Jordan Garment Industry Faces Challenges

Egypt

Mohammed Klose, President of the business association, said that the export of Jordan's clothing industry is facing many challenges.

In the context of rising local manufacturing costs and unstable government economic decisions, Jordan garment industry needs to maintain competitiveness in overseas markets and attract new investment.

Official data show the first 4 months of 2012.

Exports grew by 6% over the same period last year.

In the first 4 months of 2012, the export of Jordan's QIZ was $326 million, compared with $306 million in the same period in 2011.

The Jordanian apparel exporters association has successfully established a positive image of the Jordanian market in the hearts of American buyers.

The United States accounts for more than 90% of Jordan's clothing exports.

It is gratifying to note that despite the Jordanian people's demands for policy and economic reform, Jordan's environment remains stable.

Electricity prices in Jordan have risen by about 5% in recent years.

At the same time, the cost of shipping increased after the rise of local ship fuel prices.

In addition, the minimum standards for labour wages and work permits have also risen.

However, Jordan has maintained the competitiveness of the Jordanian garment industry in overseas markets by reducing the impact of rising local manufacturing costs, and the export volume has continued to rise.

For some time, the Jordanian apparel exporters association has digested the increased manufacturing costs and eased the pressure on buyers, maintaining the competitiveness of the industry in the face of other rival countries, such as China, Pakistan, Egypt and Bangladesh.

The continuous introduction of economic decisions and the announcement of the government's tendency to modify the tax law have reduced the importance of Jordan's clothing industry and its competitiveness in foreign markets, and at the same time reduced the chances of attracting new investment opportunities.

At present, the investment in Jordan's clothing industry is about 700 million dollars.

Mohammed crane called on the government not to do something harmful.

Resolution of competitiveness.

Jordan's garment exports account for about 14% of Jordan's total exports.

He also said that the Jordanian exporters' Association should take part in the government's decision on the industry.

At present, the number of workers in Jordan's garment factories is 43 thousand, 27 thousand of the foreign workers employed in the qualified industrial zones, 16 thousand of the employed workers in the qualified industrial zones and outside the District, and 65% of the female workers.

According to the monthly export data released by the Ministry of industry and trade of Jordan, the export volume of Jordan clothing in January 2012 was US $91 million, and in February and March it was US $81 million, and in April it continued to decline to US $72 million.

Mohammed crane estimated the above industry indicators since the beginning of the year, saying that the export figures for the first quarter of each year are low because of the signing of the new export contracts, but will gradually increase in April.

It is expected that in the coming months, there will be a significant improvement in the indicators of the clothing industry.