Bangladesh’s main export markets for leather goods are the EU, the US, Australia, Japan, Singapore and South Korea. The country has massive export potential of leather goods and footwear. Last fiscal, the country exported $1.1 billion worth footwear and other leather goods — using only 30 per cent of finished leather. The remaining 70 per cent finished leather was exported, mostly to China.

The country can earn three times more from leather goods exports if all the finished leather produced in the country in a year is utilized. Bangladesh produces 400 million sq ft of finished leather annually. Finished leather exports fetch less than one-third of what footwear exports do. The country has 161 tanneries that process raw hides into finished leather; but 98 per cent tanneries are not compliant with global standards. Many tanneries do not have proper water treatment and affluent plants. Though receipts from leather goods, footwear and finished leather exports have been crossing the billion dollar mark for the past five years, they are not growing further.

Now, Bangladesh needs efficient manpower and technology to earn more from exports. Compliance and quality are the major factors to attracting foreign buyers and not cheap labor.