The Best Country to start apparel / garments manufacturing and exporting Business

You are currently viewing The Best Country to start apparel / garments manufacturing and exporting Business

Do you produce garments? Fashion apparel? Clothes? Are you looking for a potential low-cost production country with easy export possibilities? Then this blog might help you to discover new opportunities for incorporating Fashion, clothes manufacturing, and exporting business. Have you ever heard of Georgia? The country in the middle of Europe and Asia? World Bank’s top country for easiness of doing business? The country which has free trade agreements with the EU, Turkey, Hong Kong, and many other countries and allows you to access all these markets tax-free? It is a legit country not yet another offshore jurisdiction. If not, you are going to hear something interesting in this blog. Some of the benefits of incorporating a Pharmaceutical production unit in Georgia.

Georgian Apparel Production Market Overview

There are few factories in Georgia right now producing apparel for international brands, such as   M&S, Moncler, Nike, Adidas, Zara, Puma, HM, etc. Footwear and bag production is an emerging sector, as more and more local producers are entering the market. Most of them benefiting from the state incentives for manufacturing support. Georgian leather products are also a newborn sector, yet exporting to Italy and Turkey.
According to EU research report, “Apparel production has increased significantly from 2008, with the production of approximately GEL 23 million, to 2015 with over GEL 140 million (about USD 60 million) in production, representing a compound annual growth rate (CAGR) of about 30.3% for the period. Overall, exports increased from USD 24.0 million in 2009 to USD 86.7 million in 2015, representing a CAGR of 23.9%, which is less than the CAGR for total production, suggesting that the excess growth in production is being driven by domestic demand, which reduces the Georgian consumers’ reliance on imported apparel”

Apparel Manufacturing Companies in Georgia

  • The largest is Adjara Textile, which has over 2,100 employees. They are mainly working for international and Turkish brands on the export market.
  • Geoteks, the Italian-Georgian joint venture, actually employs 180 employees and works exclusively for Moncler in Italy. 
  •  Previously, Georgian producers had produced for other EU brands, such as Bestseller in Denmark and Gina Laura in Germany.

The Apparel production market is at its emerging stage, that is why the government supports apparel manufacturing ventures with numerous incentives. 

Why to Start a Production Business in Georgia

Not only  Fashion Clothes production, in general production in Georgia provides numerous benefits. The production sector is highly supported by the government. There are numerous manufacturing sectors and opportunities to start a business at the moment. There is a separate blog  written by us,  overviewing the manufacturing business sector in Georgia, you can refer to that for a more comprehensive understanding of the market, here is only the shortcut:

  • Easy startup procedure
  • Law Tax Regime
  • Easy to import and export 
  • Law labor and utility costs
  • Strategic location
  • Free trade agreements with numerous countries open global export potential.

Top Benefits for apparel/garments manufacturing and exporting Business in Georgia


Benefit 1: Taxation 

Georgia Free Trade Agreements with strategic markets, such as EU, Turkey, China (including Hong Kong), CIS, and EFTA countries. These preferential trade agreements offer a possibility to save up to 17-30% of customs duty on footwear & bags originated in Georgia (otherwise amounts up to 17% for EU and Turkey, and up to 30% for CIS countries).

Benefit 2: Labour Availability

 The average monthly salary in apparel and footwear manufacturing is USD 267 in 2020. 12 State-owned Vocational Educational Institutions operate around Georgia providing professional courses in cutting, sewing, shoemaking, and other practical subjects used in the industry. Most of the fees for courses are financed by the Government of Georgia, and in case of investor’s request, customized training is available for new companies/factories.

Benefit 3: Free Trade Agreement with Numerous Countries

Georgia is the only country in the region with Free Trade Agreements with the European Union, EFTA, Turkey, Ukraine, China (including Hong- Kong), and CIS providing excellent opportunities for exporting products from Georgia to 2.3 billion consumer markets without Customs Duty, according to the national investment promotion agency.

Benefit 4: Manufacturing Support Programs

Georgia offers a number of incentives and co-investment opportunities to companies interested in developing manufacturing facilities in Georgia.

FDI grant Project

 FDI Grant program offers cashback for costs incurred for staff training and infrastructure upgrade. “Produce in Georgia” program is devised to support Industrial manufacturing through a variety of financial and technical support mechanisms, including co-financing of the interest rates on the commercial loans, Collateral Guarantee co-financing, and transfer of state property (both land and building) into the private ownership for a symbolic price of GEL 1. 

Produce in Georgia Project

There are different ways to access finances within this program:

• Interest Rate Co-financing on the loan.
• Co-financing of bank loan interest rate for the first 36 months: Refinancing rate + 3% (Currently 11%)


• Loan amount should be in the range of GEL 50,000 – 10,000,000
• Leasing project value should be in the range of GEL 50,000 – 10,000,000



Benefit 5: Cost Reduction – Utility 

Another benefit of incorporating a business in Georgia is the cost reduction possibility for manufacturing units.  Up to 80% of power is generated via hydro and wind power plants, leading to greener and cheaper energy. 1 kWh of high voltage electricity costs about 6.6 USD cents, which is one of the lowest among the competitor countries. 

The idea for Textile Manufacturing 

We believe there is a marketplace for textile production in Georgia, that can meet both local and international demand. 

In Georgia, at the moment there is no textile production, whilst apparel production has been increasing significantly, as described above.


Looking for incorporating a business in Georgia?

Make sure you contact us for the comprehensive, most convenient, faster, and most importantly reasonable services. Make your best choice when it comes to incorporating a business in Georgia. We offer you the simple company registration procedure in Georgia. Our incorporation or company formation agents will not only help you to incorporate your Georgian LLC, also will advise and guide you through the whole business operation journey.  Doing business is easier with us, local professionals.

Watch me talking apparel business in Georgia

Need help with starting your own business? Contact us!

Leave a Reply