Leather:

    a. Finished Leather
    b. Leather Goods

Sector Highlights:  

1. The labor-intensive leather industry is well suited to Bangladesh having cheap and abundant labor.

2. Bangladesh has a domestic supply of good quality raw material, as hides and skins are a by-product of large livestock industry.

3. Adequate government support in the form of tax holidays, duty free imports of raw materials and machinery for export-oriented leather market

4. The industry lacks domestic technology and expertise and local support industries such as chemicals are still under-developed.

Investment Incentive:

1. Present Government is in the process of setting up of separate Leather Zone relocating the existing industry sites to an well-organized place.

2. New FDI inflow is highly encouraged and foreign investors are welcome to have the opportunity.

Industry Outlook :

There is already a substantial domestic leather industry, mostly export-oriented. The leather includes some ready-made garments, although that aspect is continued mainly to a small export-trade in "Italian-make" garments for the US market. Footwear is more important in terms of value addition. This is the fast growing sector for leather products. Presently Bangladesh produces between 2 and 3 percent of the world's leather market. Most of the livestock base for this production is domestic which is estimated as comprising 1.8 percent of the world's cattle stock and 3.7 percent of the goat stock. The hides and skins (average annual output is 150 million sq.ft.) have a good international reputation. Foreign direct investment in this sector along with the production of tanning chemicals appears to be highly rewarding.

Having the basic raw materials for leather goods as well as for the production of leather shoe, a large pool of low cost but trainable labour force together with tariff concession facility to major importing countries under GSP coverage, Bangladesh can be a potential off shore location for leather and leather products manufacturing with low cost but high quality.