Mogilev region is actively presenting its economic and investment potential, well-known Mogilev manufacturers are successfully expanding sales markets. According to the results of 2023, about half of the manufactured products were supplied to foreign markets. What is the key to the success of Mogilev region? Why is now the best time for a breakthrough in foreign trade? And what unique offers does this eastern region of Belarus attract foreign partners with today? Ruslan Strakhar, Deputy Chairman of the Mogilev Regional Executive Committee, has explained it in an interview with the "Mercury" editorial board.
Ruslan Borisovich, which sectors of the Mogilev region's economy have the greatest export potential for the next five years?
Mogilev region is historically an industrial region. During the Soviet Union times we had the most powerful mechanical engineering and chemical industry enterprises working for the needs of the whole Union. We have not only preserved all of them, but are also successfully developing new industries. The country's only manufacturers of automobile tires, elevators, two out of three cement plants of the country are located here.
Chemical fibers, fabrics, clothes, municipal and agricultural machinery, foodstuffs are produced in the region. In addition, over the last 10 years, a number of modern enterprises engaged in deep processing of wood and furniture production have been set up.
All these industries are export-oriented, almost all the manufactured products are in steady demand in foreign markets.
According to the results of 2023, about a half (47.2 percent) of the manufactured products were exported. In addition, we managed to increase the physical volume of exports by 7 percent, while the average export prices decreased by almost 20 percent. The most important thing is that by the end of 2023, the region had a positive balance of foreign trade in goods, which made 875 million US dollars.
What are the strategic plans of the Regional Executive Committee to increase the export potential of the Mogilev region enterprises?
The main goal of the foreign economic policy of our state is to ensure balanced development of foreign trade by increasing exports of goods and services, their geographical diversification and improvement of the export basket.
It's a challenging time we live in. We are witnessing a structural change in the world's political, economic and trade processes. The very notion of binding agreements is changing. Sometimes it goes against common sense and the fundamentals of economics.
Today, in the conditions of unprecedented external challenges, close integration with our strategic partners, especially the Russian Federation, is extremely important.
For sure, cooperation is based on economic ties. It should be so, because economy is the basis of all social processes.
Now it's time to improve the competitiveness of our countries by deepening industrial cooperation, to address the issues of specialization, import substitution, primarily in mechanical engineering and other high-tech industries.
In addition, it is necessary to maximize interregional cooperation, develop transport and logistics corridors, and find additional drivers for integration processes.
However, given the fact that the Russian market is becoming more competitive, and Russian manufacturers are increasing their production volumes, we set ourselves the task of concentrating our efforts on developing product niches in the "eastern" direction, consolidating our positions in the new fast-growing markets of Asia, Africa, the Middle East and Latin America. Furthermore, we already observe positive trends in this direction.
According to the results of the first quarter of this year, the goods of Mogilev region were supplied to the markets of 56 countries. Compared to January – March 2023, the export geography has expanded by 10 new countries. In addition, a number of European countries and the USA are renewing their interest in our products.
Supplies to Germany, Norway, Romania, Slovenia, Estonia, Spain have increased.
And, of course, the Chinese market, which is one of the key export destinations for our producers. At the end of last year, China was the third largest market for the region's products.
What are the current initiatives of the Regional Executive Committee aimed at assisting the region's enterprises in increasing export volumes?
In order to increase the region's exports, the potential of interregional cooperation is actively used.
This year only, the Regional Executive Committee has organized and held a number of significant events. First of all, the Days of Mogilev Region in the Belarusian pavilion at VDNKh in Moscow, within the framework of which the industrial and investment potential of the region was presented.
Industrial products were presented by OJSC "Mogilevliftmash", RUE "Zavod Gazetnoy Bumagi" ("Newsprint Plant"), OJSC "Belshina", Bobruisk Plant of Tractor Parts and Units; consumer goods were demonstrated by OJSC "Mogotex", OJSC "Lenta", OJSC "Bobruisktrikotazh", OJSC "Slavyanka", Krasny Metallist JSC, Triada Ltd.
The Mogilev region processing industry organizations presented their products and organized tastings, such as OJSC "Babushkina Krynka", OJSC "Mogilev Meat Processing Plant", OJSC "Krasny Pischevik", Domochay ВКК JSC, Goretsky Food Combine, Klimovichi Distillery, OJSC "Mogilev Ice Cream Factory", OJSC "MogNat Company".
Almost all these companies also presented their products in the Belarusian pavilion at the 21st China Food Exhibition, which was held in mid-May in Luohe (Henan Province, PRC), where the Republic of Belarus was the guest of honor.
At present, together with the Mogilev Branch of the Belarusian Chamber of Commerce and Industry, we are working out the promotion of our enterprises' products to the African continent.
What are the main obstacles that local enterprises face when trying to enter foreign markets?
Entering foreign markets is always hard work. You have to take a number of serious, thoughtful actions backed by human and financial resources. You can't just enter the market of another country – you have to go through a lot of technical registration procedures, study the market, understand its preferences and conduct a serious marketing campaign. For manufacturers, entering new markets of the "far arc" countries, such as China, India, African countries, the Middle East and South-East Asia, is often associated with significant costs, which often outstrip profits.
In addition, the most important barriers to foreign trade activities include complication of supply chains, increase in tariffs of international carriers, cost and time of delivery of goods, complexity of cross-border banking transactions, instability of currency exchange rates.
How does the Regional Executive Committee cooperate with the regional branch of the Belarusian Chamber of Commerce and Industry in supporting the Mogilev region exporters?
We work closely with the Mogilev Branch of the BelCCI on the organization of international events, both in Mogilev region and abroad. Together we have organized Days of the Republic of Belarus in Primorsky Krai, Days of the Republic of Belarus in Khabarovsk Krai, Days of Mogilev Region in the Belarusian pavilion at VDNKh in Moscow. As a rule, these are large-scale events that include an exhibition-fair, regional business forums, B2B negotiations.
I would like to dwell separately on the events that the Mogilev Regional Executive Committee has been organizing annually since 2010 in cooperation with the Belarusian Chamber of Commerce and Industry and the Mogilev Branch of the BelCCI. Within the framework of the national holiday "Kupalye" ("Alexandria gathers friends") we meet with heads and commercial counsellors of the foreign diplomatic missions accredited in Belarus.
And these are not only cultural events, we also familiarize our guests with the economic and investment potential of Mogilev region, organize visits to enterprises, hold economic briefings. And every year there are new sites to visit, new topics to discuss. Thus, together we promote the opportunities of the region and our enterprises. And they certainly have much to offer foreign partners.
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