KEY ASPECTS
Strong Export Growth
Bangladesh’s leather exports reached USD 1.92 billion in 2022-23, reflecting a 13.5% increase, with key markets including Europe, the U.S., and Japan.
Global Market Reach
The country exports leather goods to more than 120 countries, highlighting its strong global presence and reputation for high-quality, competitively priced products.
Competitive Advantage
Cost-effectiveness, skilled labor, and strategic logistics have made Bangladesh a preferred sourcing destination for global buyers in the leather sector.
Government Support for Export Expansion
Government policies, such as financial incentives and improved production facilities, have bolstered Bangladesh’s ability to meet international standards and increase export potential.
SECTOR PROFILE
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KEY EXPORT MARKET
13.5 %
Growth rate
44
Number of products
120
Exported to countries
$5.56 bn
Target to achieve
COMPETITIVE ADVANTAGES
Competitive workforce
Competitive labor cost serves as a strong competitive advantage for all the export-oriented industries of Bangladesh. Although China and ASEAN countries continue to be amongst the major competitors in the overseas market, competitive labour cost has and will continue to put the Bangladeshi leather goods and footwear industry in a stronger position.
Moreover, skilling the workforce in Leather Sector is one of the major initiatives of Bangladesh Government.
Duty-free market access
Bangladesh has a duty free access to developed countries (generalized system of preferences) such as the EU, UK, Japan, Canada, Russia, and Australia. Only a few exporting nations are beneficiaries of duty free access, thus indicating the industry’s potential to gain export competitiveness.
Established sourcing destination
Many renowned brands for leather goods and footwear have experience sourcing ready-made garments from Bangladesh over the years, suggesting familiarity with such brand buyers. The positive experiences with the RMG sector are expected to pave the way to choose Bangladesh as a sourcing location for leather goods.
Availability of linkage industries
As a result of the growth of the local leather industry, Bangladesh has a diverse range of supporting industries, including producers of packaging materials, metal accessories, adhesive and soles, all of which are capable of meeting the needs of top-exporters.
POLICY SUPPORT
Fiscal Incentives
Reduced CIT for 5 to 10 years depending on location
Bonded warehousing facility for large import of materials
No VAT imposition on export goods
Import duty exemption on capital machinery
15% cash incentive on the export value of leather goods, and 5% on crust leather from Savar Estate
Non-fiscal
Leather and Leather Products Development Policy 2019 (August 2019) addresses a range of incentives to boost the sector’s export earnings.
Recognized as one of the highest priority sectors in the Export Policy 2021-24.
Three industrial estates dedicated to leather and tannery industries, being set up by the government in the areas of Rajshahi, Savar and Chattogram.
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