The Moldova Competitiveness Enhancement and Enterprise Development II (CEED II) project

Reshaping manufacturing from low to high value, enhancing exports, meeting domestic demand, advancing productivity and product quality, and mobilizing a consolidated industry toward a shared mission are key objectives. The apparel, footwear, and accessories sector drives exports, employs women, and is positively changing the perception of quality Moldovan products in international markets. There are approximately 360 textile, footwear, and fashion-focused enterprises in Moldova, with these businesses being particularly important for job creation for women from rural areas. The sector has approximately 23,000 employees, with 90 percent of whom are women. The bulk of production is carried out by small- and medium-sized enterprises with 50 employees or less. The industry is one of the largest exporters in the Moldovan economy, accounting for more than 16 percent of the country's exports in 2014. Leveraging creativity for an inspired vision, the USAID CEED and CEED II programs created a vision around the core definition of what sustainable growth in these sectors is; boosting the transition of producers from the lowest value-added production schemes (cut and make) to the highest value-added scheme (own label). In addition to making the shift from low- to high-level manufacturing, the vision included enhancing exports, reviving the domestic market, upgrading productivity and product quality, and consolidating the industry to enhance the enabling environment and create a shared strategy. With targeted support in the sector beginning in 2005, CEED II has continued to catalyze a shift from cut-and-make production schemes to full-package or own-brand production schemes. The share of low-value, cut-and-make services in total industry output decreased from 95 percent in 2005 to 80 percent in 2014. More than 70 new generation brands emerged as a backbone of the Moldovan fashion industry. As a result, more than 30 companies are now exporting in 10 international markets and have leveraged $16 million in sales.