With its geographic location, 17 free trade agreements (FTAs) with 46 countries, including Deep and Comprehensive FTA with the European Union, combined with availability of skilled workforce and competitive production costs, Ukraine can become a major platform for production of fabric, garment and footwear, focused on both domestic and export markets.
Indeed, the textile industry already occupies one of the leading positions in Ukraine’s manufacturing. Ukraine currently has over 2,500 manufacturing plants operating in the textile industry, with between 80% and 90% of all production bound for export markets.
Given increased demand for quality fabrics due to rapid development of Ukraine’s garment and footwear industry, combined with lower than average utility and labor costs, Ukraine can become a major player in global fabric production.
Garment and Footwear
Ukraine’s garment and footwear industry is the latest sector to experience an unprecedented boom. Given its competitive advantages, Ukraine has a strong potential to acquire markets from the CEE cluster and Turkey hub in garment and footwear manufacturing.
A number of global fashion brands, such as Hugo Boss, Marks & Spencer, Tommy Hilfiger, already have production facilities in Ukraine and enjoy benefits of cost-efficient manufacturing.