Industrial Parks to help expand export potential
Establishment of Industrial Parks in the country will help to expand the export potential, create import substitutive goods and increase employment, said Deputy Economy Minister Niyazi Safarov.
In an interview with Azernews, the deputy minister said that Industrial Parks will stimulate development of the country’s non-oil sector and diversify economy.
“Creation of industrial parks and zones is of particular importance in terms of increasing the volume of the economy, the production of import-substituting products and increasing its competitiveness, luring investments, modern technologies, ensuring sustainable development of the non-oil economy and export potential, and increasing employment in the country,” he said.
Safarov pointed out that the government will encourage the creation of special economic zones and industrial parks by the private sector.
He noted that according to the plan of measures for implementation of the State Program for the Development of Industry in Azerbaijan in 2015-2020, the country constantly works to create industrial zones in its districts.
Meanwhile, the creation of industrial zones in districts with a view to supporting small and medium-sized enterprises (SMEs) is envisaged by the Strategic "roadmaps" for production of foodstuffs at the SME level, approved by a decree of President Ilham Aliyev on December 6, 2016.
Five industrial parks, two hightech parks, two agro parks, two industrial quarters and one special economic zone have been established in Azerbaijan (some of them have been created and some are in the process of establishment). All of them were created by the funds of the state budget.
Implementation of the industrialization policy through the application of tax and customs privileges for industrial parks, providing them with infrastructure, the low cost of land rental, preferential lending and the simplification of administrative procedures will undoubtedly have a positive impact on the development of the country’s economy, added Safarov.
“In future, these Industrial Parks will assist to improve competitive environment. In enterprises that currently operate and will operate in these industrial parks is planned to produce the most frequently consumed and imported products in the country,” the minister underlined.
Industrial parks to focus on production of basic consumer goods
Main challenge for Azerbaijan is to ensure the export-oriented economy, said the deputy minister. To achieve this goal, he continued, it is necessary to raise the level of competitiveness of goods produced domestically.
The deputy minister emphasized that the industrial parks and zones created in the country serve these purposes and are a part of the policy to ensure a balanced development of the economy.
“Increasing competitiveness is possible only through competitive pressure formed in the market with an effective competitive environment. Thus, competitive pressure on market participants creates the conditions for increasing productivity and economic efficiency, wide application of technologies and innovations. The industrial parks created in the country serve precisely these purposes,” noted Safarov.
He went on to say that industrial enterprises that already operate, or will operate in the country, will produce the most demanded and most often imported products by Azerbaijan.
“Meanwhile, the goods produced in industrial parks and zones will not only meet the domestic demand, but will also be supplied to foreign countries, which will positively affect the trade balance of the country,” added the deputy minister.
Country’s Industrial Parks
The minister gave information about each Industrial Park separately. Starting with Sumqayit Chemistry Industrial Park he noted that the Park was established in December 2011. Currently, the Park has 15 residents and among them are SOCAR Polymer, AzerFloat CJSC, Azerbaijan Fibro Cement LLC, Tabaterra CJSC, SOCAR Carbamide Plant, MST Engineering Services and others.
Speaking of Garadagh Industrial Park, Safarov stressed that in was created in June 2015 and currently has one resident-Baku Shipyard LLC.
He went on to say that Mingachevir Industrial Park has one resident as well-Mingachevir Tekstil LLC.
Touching upon Pirallahi Industrial Park the minister pointed out that currently three residents have been registered there: Hayat Pharm LLC, Diamed Co LLC, Caspian Pharmed CJSC.
Balakhani Industrial Park, which was created on December 28, 2011, has nine residents and five of them are currently implementing their activities. Among them are Etokat LLC, Az.Ekol LLC, METAK LLC, FORIELLA LLC.