Led by the IFC, the competitiveness study was conducted to show interested international brands and retailers the opportunities and viability of sourcing products from Uzbekistan.

The aim of this competitiveness study is to define how Uzbekistan can compete with selected players/countries in the international market as it enters the global value chains, and whether and on what conditions vertical integration is possible. This study is part of Better Work’s Feasibility Study and will be shared within IFC and potentially with interested parties externally who are considering Uzbekistan as a new sourcing destination.

The main objective of the study is to assess the competitiveness of Uzbekistan vis a vis selected comparator countries globally as a key driver for a medium to long-term strategy to grow Uzbekistan’s textile and apparel sector and increase its market share. The study is based on a data-driven model which IFC has developed for the purpose of this study – similar to the analysis global brands/retailers undertake when deciding on a new sourcing destination for textile/apparel.

Methodology

The study was carried out by Prof Heikki Mattila, IFC’s global Textile & Apparel Industry Specialist between June-August 2022. Data were collected from publicly available sources and from individual apparel and textile companies in nine countries. The study compares Uzbekistan’s textile and apparel sector’s competitiveness with 8 other countries for the two main export markets for global brands/retailers: EU and US. IFC staff, IFC consultants and ILO (Better Work) staff collected the data.