created for foreign investors. In his message «A Solid Economic Foundation for Social Development of the Kyrgyz Nation» of 30 September, 1998, the President of Kyrgyzstan set the task of raising the annual growth rate in direct foreign investments to 15% of the GDP.growing competition in attracting direct foreign investments is bound to have a positive effect on the republic s economic development and step up the implementation of further reforms directed at improving the investment climate and attracting a large amount of foreign capital. Such factors as strategically important resources, a high level of population education, cheap highly-qualified labor, a relatively high development level of the infrastructure and social sphere, and proximity to the Euroasian market undoubtedly aid most countries with a transitional economy in their efforts to attract direct foreign investments. However, experience shows that these factors alone are not enough, comprehensive structural reforms and an active state policy are also required to achieve this goal.to the Kyrgyz National Statistical Committee, Foreign Direct Investment (FDI) totaled $ 335.6 million in 2006, $ 210.3 million in 2005, $ 176 million in 2004, $ 147 million in 2003, $ 116 million in 2002 and $ 90 million in 2001. For the first nine months of 2007, FDI amounted to $ 324.5 million (1.7 times higher than at the same point in 2006). problem of registering and tracking numerous new private businesses has rendered government statistics on employment, the tax-base and national economic performance questionable. The shadow economy may account for up to one-half of overall economic activity.direct investment is chiefly oriented towards manufacturing, food processing, banking and mining. Many foreign firms conduct contract work for foreign assistance organizations. US direct investment is concentrated in the hotel and telecommunications sectors, with increasing interest in construction and mining.ventures and foreign companies in the Kyrgyz Republic include the Reetsma Kyrgyzstan Company (cigarettes), the Plaskap Bishkek Company (packaging / bottling), the Central Asian Group (entertainment / garments), the Hyatt Regency Bishkek, and the Kyrgyz Petroleum Company. A US-Turkish-Dutch joint venture operates a Coca-Cola franchise that bottles its soft drinks locally, and the Canadian gold-mining firm Centerra Gold has formed the largest western joint venture in the Kyrgyz Republic, the Kumtor Operating Company. Joint ventures play a leading role in the mining, petrochemical, hotel, and food processing sectors.to the National Statistical Committee, the following countries were the largest sources of FDI in 2006: Kazakhstan 40.78%, Germany 15.92%, Great Britain 11.32%, Cyprus 6.83%, Russia 5.9%. For the first 9 months of 2007 the largest sources of FDI were Kazakhstan 46.66%, Great Britain 13.29%, Germany 8.93%, China 6.37% and Turkey 3.48%. And the surrounding Chui region absorbed more than 85% of FDI in 2007. An additional 10% went to the Talas region, with the remaining amounts scattered among the other five regions of the country, primarily the Jalalabad and Issyk-Kul regions.fact, foreign investors not only brought finances to the economies of our countries (where capital was in such short supply after the breakup of the Soviet economy), but also new technologies and the experience of modern management. Kyrgyzstan was one of the first to adopt a law on foreign investments...