Right Resources, Wrong Sequence in Bangladesh's Leather Industry

Why has Bangladesh, a country with abundant and internationally valued leather, remained stuck near US$1 billion in annual leather exports while Vietnam, which imports most of the leather it processes, exports around US$27 billion in footwear and leather goods? Right Resources, Wrong Sequence in Bangladesh's Leather Industry challenges the conventional explanation that Bangladesh's problem is simply inadequate tanning infrastructure or environmental compliance. It argues that the deeper problem is strategic sequencing: Bangladesh tried to perfect its upstream tanning industry before building the downstream manufacturing capabilities that create the greatest value. Drawing on Vietnam, China, India, Italy, and Brazil, as well as the transformation of Bangladesh's own ready-made garment industry, this book examines how successful export economies built manufacturing capabilities, attracted investment, developed supplier networks, and moved progressively toward higher-value products, design, technology, and brands. At the heart of the book is a practical three-track strategy. First, Bangladesh should rapidly expand footwear and leather-goods manufacturing, using imported certified leather where necessary rather than waiting for every domestic tannery to achieve international certification. Second, tanning, environmental compliance, hide collection, traceability, and shared industrial infrastructure should be reformed in parallel. Third, the country must invest over the longer term in design, branding, innovation, skills, and technology to capture more value from every piece of leather. The book also examines why previous reforms, including the relocation of tanneries to Savar, produced limited transformation, and explores the opportunities and risks created by changing global supply chains, the China+1 strategy, sustainability requirements, automation, alternative materials, and growing competition. Could Bangladesh build a US$10 billion leather export sector by 2035? The book argues that the target is plausible, but not guaranteed.