Home / Knowledge / News / Apparel/Garments / Europe's relaxed RoO pushes Laos' garment exports
Europe's relaxed RoO pushes Laos' garment exports
Aug '11
Drawing benefits from Europe easing the restrictions on imports, garment exports from Laos have grown to US$ 100 million during the initial six months of the current year, registering a year-on-year rise of 29 percent.

This rise in exports is mainly attributable to hike in exports to Europe, pursuant to the European Union's decision permitting the least-developed countries (LDCs) like Laos to use imported raw materials for goods meant for export to the European market.

The European Commission came up with its new set of relaxed Rules of Origin (RoO) for LDCs on November 18, 2010. Under the rules, it permitted the LDCs to export even those goods to the EU at preferential tariff rates that were not produced from domestic raw materials. The new RoO became effective from January 1 this year.

While the garment exports from Laos has earned a competitive edge in Europe following the relaxed RoO, the country's garment industry still greatly relies on textiles imported from nearby Thailand.

During the January-June period of the current year, Laos mainly exported garments to the US, Japan and Europe with US accounting for around 17 percent of the total exports, Japan accounting for 3.3 percent and Europe accounting for the rest.

Swiftly rising orders from European importers has put the Laos garment industry, which is facing severe labour scarcity, in a predicament.

After the Thai Government's recent assurance of raising the minimum wage to 300 baht which is equivalent to US$ 10 per day, several Lao workers look for employment there as the proposed wage is much higher than 500,000 kip or US$ 62.50 that Lao garment units offer per month.

Garment exports brought in US$ 182 million to Laos during last year, 14 percent higher than revenues generated in 2009.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Apparel/Garments | On 25th Apr 2017

Walmart's Project Gigaton to help reduce emissions

Walmart has launched a sustainability platform called Project Gigaton ...

Courtesy: Arvind

Fashion | On 25th Apr 2017

The Arvind Store launches ready-to-wear brand for men

The Arvind Store has announced the launch of its own ready-to-wear...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search