In 2015, the output value of Romania's textile and garment industry was about 5 billion euros, of which 37.5% were textiles and 62.5% were garments. Industrial output accounted for 2.1% of GDP and 3.4% of GDP; The number of people who settled employment accounted for 13.17 percent. There are about 7,428 enterprises in total, including 4,116 garment enterprises, 1,312 textile enterprises and 2,000 leather enterprises. The textile and garment industry is mainly concentrated in the Timishra, Sibiu, Jassy, Muresh and Bucharest regions.
Industry characteristics:
Romania's garment processing industry has a good foundation and developed technical level. 80% of cutting, finishing and packaging have been transformed through the introduction of technology. However, the country is short of textile raw materials, only 30% of wool, flax yarn, synthetic fiber textile raw materials can be self-sufficient, 70% of the raw materials rely on imports.

Luo mainly encouraged the development of clothing and weaving, but the production and processing capacity of hemp fiber, spinning, printing and dyeing, yarn and synthetic fiber raw materials was relatively weak, far from meeting the production capacity requirements of garment and yarn factories. Therefore, the vast majority of clothing production enterprises mainly do clothing processing, and 85% of the textiles and brand clothing produced and processed for EU countries every year. The main processing products are shirts, overalls, trousers, jackets, socks, men's and women's suits, skirts, pajamas, underwear and so on. Due to the large proportion of processing of incoming materials, it has hindered the improvement of technological research and development and innovation ability of Luo textile and clothing industry, and there are few self-owned brands of its textiles and clothing. Production enterprises are mainly located in the capital Bucharest and the cities and counties of Ployeshti, Arad, Satumare, Baku, Jassy and Alba Julia.

Policy environment
Luo encourages foreign investment in the textile and clothing industry, but has no special policies.
Foreign investment enjoys national treatment. The following conditions are available for the establishment of production enterprises in Romania: (1) Goods are imported with zero tariff and exported without tax rebate. (2) There is no need for quotas for textiles and garments exported from Romania to the EU and the USA. (3) The governments of China and Romania have signed an investment protection Agreement and an Avoidance of Double Taxation agreement, granting each other most-favored-nation treatment.

Tax policy
As of January 1, 2016, Romania has adjusted its tax base by introducing a reduction policy for some major taxes. The main taxes and tax rates levied on textile and garment enterprises are: value-added tax (VAT) is 20%, which will be reduced to 19% from January 1, 2017; The tax on dividends was cut from 5%; The excise tax on fur clothing was abolished.
At present, the EU has eliminated textile and apparel quotas and tariffs for all EU candidate countries and Mediterranean countries (except Egypt) through various bilateral or multilateral preferential trade arrangements.