Al Amin :
Leather and leather goods made in Bangladesh, after readymade garments, are the next opportunity to earn foreign currency for the country as the goods are now gradually catching the US and other international markets around the world.
But immediate initiative to upgrade the quality of tanneries and policy support are needed to boost the sector, business insiders said.
Many US and EU based companies are shifting their factories from China and searching new locations like Bangladesh and Vietnam due to increase of production coast. So, Bangladesh can take the chance to increase export growth in the sector.
According to Export Promotion Bureau (EPB) data, Bangladesh exported leather shoes worth $560 million in the last fiscal year. The increase was 5.33 per cent. In the first nine months of current fiscal (July 2018 – March 2019), the growth has risen to 7.86 per cent. The monetary value of the export at the time was $458.7 million.
USA, Germany, UK, France, Italy, Hong Kong, Netherland, Belgium, China, Japan, Canada, Russia, Spain, Switzerland and Republic of Korea are the main destinations of the Bangladeshi leather goods.
More than 100 Bangladeshi companies including Apex, Bay and Leatherex Footwear, export shoes. Around 60-65 per cent of the total shoes we exported to European Union countries. Around 17-18 per cent is exported to the US while another 6-7 per cent to Japan.
Terming the sector very potential for the country, Research Director of the Policy Research Institution said “Bangladesh needs to enhance integration to the global market to boost leather goods export immediately.”
In a span of only four years, the number of shoes exported from Bangladesh to the US has doubled, according the US commerce department’s Office of Textiles and Apparel (OTEXA).
OTEXA data reveals that Bangladesh exported shoes worth of $61.4 million in 2014. In 2018, this increased to $133.2 million (around 11.32 billion taka) which is 14.93 per cent.
Abdul Momen Bhuiyan, Senior Vice President of Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) told The New Nation, “We are under pressure at the moment due to the problems of ETP of tannery. But, exportation growth will increase further, when the ETP of Savar will be active completely.”
Syed Nasim Manzur, Managing Director of Apex Footwear, said, “Several US brands have increased sourcing from Bangladesh. They are giving more work orders than before and this has increased the volume of exports.”
He said the overall exports have not risen as was expected due to the fall of demand in the EU countries.
Syed Nasim Manzur also said, “Big brands buy leather only from the tanneries that are approved by the Leather Working Group (LWG). Apex’s tannery is the only such tannery in Bangladesh. This is why most of the shoe exporters of the country are dependent on imported leather.”
He also put emphasis on taking immediate initiative to upgrade the quality of tanneries in Hemayetpur of Savar, to secure LWG’s approval.
Leather and leather goods made in Bangladesh, after readymade garments, are the next opportunity to earn foreign currency for the country as the goods are now gradually catching the US and other international markets around the world.
But immediate initiative to upgrade the quality of tanneries and policy support are needed to boost the sector, business insiders said.
Many US and EU based companies are shifting their factories from China and searching new locations like Bangladesh and Vietnam due to increase of production coast. So, Bangladesh can take the chance to increase export growth in the sector.
According to Export Promotion Bureau (EPB) data, Bangladesh exported leather shoes worth $560 million in the last fiscal year. The increase was 5.33 per cent. In the first nine months of current fiscal (July 2018 – March 2019), the growth has risen to 7.86 per cent. The monetary value of the export at the time was $458.7 million.
USA, Germany, UK, France, Italy, Hong Kong, Netherland, Belgium, China, Japan, Canada, Russia, Spain, Switzerland and Republic of Korea are the main destinations of the Bangladeshi leather goods.
More than 100 Bangladeshi companies including Apex, Bay and Leatherex Footwear, export shoes. Around 60-65 per cent of the total shoes we exported to European Union countries. Around 17-18 per cent is exported to the US while another 6-7 per cent to Japan.
Terming the sector very potential for the country, Research Director of the Policy Research Institution said “Bangladesh needs to enhance integration to the global market to boost leather goods export immediately.”
In a span of only four years, the number of shoes exported from Bangladesh to the US has doubled, according the US commerce department’s Office of Textiles and Apparel (OTEXA).
OTEXA data reveals that Bangladesh exported shoes worth of $61.4 million in 2014. In 2018, this increased to $133.2 million (around 11.32 billion taka) which is 14.93 per cent.
Abdul Momen Bhuiyan, Senior Vice President of Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) told The New Nation, “We are under pressure at the moment due to the problems of ETP of tannery. But, exportation growth will increase further, when the ETP of Savar will be active completely.”
Syed Nasim Manzur, Managing Director of Apex Footwear, said, “Several US brands have increased sourcing from Bangladesh. They are giving more work orders than before and this has increased the volume of exports.”
He said the overall exports have not risen as was expected due to the fall of demand in the EU countries.
Syed Nasim Manzur also said, “Big brands buy leather only from the tanneries that are approved by the Leather Working Group (LWG). Apex’s tannery is the only such tannery in Bangladesh. This is why most of the shoe exporters of the country are dependent on imported leather.”
He also put emphasis on taking immediate initiative to upgrade the quality of tanneries in Hemayetpur of Savar, to secure LWG’s approval.
