SOFIA, Bulgaria – Domestic sewing companies in Bulgaria are struggling to stay afloat as a flood of low-cost Chinese garments undercuts local production, forcing businesses to shut down and leaving workers unemployed.
The industry, which has long been a key part of Bulgaria’s manufacturing sector, is now on the brink of collapse, with industry leaders calling for urgent government intervention.
While some regions, such as Ruse, have managed to hold out slightly better than others, the overall trend is grim. Many businesses have already closed their doors, and production levels have plummeted nationwide.
The pressure on Bulgarian manufacturers has been mounting as they face stiff competition from large Chinese e-commerce platforms selling garments at rock-bottom prices.
Race to the Bottom: Prices Reverting to 2018 Levels
Companies producing garments for European brands are feeling the squeeze, as foreign partners demand even lower prices. According to Miglena Hristova, a member of the Board of the Textile and Leather Association, labor costs have remained unchanged for two years.
Despite this, many European partners are pushing for prices to revert to 2018 levels—an unsustainable demand for Bulgarian manufacturers.
Adding to the challenge, Bulgarian sewing companies must comply with strict European regulations. To work with high-quality materials such as cotton, wool, and silk, they must undergo costly audits and obtain certifications, which cost between 5,000 and 7,000 leva annually per factory.
These financial burdens put local firms at a disadvantage compared to Chinese manufacturers, who operate with fewer regulatory constraints.
A Widening Crisis: Factory Closures and Job Losses
The crisis is not confined to Bulgaria alone. Neighboring Romania is facing similar difficulties, as cheap imports continue to push local manufacturers out of business.
According to estimates from the Textile and Leather Association, approximately 40% of sewing companies in Bulgaria have shut down in the past year alone.
The economic impact extends beyond the textile sector. With businesses closing at an alarming rate, tax revenue is also shrinking, adding further strain to Bulgaria’s national budget.
The loss of employment opportunities is another major concern, as thousands of workers—many of them women—find themselves jobless with limited options for reemployment.
Industry Calls for Government Intervention
Faced with mounting challenges, industry representatives are urging the government to step in. One proposed solution is the revival of social programs to retrain unemployed workers, equipping them with new skills for alternative professions.
Another major issue is transportation costs. Until recently, a state-funded program called “On the Road” provided subsidies for worker transportation.
However, with its discontinuation, companies are now forced to shoulder daily transport costs of around 22 leva per employee—an expense many businesses can no longer afford.
Without immediate intervention, industry leaders warn that the European market will be flooded with low-quality, mass-produced clothing.
“Made in Europe” remains a valuable label, but without protective measures, it risks being overshadowed by inexpensive imports.
“The situation is dire,” says Hristova. “If we don’t act now, we may soon lose an entire industry that has supported Bulgarian workers and the economy for decades.”