The backing package for the garment industry businesses, combined with the Employment Fund Promotion launched during 2014 by Ministry of Economic Development, Entrepreneurship and Trade, has started to give its first positive signals. According to sources from Ministry of Economic Development, the programs of the Employment Promotion Fund have shown their impact in the decrease of unemployment, especially at youth.
The official statistics show that only during this year, exports have reached the amount of $110 ml, mainly in the markets of Turkey, China and Italy. INSTAT figures show that “textiles and shoes” group has recognized the highest increase in exports, at circa 25% more in 2014 compared to the same period of 2013.
The garment industry in Albania has provided, mainly in the recent years, many ooportunities for investments by European entrepreneurs, mostly Italian and German businessmen. After the unstable political situation in the Arab countries, they displaced their branches and moved them to Albania. Another reason why many European companies have established their branches in our country, comes due to the increase of hydrocarbons price after 2008, which affected in the increase of transport costs of companies with headquarters in China.
Even companies from Austria has shown interest in establishing their branches in Albania, encouraged by the low production and transport costs, and have shifted their investments from China. In Albania, There are 50 Austrian investments currently in Albania that reach the amount of 500 ml eur investments so far. The employment indicators also show a positive trend, after up to 6000 jobs created during the last year. This came after many businesses in different cities profited from the Employment Promotion Fund, which based on the official data, has helped circa 3000 job seekers to find a job.
The government is currently working to launch a new supporting package for the agroindustry sector, in order to increase the competitiveness in the region and to enter in the European markets with the aim to prompt foreign investments.
*The article is written by Nini Mano.
News source/photo credits: ATA