Post on 07-Aug-2020
FDI policy in Kyrgyz Republic
Interesting facts
I Issyk-Kul: 2nd lake in the world on water transparency
I 80 touristic zones
I 8000 кm2 – eternal glaciers
Why KYRGYZSTAN?
Rich mineral reserves
Neighborhood with large economies
Liberal investment environment
The lowest tax regime
Strategy and Goals of FDI
• Draft strategy on stage of development
• To double the FDI by 2017
• GDP growth
• Poverty reduction
1. Priorities
- Fight against corruption;
- Creating favorable conditions for business.
2. The key measures in fight against corruption are:
- reduction of the state apparatus by 20%,
- exclusion of unjustified interference of state bodies into the activity of business entities,
- reduction of state services from 20 thousand to 380;
- reduction of licensed activities from 500 to 180.
3. Also administrative obstacles and restrictions in the sphere of investment activity are being actively eliminated.
- administrative barriers and restrictions elimination ;
- legal environment improvement;
- liberalization of internal and external trade regimes.
Reforms for improvement of investment
climate
The law on investment in
Kyrgyz Republic
The law on public-private partnership in Kyrgyz Republic
Subsoil law
•Equal rights
•National regime
• Infrastructure development
•Raising of private capital to public projects
•Effective management
•Market mechanisms of mining regulation
•Fight against corruption
Investment Legislation of Kyrgyz Republic
FDI policy making and coordination
• The government of KR, Ministry of economy and line ministries responsible for FDI policy promotion
• The only body coordinating the FDI policy is Ministry of economy
Trade policy
• Open policy, the KR is the member of the WTO (tariffs, taxes and licences)
• KR is preparing to enter the Custom Union
Rating of Kyrgyzstan on ease of Doing Business
Index (Doing Business) Ministry of Economy of Kyrgyz
Republic
Indexes Kyrgyzstan
Doing business
Орду
68
Starting a business 12
Receipt of
permissions for
construction
66
Connecting to power
networks
180
Property registration 9
Receipt of credits 13
Protection of
investors
22
Taxation 127
International trade 182
Execution of
contracts
70
bankruptcy
procedures
132
Procedures
(quantity)
quantity of d
Days Expenditures
Starting a business 2 8 2,7% from GDP revenue
per capita
Property
registration
4 6 0,3% of cost of asset
143
112
92
78
71
68
50
Tajikistan
Ukraine
Russian Federation
Moldova
Region average index
Kyrgyz Republic
Kazakhstan
Comparative analysis of Kyrgyz Republic rating on ease with other countries of region
for 2013
Cheap and skilled labor force
Average Salary
Ministry of Economy of Kyrgyz Republic
0
100
200
300
400
500
600
700
800
900
2009 2010 2011
Kazakhstan Russia
Kyrgyzstan
Cost of electricity
0
0.02
0.04
0.06
0.08
0.1
0.12
Kyrgyzstan Kazakhstan Russia
I Value Added Tax (VAT) 12%
I Profit Tax (PT) 10%
I Income tax (IT) 10%
I Retail sales tax
I Limit on the expatriation of profit
I Inheritance tax
Tax regime
Tax type Kyrgyzstan China Kazakhstan Tajikistan Uzbekistan Russia
VAT 12% 17% 12% 20% 20% 18%
PT 10% 15-25% 10-20% 25-30% 9-35% 10-18%
IT 10% 5-45% 10% 8-13% 10% 13%
Environmental and Social issues
• National sustainable development strategy of the KR for 2013-2017
• Line ministries developed their own policies (FEZ, Green economy and programs)
What sector are attractive?
Agriculture
Mining
Tourism
Hydropower industry
What sector are attractive?
ICT
Transport and Logistics Light industry
Ministry of Economy of Kyrgyz Republic
Lessons learned
• Political stability
• Coordination of the policies
• Country image