Bangladesh has enormous potential to increase its global market share of leather and leather goods export raising the export volume at US$ 5 billion by the end of next year (2016), said experts and officials of Board of Investment (BOI).
The use of modern technology, environment-friendly components and availability of skilled workforces along with easier access to credit for investment can help achieve the goal of higher leather and leather goods export, said BOI officials.
Bangladesh has so far grabbed only 0.56 percent of the global market share with its export of leather and leather goods amounted to US$ 1.295 billion, though the sector emerged as the second largest export sector after RMG, they said. The export from the sector accounts for 4.29 percent of the country's total exports worth $30.17 billion.
To explore the potential of the sector and find out ways and means to develop the sector further which has 90 percent value addition, as opposed to RMG where the scope is 40 percent, experts, researchers, academics, policy makers and technocrats are likely to meet at a workshop in the city tomorrow (Saturday). The BOI is organising the day-long workshop where they will discuss the potentials and weaknesses of the industry, identify the loopholes and recommend suggestions to take the growth of the sector to a new trajectory.
"The country has the potential to raise its export earnings from leather and leather goods to several times from the present level of US$ 1.30 billion by ensuring environment-friendly infrastructure and diversification of products," said Tauhidur Rahman Khan, joint secretary, BOI, who looks after the investment and promotional activities of the potential sector.
According to sources, the country needs to adopt short, medium and long-term plans of action to give a boost to the leather sector aiming to grab a significant share of global market worth about $ 230 billion, industry circles said. They also laid emphasis on public-private joint initiatives to make the best use of the potential the sector has.
They observed that lack of training, access to credit and absence of latest technology are the weaknesses of the sector. They, however, said with implementation of Savar leather estate the problems would be resolved to a great extent and attract more investment from abroad.
According to experts, Bangladesh is an ideal offshore location for leather and leather products manufacturing with low cost but high quality skin and hides. The country has huge cheap labour force, indigenous raw materials with unique quality grain pattern and fiber structure.
"The export figures would have been much higher if political unrest had not hurt the sector," said Mizanur Rahman Khan, Manager of Bay Group who recently met his buyers in Hong Kong adding that many of them are concerned about the country's political unrest. He, however, said that they were getting good responses from buyers, especially after bringing new technology to cater their buyers at EU and US markets.
The company which unusually export leather products, especially men's and ladies shoes, worth about US$ 6-7 million now gets orders worth about US$ 20 million dollars after upgrading their industry with incorporation new technology from Taiwan. Recently they signed a MOU with a Taiwanese company for joint investment.
"We concentrate more to develop over products as buyers requirement and hope to fulfill the demands," said Khan adding that there will no dearth of buyers or investors once we can develop the industry environment friendly.
Leather businessmen are now confident of meeting the export target of $1.397 billion set by the government for this fiscal, said BOI officials adding that the sector would be able to earn more if the constraints are removed.
Leather and leather goods export rose to $ 572.67 million in the first six months of this fiscal year, while it was $ 537.74 million during the same period in last fiscal, EPB data shows. At present the country exports leather and leather products including footwear and various fashionable lather goods, finished leather and crust leather. About 60 percent of leather and leather goods goes to the EU, 30 percent to Japan and 10 percent to the rest of the world.
mzrbd@yahoo.com
Experts meet tomorrow to harness potential of leather
Ziaur Rahman | Published: January 23, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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