EIRP Proceedings, Vol 1 (2006)

The impact of Romania's Accession to the E.U on Lohn Companies, as regards Ready- Made Clothes

Carmen Iancu


The opening of ready- made clothes market might lead to the closing of an important number of ready-made clothes companies in Romania, once with our accession to the European Union and the transfer of lohn contracts to countries where the workforce payment is lower. The closing of some ready-made companies does not represent a major problem as “ it will not be a mass problem”, but only “ isolated cases”. Neither the macroeconomic consequences are interpreted in the same way by the specialists. The economic analysts consider that the lost of lohn contracts might affect the economic growth, while the direct players- manufacturers and exporters-consider that there are still redressing solutions and the phenomenon itself will not considerably affect the light industry. What is worse is the fact that most of these companies are micro-enterprises, with a small number of employees, which in most cases depend on a single customer. This category of companies is in danger of disappearing as result of market opening.


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