Policy Dialogue Report
Advancing Bangladesh’s Leather Sector: Challenges, Opportunities and Reform
Bangladesh’s leather, footwear and non-leather industries have significant potential to expand exports, generate employment and attract investment ahead of LDC graduation. Realising this potential will require progress in addressing long-standing structural, environmental and regulatory barriers. Prepared following the policy dialogue titled Advancing Bangladesh’s Leather Sector: Challenges, Opportunities and Reform, held on 3 September 2026, this report brings together the perspectives, concerns and recommendations shared by participants. It aims to document the key exchanges and provide a reference for ongoing discussions on the sector’s development and reform priorities.
The dialogue covered four interconnected areas: improving tannery operations, increasing the value of leather products, strengthening the footwear industry and supporting the growing non-leather segment. Participants highlighted the importance of better waste treatment and management, cleaner production processes and compliance with international environmental and quality standards. They also emphasised the need to move beyond semi-processed leather exports towards higher-value finished products, create a more supportive policy environment for non-leather manufacturers and simplify procedures for exporters.
The discussions further highlighted the importance of stronger coordination among government agencies, closer links with local suppliers and greater investment in technology, skills and product design. Improving access to finance and reducing regulatory barriers for smaller businesses were also identified as priorities, alongside pursuing trade opportunities to maintain access to important export markets such as Japan. Together, the exchanges present a range of perspectives and recommendations for building a more sustainable, resilient and globally competitive export industry.
