KEY ASPECTS
Expanding Global Reach
Bangladesh’s footwear industry exports to over 120 countries, with major markets in Europe, the U.S., and Japan, significantly boosting the nation’s economy.
Competitive Edge in Production
Cost-effective production, skilled labor, and high-quality standards have made Bangladesh a preferred supplier of both leather and non-leather footwear in global markets.
Government Support for Export Growth
Government policies and initiatives focused on export growth, production upgrades, and compliance with international standards have enhanced the sector’s global competitiveness.
Sustainability and International Demand
Bangladesh’s footwear industry is embracing eco-friendly manufacturing and sustainable practices to align with global trends and meet the growing demand for environmentally conscious products.
SECTOR PROFILE
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Footwear INDUSTRY KEY PRODUCTS
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
No VAT imposition on export goods
Reduced CIT for 5 to 10 years depending on location
Import duty exemption on capital machinery
Bonded warehousing facility for large import of materials
15% cash incentive on the export value of leather goods, and 5% on crust leather from Savar Estate
Non-fiscal
Three industrial estates dedicated to leather and tannery industries, being set up by the government in the areas of Rajshahi, Savar and Chattogram.
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.
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