Bulgarian textile and apparel production reports strong growth.

By bne IntelliNews November 23, 2012
Textile and apparel orders in the country have expanded by nearly 20% in the past two years, according to estimates of the association of textile producers and exporters, investor.bg reported. The strong growth is driven by foreign companies mainly, which are increasingly transferring their production from Asia to Bulgaria, due to qualified personnel and lower transport costs. Low wage level in the sector is another reason why the country attracts the foreign companies. Textile and apparel companies export the greatest part of the production but the sector has low value added as most of the companies are operating as intermediate processors with materials supplied by the foreign partner. According to information of the economy ministry, textile and apparel production has a 5% share in total domestic industrial production and about 11% share in total exports. Statistics office data however indicated falling apparel production turnover in in 2012 (down by an average of 6% y/y in Jan-Sep). Low wages in the sector contribute to general unattractiveness of employment in the industry and create labour supply gaps that may affect negatively the sector in the long-term.

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