Commerce and Finance Adviser Dr Salehuddin Ahmed on Sunday said Bangladesh has an enormous opportunity to make its leather and footwear items very good products in the export basket.

“The leather sector is very prospective for export diversification. For export diversification the leather sector is a very good option. This sector has prospects and problems as well,” he said while briefing reporters after holding a meeting with the leaders of Bangladesh Finished Leather, Leather Goods and Footwear Exporters’ Association and Bangladesh Tanners Association at his Finance Ministry office.

He mentioned that they have discussed various issues related to the prospects and problems of the leather sector.

“We have discussed all the problems and issues including: Why the factories have been shifted to Savar, what the environmental situation there is, the financing issues the businesses face, the status of certification of different businesses to export leathers, among other issues,” he said.

In the meeting, the adviser said, they discussed ways to make leather and leather footwear items highly prospective export products for the country. “And this sector has every possibility for this upgrade,” he said.

The adviser also mentioned that leather is a raw material and it is locally produced. “This is a big advantage for us.”

Bangladesh leather industry comprises the components of tanning and finishing, footwear and footwear components as well as other leather accessories and goods, for example: bags, wallets, belts, accessories, etc.

Products such as fabric-based footwear are also now being produced in Bangladesh for global retailers.

International brands like Adidas, Aldo, Timberland, Marks & Spencer, Steve Madden, Esprit, ABC Mart, Nike and K-Mart, Sears etc. are sourcing leather goods from Bangladesh.

European countries are the main markets for leather and leather products in Bangladesh. However, Bangladesh also exports to the United States, Japan, UK, China and a few other countries.

The leather sector of Bangladesh includes 200 tanneries, 3,500 MSMEs, 2500 footwear making units and 90 large firms. Bangladesh meets the demand for about 10% of the world’s total leather market.

Recently, a sustainable 205 industrial units Tannery Estate has been developed with CETP and STP and the production of eco-friendly leather and linkage industries-packing, lasts, adhesives, outsoles are growing rapidly.

The Bangladesh government has taken many steps to upgrade the industry. The government has already set up a modern leather industrial estate in Savar and two more leather industrial parks will be set up in Chattogram and Rajshahi for unlocking the huge potentials of the country’s leather sector.

Tanneries of the Hazaribagh area have been shifted to a modern environment-friendly tannery estate in Savar. Tanners have now the option to build their industrial unit by applying modern concepts. They can add updated hydraulic and pneumatic machines, apply the latest production processes, and use technology upgrades.