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The NISS KR within the framework of collaboration with the Eurasian Economic Commission carried out a research on "Solutions to problems of import substitution through the development of industrial cooperation of the Eurasian Economic Union (EAEU) member states based on industrial complexes’ analysis and Kyrgyz Republic’s general market ". According to a survey among enterprises having the largest revenue within the manufacturing industry (excluding food industry), there was a lack of production cooperatives in the form of joint production. In addition, the results of the survey have shown that among 95% of respondents who noted the presence of certain barriers to production cooperation, main factors that hindered development were:

- the shortage of working capital for the development of cooperative relations with enterprises;

- long distances and large transportation costs, leading to higher prices of products;

- lack of information about potential partners;

- lack of information about Kyrgyz companies in the EAEU member countries’ markets.

For the most part, respondents note that enterprises of Russia and Kazakhstan are the most attractive for cooperation.

The research has shown that of highest priority are the textile and clothing industry, along with such sectors as leather and footwear, fur and wool processing. In these sectors, the Kyrgyz Republic has potential to provide itself with its own raw materials: moisture, cotton, skins of bovine animals, sheep and goats etc. Favorable conditions for choosing these industries are: a short payback period, the ability to quickly change the product range with minimum costs, relatively low electricity prices, inexpensive labor and flexibility of the tax system (based on a patent). In addition, the production of garments has a high export potential and plays a big role in meeting the needs of the country's population.






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