Textile and Clothing

The output of the textile and clothing sector in 2009 was worth more than 161 million EUR and accounted for approximately 4.1% of the total value of goods produced by Latvian industry. In 2009, the output of both the textile and garment sectors decreased by 43% compared to the previous year. At the end of 2008, the textile industry employed more than 15 000 people, which is around 11.3% of all industrial employees or about 1.4% of the entire Latvian workforce. At the end of 2008, the textile and clothing sector comprised 1043 companies (822 apparel and 221 textile companies).

Sector Exports
The textile industry is traditionally highly export-oriented and this continues with 84% of the sector's manufacturing output being exported in 2009. Historically based on a small number of giant enterprises, the sector has evolved into a virtual cluster with many newly-emerged, flexible and specialised SMEs. In 2009, exports decreased by 27% and reached EUR 252 million.

 Exports by Product Groups, 2009 (provisional data)

Source: Central Statistical Bureu of Latvia, 2010

The major markets for Latvian textile goods are EU member states – around 73% of all exports went to 27 countries of the European Union in 2009.

Exports of Textiles and Garments by Country, 2009  (provisional data)

Source: Central Statistical Bureu of Latvia, 2010

For a number of reasons (geographical location, knowledge of particular foreign languages by Latvian managers and entrepreneurs, logistics and timeliness of deliveries, high quality) Estonia, Sweden, Germany, Denmark and the Russian Federation have become the main cooperation partners of Latvian textile companies.

Exports of Latvian textile products to the EU25 countries have remained almost constant since 2004. In 2009 Estonia, Sweden, Denmark, Lithuania and Germany have become the main cooperation partners of Latvian textile companies.

Sector Advantages
The Latvian textile sector is already strongly export-oriented, but still has considerable potential for expansion in both western and eastern markets. The sector's main strengths are:

• skilled and flexible workforce
• experienced engineering and design staff familiar with the industry's newest trends
• dedicated managers who have often become co-owners of the companies they lead
• high quality production and design equipment
• substantial experience of working both in eastern markets and with customers and partners from western Europe

Beyond pure manufacturing, a number of related sub-sectors such as textile R&D and fashion design are rapidly increasing their presence in domestic and export markets. Most often, these additional services are included in a complete product offer with manufacturing.

Additional Information
http://www.vrua.lv/  – Latvian Textile and Clothing Industry Association