Bangladesh has huge potential to attract investors in the leather sector such as footwear, leather and leather products. Because the government provides a wide range of incentives for these businesses.
About that, Syed Nasim Manzur said, “The government provides 17 types of incentives to the leather sector which indicates the government’s interest in the sector.”
Leather sector seeks RMG-like facilities
Besides, the need for simplification of existing customs laws, providing the leather sector with income tax rates similar to the apparel sector, and declaring a credible action plan to implement CETP in Savar.
The keynote titled ‘Step up: Leather, Footwear & Leather Goods from Bangladesh’ at a session of the two-day international investment summit organized by the Bangladesh Investment Development Authority (BIDA) at a city hotel.
Chairman of the Parliamentary Standing Committee on Ministry of Industries Amir Hossain Amu; President of Leather Goods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) Md. Saiful was present there.
Managing Director (MD) of Bay Footwear Limited Ziaur Rahman, spokesperson of ‘Leather Naturally’ Dr. Mike Redwood, and the MD of Sustainable Leather Foundation Deborah Taylor also attend the session.
Actually, Bangladesh itself is a huge market of leather goods and footwear with further export potentials.
To ensure desired growth of the leather sector, the government should provide this sector with facilities similar to those offered to the readymade garment sector.
He said, “Declare that fiscal incentives for this (leather) sector will be identical to that of the RMG.”
And for a strong supply chain need to incentivize the supply chain to move to BD especially for non-leather and sneakers.
Besides that, Deborah Taylor said, “there is no doubt about Bangladesh’s possibilities in the sector, but it needs to address the CETP issues in the Savar industrial estate.”
With the potential growth, more environmental pollution, more impact, and more environmental footprint need to be considered, she added.
Bangladesh has a huge advantage because of the abundant supply of the key raw material or rawhide. Also, the footwear market in Bangladesh is growing at the rate of 10 to 15 percent annually.