Bangladeshi footwear exporters see a prospect in their business boom as the European Union (EU) plans to end the generalised system of preferences (GSP) to Vietnam footwear makers.
The EU footwear buyers are now shifting to Bangladesh market as the EU has taken a move to scrap GSP facility for Vietnam-made footwear, a large shoe exporting country, said local shoe manufacturers.
"We are now getting good response from the EU buyers. We think leather sector will get a momentum shortly," said Tipu Sultan, president of Bangladesh Finished Leather, Leather Goods, Footwear Exporters Association (BFLLGFEA)
The EU ambassador has agreed to end the GSP facility for Vietnam-made footwear, but it will require endorsement by ministers, foreign media quoted an EU official in Brussels as saying recently.
Mr. Sultan said Bangladesh has already become a potential footwear making nation as there exists moderate investment facilities.
"Three large shoe manufacturing companies from Taiwan are investing in Dhaka and Chittagong Export Processing Zones and more foreign buyers are visiting local factories," BFLLGFEA president claimed.
One senior executive of Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LGFMEAB) said the current growth of footwear industry is encouraging.
"The annual growth of footwear industry is around 21 per cent. Buyers, especially from EU countries, now want to reduce dependency on Chinese and Vietnam made footwear," he added.
"Vietnam is our competitor. So, withdrawal of GSP facility there will benefit Bangladesh as a least developed country. We have skilled workforce and other facilities to stay competitive," the official said.
The EU GSP gives the LDCs preferential treatment through lower tariff or duty-free access in a bid to aid development of those economies.
The EU argues that Vietnam, which earned almost US$ 4.0 billion last year from exports of footwear, no longer qualifies because of the relative strength of its footwear industry.
Mazharul Hoque, General Manager (sales) of Genny's Shoe, a leading local footwear maker, told the FE that it got trial orders from EU members at a recently concluded shoe fair in Germany.
"We received sale orders and several queries on our shoe industry by the EU member countries in the fair," he added.
He said that his company is expecting a 20 plus growth this year adding "We hope our export might worth around $ 8.5 million this year against $ 7.5 million in 2007."
Genny's official sources said one leading Tokyo-based buyer -- Uniqlo --having around 800 outlets in Japan and rich nations, including US, Britain and Italy has expressed intention to import shoes from Bangladesh.
However, local shoe manufacturers said that the industry now needs policy support from the government for production of quality leather and leather goods.
