Textiles and garments in Uzbekistan and Kyrgyzstan are important sources of jobs, exports and industrial development, but are also among the most resource-intensive and waste-generating sectors. As global markets place greater emphasis on resource efficiency, traceability, durability and producer responsibility, the sector faces a growing imperative – and opportunity – to move from linear production models towards more circular value chains.  

This new study examines how the transition to circular textile value chains can strengthen competitiveness, resilience and value creation in Kyrgyzstan and Uzbekistan. Drawing on a survey of 134 enterprises, interviews, field visits and focus groups, the study assesses circular practices and readiness across the textile value chain and identifies practical pathways for businesses and policymakers.  

The findings point to two distinct yet complementary starting points. Uzbekistan's vertically integrated, export-oriented textile industry offers opportunities to scale resource-efficient technologies and strengthen traceability, certification, and recycling systems. Kyrgyzstan's flexible, SME-driven garment sector can build circularity from the bottom up through practical measures such as improved cutting efficiency, waste separation, repair, reuse and upcycling. In both countries, moving from individual practices to functioning circular systems will require coordinated action on policy, finance, infrastructure, digital traceability and skills. 

The study translates the findings into country-specific and regional pathways for action, spanning coherent circular economy frameworks and incentives, recycling and waste-sorting infrastructure, digital material-tracking solutions, support for SMEs and women-led enterprises, and stronger regional cooperation. Together, these measures can help make circularity a driver of more competitive, inclusive and resilient textile value chains.

Produced with the support of the Government of Finland under the UNDP-implemented regional project Aid for Trade in Central Asia.