Assessment of the Norwegian furniture and textile markets for Ukrainian companies
We are pleased to present the results of our project conducted in cooperation with EasyBusiness which aimed at assessment of trade potential between Norway and Ukraine within the Furniture and Textile sectors. The task was to select the most prospective products within Textile and Furniture industries that would facilitate trade between Norway and Ukraine. This research was a continuation of our previous project developed for the agriculture sector.
We are sure that there is an enormous potential for the production cooperation between Norway and Ukraine.
Ukraine is one of the most attractive countries for business cooperation due to a range of natural and economic prerequisites:
- Ukraine is the largest country in Europe and lays on the crossroads of international trade,
- Ukraine is a low-cost production platform,
- Ukraine has improved the customs legislation recently: the “single window” system has been implemented, making export duties less complicated and more transparent,
- Ukraine has a broad network of international trade partners – 16 FTAs signed that cover 45 countries).
Norway in its turn is highly depended on the import of textile and the share of imported textile in total consumption is nearly 47%. In 2017, Norwegian import of textile amounted to USD 512.3 million (CAGR of -0.39% in 2013-2017). The share of textile in the total country’s import in 2017was equal to 0.07%. At the same time, Ukraine has a tendency to increase the export of textile. Despite the recent crisis, Ukrainian export grew in 2017 in comparison to 2013 (CAGR of 0.37%). In total, Ukrainian export of the product in 2017 was equal to USD 130.5 million (0.30% of the total country’s export).
Ukraine has a number of competitive advantages in textile production:
- Ukrainian climate is suitable for the production of cheap and high-quality linseed and hemp fiber;
- Ukraine has varieties of cultivating, harvesting and processing technologies and business interests for fiber crop production;
- There are several institutions for sheep breeding in Ukraine (Transcarpathian StateAgricultural Experimental Station, Institute of Animal Husbandry “Askania-Nova”);
- Ukraine has a well-developed chemical industry and produces chemical products, including chemical fibres
In addition Ukraine has a number of competitive advantages in furniture production:
- High access to raw materials (about 15,9% of Ukraine’s territory is covered with forests),
- The quality and price of Ukrainian furniture is comparable with average that are produced in Central and Eastern Europe;
- Increased access to high quality components from Europe due to the DCFTA with the EU;
- Existence of a number of industry-specific clusters as well as business association (e.g., Ukrainian Association of Furniture Manufacturers).
In order to export goods from Ukraine, the producer has to make three steps: (1) submit required documents to the customs authorities, (2) take special control, (3) pay taxes and mandatory fees.
Here you can download a step-by-step guides on: