Bangladesh’s footwear exports to the US market posted an exponential growth of over 74 per cent in the first seven months of 2025 as tariff spikes make Americans diversify sourcing destinations and reduce China reliance.
During the January-to-July period, the country’s emerging export sector fetched US$ 209.61 million that marks a 74.21-percent growth year on year.
The receipts were US$120.32 million in the corresponding period of 2024, according to data conflated by OTEXA, an affiliate of the US Department of Commerce.
The robust growth came after two years when the export earnings remained almost static at US$255 million and US$235 million in 2024 and 2023 on a climb-down, the data showed.
Bangladesh exported footwear worth US$451.40 million in 2022 compared to $274.78 million in 2021.
Industry-insiders say Bangladesh has huge potential to increase exports to the US and raise market share there and also attract foreign investment, mostly from China, provided local factors like ease of doing business, reduction in long lead time, availability of affordable land, investment in backward integration and fiscal measures like tax holiday are addressed.
Data analysis shows that out of US$209.61 million footwear exports from Bangladesh to the US, the highest amount of $191.73 million came from leather-footwear shipments.
Overall US footwear import stood at $15.24 billion in the seven months under review — 5.61-percent higher than $14.43 billion in the corresponding previous period, according to the OTEXA data.
China’s footwear export to the US during the period was subdued, earning $4.15 billion in an annualised negative growth over 15 per cent. Vietnam bagged the largest slice of this trade cake, booking $5.61 billion in an over 15-percent growth.
Footwear imports by the United States from Indonesia, Cambodia and India grew over 27.81 per cent, 56.61 per cent and 15.69 per cent to $1.70 billion, $689.86 million and $271.40 million respectively. Talking to The Financial Express, Hasnat Md Abu Obida, director of Leathergoods and Footwear Manufacturers and Exporters Association Bangladesh (LFMEAB), said sourcing and development houses from China are shifting to other destinations, including Bangladesh, to duck ramped-up US tariffs and associated uncertainty.
“US buyers are looking to low-cost production hubs as production in China has been high while cost will further increase over there due to US high tariffs,” he said, explaining that Chinese traders are shifting in a scattered way.
Bangladesh needs to attract the whole set of business from China that is shifting to have investment in backward-linkage industries, too, Abu Obida, also managing director of Maf Shoes Ltd, told the FE Monday.
According to him, Chinese investment is coming to Bangladesh in their own interest and not because the country invites.
He further notes that the country has yet to attract the big facility due to high price of land here.
Mr Obida stresses investment-friendly environment, explaining that here in the country, an investor needs at least 40 licences, needs to go one to other ministries while they require 30 days to bring raw materials from China while a supplier of Adidas in another country can deliver the finished goods within 45 days.
The LFMEAB leader also calls for fiscal supports like tax holidays and a dedicated export zone to attract both local and foreign investments.
Insiders blame the absence of a strong supply chain for a long lead time, saying that Bangladesh has to import almost all raw materials whereas they face problems both in importing and exporting goods due to ‘outdated and complicated’ customs procedures.
According to Bangladesh Export Processing Zones Authority (BEPZA), at least three Chinese companies and a South Korean one signed agreements in recent months to invest to produce shoe accessories, shoe and other footwear items.
BEPZA executive director (Public Relations) ASM Anwar Parvez says Chinese company YiXin Bangladesh Company Ltd will set up a shoe- accessories-manufacturing industry in BEPZA Economic Zone (BEPZA EZ), with an invest worth $ 7.45 million, to produce annually 10 million pairs of footwear accessories.
Dunion Taiyang Sheng Shoes (BD) Co. Ltd, another Chinese company, will invest $10.20 million in BEPZA EZ to manufacture 2.10 million pairs of footwear annually, including sandals, flats, high heels, pumps, booties, boots, and sports shoes, he said.
Gold Emperor (BD) Ltd (Chinese company) will invest US$ 10.08 million to manufacture shoes at Karnaphuli EPZ while Giant BD Synthetic Co Ltd — the South Korean company — will invest US$8.62 million in BEPZA EZ to produce PU synthetic leather.
These four companies, once set up, will create employment for more than 5,000, he said.
Source: The Financial Express
