Footwear Industry and Industry Diversification

P-W-Manjurul Alam PP

Written by: Mr. Manjurul Alam, Dhaka, Bangladesh

Footwear industry would be the great promising sector after readymade garments. People use such as clothes, shoes happens to use. The population of the Earth is more than 700 corers.

All of them use shoes or slipper as these 700 cores people use clothes.  We earn 24-25 billion foreign currency by exporting readymade garment. If we can prepare Footwear industry in a proper way, then it is possible to earn a large amount of foreign currency.

At present the market of Footwear industry is about $144 billion. The majority part of which are made and exported by the second largest Economic country China. The amount of export is $56.3 billion. The second position of another Asian Country is Vietnam. They export footwear of about $13.8 billion and the share of market is 9.6%. In the global footwear market the share of these two countries is 48.8%. It can be said that the half of exporting market has proficiency of these two countries. Bangladesh export footwear of $655 million. It understands that, “where is the position of Bangladesh in Footwear industry”. Italy was the famous country for footwear industry but now it is in 3rd position. They export footwear of about $13 billion even now. Moreover Germany, Denmark, France, England etc countries are staying in the market of Footwear industries. The share in the market of Footwear industries of Latin American and Middle East Countries is very small. A small amount of share has in African Countries which cannot touch the market share.

Now we are comparing all things with a country and it is Vietnam. The country Vietnam is about three times Large but population is half comparing with our country. Our per Capita income is $1316 but Vietnam is $2321. The foreign investment in Vietnam is many more comparing with our Country. They export more than us. Because they export readymade garments of $23 billion and footwear of $14 billion. We export readymade garments of $26 billion and footwear of $ 655 Million and including all other sector totally we export $33 billion. Their export only in garments and footwear is $37 billion which is more than our total export. They also export more products like us.  We export fish, tea, leather jute etc they also export fish, coffee, fruits, simple machineries etc. They bring investment and we do not or we cannot, they play a helpful role for the investor but we do reverse. Four million female workers work in garment industries, if we can prepare Footwear industry in a proper way, then it is possible to create employment for 15-20 lacks. We have to take decision now. We have to be fast to implement the decision.

Because Government institution and helpful police of Vietnam government attracts foreign investors and they have no political unrest. But we have political activities like firing & burning like our close friends. Once we have seen that foreign investors came to our country, but it was said to them, “We have no land to give them”. But present government wants to make 100 economic zones. From where the land will come? We are hearing from very early stage, “If there is a will, there is a way”. I believe that as the government wants, they must find a way and find very fast. Such that we can make 5-6 economic zones especially for Footwear industries within 2021.Though the market of $87.6 billion of footwear market controls the Asian countries and the European countries $50.3 billion. Now the labor cost is increasing in China. We have to take this scope. If we work at the scope then Footwear industries will make a strong position in future.

So we need to think about it. We need to think how to make a position in world market. Government need to take helpful step for the industry. Need to make a special financial zone for the foreign and local investors. Government need to manage special loan for the local investor and loan interest need to decries. In the sector of Footwear industries the interest of loan not to be more than 4/5 percent. Select the industry which related with the Footwear industries need to give 1 or 2 billion dollar loan facility. Need to give loan the new interpranor for that they take a good position in this industry. So Government need to take special step to make a future of Footwear industries

Need to manage special inducement. It is only when this industry will be able to stand on a solid base. It will be able to huge employment. I want to believe if the funds for the $ 1-2 billion are managed for the footwear industry. If only then in next 2025, we can export footwear for $15-20 billion from the Footwear industry. Also we can create employment for 15-20 lacks people. So that our unemployment problem will be removed, increase GDP and increase foreign currency.


Source: OTGL