More than 70 per cent of Iran’s apparel manufacturing units are no longer active.One reason is excessive imports of garments.

There are about 50,000 apparel manufacturing units in the country.

Plans are underway to establish a new apparel industrial town in Fashafouyeh, located in Tehran province’s Rey county, with the aim of limiting imports, boosting domestic production and making the price of Iranian clothing more competitive. The hope is that such an apparel industrial park will be highly beneficial as it will lead to transfer of know-how, increase in quality and lowered production costs.

Foreign representatives, branches and distributors of apparel in Iran who seek business licenses have been mandated to produce goods worth 20 per cent of their import value inside Iran and to export at least 50 per cent of this domestic production.

The initiative is aimed at increasing domestic production, creating jobs and reviving Iran’s apparel industry. Public interest in domestic products has dramatically surged over recent months.

The country has taken measures aimed at renewing the country’s garment manufacturing industry, in a bid to enter international markets. Exporting apparel products to neighboring countries, including the CIS and, in particular, Azerbaijan, is on the agenda.