On 29 January 2015, the Kazakh-Chinese Investment Forum was held in Astana. The event was arranged by the Investment Committee of the Ministry of Investments and Development of the Republic of Kazakhstan and the National Export and Investment Agency “KAZNEX INVEST”.
On 29 January 2015, the Kazakh-Chinese Investment Forum was held in Astana. The event was arranged by the Investment Committee of the Ministry of Investments and Development of the Republic of Kazakhstan and the National Export and Investment Agency “KAZNEX INVEST”. The forum has brought together above 300 delegates from business sector, government and national companies of Kazakhstan and China.
Within the framework of the forum, a session for investments and development was conducted. The session was opened by Mr. Y.K. Sagadiyev, the Vice-Minister on Investments and Development of the Republic of Kazakhstan. Mr. Sagadiev noted that today, in accordance with its Nurly Zhol Program, Kazakhstan is holding a course for the diversification of economy, the forced industrialization, and the development of processing industry. This requires expanding the cooperation. In this connection, Kazakhstan is considering China as an important and perspective partner.
To expand the cooperation, it is necessary to improve the investment attractiveness of Kazakhstan. To date, pursuant to World Economic Forum’s Global Competitiveness Index Rankings, Kazakhstan is on the 50th place. The government of Kazakhstan is currently working a lot on improving the investment climate in the country in order that in the coming years Kazakhstan be on the list of 30 investment-attractive countries of the world. New laws will be enacted, certain procedures will be simplified, etc. This work will be implemented through (i) the Council on Foreign Investments at the level of the President of the Republic of Kazakhstan, (ii) the Council for Improvement of Investment Climate, headed by the Vice-Minister; and (iii) the investment ombudsman.
KAZNEX INVEST’s representative had a speech regarding the investment cooperation. He specified 6 priority industries of the economy at the moment. They are as follows:
Production of construction materials; and
According to KAZNEX INVEST, when implementing an investment project in the above sectors for an amount exceeding USD20 million, in addition to the existing investment preferences (exemption from customs duties and in-kind grants), the investors will have the right to the following new incentives:
- exemption from corporate income tax for the period of 10 years;
- exemption from land tax for the period of 10 years;
- exemption from property tax for the period of 8 years;
- no work permit will be required for foreign labor for the duration of construction and thereafter within one year after commissioning of the investment project;
- stable legislation: in case of a subsequent change in the laws, the above tax and migration preferences, as provided to the investors, will be retained.
KAZNEX INVEST reported that there are currently 10 special economic zones (SEZ) in Kazakhstan. When implementing a project in a SEZ, an investor may freely use the infrastructure developed at the expense of the government. In addition, the procedure for obtaining the necessary permits for carrying out the activities in a SEZ has been simplified.
The state support in the area of industrialization will be provided by JSC “Kazakhstani Institute for Industry Development”.
At the session, a presentation was made by the Managing Director of JSC Development Bank of Kazakhstan, Mr. Daulet Sakhipov. He noted that Development Bank of Kazakhstan (DBK) is a bank which is not included in the system of banks of the Republic of Kazakhstan. 100% of the shares in the bank is owned by the Government of the Republic of Kazakhstan. DBK is financed by the Government of Kazakhstan (at the moment, the Government has provided to DBK over KZT100 billion) and borrows the funds in the external markets.
- support of economic diversification;
- infrastructure development; and
- production development.
These functions are performed by DBK by virtue of:
- provision of mid-term and long-term financing;
- leasing operations;
- trade financing; and
- cooperation with foreign development banks.
Mr. Sakhipov mentioned that DBK is commencing an active lending. As the priority, DBK will finance the following sectors:
- energy production
- chemistry and petrochemical industry
- other production industries.
In the course of the session, certain issues related to cooperation in the sphere of mining; energy production and oil refining; mechanical machinery; construction and chemical industry; transport infrastructure and logistics,and light industry were discussed.
The International Law Firm Integrites was represented at the session by Elvira Khairoullina, Senior Associate in Astana Branch Office.