A Vietnamese company is set to invest around $100 million in Bangladesh’s leather sector.The company is eyeing duty benefits Bangladesh enjoys on exports to the European Union, Japan, Canada, Australia and several other developed countries, said industry insiders.An agreement between the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) and Vietnam Leather, Footwear and Handbag Association would be signed today, they added.LFMEAB will help the Vietnamese company set up a factory on the outskirts of Dhaka or Chittagong and maintain liaison with the government, said the association President Saiful Islam.He, however, did not mention the name of the Vietnamese company.“The company is coming to Bangladesh mainly to avail the duty benefits on shipments from here.”Goods from Bangladesh have a competitive edge in the countries where Bangladesh enjoys duty benefits.Bangladeshi goods also have preferential access to China, Malaysia, South Korea, several South American countries including Chile.At least three other trade and investment agreements are likely to signed during the three-day visit of Vietnamese President Tran Dai Quang.Shafiul Islam Mohiuddin, president of the Federation of Bangladesh Chambers of Commerce and Industries, said a Vietnamese food company would sign an agreement with an organic food company in Bangladesh to embark on a joint venture here in Bangladesh.A group of Vietnamese businesspersons is accompanying President Tran.“We will form a joint business council for facilitating bilateral trade between the two countries,” Mohiuddin said, adding that the FBCCI had similar councils with many other countries.The FBCCI and the Vietnam Chambers of Commerce and Industry will also sign agreements for strengthening cooperation in trade and investment between the two countries, he said.The visiting president and his entourage will hold a business forum in Dhaka to discuss the challenges and prospects in bilateral trade and investment, according to Mohiuddin.Trade between Vietnam and Bangladesh is heavily tilted towards Vietnam with Bangladesh importing goods worth $417 million in 2016-17.At the same period, Bangladesh’s export to the country was only worth $66.44 million, according to the FBCCI.
