exports and entering new markets, but they work and work effectively.
On the eve of the Gas Congress to be held in Avaza on May 21-22 and the 1st Caspian Economic Forum, scheduled for August 12, the development of the strategy for export promotion of goods by the Ministry of Trade and other interested agencies looks promising. Investors, potential partners and buyers coming to the large forums would be interested to know what and how they can win, cooperating with Turkmenistan.