Textile Industry in Serbia
Textile Industry in Serbia
Textile Industry in Serbia
TEXTILE
INDUSTRY
CONTENT
ABOUT SERBIA
02
TRADE UNLIMITED
06
07
08
16
Key Strenghts
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28
SIEPA
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ABOUT
SERBIA
02
1 2
A Perfect Place
for All Types of
Manufacturing
On the EU
Pathway
Fast
Forward
ZONE
3h
88,361 km2
2h
1
1$
GDP
2012
GDP pc
2012
Real GDP growth
2012
Annualized inflation
rate (2012)
Unemployment
rate 2012
Trade
1h
BELGRADE
RSD 113.13
3
RSD 88.12
29,933 million
5
4,133.7
6
-1.7 %
12.2%
22.4 %
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05
TRADE
FAVORABLE
UNLIMITED ITED TAX SYSTEM
Serbia is a manufacturing hub which enables duty-free exports to
markets with a total of almost a billion people
The free trade of textile products to
EU was instituted in 2005.
Although Serbia has exported freely
into the EU since 2001 under granted
trade preferences, free trade was
further instituted by the signing of
the Stabilisation and Association
Agreement with the EU in 2008. As
a result of the Agreement, Serbia
has also been gradually eliminating
import customs duties for industrial
and certain agricultural products from
EU countries. All these duties will be
completely removed by 2014.
Outside the Commonwealth of
Independent States, Serbia is the
only country with a Free Trade
Agreement with Russia. Serbia has
also signed free trade agreements
with Belarus and Turkey.
In 2006, Serbia signed the first
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07
TEXTILE
INDUSTRY
IN SERBIA
sECTOR
OVERVIEW
Manufacturing
Textile
production
Garment
production
Textile 10
industry
Enterprises
87,787
17,282
486
1,054
1,540
1,024,796
345,719
8,178
21,743
29,921
6,303,515
1,880,400
15,734
32,822
48,556
Employees
Turnover
10
09
Number of enterprises and employees within textile industry enterprises classified by size (2010)
Small
(10-49 employees)
Total in textile
industry
Garment
production
Textile
production
Micro
(0-9 employees)
Large
(250+ employees)
Medium
(50-249 employees)
The textile industry in Serbia boasts a highly qualified labor force on account of on its educational system, including
both high-school and university levels. Tailors and technicians are educated in specialized high schools evenly spread
throughout the country. Higher levels of education at specialized university departments offer post-graduate education
in related fields. Design experts are educated in numerous secondary schools, colleges, and universities.
398
62
22
1,072
1,484
2,312
3,310
770
214
56
14
2,200
5,205
5,675
8,663
1,168
276
78
18
3,272
6,689
7,987
11,973
Serbias strong tradition of textile manufacturing and exports yielded business-minded companies with highly skilled workforce.
Companies have proven they have experience in maintaining customer relations and meeting customer requirements
according to international standards. This was substantiated by the stable number of employees within the industry
during the period 2010-2012, following the initial contraction in 2010 which resulted from the global economic downturn.
2009
2010
Textile production
2011
Garment production
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Belgium
Slovenia
Export and import of Serbian textile industry in 2012 (in million US$)
Export
Import
Balance
Romania
France
Jan - Dec
2011
Jan - Dec
2012
Index
Jan - Dec
2011
Jan - Dec
2012
Index
Jan - Dec
2012
10,904.5
10,526.8
97
16,274.1
15.397,1
95
- 4,870.3
Textile production
370.7
411.2
111
651.1
607,9
93
- 196.7
Garment production
256.1
251.6
98
261.6
257,8
99
- 6.2
626.8
662.8
106
912.7
865,7
95
- 202.9
Russia
Manufacturing
Croatia
Montenegro
Germany
Italy
0
50
100
150
200
250
external
trade
50
100
150
200
250
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key
competences
cotton sportswear
Serbian
textile
industry
has the
strongest
capacity in:
knitwear
hosiery
underwear
GEOGRAPHICAL Division
OF TEXTILE AND GARMENT
PRODUCTION IN SERBIA
Capacities for textile and garment production exist in all parts of Serbia
Serbian textile companies are capable of offering CM or CMT
services as well as the OEM business model of cooperation. They
produce different products: blouses chemise; trousers skirts;
dresses; suits blazers; coats jackets; jeans casual wear;
sportswear; T-shirts, sweatshirts; knitwear; socks; underwear;
work wear. They possess the equipment for processes such as:
cutting, sewing, pressing, special finishing, washing, dyeing,
printing, embroidery, knitting and hosiery production.
Capacity for good textile and garment production can be
found in all parts of Serbia, however, the industry has several
key centers. Textile sub-sector hubs with a high concentration
of specialized manufacturers are located in northern Serbia,
Ada Municipality; central Serbia, Arilje Municipality area and
southwest Serbia, Novi Pazar Municipality.
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Key
Strenghts
Why Serbia:
value for money - competitive cost for high quality products and services
Short delivery times and flexibility in minimum order quantities
transport advantages due to close proximity with EU market and suppliers
flexible, reliable and quick delivery tailored to customer needs
business opportunities in yarn, fabric, and ready-made garment production
Good geographic location and favorable economic situation
favorable trade agreements with EU, Russia, USA, CEFTA
Solid conditions for complete business operations/commission processing
Long tradition in providing services to global industry leaders
Subcontracting costs
Germany
0.72
Austria
0.65
Italy - North
0.58
Spain
0.24
Bosnia and
Herzegovina
0.08-0.09
Italy - South
0.42
Serbia
0.09-0.10
Bulgaria
0.08-0.09
Macedonia
0.08-0.09
Albania
0.06-0.07
Turkey
0.10-0.15
Greece
0.2
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23
Denmark
The strategic positioning of Serbia
provides quick delivery, while
transportation costs are extremely
competitive. A hanging transport cost
from Serbia to the EU is approximately
0.23 per garment.
Serbian textile companies can
effectively serve as secondary sources
of high-quality textiles for European
retailers. They can react swiftly to
smaller orders with quick turnaround
times. Competitively-priced labor,
as well as a strong textile tradition
in Serbia, ensures manufacturing
of high-quality products at very
competitive prices.
Ireland
Lithuania
United
Kingdom
Netherlands
Belgium
Poland
Germany
Ukraine
Czech
Republic
Slovakia
France
Austria
Switzerland
Hungary
Slovenia
Romania
Croatia
Bosnia and
Herzegovina
Belgrade
Bulgaria
Italy
Montenegro
Portugal
Spain
Macedonia
Albania
Turkey
Greece
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25
Textile industry
in Serbia provides
numerous business
opportunities,
primarily in yarn,
fabric and ready-made
garment production.
There are significant capacities in
production of certain raw materials
and other integral parts for textile
production such as:
leather
cotton fabrics, different types of
yarns, fiber and fabrics
integral parts of textile products
(labels, shoulder pads, other)
On the other hand, insufficient
capacities in the production of
yarns, fibers and different types
of fabrics is compensated with
imports from China, India, Italy,
Spain, Turkey and Slovenia.
Due to the complexity and variety of
materials and other parts integrated
into textile products, a number of
products which belong under the
category of integral parts of textile
products are also imported from
China, Germany, Italy and Romania.
The fact that the textile industry
is highly dependent on imported
materials creates extensive opportunities
for investment in this field. In order
for Serbian textile producers to benefit
from the existing agreement with the
EU, it is required that all raw materials
used in the production of textiles and
garments are of either Serbian or EU
origin. Since importing raw materials
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serbian apparel
More than 25
investors have
already taken
advantage of the
opportunity to invest
in Serbias textile
industry.
In terms of the number of investment
projects and jobs created, the textile
industry ranks quite high on the list
of sector attractiveness. Companies
such as Benetton, Calzedonia, Golden
Lady, Pompea and many more are
extensively using their production
facilities as secondary manufacturing
sites for the production of highquality garments.
The largest foreign direct investment,
when it comes to textiles, was
recorded in hosiery production,
primarily due to the status of the
Most-Favored-Nation, granted to
Serbia by the US in 2004/2005.
As a result, tariff rates for hosiery
made in Serbia are lower than tariff
rates for EU hosiery towards the
US market. It is for this reason, that
Italian hosiery firms such as Golden
Lady and Calzedonia as well as
Germanys Falke, are produced in
Serbia today.
www.serbianapparel.com
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CLOTHING
AND
TEXTILE
INDUSTRY
FDI
RY
COMPROM PLUS
29
serbia
investment
and export
promotion
agency
www.siepa.gov.rs
SerbiaInvestmentandExportPromotion
Agency (SIEPA) was established more
than a decade ago and entrusted
with the mission to support foreign
companies seeking to set up or expand
their presence in Serbia and Serbian
companies doing business abroad.
Today, a staff of nearly 50 multilingual
employees handles projects from and
to all over the world.
We provide professional services to
companies interested in setting up
business operations in Serbia, focusing
on all relevant issues in their decision
making process. Our staff is ready to offer
Milica Tomic
Export Promotion Advisor
Textile Industry
T: +381 11 3398 644
milica.tomic@siepa.gov.rs
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