Business circles of Turkmenistan and Japan outline priority vectors of partnership
Turkmen – Japanese business forum took place in Tokyo prior the beginning of working visit of President Gurbanguly Berdimuhamedov to Japan.
Meeting of representatives of business circles of two countries was dedicated to definition of current directions of trade and economic partnership at new stage of interstate dialog, reconciliation of positions in the sphere of financial and investment collaboration, exchange of opinions on perspective joint projects and ways of production cooperation.
Heads and leading specialists of number of big Japanese companies, which are known with their developments in different industrial branches, transport and communications sections, high technologies, etc., took part in the meeting. Turkmen side was represented by heads of different ministries and departments, members of the Union of Industrialists and Entrepreneurs – more than 40 companies, individual enterprises and other private structures.
Small exposition of Turkmen decorative and applied arts items gave bright celebration mode and national colour to the meeting, which was held in the Conference hall of Shinagawa Prince Hotel. Ornamented carpets, silk fabrics, various accessories and souvenirs with traditional patterns raised sincere interest of the hosts of the forum in cultural heritage of our country.
Management representative of one of the most powerful Japanese corporations – the Itochu opened the Forum, having welcomed Turkmen guests.
It has been 25 years since Japan and Turkmenistan established friendly relations in political and economic spheres, he said. For this period, beneficial relations between two countries have been consolidated and intensified, which is supported by activity of joint committee for economic cooperation. He has also announced the signing of new bilateral documents during the visit of Turkmen leader and expressed confidence that current meetings would be fruitful and substantial.
In its turn, it was highlighted by Turkmen side that he Head of the state outlines comprehensive strengthening of political, economic, cultural and humanitarian relations with the states of Asian Pacific region including with Japan among priority vectors of foreign policy.
Industrial branches, in particular petrochemical sphere, transport and communication, agriculture, introduction of new technologies have been highlighted among the main directions of cooperation. Interstate humanitarian contacts in education and science, culture and art, sports and tourism also have steadfast character.
It is also remarkable that recently geography of flights made by Turkmen airlines was supplemented by another international destination, which connected Ashgabat and Tokyo. All these factors make positive effect on the process of further rapprochement of two friendly countries and nations, demonstrate the presence of favourable prepositions for intensification of productive trade and economic partnership, stimulation of investment activity, activation of direct contacts between business structures. In this context, specific proposals have been made for cooperation and willingness to discuss in details these proposals in working order for entering realistic projects taking in account numerous delegation of the UIET.
Presentation on the subject of Investment Capabilities of Turkmenistan has been held during the forum. It was mentioned that investment policy of President Gurbanguly Berdimuhamedov and large-scale reforms initiated by him are aimed at realization of huge potential of Turkmenistan for provision of high rates of growth and improvement of efficiency of the economy, achievement of high level of prosperity of Turkmen nation.
Number of development programmes, which were developed taking into account new approaches and modern vision of Turkmenistan’s development has been adopted in the country for steadfast and efficient achievements of set goals. The Programme of social and economic development of the country in 2019 – 2025, the Concept of development of digital economy of Turkmenistan in 2019 – 2025 and the State Programme of support of small and medium entrepreneurship in 2018 – 2024 are the main of them.
Their successful realization will support the achievement of the Sustainable Development Goals, structural reformation of industry and service sphere, implementation of advanced technologies, expansion of capabilities for private capital and development of partnership between the Government and private sector, enhancement of competiveness of national production in the world markets and opening of new work places.
Programme documents provide significant investments to innovation productions supporting diversification and industrialization of the economy, replacement of import goods and expansion of export capabilities of producers. At the same time, the investments to transport and telecommunication infrastructure will turn the country into important transport and logistic hub of Central Asian region and continent.
Macroeconomic indicators of the country including the growth of gross domestic product, which was 6.3 percent by the outcomes of the first half of the year, stable increment of the county’s export volumes speak of the appropriateness of selected direction.
Construction of gasoline production plant with output capacity of 600,000 tons of eco-friendly fuel per year in Ahal Velayat, carbamide plant in Garabogaz and petrochemical complex for production of polyethylene in Kiyanly are among major successful joint projects with Japanese partners.
At present, Turkmenistan actively works on new directions in petrochemical sphere, which will allow the country taking deserved place in the market of petrochemical products with high added value.
Investment to development of stable and reliable telecommunication and transport infrastructure including transportation of natural gas is one of necessary conditions for successful achievement of many objectives set out by President Gurbanguly Berdimuhamedov. Therefore, the development programmes provide active realization of home and regional infrastructural projects.
Construction of Turkmenistan – Afghanistan – Pakistan – India gas line (TAPI) is very important among them. Putting this energy route into operation will allows not only significantly increasing export potential of our country but also, which is most important, supporting the improvement of energy security and economic stability in the region, serving as strong catalyst for achievement of the Sustainable Development Goals of Turkmenistan and for entire region in general.
In addition, realization of such infrastructural projects as modernization of railway network, construction of Ashgabat – Turkmenabat and Ashgabat – Turkmenbashy highways is planned, which will allow significantly saving time of passenger and cargo transportation and respectively, increasing transport flows across Turkmenistan in the eastern and western directions.
Projects aimed at provision of rational use and saving of water resources of Turkmenistan will be realized in the next few years.
It was also mentioned that the utmost attention in the strategy of the country’s development is paid to support and development of private investment and innovative activity, which has to become one of main driving forces of increment of production, comprehensive economic growth, opening of additional work places and realization of existing high investment potential.
Today, favourable investment climate has been made for development of private sector as well as for the growth of investment to the economy of Turkmenistan in the form of direct foreign investments. In particular, relative regulatory and legal framework, including the one which guarantees the protection of foreign investments, has been developed and is continued to be improved. The Law on Free Economic Zones providing significant benefits including in taxation and land lease has been passed in September 2017. Facilitated taxation system works in the country for facilities of small and medium business.
The Government grants credits with low interest rates for stimulation of development of private sector. Work for obtaining of credit lines from international financial organizations such as Asian Development Bank, Islamic Corporation for Development of Private sector, OPEC International Development Fund and other is carried out for development of private sector.
Further, representative of number of Japanese and Turkmen companies including those specialized in the sphere of digital technologies have spoken at the forum.
Taking into account the role and capabilities of tools of digital economy in innovative development of business, the IT Park, which aims at development of intellectual infrastructure in the country, improvement of relations between science, production and investor as well as entry to international market of Turkmenistan innovative products, has started its work in Turkmenistan.
According to Japanese businessmen, being one of the most rapidly growing economies in Central Asia, Turkmenistan presents huge economic potential for establishment of trade and investment relations with its huge natural resources. In general, the efficiency of current meeting, which provides good opportunity for exchange of visions on capabilities and perspective of bilateral cooperation in economic sphere, has been stated.
Summing up the outcomes of business forum the speakers noted that carefully calibrated strategic line of President Gurbanguly Berdimuhamedov aimed at further integration of Turkmen economy to the world system brings significant results and opens new perspectives of cooperation, opportunity to realize more bold ideas and initiatives.
After completion of the business forum, the founder of Japan Dynamics Co. Doctor, Professor of Tokyo Technological Institute Hideomi Koinuma has addressed the organizers and asked for a word.
He gave a substantial report dedicated to the work of President Gurbanguly Berdimuhamedov “Medicinal Plants of Turkmenistan”. In his scientific report, he made special mention of the importance of such deep study, which results were summed up and systematized, became an important source for development of natural pharmacological substances all over the world, for modern medicine.