MANUFACTURING SECTOR REMAINS
Astana, December 14: Kazakhstan
has entered the top 20 countries in receipt of foreign direct investment. The
inflow of foreign direct investment (FDI) fell sharply in 2008 due to the
global financial crisis. Although the volume of financial investments is still
showing a negative trend worldwide, in Kazakhstan, the rate of FDI remains
“In 2012, thegross inflows of FDI in Kazakhstan reached a record figure of US$28.8 billion,
which is 8.9 percent or US$2.4 billion more than in the previous year.
According to the UN Conference on Trade and Development (UNCTAD), Kazakhstan
took 19th place among the top 20 leading countries in terms of attracting
foreign direct investments,”Deputy Chairman of the National Agency for Export
and Investment KAZNEX INVEST Kairat Karmanov said at a press conference.
said, the dynamic of change in the total of investments is not a key indicator;
since the main purpose of the nation’s industrial strategy is to diversify the
economy through the development of manufacturing. Positive results can be seen
here too. For the first half of 2013, the gross inflow of FDI in the
manufacturing sector totalled US$1.6 billion, which is 5.2 percent higher than
in the same period last year.
trajectory of growth for this indicator during the implementation of the
industrial programme has changed significantly. According to the Kazakhstan
National Bank, during the SPAIID years, the gross inflows of FDI in the
manufacturing sector amounted to US$12.9 billion, or 68 percent of all foreign
direct investments in the manufacturing industry since 2005.
A large share
of investments (77.8 percent) directed to the manufacturing sector, is in
metallurgy, a sector in which FDI increased by 16 percent and amounted to
US$1.3 billion. In food manufacturing, investment inflows increased by 78
percent and reached US$234 million; in the manufacturing of rubber and plastic
products FDI increased by 79 percent to US$31.5 million; in the production of
chemical products FDI went up 43 percent to reach a total of US$22.3 million.
works to showcase investment opportunities in Kazakhstan. For example, this
year, three road-shows were held in Japan, the U.S. and Brazil to establish
contacts with foreign investors. More than 330 foreign companies participated
in the events. The fact that they took place in these countries was not by
chance. Japan and the U.S. are the world’s leaders in technology. Leading
industrial entities with significant investment potential are concentrated in
these two countries. Also, foreign investors from Turkey, Italy, the UK,
Germany and Switzerland in the automotive, chemical, energy, transport and
logistics industries took part in the events.
also promotes a positive investment image of Kazakhstan in the international
arena. Famous director, Timur Bekmambetov’s company made a video clip about
investment opportunities in Kazakhstan this year. It was played more than 1,500
times on leading international TV channels CNN, Euronews and Bloomberg.
international publications FDI Magazine and Machinery Market Magazine published
articles about investment opportunities in the country and infographics were
published in online editions of the Wall Street Journal and Bloomberg Business
Week’s iPad edition.
marketing campaign increased visits to the nation’s marketing website by more
than 50 percent (from 10,000 to 15,500 visits per month). In total, since the
Internet page was put up, more than 270 thousand visits have been registered.
The number of requests received via online resource from potential investors
grew by more than threefold.
As the deputyhead of the agency noted, according to 2012 research carried out by a
major business channel, Kazakhstan’s PR campaign has made the country one of
the most recognized nations amongst foreign business audiences in the United
States (15th place) and Europe, the Middle East and Africa (5th place).
“Both thisand last year, over 20 promotional events were held for investors, this
includes business forums and exhibitions, which resulted in 180 documents being
signed worth US$15 billion,” Deputy Chairman of the Investment Committee of the
Ministry of Industry and New Technologies, Ruslan Tasbergenov said.
“In order toattract investments to the more provincial areas of the country, we built a
system in which investors are put in contact with central state bodies, that then
organise meetings between them and local authorities,” he continued.
this process, the Committee for Investment created an online database. It
contains three types of projects: implemented, ongoing and promising.
“Particularemphasis is on attracting large investors. This year's major headline in
investment news was Toyota and Peugeot’s entry into Kazakhstan. These campaigns
are “beacons” for other investors, as they show that Kazakhstan can
successfully do business,” Tasbergenov said.
The same day,
the first award ceremony for the best foreign investors hosted by the Deputy
Prime Minister, Minister of Industry and New Technologies, Asset Issekeshev,
ambassadors and representatives of international organisations was held. The
event was held on the Day of the First President of Kazakhstan.
companies that are expanding production in provincial Kazakhstan and
reinvesting in projects were given awards by the MINT investment committee and
The most activeforeign investors are the French company Alstom (assembly of engines in Astana
and production of electric switches in Almaty), Vicat Group (construction of a
cement plant in the Zhambyl region) and Danone (construction of a dairy plant
in the Almaty region), the German company Heidelberg Cement (modernisation of a
cement plant in East Kazakhstan, construction of a cement plant in the
Mangistau region and construction of four concrete plants in Astana, Almaty and
Aktau) and Knauf (production of construction materials in Almaty and Atyrau
regions), Polish Polpharma (construction of a new and modernisation of an
existing factory belonging to Chimpharm in Shymkent), Toyota Motor Corporation
(assembly of the Fortuner model in the Kostanay region) and General Electric of
the United States (assembly of engines in Astana).
The deputyprime minister, in his welcoming speech, stressed the commitment of Kazakhstan
to the creation of an open economy and formation of a favourable investment
climate in the region. He reminded that the head of state annually holds
meetings of the Foreign Investors Council and the government's Commission on
the Investment Climate and that he set up the institute of an Investment
“Thanks tothe efforts and support of foreign investors, the qualifications of domestic
personnel have improved and investors are actively involved in social projects.
In the second five-year period of the industrial development programme, special
attention will also be paid to attracting investments to projects oriented
towards new technologies,”Issekeshev said.
He expressedhope that investors will continue to participate in projects in priority
sectors of the economy.