According to the National Statistical Institute and Eurostat, Bulgarian export of clothing and textile marked growth in 2013. Last year export reached 1.8 billion euros - the highest level of Bulgarian exports since 2007. A 7-percent growth in export has been marked in comparison to 2012. Out of those 1.8 billion, export of textiles totaled € 328 million or about 18% of the total exports of the country.
Here is more from the President of the Bulgarian Association of Apparel and Textile Producers, Radina Bankova.
"Export of textiles and clothing is now going through another boom and is close to the strongest years before the crisis. European countries remain our traditional markets. We are glad that a significant recovery of the interest of these countries towards our production has been marked. A great number of major companies have been returning to Bulgaria because of its geographical location, traditionally good relations and technological capabilities of Bulgarian enterprises. Bulgaria’s biggest export market remains Germany, followed by Italy, France, Greece and Spain. Domestic consumption is relatively small. Although in 2013 a 25% rise was marked, it remains below the level of 10 percent of total production."
According to Radina Bankova, exports of textiles and clothing reach 18% of the total exports of the country, which is a considerable share. The export of petroleum products has the biggest share, followed by tourism. But how did the crisis affect the sector?
"In 2010 there was a serious decline in orders due to problems with financing long-term production programs. Fortunately, as the textile industry is almost entirely export-oriented, even the current crisis will not affect production as it is not dependent on the internal market. The factors that could negatively affect us are increase of loan interests and banking taxes.”
According to Radina Bankova, the healthy development of the sector is driven by the recovery of European markets, increased outsourcing towards Southeast Europe and outflow of investors from China where the cost of labor has increased. The complicated situation in Vietnam and Bangladesh and the political crisis over the past two years in the countries of North Africa has also led to an outflow of European investors. "All this means a fresh breath of air for the Bulgarian textile industry. The main issue remains the lack of workforce,” Ms. Bankova says.
Another big problem is the outdated regulatory framework in terms of labor legislation and the current requirements for education and vocational training. In addition, the political crisis that has been going on for a year has led to freezing of various projects under EU programs for energy efficiency and technological modernization. “I believe that for at least 2 years the Bulgarian textile industry will not be able to apply for financing from European programs," Radina Bankova says.
What is the future of textile and clothing industry in Bulgaria?
"We are extremely dependent on the development of economic and political environment in the EU. It is important to have a strong vision on the development of industries in Europe. Our biggest hope is that the European Commission plans to preserve traditional industries in Southeast Europe. Production of textiles and clothing is one of the traditional sectors for Bulgaria.”
English: Alexander Markov
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