1 [email protected] Export and import deals with Turkmenistan state organizations
There are some regulatory obstacles in doing trade with Turkmenistan state organizations.
However, by merging local expertise with foreign expertise and investment, trading with them can be rewarding and much easier than it seems.
The State commodity and raw materials exchange of Turkmenistan (SCRMET) is an economic institute of the country, carrying out function of a principal body of state regulation of export- import transactions. The SCRMET acts as a market (vitrine) of the state goods/products and statistical registry.
The Ministry of trade and foreign economic relations of Turkmenistan acts as a procurement department of the state. The centralized state planned economy coexists with market economy in hybrid economic structure of Turkmenistan and in some sectors such as trade (import of food, consumer products and state needs) is done by the ministry.
Yhsan Inc. proposes complex approach to overcome the currency exchange problems arising when selling to Turkmenistan through integrating (balancing) export (export of commodity and raw materials from Turkmenistan) and import (catering semi-planned economy) deals with Turkmenistan.
Turkmenistan land information management system
The State committee for environment protection and land resources of Turkmenistan under the Ministry of agriculture and water resources plans to outsource a geoinformatics company for development of land information management system. The scope of work includes:
Modernization of agriculture and designing a master plan
Establishment of a land administration system and cadastral database at the state level
Data creation for the agricultural map and the basic system of agricultural modernization
Establishment of control points on hydrological structures and a water management system
Organization of a training center
Small and large scale IT projects, which are common in developed countries and successfully functioning, are awaiting their time to be introduced and implemented in Turkmenistan.
In May 2018 Turkmenistan civil aviation authority announced an international tender for delivery of integrated airport (IT) system in the Ashgabat International Airport.
2 [email protected] Tanning/leather factory
Turkmenistan is a country located in Central Asia; it has a climate pleasant for cotton, silk, leather, wool, etc. raw materials production used in textile industry.
Yhsan Inc. invites Korean tanners, leather and textile manufacturers and traders to invest in development of supply chain of raw materials/semi-finished/finished products from Turkmenistan and the region for export to Korean market and others. In order to meet the standards and technical requirements of the customers abroad, Yhsan Inc. proposes construction of factories in Turkmenistan for processing of raw materials meeting the requirements of potential customers.
To start with, in June 2018 Ministry of textile industry of Turkmenistan announced a tender for investment project. An investor is supposed to construct a tanning factory in Ahal province on PSA (Product/Profit Sharing Agreement) basis. Primarily targeting the hides and skins from livestock slaughtered for consumption of the population of capital city, the factory can serve as a pilot project for further expansion throughout the country.
Ministry of textile industry of Turkmenistan is pleased to provide incentives for development of facilities adding value and volume of exported goods.
Sturgeon breeding and fish production plant
The Caspian Sea is a home to 80-85 percent of the world sturgeon, now witnessing a sharp decrease of these fish species. Some 90 percent of the popular black and red caviar sold all over the world comes from this region. Moreover, the Caspian Sea with its rich natural resources is also a home to about 141 other fish species. Recent studies show that the number of sturgeons in the Caspian Sea has decreased to a critical level.
Five coastal states, Turkmenistan, Azerbaijan, Kazakhstan, Russia and Iran, signed a framework convention on the protection of the marine environment of the Caspian Sea in November 2003.
Caspian littoral states have banned any industrial or commercial sturgeon fishing in the sea in 2013 at the 34th meeting of the Commission on Aquatic Bioresources of the Caspian Sea.
Sturgeon fishing in the Caspian Sea is allowed only for scientific research purposes.
Construction of sturgeon fish farming and fish processing complex on the coast of the Caspian Sea is proposed by Yhsan Inc. Production and packing of caviar, smoked-dried fish, canned fish, semi product fish, salt-spicy and marinated products as well as fish flour shall be facilitated in the complex.
3 [email protected] Packaging and label production plant
Turkmenistan is exporter of polymers such as polyethylene (PE) and polypropylene (PP).
However, the country continues to import polymer based products such as packaging and labeling for growing industries such as food & beverage, dairy, meat, pharmaceutical, retail, agricultural and construction.
Packaging industry is one of the leading sectors in terms of polymer consumption all around the world, in average its share makes up to 30%. Yhsan Inc. proposes establishing plant for production of flexible plastic packaging for domestic market and neighbor countries. The plant shall provide an extensive range of products which includes FIBC (Bulk Bags) to technical films, bags/liners, plain and printed films.
Inefficient export of natural gas urges this gas-rich country to develop downstream production.
386,000 tonnes/year of PE and 81,000 tonnes/year of PP production plant starts its operation in Kianly, on the coast of Turkmenistan.
Investment in production of value added products from the polymers is timely.
Information resource center for Korean companies
The lack of information is one of the obstacles foreign businesses face on their first steps to Turkmenistan. Yhsan Inc. invites Korean intergovernmental organizations, missions, trade agencies and related associations to establish in Ashgabat an integrated business services company with a team of local and Korean professionals. This company will facilitate business activities of Korean companies in legal services, market intelligence, marketing, etc. and also the company will greatly help newcomers.
Experts in different fields (from agriculture to aerospace) shall be invited from Korea to make their studies on the ground and give their reports/recommendations/views on business development. The information research center shall become a one stop service provider from initial market research service up to operation support services increasing the trade volume between the countries. Another function of the company shall be opening a platform/website where economic news, tenders, local laws are published in Korean/English language.
Ultimately, within a year the company may provide corporate partner services. It will allow small and medium sized enterprises to do business through this company without need for registering in Turkmenistan. A separate agreement with each company shall be protecting ownership rights and assets.
4 [email protected] Financial instrument development
The main obstacle for Korean (small and medium) enterprises hindering their expansion to Turkmenistan is currency exchange (from manat to USD) limitations and free capital movement.
For Korean investors, construction corporations and export oriented manufacturers one of the main obstacle hindering their expansion to Turkmenistan is undervalued hard currency which they bring in (invest in) the country. This leads to costly workforce, utilities, etc.
In order to encourage more Korean businesses to Turkmenistan, Yhsan Inc. proposes to create a platform/medium/market where Korean companies will be able to freely trade their resources between each other.
There is a memorandum (MOA) signed between Korean Exchange (KRX) and Ashgabat Stock Exchange. Further to that cooperation, it is proposed to create a financial instrument (derivative) which will be traded in and regulated by the above mentioned markets. The price of the instrument shall be fixed to Korean won, but Turkmen manat price of the instrument shall be dictated by the market (demand and supply).
