Bangladesh, Netherlands join forces to green home textile, leather industries

Bangladesh and the Netherlands have joined forces to make the country's home textile and leather industries more sustainable, environmentally responsible and competitive in European markets, as mounting compliance requirements and the looming challenges of LDC graduation put pressure on local businesses.

The partnership, unveiled at the Bangladesh-Netherlands Sustainable Trade Forum 2026 in Dhaka on Wednesday, will focus on cleaner production, improved waste management, workers' rights and better workplace conditions to help Bangladeshi manufacturers meet increasingly stringent international standards.

Organised by CBI, an organisation operating under the Netherlands Enterprise Agency and the Dutch Ministry of Foreign Affairs, the forum brought together around 170 representatives from government agencies, businesses and development organisations at a hotel in Banani.

Two new programmes were officially launched, targeting environmentally sustainable production in the home textile sector and improved working conditions and social compliance in the leather industry.

Commerce Minister Khandaker Abdul Muktadir, attending as the chief guest, said the European market offered enormous opportunities for Bangladeshi businesses, provided they could meet the required standards and strengthen their competitiveness.

The government will provide necessary technical and financial assistance to tanneries that have yet to begin production after relocating to the Savar Tannery Industrial Estate, Industries Minister Khandakar Abdul Muktadir has said.

He said ensuring environmental standards, modernising waste management and obtaining international certifications were top priorities for enhancing the global competitiveness of Bangladesh's leather industry.

"No tannery that fails to comply with environmental regulations will be allowed to operate," he said.

Dutch Ambassador Joris van Bommel urged businesses to view compliance not as an additional burden but as an opportunity to improve production standards, expand market access and secure a stronger position in international supply chains.

Speakers at the forum stressed that Bangladesh's export-oriented small and medium-sized enterprises (SMEs) must urgently improve environmental management, adopt modern technologies and ensure safe working environments to remain competitive in global markets.

They warned that the country's graduation from the Least Developed Country (LDC) category could expose local businesses, particularly smaller manufacturers, to tougher competition and more demanding trade conditions.