Transcript Presentation - Embkazjp.org
INVESTMENT OPPORTUNITIES OF SOUTH KAZAKHSTAN REGION
Kazakhstan
Capital:
Astana city
Territory :
2,7 mln sq/m2 (9 th place in the world)
Population :
17 ,2 million people. (62 nd place in the world)
Kazakhstan has borders with
Russia, China, Kyrgyzstan and Uzbekistan
Administrative structure:
14 oblasts, 2 cities of state importance
GDP 2013 :
224,858 billion $ (45 th place in the world)
GDP per capital in 2013:
12 021 $ (57 th place in the world)
Currency:
tenge (1 $ – 182 tenge)
Investment Climate
• • •
Business environment
According to - «Doing Business» in 2013 Kazakhstan ranked 50 th place among 189 countries.
«Taxation» - 18
th place.
«Registry of ownership» - 18
th
«Registry of enterprise» - 30
th
place.
place.
Foreign Direct Investment
In 2012 holds 19
th
place among Top-20 countries on Foreign Direct Investment.
In 2012 Gross Foreign Direct investment in Kazakhstan achieved highest level of 28.8 billion US dollars. In 2013 Gross Foreign Direct investment amounted 24,1
billion US dollars.
111
Protection of Investor Rights
• According to Annual Index of Global Competitiveness for 2013-2014, Kazakhstan is on the 10
th place by
protection of investor rights.
• Kazakhstan signed agreements on mutual protection and stimulation with 47 countries.
Foreign Investors Board
Foreign Investors Board under the President of Kazakhstan operates in the country.
Board develops and offers recommendations for President and Government of Kazakhstan for consideration on issues concerning investment activities in Kazakhstan.
Investment ombudsman
In order to apply systematic approach in solving issues of investors working in Kazakhstan, Investment ombudsman is created. Its main function – regulation of arguments and prevention of international investigation.
Investment Advantages
Customs Union (Kazakhstan, Russia and Belarus)
Volume of the market - over 170 million people with GDP sum of 2 trillion US Dollars.
United trade rules within Customs Union:
Single customs territory; Single foreign trade policy; Single customs rule, Single customs codex; Free flow of goods among Customs Union members.
Taxation regime
Most attractive taxation regime among CIS and Central Asian countries (Corporate Income Tax – 20%, Value Added Tax – 12%).
When implementing an investment project in the priority sectors or investment project in the textile industry in FEZ “Ontustik” exempt from the following taxes: Corporate income tax; Land tax; Property tax.
Investment Preferences
• • •
Favorable location
Center of the Eurasian continent, through the territory of Kazakhstan was once the Great
Silk Road.
Main transcontinental routes linking Asia Pacific with the Middle East and Europe pass through Kazakhstan.
Three countries of the "quartet" of the BRICS are located near Kazakhstan: Russia, China and India.
Visa regime
Visa-free regime has been implemented for the countries with highest investment activities, in order to improve the investment climate in Kazakhstan, amongst them:
Turkey, United States, Netherlands, United Kingdom, France, Germany, Italy, Malaysia, UAE, South Korea and Japan
For more information about the visa regime in Kazakhstan can find on this link:
http://southkazinvest.kz/step-by-step/get-visa/?lang=en
Government Support Measures
In case of signing an investment contract for more than $ 20 million the government provides the following preferences: Taxation preferences
Exemptions: corporate income tax for 10 years; land tax for 10 years; property tax for 8 years.
Full-scale grants
Land, buildings, construction, cars and equipment, computing technologies, metrical and regulating instruments and equipment, vehicles, apart from cars, production inventories
Release from Customs duties
Release from customs duties in the process of importing equipment, accessories, raw materials and spare parts, required for realization of investment projects.
Investment subsidies
Compensation of up to 30% of capital costs of the investor by the state after object input in operation
Government Support Measures
In case of signing an investment contract for more than $ 20 million the government provides the following preferences: Involving the workforce
To investors granted the right to employ foreign labor for the entire construction period of investment project and one year after the enterprise will start to operate, beyond the quota without permission
Stability of tax rates
Guaranteed "stability" of tax rates (excluding VAT and excise taxes), environmental fees and charges for a period of 10 years after the conclusion of contracts with investors
Stability of legislation of the Republic of Kazakhstan
Guaranteed "stability" when changing legislation of the Republic of Kazakhstan within the framework of investment contract signed with investors
South Kazakhstan Region
Area:
117 249 km2
Population:
2 752 500 people
100% cotton-yarn
(1
st
place in Kazakhstan)
99,2% transformators
Urban population:
40%
48,0% pharmaceutical
Administrative Centre:
Shymkent
products
(3
rd
big city in Kazakhstan)
46,1% petrol
Oblast structure:
22,9% heating oil
4 cities (Shymkent, Kentau, Turkestan, Arys)
16,8% cement
and 11 districts.
Higher Education Establishments:
12 Universities, 77,7 thousand students
15,0% flour Proportion of South Kazakhstan in Kazakhstani production
Ethnic groups:
over
100
nationalities
Prioritized Fields of Economy
1. Agro-industrial complex 2. Light industry 3. Pharmaceuticals 4. Machinery manufacturing 5. Construction industry 6. Energy 7. Tourism 8. Logistics
Agribusiness and Food Industry
38 % of economically active population of SKO occupied in agriculture, or more than 500 thousand people.
More than
50
large and medium-sized enterprises work in the food industry of SKO.
For the period of 2010 2012 production of meat and meat products - grew by 14.8%, dairy products -
13.9%,
bread beverages - 26.8%. and bakery products - 13.4%, 75.6% of greenhouse complexes are located in the SKO
SKO share in volume of production RK
In 2013, the food produced million 27.2% of total industrial beverages.
for $ 721 production and 12.7% of the national production of food and
1 2 3 4
• 100% cotton; • 71% grapes; • 66% melons; • 51% Safflower oil; • 42% fruits; • 25% vegetables.
5 6 7 8
Agro-industrial Zones
Agro-industrial zone «Garden»
Location: Kazygurt district Allocated land: 1 000 ha Government investment cost ( construction of infrastructure): 100 million tenge Private investment cost (expecting): 4,6
billion tenge Agro-industrial zone «Greenhouse»
Location: Shymkent city Allocated land: 62 ha Government investment cost ( construction of infrastructure): 555 million tenge Private investment cost (expecting): 9,2
billion tenge Government assistance:
- Free land; - Ready infrastructure (heating, electricity, fruit storage, domestic placement); - Consultation of technology election; - Agro support; - Support in obtaining loan in «KazAgro» JSC; - Support in obtaining government subsidy.
1 2 3 4 5 6 7 8
Light Industry
SKO is the center for the sale of cotton and textile cluster Over 50 cotton processing, weaving and sewing companies SKO is the only regoion in Kazakhstan where cotton is grown and annual gross harvest of
cotton is 350 thousand tons.
Cotton processing plants annually produce more than 100 tons of fiber. The volume of exports of cotton fiber in Russia is more than $ 30 million FEZ "Ontustik“ operates for the development of the textile industry. The territory of FEZ "Ontustyk" is 200 hectares, the infrastructure of FEZ is 100% complete.
Large textile company:
JSC "Utex" JSC "Melange" LLP «SOUTH TEXTILINE KZ» LLP “Ginneries" LLP «Oxi Textile» LLP "Garment factory" Gauhar " LLP "Hlopkoprom cellulose"
1 2 3 4 5 6 7 8
Advantages of FEZ "Ontustik"
On FEZ On the territory of the Republic of Kazakhstan Corporate tax 0% 20% Property tax 0% Land tax 0% Release 1,5% From 11,2$/ha From 5 - 20% Customs Administrative support Tax and customs support Infrastructure 1 2 Administrative body FEZ tax authority The customs authority FEZ Budget for infrastructure 3 4 5 6 7 8
Pharmaceutics
FASTEST GROWING INDUSTRIES AT THE REGIONAL LEVEL Human resources: South Kazakhstan State Pharmaceutical Academy The volume of production of pharmaceutical products by SKR – $ 71
million U.S. dollars
Share of SKO in the volume of pharmaceutical products – 48% Level of productivity – $ 36.6 thousand
U.S. dollars Kazakhstan's pharmaceuticals market:
Import
90%
Production in RK
10% 48 % SKO 52 %
Large manufacturers of the pharmaceutical industry: JSC "Chimpharm" LLP "Zerde-Fito" LLP SPC "Rauan" LLP «Eco Pharm International»
1 2 3 4 5 6 7 8
Machinery Manufacturing
Machinery manufacturing demonstrates the dynamic development for the period of 2010-2013.
Production volume in 2013 totaled $ 172 million, which is more than 2 times in comparison with 2010.
Prospects for development in this sector are characterized by high rates of domestic and foreign
trade. Total cost of $ 417 million machinery products has been imported to the region in 2012. Engineering companies made only 10.8% of the imported products.
A capacious market of agricultural machinery
projected a perspective growth in demand for it. As of January 1, 2013 depreciation of agricultural machinery is estimated at 85% Manufacturers Machinery Sector in SKO: 35 companies
1 2 3 4 5 6 7 8
Construction Industry
• The region has a huge amount of raw
material
(talc, mica, marble, feldspar, bentonite clays, tefritobazalt, vermiculite, zeolite, wollastonite, refractory and refractory clay, quartzite, mineral paint additives), the production of various kinds of building materials in the area.
required for More than 50 kinds of basic building materials and structures are produced in the area There enterprises and over 125 construction
shops
are
30 large and medium
Production of building bricks baked in the total volume of the republic occupies 14.9%, cement 16.1%, lime - 9.8%
1 2 3 4 5 6 7 8
Energetics
Support in renewable energy infrastructure facilities and transmission networks
Mandatory connection objects to the nearest point of RES electricity and heating networks; Reserve areas and priority in the allocation of land plots; Investment incentives and preferences for the construction and operation of facilities for the use of renewable energy (according to the legislation); Release objects from RES connection fees and transportation network.
Support for renewable energy in electricity sales
Mandatory and guaranteed purchase of generated renewable energy; Single rate for each type of RES; Contracts for the purchase of electricity from renewable energy sources should be for the whole period of the project payback period RES.
1 2
Planned to implement 23 projects in the field of renewable energy for U.S. $ 939 million with total capacity of 577.3 MW, including: 5 WP for U.S. $ 750 million, 300 MW power 7 FES U.S. 533 million, 242 MW power 11 HPS U.S. 56 million, 35.3 MW power
3 4 5 6 7 8
Tourism
One of the most visited tourist object in Central Asia is the Mausoleum of Khoja Ahmed Yassawi, which is included in the UNESCO World Heritage List.
There are 18 recreation centers in the famous resort «Saryagash». These resort complexes are visited by more than 30,000 people every year.
The region has two reserve : «Aksu Zhabagly» and «Karatau».
4 tourist zones are created in order to develop tourism : Touristic and recreation center «Kaskasu» Health-resort zone «Saryagash» Beach zone on reservoir storage «Shardara» Beach zone on reservoir storage «Badam» For more information about tourism of SKO can learn on this link:
http://tourismuko.gov.kz/eng/
1 2 3 4 5 6 7 8
Tourism Zones
Name Allocated land: Required investments
Touristic and recreation center
«Kaskasu» 56 hа 230 mln. $
Health-resort zone
«Saryagash»
Beach zone on reservoir storage
«Shardara»
Beach zone on reservoir storage
«Badam» 12 000 ha 120 mln. $ 245 ha 192 mln, $ Government assistance:
- Free land; - Ready infrastructure (ropeway, water, electricity, gas, highway); - Support in receiving licensing documents.
- Marketing research from international consulting company.
900 ha 384 mln. $ 1 2 3 4 5 6 7 8
Logistics
• • • «Southern Gateway» of Kazakhstan in international trade: Transport corridor «Western Europe – Western China», which is the shortest path in international traffic between Europe and China; motorway «Tashkent - Shymkent», opening Kazakhstan southern countries; Trans-Asian Railway.
International airport of Shymkent city has favorable geographical position: (1) 100 km from Tashkent; (2) 450 km from Kyzylorda; (3) 500 km from Bishkek ; (4) 700 km from Almaty.
Russia CUSTOMS UNION
ASTANA SHYMKENT ALMATY Large enterprises:
LLP «Kazakhstan Logistic Group» warehouse logistics 7 tons LLP «NGOs «Zerde» - storage of pharmaceutical products LLP «Sanjar Trade» - a logistics center LLP «Keremet center» - Growers capacity 4 tons.
Turkmenistan
1 2 3 4 5 6 7 8
Trade Logistic Zones
Location: Allocated land: Government investment cost (construction of infrastructure): Private investment cost (expecting):
Shymkent 92 ha 9,3 mln $ 181 mln $ Saryagash district 40 ha 4,7 mln $ 30 mln $ Turkestan 30 ha 4,1 mln $ 25 mln $ Government assistance:
- Free land; - Ready infrastructure (water, electricity, gas, highway, dead-end tracks, airport access); - Support in receiving licensing documents.
1 2 3 4 5 6 7 8
Industrial zones of districts and cities of South Kazakhstan Region
The land was allocated for Industrial zones with total area of 835,5 ha, with IZ of the Shymkent city total area is 1 172,5 ha.
Construction of infrastructure has planned in 7 districts of the region (Kazygurt, Saryagash, Suzak, Shardara, Tyulkubas, Baidibek and Maktaaral) in 2014.
65 projects amounting 46 billion 789 million tenge with the creation of 6407 workplaces are planned to realize in districts and cities of the region .
1173
Working Industrial zones Planned construction in 2014, documentations are designed Allocated lands, documentation are designing Total area of lands, ha
International Investment Forum «New investment opportunities within the EEU»
Event venue of the Forum
: «Rixos Shymkent» hotel, Shymkent city
Date of the Forum
: 3-4 October 2014
Organizer of the Forum:
Akimat of South-Kazakhstan region
The purpose and objectives of the Forum:
Presentation of new investment opportunities of Kazakhstan with the enhancements and additions to the legislative acts of RK on improving the investment climate, and with the creation of the Eurasian Economic Union; Results of development in the first five-year plan of SP FIID and presentation of the second five-year plan of SP FIID; Demonstration of investment opportunities of South Kazakhstan oblast; Organization of a dialogue platform for local and foreign companies to discuss opportunities for joint investment projects on the territory of South Kazakhstan region; Stimulation of inter-regional and inter-sectoral cooperation.
www.southkazinvest.kz
+7 7252 36 73 38