Tajikistan - Market Entry Strategy Tajikistan-Market-Entry-Strategy
Many foreign businesses use local agents and distributors.
Although foreign companies can establish a representative office, finding a reliable local partner is very helpful. Care should be taken, however, to establish relationships with trustworthy local agents. Gasoline, oil products, liquefied petroleum gas (LPG), food, and consumer goods, including capital goods, constitute the majority of all imports to Tajikistan.
U.S. companies should be aware of some difficulties in doing business here: despite its low formal tariffs, Tajikistan’s economic distance to foreign markets is among the largest in the world, due to high transportation costs, distance from seaports, and limited border crossing points with Uzbekistan and Kyrgyzstan, through which cross most of Tajikistan’s supply routes. Costs increase further due to corrupt customs, tax, and licensing authorities.
The majority of local businesses and consumers have limited awareness of U.S. goods, in spite of the fact that products of major cosmetics and toiletry brands like Johnson & Johnson and Procter & Gamble are sold through local distributors in retail outlets in Tajikistan. The local business community often assumes U.S.-branded goods are expensive due to the United States’ great distance from Tajikistan. The situation is complicated by other factors such as the time difference, language barriers, and lack of common business practices and values.
U.S. companies should be aware that Tajik officials at the national, regional, and local levels consider implementation of corporate social responsibility programs important for establishing sound relations with investors. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.