Textile manufacturers eye German markets

TIRANA, April 18 – Albania garment and footwear manufacturers have intensified efforts to enter the German market, benefiting from increased production but also technical and financial assistance. This was announced last week during a workshop on the potentials of the Albanian clothing industry organized in cooperation with the German Technical Cooperation (GTZ). Addressing the seminar Economy Minister Nasip Naco said the Albanian government welcomed strategic foreign investors such as German company Logwin, pledging full support in return for more jobs, and new quality products.
Few weeks ago, government decided to remove the 12.5 percent customs duty applied to the garment and footwear industry in an effort to strengthen the country’s top exporter by attracting more foreign investors and creating more jobs.
The government decision removes customs tariffs for all raw-material this industry imports and the finished goods it re-exports in a measure which Prime Minister Sali Berisha says will revitalize the garment and footwear companies.
Despite the negative impact the industry is expected to have on budget revenues this year, higher employment and a narrower trade deficit by next year are considered worth the effort by government.
Data show Italy continues remaining Albania’s main destination in the textile and shoe exports in the followed by Germany and Greece.
Latest INSTAT data reconfirm Germany as the top second destination of Albanian exports for textiles and footwear with 688 million lek (6.9 million dollars) for the first two months of this year. The list is topped by Italy with 8.6 billion lek and Greece which ranks third with 528 million lek in January-February 2011.
Government officials say Albania is first in Europe for the lowest tax burden on foreign direct investment, and the lowest minimum wage at 19,000 lek (190 dollars per month) as well as the youngest population in Europe with an average age of 31 years.
In a forum held last year, German Ambassador to Albania Carola M