The textile and clothing sector has become one of the Bulgaria’s most competitive industries in recent years with considerable investment, and export and employment opportunities. Although the production of knitted items and woven apparel represents just 7% of total industrial production, the textile and clothing industry’s share of exports rose to 25% in 2002. The sector employs more than 150,000 people.

The clothing sector used around 80% of its capacity in 2002. There are companies left which operate with obsolete equipment. However, many new companies with new machinery from Germany and Japan mainly, rationalized production processes and modern marketing arose, created by modern entrepreneurs. Most Bulgarian clothing companies are equipped for all stages of production, including pattern making, cutting, stitching and pressing. They are frequently small and medium-sized enterprises created after privatization. Most are positioned in low added-value production due to their concentration on cut-make-trim (CMT) business. The average annual wage is US$934 in 2002. The main export products are women’s and men’s woven leisurewear and sportswear. 90% of exports are destined for EU. Clothing exports amounting US$146m were realized on the USA market in 2002.

The textile sector develops positively in the last five years. There is trend of average increase significantly bigger than the average increase in industrial production. The textile share (woven and knitted fabrics production) represents 3,5% of the total industrial production and a relatively higher share in the total exports of the country with 4%.

The average annual wage is US$1,168. Most of imports of textile row materials are used in apparel production and re-exported as ready-made garments. Italy, Greece, France, Germany, Turkey, and Spain are the major textile source.


The value of the Textile and Clothing exports in 2003 amounted to about 1.5 billion USD, a 20% increase from the previous year.
Bulgaria's major trade partner has traditionally been the EU with 80% of total Textile & Clothing exports and 76% of total imports in 2003.

Aggregated foreign direct investments in Bulgarian textile and clothing industry amounted to US$178.9 million during 1998. The major foreign investors in woven apparel production are Italian (Gruppo Miroglio, Safil), Turkish (Maser Holding, Menderes), French (Dewavrin Group), Greek and German (Alt Group) companies, while Greek companies (Pangaea, Kosmos Textile, Unitex,etc.) are predominant in the production of knitted apparel. The leader in manufacture and distribution of sewing and embroidery threads (industrial and home use) COATS (UK) invested also in Bulgaria. Reasons making Bulgaria an attractive investment location is the high quality products, competitive workforce and operational costs respectively, well developed clusters, closeness to consumers, free transfer of goods and capital, political stability.

The restructuring of the textile and clothing industry is almost completed. The new investments made and the technological renovation of the production capacities resulted in offering competitive products on the word market. In 2002, Bulgaria mainly exported to Greece, Germany, USA, France and Italy, but imported from Italy, Greece, France and Germany.