Approximately 70 per cent of Hungarian textile and clothing industry business activities take place on European markets. The key partner countries are Germany, Italy, France, Austria, Romania, Russia, Switzerland, Great Britain and Scandinavia.

The first textile manufacturing factories were established in Hungary at the beginning of the 18th century. Given the country’s agricultural characteristics they dealt primarily with the processing of cotton, although Hungary was known for the processing of silk as well. At this time the working of flax and hemp cultivated in the country had not moved beyond a cottage industry because foreign competition and the fashion for printed pattern cotton fabrics raised difficulties for these products.

The sector is largely made up of small- and medium-size enterprises, although they are also attended by a considerable number of sole proprietorships. The number of registered enterprises approaches 4500, although it is true to say that the number of functioning businesses is somewhat smaller than this. The sector currently employs around 50,000 people, the vast majority being female labor.

Sub-sectors or products with potential from an export aspect are work and protective clothing, technical textiles, healthcare textiles, home and household textiles, other fashion items and automotive flooring.