weighted score 4.4 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Uzbekistan
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Uzbekistan as a sourcing destination.
Labour cost competitiveness
8
Very cheap labour — average manufacturing wages well below USD 300/month. Large young workforce of 36 million. Among the most cost-competitive origins in Central Asia.
Supply base depth
4
Cotton/textiles and gold mining are established. GM Uzbekistan auto assembly operates at moderate scale. Broader manufacturing supply base remains shallow compared to established sourcing origins.
Logistics & infrastructure
3
Doubly landlocked with no sea access. All export freight must transit Kazakhstan, Turkmenistan, or the Afghanistan/Pakistan corridor. Road and rail infrastructure improving but connectivity remains a constraint.
Workforce skills
4
Young population with growing vocational training programmes. Technical skills in textiles and mining established. Engineering and advanced manufacturing skills limited. Russian and Uzbek language — English proficiency low.
Scalability
7
36-million young population provides substantial room for manufacturing scale-up. Mirziyoyev reforms since 2016 have opened investment and reduced regulatory barriers. Scalability limited mainly by logistics, not labour supply.
Ease of doing business
4
Significant reform progress since 2016 — currency convertibility, reduced state procurement, FDI opening. But bureaucratic complexity, corruption legacy, and judicial independence concerns persist.
Trade access & tariffs
3
EU GSP+ granted 2021, providing preferential access. Not a WTO member (observer status). Limited FTA network. Regional trade within Central Asia developing but volumes remain modest.
Sustainability baseline
3
Aral Sea environmental catastrophe is a legacy issue. Water stress is severe. Energy mix dominated by natural gas. ESG reporting and factory-level sustainability infrastructure are at early stages.
Innovation & IP
5
R&D investment is low by global standards but increasing from a very low base. Patent activity minimal. University-industry linkages developing. IP protection framework exists but enforcement is weak.
Quality standards
3
Cotton grading follows established standards. Automotive assembly (GM Uzbekistan) operates to international quality systems. Broader manufacturing quality management infrastructure is underdeveloped.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage levels
- Uzbekistan offers very cheap labour by global standards. Average manufacturing wages remain well below USD 300/month, making it one of the most cost-competitive sourcing origins in Central Asia. The 36-million population skews young, providing a large available workforce.
- Key export sectors
- Cotton and textiles are the dominant labour-intensive exports. Gold mining is a major revenue source. GM Uzbekistan operates automotive assembly for the domestic and regional market. Silk production is historically significant but smaller in scale.
- Logistics constraint
- Uzbekistan is doubly landlocked — no direct sea access and bordered by other landlocked countries. All export freight must transit through neighbouring states (Kazakhstan, Turkmenistan, or Afghanistan/Pakistan corridor) before reaching a seaport, adding cost and complexity.
Trade Access & Reform Environment
Trade Access & Reform Environment
- EU GSP+ status
- Uzbekistan was granted EU GSP+ status in 2021, providing duty-free or reduced-tariff access to the EU market across a wide range of product categories. GSP+ is conditional on ratification and effective implementation of 27 international conventions covering human rights, labour, environment, and governance.
- Mirziyoyev reforms
- Since President Mirziyoyev took office in 2016, Uzbekistan has pursued significant economic liberalisation — including currency convertibility, reduced state cotton procurement, privatisation of state enterprises, and opening to foreign investment. The reform trajectory is the most ambitious in Central Asia.
- Demographic advantage
- With approximately 36 million people and a median age under 30, Uzbekistan has the largest and youngest population in Central Asia. This demographic profile supports long-term labour supply for manufacturing expansion, though skills development and vocational training infrastructure remain works in progress.