CERR has studied the development of high-tech industries in the Fergana Valley and their significance for the region’s industrial transformation

CERR has studied the development of high-tech industries in the Fergana Valley and their significance for the region’s industrial transformation

Objective of the Study

The CERR analysis aims to assess the structure of the industrial sector in the Fergana Valley, identify the export potential of high-tech manufacturing, and examine the state of human resource provision. Special attention is given to the challenges and growth points associated with further development of the region’s industrial capacity.

*Interview for the "Uzbekiston24" TV channel, "Axborot" news program.

Key Findings: Contribution and Exports

In 2024, the total volume of the Fergana Valley’s manufacturing industry amounted to 159 trillion sums, or 21.1% of the national total. Of this, Andijan region accounted for 88 trillion sums, Fergana region – 44.7 trillion sums, and Namangan region – 26.3 trillion sums.

Andijan region stands out with a particularly high share of high-tech production, accounting for about 64% of the region’s total manufacturing output. In Fergana, the share of high-tech production was 16.6%, while in Namangan – 9.5%.

There are over 13,000 manufacturing enterprises operating in the Fergana Valley, of which more than 1,100 belong to the high-tech segment. The largest concentration of such enterprises is found in the Fergana and Andijan regions.

In 2024, the export volume of high-tech manufacturing products from the region totaled $688 million, an increase of nearly 10% compared to the previous year. This accounted for more than 34% of the total manufacturing exports of the valley. The bulk of these exports came from enterprises in the Andijan region ($575.1 million), followed by Fergana ($80.9 million) and Namangan ($32.4 million) regions.

Priorities for Future Development

Based on a survey of around 370 high-tech enterprises, key areas requiring attention were identified.

According to the results, 47% of respondents reported an increase in production volumes in 2024 compared to the same period of the previous year. Regionally, the highest share of enterprises with increased production was recorded in Namangan (57%), followed by Andijan (47%) and Fergana (40%).

At the same time, 42% of enterprises reported operating below their production capacity in 2024.

Human Capital Remains a Key Priority

A major constraint to the development of the high-tech sector remains the shortage of qualified personnel. One-third (34%) of enterprises reported having open vacancies, especially for engineering and technology specialists. The demand is particularly acute in the Namangan region, where nearly every second company noted unfilled positions.

Moreover, more than 40% of enterprises reported difficulties in hiring specialists with the required competencies. Engineers-technologists remain the most in-demand category – nearly two-thirds (65%) of surveyed companies highlighted this need. A shortage of mechanical engineers and IT specialists also persists. The primary cause cited is the insufficient training of specialists in in-demand areas that meet business needs at universities and vocational institutions.

According to the CERR survey results, companies in high-tech industries have already begun implementing practical solutions. For instance, 51% of them reported organizing training and practical workshops to upgrade employee qualifications, with Namangan showing especially high activity in this area.

At the same time, a systemic approach is seen as necessary to resolve the issues related to workforce training. The most in-demand direction remains improving the quality of education in universities and colleges and strengthening oversight of academic programs – 48% of respondents emphasized this.

An important complement could be financial support for industrial internships – 24% of companies believe that incentivizing cooperation between educational institutions and businesses would enhance the practical preparedness of graduates.

One in four companies (24%) noted the importance of organizing industry exhibitions with student participation as a tool for early career guidance.

Additionally, 21% of respondents pointed to the need for establishing applied laboratories and simulation centers, as well as introducing incentive mechanisms for engineers-technologists, who play a key role in production modernization.

These proposals shape a clear agenda for further institutional support, strengthening the links between education and industry, developing human capital, and adapting educational programs to the demands of technologically advanced sectors.

Conclusion

The CERR study underscores the importance of building a strong industrial and human resource foundation in the regions as a prerequisite for sustainable industrial growth. The findings will contribute to developing proposals aimed at boosting export potential, expanding cooperation with the education system, and strengthening the role of the high-tech sector in Uzbekistan’s economy.

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