Tunisia’s garment industry is dynamic and employs 200,000 skilled workers. This was once synonymous with the CMT business model (Tunisian companies purchase some raw materials and auxiliary materials). Tunisia has 1,300 garment factories specializing in export business. These factories are part of the CMT. They enhance the value chain of Tunisia’s entire garment industry, including concept, design, manufacturing, and companies selling their own labels or customers’ brand names.
Tunisia’s advantages: 1. It is very close to the EU. Tunisia is located on the Mediterranean coast and there are three sailings per week. 2. The cost of skilled workers in Tunisia is very low. The minimum monthly wage in Tunisia is 139 euros and the working week is 48 hours. The garment manufacturing industry has skilled workers who have undergone long-term training. 3. Tunisia is a large installation factory base. Large companies such as VTL (5,000 employees) and Soprodite (900 employees) have large modern factories in eastern Tunisia. Exporting companies benefit from zero-tariff imports of raw materials and fast customs clearance, reducing additional port costs. 4. Tunisia responds promptly to European needs. 5. Samples are available at any time. 6. Quality. Tunisia’s goal is to improve design, increase fabric varieties, accept small batch production, and be on par with China, India, and Bangladesh in terms of basic quality and low-cost products. 7. Tunisia’s environmental and social standards. Tunisian labor laws mandate a 48-hour work week and the minimum wage is subject not only to government inspections but also to British customers. 8. Political and economic stability. Retail inflation has averaged below 3% annually since 2000. 9. Integrated vertical production. Tunisia’s two largest companies, TFCE and VTL, produce natural yarn, dyed yarn, knitting yarn, bleached yarn and finished products. Smaller companies buy cloth. The number of specialized dyeing and spinning factories is small.
In 2007, Tunisia’s clothing exports increased by 12%, exceeding 4 billion euros. Clothing produced with Tunisian fabrics enters the EU and enjoys zero tariff treatment.
