Textiles play a big part in the Jordanian culture. Throughout history,
Jordanians have used textiles in architecture, as we see in bedouin tents, in
furniture, products, and clothing. Textiles are an essential part of the
culture and identity of a place, reflecting its history, lifestyle, economy,
and values.
اضافة اعلان
The garment sector in Jordan began to take off in
1996 with the signing of the qualifying industrial zones agreement with the US. Under it, Jordanian
manufacturers were given tariff- and quota-free access to the US market.
Jordan’s textile and apparel industry is relatively
small compared with that of significant exporters. Still, it is a vital engine
for the national economy, contributing about 27.5 percent of the total exports
in 2019 and 8.1 percent of GDP, according to the Ministry of Industry Trade,
and Supply.
World Bank textiles trade statistics indicate that
China and Germany have the maximum market share, with $264 billion worth of
exports, representing 33.69 percent each. Italy has a $37 billion export share
of 4.69 percent, India has a $36.5 billion export market percentage of 4.67
percent, and Vietnam has a $32 billion export sector contribution of 4.06
percent. In comparison, Jordan textile exports are worth $1.66 billion from 176
factories and satellite units operated by 76,000 workers, of whom almost 30
percent are Jordanians (according to Jordan Garments, Accessories and Textiles
Exporter’s Association.
Jordan has achieved a certain level of growth and
momentum already, and it is now time to leapfrog to the next level of
development. Jordan’s Economic Modernization Vision said that by 2033, Jordan
will be able to increase its share to 3–4 times the current export, which will
give the much-needed momentum to touch the $5.2 billion mark by 2033, which
will create 150,000 more jobs.
The Jordanian apparel industry must focus on
vertical integration to increase its scale and size, and benefit from the
production linked incentive scheme. The apparel and garment industry is not
very investment centric, but it is crucial from an employment point of view.
The demand for textiles continues to be robust, and the sustainability of this
industry is a function of local needs, resource availability, and external
markets.
… Jordan textile exports are worth $1.66 billion from 176 factories and satellite units operated by 76,000 workers, of whom almost 30 percent are Jordanians…
Jordan needs to support domestic designer brands and
become a place for international brands to produce in. A booming local fashion
designer scene is emerging already. The domestic high-end fashion industry may
be in its infancy compared to established markets. Still, branded products
represent the most value-added line of the industry and are an area that
manufacturers could more aggressively pursue.
Jordan has achieved great success in mitigating the
critical lack of skilled workforce in the industry by implementing the
integrated skill development scheme. This should be expanded to create robust
human resources for the country’s textile sector through a multi-pronged
approach involving attracting workforce through various channels, including
incentivizing them sufficiently and providing financial assistance to
individual factories engaged in worker training. Even workers and mid-level
management already employed in the sector will need to get reskilled and
upskilled as part of the growth strategy.
Environmental, social, and governance (ESG)
commitments are a top priority for Jordan. The kingdom has taken the lead in
focusing on reducing or balancing its carbon footprint. A critical part of the
ESG initiatives is responsible sourcing and farming, which spans regenerative
organic agriculture and eco-friendly textiles creation and packaging.
Therefore, there are great opportunities to transit the entire textile and
garment industry’s operations to net zero carbon footprint.
The Apparel Impact Institute announced a $250
million Fashion Climate Fund to tackle fashion’s carbon emissions by
identifying, funding, scaling, and measuring verified impact solutions in
fashion industry supply chains.
For brands, ambitious climate targets are pipe
dreams without impact reduction in their supply chains. Simultaneously, impact
fund investors are seeking opportunities to invest in the growth of the green
energy sector.
From a shareholder perspective, supply chain
resilience and climate risk mitigation must now be quantified alongside all
other fiduciary risks–expanding brands’ ESG data collection and analysis to
stave off supply chain disasters.
Countries, including Jordan, have witnessed significant
expansion in their textile markets in recent years. As China transitions to a
service-based economy and labor costs rise, it is reasonable to predict that
many garment manufacturers will relocate to underdeveloped countries where
production cost is cheap and plentiful.
The writer is a board member of a Jordanian public-sector
government investments management company and a regular commentator on regional
energy and industrial matters.
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