Serbia is a landlocked country at the crossroads of Central, and Southeast Europe. Textile and apparel sector of the country has the credit of a long tradition, and is one of the most important industries contributing to 10% of the country's GDP. The sector currently, sees profitable option. It has made good results in exports, investments, and employment; attracting investments. The industry attracts foreign investors, and partners.


Serbian Textile & Apparel Sector:


Serbia belongs to the most price competitive countries among the European textile industries. China was a major trading powerhouse,and a tough competitor for Serbia. The country was not having high-value work.Recovering from this slump, Serbian textile and apparel production hit $325million in exports during 2006. The country manufactures garments for US and West European companies. Production is mainly based on cut-make-trim (CMT)basis. Materials are imported, and only the labor work is done and finished garments are re-exported. Coupled with its geographic advantages, Serbia's low cost and skilled labor force is being put to optimum utilization for processing business.



Serbia is dedicated to foreign markets especially the EU. The textile agreement signed by Serbia with the EU facilitates exports of textile goods by Serbia into EU without any customs duty. Almost 70% of its exports worth 200 million are exported to EU markets. Serbia has also been able to attract the business opportunities of its competitors such as; Czech Republic, Hungary, Slovenia, Poland, Latvia, Lithuania, and Estonia.

After the Serbian privatization in 2001, various Italian industries have taken advantage followed by many others signing partnership agreements with the domestic Serbian companies. Garments are the third most important goods exported from Serbia to Italy comprising of almost 60 million. Other products such as yarns, fabrics, and textile products constitute the third most important Serbian exports.

Strengths of the industry:

Textile industry of the country has stabilized with its simplified corporate tax codes, and VAT. Market environment of Serbia has become positive over a period of time. The country remains as the last continental European market for high skills and low cost; labor intensive production. Key focus of Serbian textile industry is high quality, low costs, rapid response, and full package services of contract manufacturing.

Textile and apparel sector in Serbia is ideally placed for short lead time, small production runs responding quickly to volatile fashion trends. Serbia is located in close proximity to big fashion centers such as Milan, Rome and Paris, which enhances its manufacturing options. Its location in the middle of the Balkan free trade area facilitates Serbian made goods to be shipped duty-free. Serbia is the only country outside the Commonwealth Independent States which enjoys free trade agreement with Russia at a mere 1% duty on the shipment value.

Investment Opportunities:

Virtues of the industry such as sensitivity to ever changing market preferences, speedy marketing, appropriate infrastructure, and reduced transportation costs augment its growth. Textile and apparel sector is one of the major sectors that draws investments and generate employment in the country. Serbia has attracted more than $20 billion foreign investments so far, of which a major share was invested in their textile sector. Serbias trade agreements with big nations such as; free trade agreement with countries of EU, US, Belarus, Russia, the Central European Free Trade Agreement (CEFTA), and the European Free Trade Association (EFTA) indicate its export potential of the country at present, and in the future as well.

East Media Group (emg.rs) reports Nebojsa Ciric, Minister of Economy and Regional Development, saying that over 175 million has been invested in the Serbian textile industry within the programme for support to investments and creating new jobs. Ciric stated that Italian brand Benetton will invest 50 million in 2012 generating around 2,700 fresh jobs in the textile and apparel sector. Annual production is estimated to be around 75 million of which more than 90% will be exported. He has further expressed positive expectations regarding investments from German companies.

Serbian textiles and apparels promise to offer interesting opportunities for industrial investments and collaborations. Government too, gives first priority to the textile and apparel sector in its policy frameworks. This not only regains its traditional competitiveness in the global forefront, but also attracts new foreign investments.

References:

    Fashioninserbia.com
    Serbia-business.com
    Emg.rs