The textile and clothing industry is Ukraine’s largest light industry and exporting sector. In 2004 it had 3,282 official enterprises employing 177,500 people. The domestic market is estimated to have been worth US$1.8 bn in 2005 and, due to rising personal incomes, is growing by around US$400 mn annually. However, much of this growing demand is expected to be supplied by imported low cost fabrics and garments. Exports of garments were worth over US$500 mn in 2003—the latest year for which comprehensive data are available—while fabric exports were valued at around US$60 mn. Most exports are fashion items—a sector in which proximity to the EU market, flexibility and quality are important determinants of competitiveness. The export industry has carved a niche for itself in items where quality plays an important role. Such items include women’s and men’s suits, overcoats, blouses and shirts. There has been considerable change in the industry since the country regained independence from the Soviet Union in 1991 and some key companies have invested heavily to improve quality, market penetration and profitability. Two examples are Khmelnytsklegprom and Volodarka. Khmelnytsklegprom is one of the largest, most technically advanced and highest quality clothing companies in Ukraine. Volodarka is a leading men’s tailoring company in terms of size, branding, quality and technology.

The textile and clothing industry is Ukraine’s largest light industry and exporting sector. In 2004 it had 3,282 official enterprises employing 177,500 people. The domestic market is estimated to have been worth US$1.8 bn in 2005 and, due to rising personal incomes, is growing by around US$400 mn annually. However, much of this growing demand is expected to be supplied by imported low cost fabrics and garments. Exports of garments were worth over US$500 mn in 2003—the latest year for which comprehensive data are available—while fabric exports were valued at around US$60 mn. Most exports are fashion items—a sector in which proximity to the EU market, flexibility and quality are important determinants of competitiveness. The export industry has carved a niche for itself in items where quality plays an important role. Such items include women’s and men’s suits, overcoats, blouses and shirts. There has been considerable change in the industry since the country regained independence from the Soviet Union in 1991 and some key companies have invested heavily to improve quality, market penetration and profitability. Two examples are Khmelnytsklegprom and Volodarka. Khmelnytsklegprom is one of the largest, most technically advanced and highest quality clothing companies in Ukraine. Volodarka is a leading men’s tailoring company in terms of size, branding, quality and technology.