ГЛАВНАЯ

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#3 (23) 2018

Made in Kazakhstan

 

 

This February, the Union of Manufacturing Industry was created. Seven industry associations representing the manufacturing sector of Kazakhstan's industry have joined this public non-profi t organization. They unite enterprises that produce non-primary commodity products. We talk to Marat Bakkulov the Chairman of the Board of the Union.

 

 

 

 

 

 

– Marat Satybaldievich, in one of your interviews you said: “One of the principles says that if you make way toward something, just set big goals, but break them into small ones. You have to assess the critical situation you are in now and start making small steps.” What are the goals set for the Union of Manufacturing Industry?

 

– To begin with, the development of manufacturing industry is determined by the President of the country as an obligatory environment for Kazakhstan to hit the list of top thirty the most developed and technologically advanced countries of the world. This point was voiced in his Message “New development opportunities in the fourth industrial revolution.” To date, Kazakhstan is the only country in the EEA, where the processing sector shows a positive growth since 2010 till now. Therefore, these companies that are members of the Union and enterprises in the field of electrical mechanical engineering, pharmaceutical industry, light industry, food industry, chemical industry and pulp and paper industries, manufacturers of elevators and furniture; so, there are prospects for further development. Suffice it to say that the total amount of taxes paid by enterprises pertaining to the Union over the past five years exceeded KZT 100 billion. This is an impressive amount that gives us the right to represent the interests of the industry in Atameken National Chamber along with Kazenegy and AGMP. We believe that in the interests of the country's economy there is a need to consolidate and develop this result. Why did we create the Union? To solve the specific problems in particular industry. We are ready to provide full and unconditional support to bona fide (responsible) domestic producers. The support is designed to ensure environment for their current businesses and further development by protecting their fair claims and interests, their reputation and creating a positive image in the public perception

Our goals are to ensure access to the market through rational protection of the domestic market, development and support of export channels and ensuring access to economic resources. And, finally, the main thing is reducing the risks of administrative regulation of the manufacturing industry.

 

 

 

- Tell us about the methods for implementing the Union’s agenda?

 

At the very beginning of our activity, we indicated that the support of the Union applies only to responsible producers. What do we mean by improving the operating conditions of such companies? First, it is to ensure an atmosphere of fair competition, where the winner is the one who makes efforts to develop his production, uses marketing skills with respect to the consumer and the public at large. Secondly, this should be facilitated by a set of state policies that stimulate the development of domestic production. Thirdly, this is an unconditional legal protection based on clear and fair legislation that defines clear rules of the game on the market.

All that is necessary for the manufacturing industry today is guaranteed contracts and transparent procurement rules. We have a successful example of such a relationship model between the customer and the commodity producer. A long-term guaranteed contract from the Ministry of Defense and Aerospace Industry of the Republic of Kazakhstan for the production of clothing (in particular, uniforms) with Zhasampaz Consortium contributed to the growth and economic strengthening of the domestic light industry.

 

 

 

- You are one of the Supervisory Board Members of the Institute of Standards. What advantage does this give to your Union?

 

- The Supervisory Board is the body that performs the functions of ensuring the implementation of the rights and legitimate interests of producers. Any market, any production must be based on the quality of the goods. There is such a thing as a “standard”, although, lately it has somewhat “lost weight”, and is now used as an “enterprise standard”. But at a new level of economic development we are talking about National Standards. Our Union is now cooperating rather with state institutions, because National Standards will be introduced into the concept of public procurement and in fact the state will buy what suits it. Today, many enterprises of our Union have begun to participate in the development of their own National Standards. The standard of an enterprise or group of enterprises is related to the industry.

Why is it so important? Our state procurement complies with bidding principle where the low price is one of decisive factors. Naturally, when it comes to reducing prices, this also affects the quality. And how can you determine the extent to which this quality has decreased? Only with the use of the National Standard. Now the National Standard is not a rigid regulatory mechanism. But there is a principle of competition, and now every market player will include performance-enhancing indicators in it. In this case, the authorities conducting public procurement will benefit from working with a manufacturer that improves quality. There must be a growth point. Who can oversee that the certificates are genuine? Only manufacturers. We want to agree that the producers work on equal terms, that is, they compete on an equal footing. The system of technical regulation will function only when the producers will deal with it. At the same time we propose, however a new and fundamentally reliable model of domestic purchases, where each enterprise should powerfully show itself.

 

 

 

- There is a manufacturing industry in Kazakhstan are common problems in it and it has the right to development and protection. How will you solve these issues?

 

- We actively participate in lawmaking and regulatory activities, representing the interests of the Union members in all commissions and working groups at all levels – from maslikhats and akimats to National Chamber of Entrepreneurs Atameken, the Government and the Parliament of the country. We also monitor compliance with the rights and interests of the Union's members. Another important focus of our activity is the upholding of preferences for domestic producers.

 

 

 

- Is it possible to talk about any specific results of the Union's work since its inception?

 

- Today the procedure of accreditation of the Union of Manufacturing Industry in the National Chamber of Entrepreneurs Atameken has been almost passed. Now we are equal members of the business community. The existence of such an institution as the National Chamber of Entrepreneurs allows the business to clearly and unequivocally outline its requests to the state administration bodies and to influence the process of adopting the relevant regulatory and legal acts. This is what we are now engaged in.

We managed to influence our partners to discuss the amendments to the “Rules for the procurement of goods, works and services by subsoil users and their contractors in operations to extract solid minerals.” We stated our firm position is to to keep the rules on delivery terms unchanged, that is at least 60 calendar days from the date of signing the contract, and rules on payment for the goods and works provided (rendered services) shall be no later than 60 calendar days from the date of signing the acceptance certificate. This was a very serious issue for us, as many subsoil users determined these positions arbitrarily in the course of concluding contracts with domestic producers. And when discussing the Rules, our opponents tried to exclude this norm from the current Rules.

We deal not only with policy-making activities and the protection of rights. The specialists of the Union conducted a number of training seminars on the procedure for the acquisition of goods, works and services in subsoil use operations, which was changed pursuant adoption of the new Code of the Republic of Kazakhstan on “Mineral Resources and Subsurface Use”. This measure dealt with the issues of regulating the procurement procedures, provision of technical documents for the goods produced, terms of delivery and payment and procedure for acceptance and transfer of goods. Over 150 representatives of our enterprises took part in the seminar.

To conclude our conversation, I want to address the readers. Kazakhstan is not only about oil, gas, coal, metals and grain. Over the years of independence, we have created a processing industry. And it is up to you to support it. To do this, the only thing you need is to prefer products with the logo “Made in Kazakhstan” while you are shopping in a supermarket.