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This year, the Law of the Republic of Kazakhstan "On Industrial Policy" came into force. The purpose of the law is to ensure the sustainable development of industry by increasing the production of high-tech, export-oriented products and moving away from the raw material model of development.
In accordance with the Decree of the Prime Minister of the Republic of Kazakhstan dated February 23, 2021 No. 37-r "On measures to implement the laws of the Republic of Kazakhstan dated December 27, 2021 "On Industrial Policy" and "On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on industrial policy", 82 legal acts are planned to be developed.
The Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan together with JSC "Kazakhstan Center for Industry and Export "QazIndustry" updated and approved at the level of Government resolutions and orders of the Ministry 30 regulatory legal acts aimed at creating basic conditions for the development of industry, promotion of domestic enterprises in domestic and foreign markets, improving the efficiency and competitiveness of industry, rules for the inclusion of industrial-innovative projects into a single industrialization map.
Currently, the authorized body, together with local executive bodies, is working on the selection and inclusion of industrial and innovative projects in a Single industrialization Map.
In order to implement the instructions of the Head of State to solve the problem of access to raw materials of existing manufacturing enterprises, a mechanism has been developed to provide processing industries with raw materials. The mechanism involves the conclusion of a tripartite agreement on the provision of raw materials between the producer of raw materials, the processor and the authorized body. The agreement provides for the volume of guaranteed supply of raw materials, obligations for complete processing and conditions for special competitive pricing.
The implementation of the mechanism will ensure a full load of raw materials, increase production capacity and increase the competitiveness of products in the sales markets.
To improve the technological processes of production and increase labor productivity, mechanisms of digital transformation of production are provided. Transformation involves the introduction of digital technologies and automation systems into production. In this direction, state incentive measures have been developed aimed at automating operational and production processes, including through the introduction of elements of Industry 4.0. The digital platform "Information System "Industry" will contain information about the state of industries, the forecast of their development in the context of the subject.
An increase in the self-sufficiency of the national economy and an increase in the share of domestic production will be achieved through the introduction of regulation of the offtake contract market. The availability of provisions for planning and concluding offtake contracts allows potential customers and suppliers to plan production activities for a long period, invest in production, etc.
Due to the end of the transition period after Kazakhstan's entry into the WTO and the abolition of the requirement for local content, amendments were made to the relevant regulatory legal acts to introduce a new term "intra-country value", monitor the development of local content and develop new incentive measures.
As part of the support of domestic enterprises, the Law focuses on the transition from the sectoral principle of support to stimulating the development of production of specific types of processed products of medium and upper processing. To do this, the authorized state body, within its competence, has approved a list of goods by levels of redistribution that have high added value and product complexity. The inclusion of goods in this list will increase the export potential of the manufacturing industry and increase the technological complexity of the products produced.
Industrial enterprises, as well as other legal entities producing goods and services whose products fall under the list, have the right to receive financial measures of state incentives.
In order to increase the effectiveness of the financial measures provided, as well as the interest and responsibility of the business in the successful implementation of projects, the criteria for the introduction of counter obligations are defined, taking into account the type and volume of the measure received by the enterprise. The obligations of enterprises are aimed at fulfilling economic indicators, including socially significant ones.
It is possible for enterprises to receive an individual combined package of government incentives through the conclusion of an agreement on improving competitiveness, which allows businesses to plan production activities in the long term.
Taking into account these innovations, the current legal acts defining the procedure, conditions and mechanism for financing industrial and innovative projects have been updated:
- provision of measures of state stimulation of industry aimed at promoting domestic processed goods, works and services to the domestic market;
- provision of measures of state stimulation of industry aimed at increasing labor productivity;
- provision of measures for the development of territorial clusters.
In order to increase the level of manufacturability of manufactured products, a new incentive tool is being introduced - an industrial grant. The tool will be provided for the modernization of production by updating the technological equipment or technological line.
The implementation of industrial policy ensures the industrial development of the country. For the first time, the evaluation of its implementation is legislatively defined by introducing a set of industrial policy tools, starting from the formation and ending with the evaluation of the work carried out. Thus, in order to inform about the state of industry and measures taken by the Government, a National report on the state of industry of the Republic of Kazakhstan is being introduced, which is the main tool for the formation of industrial policy.
The formation of industrial policy is carried out on the basis of an assessment of industrial development and an assessment of the effectiveness of state incentive measures.
The assessment of industrial development makes it possible to determine competitive advantages, main problems and plans for further policy. The implementation of this tool will give the procedure for the formation of industrial policy a systematic character based on analytical information.
To assess the effectiveness of the implementation of state incentives for industry, the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan has developed a methodology for assessing the effectiveness of the implementation of state incentives for industry, as well as forms designed to collect administrative data in the field of industry.
In order to ensure full-fledged monitoring of manufacturing industry projects, as well as their effective implementation, the Rules for Including industrial and Innovative projects in a Single industrialization map, as well as the Methodology for Monitoring such projects, have been approved.
The result of the assessment will be a National report on the state of industry, formed by the Government of the Republic of Kazakhstan addressed to the Head of State, containing conclusions and proposals for further solving the tasks of state policy in the field of industry.
In order to effectively implement industrial policy and coordinate the actions of various State bodies, the Interdepartmental commission on Industrial Policy was established under the chairmanship of the Deputy Prime Minister. The IMC will allow responding to business problems in a timely manner, for example, the Government has the competence to approve new and revise existing incentive measures.
The adopted by-laws will contribute to improving the competitiveness of the manufacturing industry and solving key tasks.