Leather industry of Bangladesh

Increasing interest of buyers has opened up an opportunity for footwear and leather industries of Bangladesh. The production of leather-made items has been increasing in the country. The sector has the potential for becoming the second largest foreign currency earner after ready-made garments. Industry analysts believe that Bangladesh’s over one billion footwear industry has the potential to grow to a 15-billion dollar vibrant industry within a decade.
According to EPB data, the leather industry has crossed the record $1-billion mark in 2012-13. Bangladesh earned $ 1.29 billion from exports of leather, leather goods and footwear in 2013-14 fiscal. The export target for 2014-15 has been set with an increase by 4.2 per cent. This rate of growth needs to be progressively accelerated to attain the target of $5 billion in 2020.
Country’s leather industry is facing a number of problems. The tanneries of Hazaribagh area in the capital have not been fully shifted to Savar where favourable conditions have been created as per the criteria set by most buyers. Technical know-how of the workers needs to be developed to cope up with new challenges in this industry.
Moreover, in the international arena, Bangladesh does not have the membership of the International Footwear Conference. Bangladesh needs to become a member of this association like other competitors in global leather industry including China and India in order to have a voice on the global plane. The government of Bangladesh should provide adequate policy and financial support to those who deserve.
The cost of land and capital are high in Bangladesh in comparison with China, the world’s largest footwear manufacturer with a 60 per cent share of global shoe production. We have low labour cost. But we have to attract foreign investment in this sector. To do so we have to ensure stable political situation, good law and order and low cost of doing business.
Local leather goods manufacturers are seeing bright prospects because of a policy change in China. That country shows a drop in leather footwear production recently. The EU, USA and Japan are becoming worried over future supply from China as their own domestic markets are expanding quickly. Already, the western importers are desperately looking for new sourcing destinations and Bangladesh is in the spotlight now.
Bangladesh exports leather products mainly to Italy, New Zealand, Poland, the UK, Belgium, France, Germany, the US, Canada and Spain. Also, Japan, India, Nepal, Australia and some other countries are emerging as potential importers of Bangladeshi leather goods. Bangladesh now occupies only 0.5 per cent share in the global leather and leather goods market worth about $215 billion. So, huge opportunity is waiting for us.
According to a recent HSBC analysis, Bangladesh is one among the three countries to which China-based factories are planning to relocate, as the manufacturing of low-cost products is increasingly becoming pricier in the world’s second largest economy. Bangladesh needs a time befitting strategy, skilful and technically capable workforce to emerge as a strong player in the global leather industry.   

Md. Harunur Rashid, Dhaka