From January to September 2016 textile production in Kyrgyzstan has decreased by 30.3 per cent and clothing production by 15.8 per cent. Reasons include the financial crisis in partner countries such as Kazakhstan and Russia. The textile and clothing industry in Kyrgyzstan comprises mainly of small and medium-sized enterprises. It’s the highest export earner after gold and food.

Kyrgyz sewing companies have benefited from Kyrgyzstan's entry into the EEU. The cost of fabrics imported to Kyrgyzstan has increased only by seven to eight per cent while there are now no customs procedures at the border and delivery of goods to Russia has become one day shorter. Freight forwarders have reduced the cost of delivery of clothes from Kyrgyzstan to Russia by half.

At the same time, the garment industry faces problems. Most apparel businesses do not have their own premises, and the rented premises are often not suitable for production. The industry also suffers from limits on electricity consumption and shortage of skilled workers and working capital.

In order to adapt to increasing competition, apparel companies need better knowledge of the market, administrative and operational management skills, and better access to financial resources. The dollar appreciation and depreciation of the Russian ruble against the Kyrgyz som affected Kyrgyz exports.