Turkiye’s 2024-2028 FDI Strategy to Enhance Integration in Global Supply Chains through Green and Digital Transformation Initiatives
Turkiye is poised to elevate its standing in global value chains by launching strategic initiatives aimed at boosting its potential in the international direct investment (FDI) market. The newly released “Turkiye FDI Strategy (2024-2028),” prepared by the Investment Office, outlines the comprehensive framework for Turkiye’s FDI policies and guides future actions in this domain.
According to the strategy, the country’s integration into global value chains will be enhanced by increasing its alignment with international trade policies, particularly in green and digital transformation sectors. Legislative efforts will be made to improve competitiveness in digital markets, and the impact of EU digital economy regulations on Turkiye’s trade will be thoroughly assessed.
In alignment with global economic trends, Turkiye will update its bilateral and multilateral trade agreements, such as the Customs Union and free trade agreements, and pursue new agreements to further strengthen its preferential trade network. Additionally, Turkiye plans to negotiate new free trade agreements and expand the scope of existing ones, reinforcing its position as a key player in global trade.
Negotiations to update the Customs Union will be carried out with input from public and private sectors, civil society organizations, and academics, ensuring that national interests are well represented in these discussions.
Green Port Initiatives to Continue
As part of Turkiye’s efforts to solidify its position in global value chains, the country’s logistics capabilities and infrastructure will be developed across all transportation modes, with a strong emphasis on environmental sustainability and green transformation. Energy efficiency in port operations will be enhanced, and the use of low-emission or emission-free machinery and equipment will be encouraged to support green port initiatives.
Infrastructure and technology investments will be made to facilitate the use of electric or alternative fuel vehicles across all transportation modes, and new regulations will be established to promote sustainable, integrated mobility services.
To ensure the sustainability of the global supply chain, Turkiye will continue to enhance the effectiveness and diversity of its transportation corridors. In the Eastern Mediterranean, a major port will be constructed to serve as a gateway for Middle Eastern and Central Asian countries, focusing on transit cargo and contributing to regional development and export growth.
Local Firms to Integrate into Global Value Chains
Turkiye will work to increase the integration of local firms into global value chains by fostering collaborations between existing international investors and local suppliers. SMEs will be encouraged to cluster around large-scale firms, strengthening the domestic supply chain.
Efforts will be made to facilitate the inclusion of SMEs in the supply chains of major industrial producers and large enterprises. These efforts will be supported through quality, efficiency, and capacity improvements, as well as product development (R&D) activities within the supplier development processes.
To enhance efficiency and effectiveness in customs operations, Turkiye will maximize the use of information and communication technologies, aligning customs services with green and digital transformation goals.
Innovative Technologies to be Employed
Innovative technologies such as blockchain and optical character recognition (OCR) will be utilized to promote paperless customs applications in foreign trade operations. The ongoing work to integrate blockchain technology into export processes will be expanded to include the Computerized Customs Activity System (BİLGE).
Furthermore, initiatives will be undertaken to increase the share of value-added services, such as R&D, design, supply chain management, distribution, and maintenance-repair, in the manufacturing sector. The Industrial Innovation Network Mechanism Program, which supports high-tech R&D and commercialization for business partners in priority sectors, will be expanded.
Source: Trthaber / Prepared by Irem Yildiz