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Value Chain Analysis (VCA) Garments, Jordan

The garment sector is one of the principal drivers of economic growth in Jordan today. Jordan places special importance on the garment sector, since it employs 2.5% of the country’s total workforce and makes up 21% of Jordan’s exports in value, which has great economic and social significance. Exporting to international markets has become increasingly important for Jordan in recent years, since regional markets slowed down due to political and economic instability. The reopening of the Syrian and Iraqi borders offers the potential for reconstructing trade networks and utilising currently unmet export potential. Looking forward to developing its exporting potential, Jordan’s stakeholders in the garment sector have shown strong interest in questioning and rethinking the production and trade of garments.

Sector landscape

There is no reliable data available on the current volume of garment production in Jordan. Data from the International Trade Center (ICT) indicates that Jordan’s garments exports were valued at 1.6 billion USD in 2017. Ninety percent of this value consists of high-quality sportswear for brands such as Nike and Under Armour, and the majority is destined for North American markets under the US-Jordan Free-Trade Agreement. This value chain analysis (VCA) highlights the clear divide in the Jordan garment export landscape between the approximately 85 large factories having 500–2,500 employees, which make up for approximately 95% of Jordan’s current garment exports, and the approximately 150 small and medium factories with 10–500 employees, which generally do not export but have mostly shown interest in doing so.

 

1. Introduction

The Hashemite Kingdom of Jordan is an Arab country in the Middle East bordered by Syria to the north, Iraq to the northeast, Saudi Arabia to the east and south, and Palestine to the west. The country is located at the crossroads of three continents (Asia, Africa and Europe) and the trading routes between the Far East and Europe. Garments and textiles have a long history in the Jordan valley, as Petra was an ancient trading centre for the entire region. The garment sector is one of the principal drivers of economic growth in Jordan today. Jordan places special importance on the garment sector as a promising industrial sector, given the great economic and social significance of its large volume of exports. The sector is a valuable contributor of foreign currency to the Kingdom. Exporting to international markets has become increasingly important for Jordan in recent years, since regional markets slowed down due to political and economic instability. Looking forward to developing its exporting potential, Jordan’s stakeholders in the garment sector have shown strong interest in questioning and rethinking the production and trade of garments.

 

See full report: vca_jordan_apparel_final_report_-_cbi4

 

About Kohan Journal

Kohan Textile Journal is the leading magazine for the Textile industry, Textile machinery, Synthetic Fibers and Nonwovens in MENA region (the Middle East and North Africa) and is published every two months. It basically emphasizes on textile machinery, textile products, carpet and synthetic fibres distributed among the factories, manufacturers, and traders of floorcovering industries.l

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