Laos ' garment exports jumped nearly 30 per cent this year as the communist country benefited from relaxed import restrictions in Europe, state media reports said Tuesday, reported dpa.
The value of garment exports hit nearly 100 million dollars during the first six months of 2011, a 29-per-cent increase year-on-year, Lao Garment Industry Association president Onesy Boutsivongsackd told the Vientiane Times.
"The increase was mainly due to rises in exports to Europe after the European Union decided to allow least-developed nations, including Laos, to use foreign raw materials to produce goods for export to the European market in January," he said.
On November 18, the European Commission announced new customs rules for least-developed nations that allowed their exports to have preferential access to the EU market through reduced tariffs even if the goods did not originate primarily from the country.
Laos ' garment industry is heavily dependent on imported textiles from neighbouring Thailand.
The change in rules of origin have given Lao garment exports a competitive advantage in Europe.
According to Onesy, the main markets for Lao garment exports during the first six months of the year were the United States at 17 per cent, Japan at 3.3 per cent and the remainder going to Europe.
Onesy said a rapid increase in orders from European importers had posed challenges to the Lao garment industry, which faces labour shortages.
Many Lao workers prefer to seek employment in neighbouring Thailand, where the government has recently promised to hike the minimum wage to 300 baht (10 dollars) a day, compared with a monthly wage of 500,000 kip (62.50 dollars) offered at Lao garment factories.
Last year, Laos' garment exports earned the communist-ruled country 182 million dollars, a 14-per-cent increase over 2009 figures.