LEATHER EXPORT HAS INCREASED

০৫ ই মার্চ, ২০১৭ বিকাল ৪:৫৬

Leather and leather products is most important thing in current economy of Bangladesh. Leather products & Leather export has increased by 7.19 percent much to the satisfaction of the Current government. The government set the export target of $693.85 million for the first seven months (July to January) but the sector earned $743.77 million. Out of the total export earnings, the footwear products received the highest $278.68 million. Bangladesh received $ 1160.95 million export earnings from leather sector in the last fiscal 2015-16.
The current government has set the export target of $1220 million from the leather sector in the current fiscal 2016-17. 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. The footwear industry, which manufactures leather and synthetic shoes and sports footwear, has great prospects for more exports because of availability of quality raw materials and cheap labour. The leather sector will earn $5 billion by 2021. 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. 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 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. Current government want to export leather goods instead of raw leather, because it will create employment, a major factor for economic growth. At present China was not doing better in footwear manufacturing and that was one of the main reasons for the fall in the country’s leather exports in recent times. China is one of the main buyers of Bangladeshi leather. The rising labour costs in China have made big retailers look to countries like Vietnam, Philippines, Bangladesh and India. Bangladesh is an attractive destination for leather sector entrepreneurs. Bangladesh’s footwear exports 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. Recently, total export has exceeded the $1 billion mark in the leather sector due to rising global demand and renewed interest amongst the local entrepreneurs for manufacturing footwear.
 

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