A new stage in the furniture industry: a broad path is opening up for youth, loans, and exports

The furniture industry in Uzbekistan has been developing rapidly in recent years. According to official data, 920 new enterprises began operating in this sector during 2023. The industry produced 6.7 trillion soums worth of products and became one of the key drivers of the economy.

There is potential to increase production volumes several times over

Currently, 25–30% of furniture products are still made in household conditions. This remains one of the main problems in transitioning from craftsmanship to industrial production. The government has outlined clear measures for fully industrializing the sector.

From now on, individual entrepreneurs will be officially allowed to produce furniture with up to five hired workers. In addition, young entrepreneurs aiming to grow will be offered preferential loans of up to 5 billion soums for a period of 7 years at an 18% interest rate.

Furniture centers and clusters — a new model

Today, the furniture centers in Oltiariq and Khanka are being equipped with modern technology. More than 100 enterprises operate there. Craftsmen who once worked in small home workshops are now benefiting from the opportunities of a unified cluster system.

This experience will now be expanded to Sharof Rashidov, Yangi Namangan, Past Dargom, Urta Chirchik, Kuva, Buvayda, Yunusabad, and Uchtepa districts. The goal is to elevate local producers to a new level.

Dependence on imported raw materials and customs policy

In furniture production, 50–60% of the cost comes from imported materials — such as fittings, accessories, paints, glue, and particleboard (DSP). Therefore, local producers proposed reducing customs duties.

The president approved this proposal and instructed the development of a resolution that would set a 1% customs duty on 14 types of raw materials and accessories for a period of three years.

Export potential and a new stage in branding

Last year, Uzbekistan’s furniture exports reached 20 million USD. However, experts believe that this figure can be increased tenfold through efficient use of current capacity and attention to design and branding.

To support this goal, the government will:

• partially reimburse costs for obtaining international certifications,
  
• cover a portion of salaries for foreign designers, marketers, and technologists,
  
• increase exhibition space at international expos from 20 to 40 square meters.
  

Developing human capital — a top priority

One of the keys to sustainable industry growth is a skilled workforce. As a result, officials have been instructed to annually retrain 1,000 furniture craftsmen using modern training programs and direct them to hands-on practice.

In conclusion: as Uzbekistan’s furniture industry enters a new stage, the opportunities and conditions being created by the state are expected to make the sector competitive not only domestically, but also globally. Most importantly, reforms in this field may open new doors for young entrepreneurs, designers, and engineers. Read 'Zamin' on Telegram!