Turkmenistan 2018 1 Table of Contents Doing Business in Turkmenistan ________________________________________ 7 Market Overview ______________________________________________________________ 7 Market Challenges ____________________________________________________________ 8 Market Opportunities __________________________________________________________ 8 Market Entry Strategy _________________________________________________________ 9 Political Environment ________________________________________________________ 10 Selling US Products & Services ________________________________________ 10 Using an Agent to Sell US Products and Services _________________________________ 10 Establishing an Office ________________________________________________________ 10 Requirements for Establishing a Representative Office: ___________________________ 10 Requirements for Establishing a Branch: ________________________________________ 11 Requirements for Establishing a Joint Venture: __________________________________ 11 Turkmenistan joint venture participants also must submit: _________________________ 12 Franchising _________________________________________________________________ 12 Direct Marketing _____________________________________________________________ 12 Joint Ventures/Licensing _____________________________________________________ 12 Selling to the Government ____________________________________________________ 13 Distribution & Sales Channels _________________________________________________ 14 Express Delivery ____________________________________________________________ 14 Selling Factors & Techniques __________________________________________________ 14 eCommerce _________________________________________________________________ 14 Trade Promotion & Advertising ________________________________________________ 14 Pricing _____________________________________________________________________ 14 Sales Service/Customer Support _______________________________________________ 15 Protecting Intellectual Property ________________________________________________ 15 Due Diligence _______________________________________________________________ 15 Local Professional Services ___________________________________________________ 15 State Organizations: ___________________________________________________________ 15 Private Firms: ________________________________________________________________ 16 Principal Business Associations _______________________________________________ 17 Limitations on Selling US Products and Services _________________________________ 17 Web Resources _____________________________________________________________ 17 Leading Sectors for US Exports & Investments ___________________________ 18 Oil and Gas _________________________________________________________________ 18 Leading Sub-Sectors __________________________________________________________ 18 Opportunities ________________________________________________________________ 18 Web Resources ______________________________________________________________ 19 Oil and Natural Gas Refining __________________________________________________ 19 Overview ___________________________________________________________________ 19 Leading Sub-Sectors __________________________________________________________ 20 Opportunities ________________________________________________________________ 20 Web Resources ______________________________________________________________ 20 Chemical Industry ___________________________________________________________ 20 Overview ___________________________________________________________________ 20 Leading Sub-Sectors __________________________________________________________ 21 Opportunities ________________________________________________________________ 21 Web Resources ______________________________________________________________ 21 Transportation ______________________________________________________________ 21 Overview ___________________________________________________________________ 21 Leading Sub-Sectors __________________________________________________________ 23 Opportunities ________________________________________________________________ 23 Web Resources ______________________________________________________________ 23 Customs, Regulations & Standards _____________________________________ 23 Trade Barriers _______________________________________________________________ 23 Import Tariff ________________________________________________________________ 23 Import Requirements & Documentation _________________________________________ 24 Labeling/Marking Requirements _______________________________________________ 25 U.S. Export Controls _________________________________________________________ 25 Temporary Entry ____________________________________________________________ 25 Prohibited & Restricted Imports ________________________________________________ 25 Customs Regulations ________________________________________________________ 26 Standards for Trade __________________________________________________________ 26 Overview ___________________________________________________________________ 26 Standards ___________________________________________________________________ 27 Testing, inspection and certification _______________________________________________ 27 Conformity Assessment ________________________________________________________ 27 Product Certification ___________________________________________________________ 27 Accreditation ________________________________________________________________ 27 Publication of technical regulations _______________________________________________ 27 Contact Information ___________________________________________________________ 27 Trade Agreements ___________________________________________________________ 27 Licensing Requirements for Professional Services ________________________________ 28 Web Resources _____________________________________________________________ 28 Investment Climate Statement _________________________________________ 29 Executive Summary __________________________________________________________ 29 Openness to and Restrictions upon Foreign Investment ___________________________ 30 Policies Toward Foreign Direct Investment ______________________________________ 30 Limits on Foreign Control and Right to Private Ownership and Establishment _________ 32 Other Investment Policy Reviews ______________________________________________ 33 Business Facilitation _________________________________________________________ 34 Outward Investment __________________________________________________________ 35 Bilateral Investment Agreements and Taxation Treaties ____________________________ 35 Legal Regime _______________________________________________________________ 35 Transparency of the Regulatory System _________________________________________ 35 Legal System and Judicial Independence ________________________________________ 36 Laws and Regulations on Foreign Direct Investment ______________________________ 37 Competition and Anti-Trust Laws ______________________________________________ 38 Expropriation and Compensation ______________________________________________ 38 Dispute Settlement ___________________________________________________________ 38 Bankruptcy Regulations ______________________________________________________ 39 Industrial Policies ___________________________________________________________ 39 Investment Incentives ________________________________________________________ 39 Foreign Trade Zones/Free Ports/Trade Facilitation ________________________________ 40 Performance and Data Localization Requirements ________________________________ 40 Protection of Property Rights __________________________________________________ 41 Real Property _______________________________________________________________ 41 Intellectual Property Rights ___________________________________________________ 41 Financial Sector _____________________________________________________________ 44 Capital Markets and Portfolio Investment ________________________________________ 44 Money and Banking System ___________________________________________________ 44 Foreign Exchange and Remittances ____________________________________________ 45 Sovereign Wealth Funds ______________________________________________________ 46 State-Owned Enterprises _____________________________________________________ 46 Privatization Program ________________________________________________________ 47 Responsible Business Conduct ________________________________________________ 48 Corruption __________________________________________________________________ 48 Resources to Report Corruption _______________________________________________ 48 Political and Security Environment _____________________________________________ 49 Labor Policies and Practices __________________________________________________ 49 OPIC and Other Investment Insurance Programs _________________________________ 50 Foreign Direct Investment and Foreign Portfolio Investment Statistics _______________ 50 Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy __________________ 50 Table 3: Sources and Destination of FDI ___________________________________________ 51 Table 4: Sources of Portfolio Investment ___________________________________________ 51 Contact for More Information on the Investment Climate Statement __________________ 51 Trade & Project Financing _____________________________________________ 52 Methods of Payment _________________________________________________________