Leather and leather products export increased by 12.19 per cent from its target. The government has set the export target for US$381.96 million for the first four months (July to October), but the sector earned $428.51 million, according to the latest data of Export Promotion Bureau (EPB). Out of total export earnings, the footwear products received the highest $191.33 million.Actually, an opportunity has opened up for Bangladesh’s leather especially the footwear industry to capture global market, riding on China’s higher labour cost, industry insiders say. The footwear industry, which manufactures leather and synthetic shoes and sports footwear, has great prospects of more exports because of availability of quality raw materials and cheap labour, they said.Currently, footwear is being exported to Japan, Italy, UK, USA, France, Belgium, Sweden, Spain, Saudi Arabia, Taiwan, Hong Kong, Canada, and Korea.Although the country’s export basket is heavily dependent on readymade garments or RMG products, but several new sectors have cropped up over the last decade. Footwear is one such sector that has tremendous potential to give a boost and diversify the export basket as well. Syed Nasim Manzur, President of Leather Goods and Footwear Manufacturers and Exporters Association, said, “We want to export leather goods instead of raw leather, because it will create employment, a major factor for economic growth.”The footwear makers’ trade body chief also said at present, China is not doing better in footwear manufacturing, which is evident in the recent downtrend of its exports.China is one of the main buyers of Bangladeshi leather, he said adding that the rising labour costs in China have led big retailers to look at some countries like Vietnam, the Philippines, Bangladesh and India.Bangladesh’s footwear exports have doubled during 2010-13 and continue to rise further. The country is engaged in exports of components at various stages of footwear such as soles and finished goods like shoes, said the business leader.Recently, total exports have exceeded the US$1 billion mark for the leather sector due to rising global demand and renewed interest amongst the local entrepreneurs for manufacturing footwear, he informed.Already, some international investors have shown their interest to set up factories in local Export processing Zones (EPZs) to consider the leather sector of Bangladesh.Mustafizur Rahman, Executive Director of the Centre for Policy Dialogue (CPD), said, “There is a major opportunity in the leather and footwear industry. If this opportunity is seized, the sector will become the second major export earner after RMG”.For the RMG sector, thread and other accessories have to be imported, but raw hide is available for this sector, he pointed out.”If we can adopt the right policy, we will be able to increase exports further, and create a major opportunity for the country,” he added.Rahman underscored the need for developing the brand and exploring markets for the products.
