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

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Suresh Patel
Sidwin Fabric

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search