Success story of the Belarusian engineering Holding “AMKODOR” in Uzbekistan

In 2012, at the initiative of the Belarusian engineering Holding AMKODOR, the foreign enterprise AMKODOR-TASHKENT was established in Uzbekistan.

AMKODOR-TASHKENT specializes in supplying the Uzbek market with road-building, municipal, agricultural and other special equipment AMKODOR, providing warranty and post-warranty service of machines, supply of spare parts and components and personnel training.

Director of the company Oleg Sinko spoke about the work of the company and shared his opinion on the investment climate of Uzbekistan.

 -What tasks did you set for yourself when you created your enterprise in Uzbekistan?

-It was important for us to intensify the activity of AMKODOR Holding in the market of Uzbekistan and in the region of Central Asia, creating the necessary infrastructure, including office and production space, our own trade and service centers in the regions. In addition, we planned to create a production site, which will serve as a springboard in Central Asia for subsequent entry into neighboring markets – Turkmenistan, Tajikistan, Afghanistan.

– Who is the main consumer of AMKODOR products?

-It is difficult to single out the main consumer due to the fact that AMKODOR-TASHKENT supplies a wide range of special equipment intended for the agro-industrial, road-building, housing and utilities, forestry, production-logistic and fuel and energy complexes. The buyers of our equipment are district and regional improvement departments, regional branches of electrical and heat energy, large plants, concrete products plants, brick factories, large construction companies, farmers, private enterprises and others.

-Have you achieved your goals?

-We systematically realize our goals: today the distribution network of the company AMKODOR-TASHKENT has 12 demonstration sites and 6 service points in various regions of the country.

In September 2018, the presidents of the two countries of the Republic of Uzbekistan and the Republic of Belarus held the official opening of a joint venture AMKODOR-AGROTEXMASH for the production of models of AMKODOR technology, focused on the domestic market, as well as for export to neighboring countries – Turkmenistan, Tajikistan, Afghanistan .

-In your opinion, what are the main advantages of Uzbekistan from the point of view of potential investors, in particular foreign ones?

-The actively developing economy of the country and the reforms carried out by the President contribute to attracting foreign investment in Uzbekistan. Today, a program to attract investors and promote business development is brightly and widely deployed throughout the country.

For me, as for a foreign entrepreneur, a huge advantage of Uzbekistan lies in its advantageous geographical position. Being in the very center of a promising Central Asian region, Uzbekistan provides access to the markets of neighboring states. Moreover, in recent years, Uzbekistan has been building friendly relations with its neighbors, which only contributes to the development of our business in their markets.

-How comfortable is it to live and develop, what is the possibility of developing children in Uzbekistan?

– This question is no less relevant for many entrepreneurs with a family. As a father, for the period of my life here I was able to make sure that my children have the opportunity to get a good education in Uzbekistan and go in for sports, and develop with their peers. Moreover, safety remains an important factor. In this matter, I can be absolutely calm, as ensuring security and tranquility in Uzbekistan is a priority.

-What is the potential of this country?

-Today, there are 33 million people in Uzbekistan, of which the overwhelming majority are young, energetic, ambitious people.

Large population growth in Uzbekistan is a very, in my opinion, an attractive factor for foreign entrepreneurs, since it is a huge sales market, as well as good labor resources.

-Are there any threats or risks for investors?

– The state attracting investors should have good credit ratings. Uzbekistan recently entered the world economy as a full-fledged financial structure and the country does not yet have a credit history. This is a risk for foreign investors, because it is not entirely clear how the situation will develop further. Relatively recently, free conversion appeared in Uzbekistan. This is an extremely short period for a country to create a full-fledged market economy. And so many investors are still hesitating.

 – What are your future plans for the development of the enterprise?

-We plan to further promote the AMKODOR brand in Uzbekistan, expanding the range and quantity of AMKODOR products manufactured directly in Uzbekistan, increasing the level of localization, export to neighboring countries.

– What hinders the work and what, in your opinion, could be improved in the legislation of Uzbekistan to create more favorable conditions for doing business in your industry?

-I believe that the current legislation of the Republic has created the most favorable conditions for the activities of foreign investors, which are absent in many countries.

 What advice would you give to foreign companies interested in opening and organizing their business in Uzbekistan?

-Do not be afraid and invest in the Republic of Uzbekistan today, tomorrow may be too late, because other quicker investors may take your place.