TIRANA, Oct. 7 /ATA-By Maela Marini/ – The garment industry must move towards fully integrated “Made in Albania” production because low-cost labour is no longer a competitive advantage, Prime Minister Edi Rama said on Wednesday.
Rama and Economy and Innovation Minister Delina Ibrahimaj met entrepreneurs from various sectors to discuss the government’s “Double Your Entrepreneurship” programme.
Addressing challenges facing the garment industry, the government head said its traditional business model had been built around cheap labour, which was no longer sustainable.
“Low-cost labour is no longer a competitive advantage and insisting on low-wage garment production no longer works,” Rama said, adding that businesses could secure bank support if they had a sound credit history and were prepared to change their production model.
He urged companies to move from producing garments from semi-finished materials supplied by clients to a fully integrated “Made in Albania” cycle, covering processes from design through packaging and marketing.
Rama said the transition would require investment in technology and skilled workers but was achievable because the industry already had experience, expertise and established markets.
Such a shift would take the sector to a different level and reduce its exposure to exchange-rate fluctuations, he said.
Rama acknowledged that the garment sector faced difficult conditions across Europe, including among major fashion companies, but said some Albanian businesses were already moving beyond the era of low-cost labour.
He said rising wages, living costs and changing expectations had made the old model increasingly unviable, citing the example of young workers who were no longer willing to take factory sewing jobs even for significantly higher pay.
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