Bangladesh, with a solid economic growth in the last two decades, is all set to assert itself as a new emerging economic tiger.
After conquering the global RMG industry with its 2nd position, Bangladesh has now established itself as an attractive location to manufacture finished leather footwear. The country already has a long established tanning industry which produces around 2-3% of the world’s leather from a ready supply of raw materials. Bangladesh’s business-friendly environment, workforce at competitive wage, available raw materials and the duty privilege the country enjoys have already started to draw attention of foreign investors.
Competitive Wage
Bangladesh provides the most competitive human resource cost base for production in South Asia. With a growing population, the average age of the population has tilted to 23.4 years, with 60% of population below the age of 30.
Availability of Raw Materials
Bangladesh is already well-known for its capabilities to export very high quality raw leather. Certainly, there is good quality domestic supply of raw materials in the country, as by-products of the large livestock industry.
Business Friendly Environment
Bangladeshi businessmen, associations and the government itself is working towards establishing business friendly environment. Enjoy tax holidays, duty-free imports of raw materials and machinery for export-oriented leather market, export incentives, etc.
Established Manufacturing Base
Bangladesh has already earned positive reputation from its investors as a manufacturing hub. It is the 2nd largest Ready Made Garments (RMG) exporter in the world after China. About 81% of its export earnings are coming from RMG.
Current Scenario
The country’s footwear industry experienced a meteoric rise in the past decade. Based on data released by the Bangladesh Exports Promotion Bureau, the Leathergoods & Footwear Manufacturers & Exports Association of Bangladesh confirmed that the overall exports earnings from the leather industry totaled $1.23 billion in 2017, including finished leather, leather goods and footwear. Exports earnings from leather footwear reached 536.96 million US dollars crossing the threshold of 500 million US dollars and the export target by 9.58%. Currently, many international companies are entering in Bangladesh. A total of over 200 companies are producing footwear item, of them over 20 have foreign direct investment.
Joint Venture Opportunity
Zaman Group plans to leverage the natural endowments of the country to become a manufacturer and exporter of leather footwear from Bangladesh to major shoe retailers around the world.
In order to establish the above-mentioned footwear project, a major capital investment program is required. At this moment, Zaman Group is looking for capable investors willing to invest in the development of this state-of-the-art factory. Zaman Group will be happy to provide a degree of management control and a reasonable financial return from the profits of the enterprise. At Zaman Group, we strongly believe that our expertise in both manufacturing and export will provide certain degree of assurance that this footwear factory can generate a significant financial return sufficient to cover the cost of the investment.
Interested investors are kindly advised to email us at: tahmid@bestelectronicsltd.com or zaman@zamangroup.com.bd
Our doors are open for you.
We would love to talk to you about this project, and if you are visiting Bangladesh, please visit us.
