24 Aug 2017
Tajikistan: Market Profile
Major Economic Indicators
- Despite rich deposits of antimony, aluminium, gold and silver, and substantial hydropower (the highest among Central Asian countries) and agricultural (cotton and wheat) potential, Tajikistan is the poorest country in terms of per-capita GDP among the Central Asia countries.
- Surrounded by Afghanistan, China, Kyrgyzstan and Uzbekistan, Tajikistan is a landlocked, mountainous country, with 90% of its territory covered by mountains, half of which are over 3,000 metres above sea level.
- Like most countries in the region, Tajikistan has close ties with Russia. Economically, Tajikistan is highly dependent on remittances coming from there. About half of its working-age males are working abroad, mostly in Russia. In 2014, total volume of remittances amounted to US$3.9 billion, nearly half of the nation’s GDP.
- In recent years, however, Tajikistan’s trade with China has been increasingly vibrant. The value of bilateral trade increased from US$0.5 billion in 2007 to more than US$2.5 billion in 2014. Meanwhile, Chinese enterprises have been staffing more infrastructure projects in Tajikistan, including the Sahelistan Tunnel and Tajik-Uzbek Highway, as well as various resources extraction projects.
- To encourage foreign investment in priority sectors such as mining, chemical, light, agrarian, hydro energy, transport, tourism and finance, the Tajikistani government has offered a taxation waiver on initial investment and VAT-free importation of some industrial equipment. More information can be found at the State Committee on Investment and State Property Management of the Republic of Tajikistan.
- The inflows of foreign direct investment (FDI) to Tajikistan amounted to US$545 million in 2015, with China contributing US$219 million. As of the end of 2015, China’s total stock of FDI to Tajikistan exceeded US$909 million, up from US$30 million in 2006. Investment from Hong Kong, however, is far from significant.
Hong Kong’s Trade with Tajikistan
More information on the Belt and Road countries’ economic and investment environment, tax and other subjects that are important in considering investment and doing business are available in The Belt and Road Initiative: Country Business Guides.