Bangladesh eyes high-value leather exports with sector reforms

The government is working on a comprehensive plan to reform the tannery sector, attract fresh investment and ensure international-standard production to restore Bangladesh’s leather industry to global competitiveness.

The government aims to develop a “Bangladesh Leather” brand by processing hides locally and exporting shoes, bags and other high-value leather goods instead of exporting raw hides.

Commerce Minister Khandaker Abdul Muktadir said this at a policy dialogue titled “Advancing Bangladesh’s Leather Sector: Challenges, Opportunities and Reform” held at BRAC Centre in Mohakhali, Dhaka, on Thursday.

He said the decision to relocate tanneries from Hazaribagh to Hemayetpur in Savar was correct, but weaknesses in implementation and management had harmed the industry.

The minister said a “graceful exit” opportunity would be created for investors who, despite years of investment, are no longer interested or capable of making further investments. This would create room for new entrepreneurs and investors.

He said 100% compliance would have to be ensured in the tannery business, while Leather Working Group (LWG) certification would be made mandatory to improve access to international markets.

Regarding Savar’s central effluent treatment plant (CETP), Muktadir said an initiative had been taken to build a new world-class facility, while renovation of the existing CETP was also being considered. 

Against its planned capacity of 25,000 cubic metres, the facility can currently treat only around 14,000�"15,000 cubic metres of waste effectively.

Large tanneries will be required to install their own ETPs, while smaller ones will have to ensure full compliance through the central CETP.

The government also plans to establish factories to produce tallow, bone meal and other usable products from solid tannery waste, turning the Savar tannery zone into an integrated waste-management industrial area.

Efforts are also underway to expand trade facilities in Japan, South Korea and Europe and encourage major Spanish and Italian leather companies to invest in Bangladesh.

The government aims to launch a skills and design development centre in Savar by 2027.
FLAXA President Syed Nasim Manzur, SANEM Executive Director and Dhaka University Economics Professor Dr Selim Raihan, Australian Deputy Head of Mission Clinton Pobke and industry stakeholders also attended the event.