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Mr. Shah Mohammad Mahboob – Executive Member (Additional Secretary), BIDA
Leather & Footwear TALK
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Bangladesh is rapidly emerging as a key destination for foreign investment, thanks to its strong economic growth, large domestic market, and competitive production costs. Over the past decade, the country’s GDP has consistently grown at over 6% annually, and its economy has quadrupled in the last 12 years. As Mr. Shah Mohammad Mahboob of BIDA notes, “The government has always been supportive of business growth,” with pro-business policies, favorable tax regimes, and industrial incentives creating a strong foundation for investment.
With a population of 170 million people and a growing middle class, Bangladesh offers an expansive consumer market. Around 34 million people belong to the middle and affluent consumer class, with an annual expenditure growth rate of 6%. “This large domestic market, combined with a steady population growth rate of 1.2% annually, makes Bangladesh a promising market for businesses,” Mahboob explained. Additionally, as a Least Developed Country (LDC) transitioning towards development, Bangladesh enjoys preferential access to markets like the EU and the U.S., making it an attractive base for manufacturing.
The leather and footwear sector stands out as a key area for investment. Bangladesh is one of the world’s largest exporters of raw hides, and its skilled workforce excels in producing high-quality leather goods. “We see growth in both traditional leather products and emerging segments like synthetic footwear,” Mahboob noted. This makes Bangladesh a prime location for global brands like Adidas and Nike. Moreover, the rising demand for eco-friendly and synthetic materials in footwear further diversifies investment opportunities.
BIDA is also focused on enhancing the ease of doing business, particularly through the Bangladesh Investment Climate Improvement Program. As Mahboob emphasized, “We want to make it easier for investors to get their licenses, certifications, and approvals quickly,” with efforts to streamline processes through a virtual one-stop service center. This initiative, along with improved communication channels with Chinese investors, shows Bangladesh’s commitment to attracting global capital.
Looking ahead, Mahboob assures that continued reforms will further strengthen the investment climate. “In the next one or two years, you will see some very positive changes,” he said, signaling a bright future for investors in Bangladesh. With its growing economy, large consumer base, and supportive business environment, Bangladesh presents a compelling opportunity for foreign investment across various sectors.
For more please see the Interview, Mr. Shah Mohammad Mahboob – Executive Member (Additional Secretary), BIDA have given to “Leather & Footwear TALK” in Leathertach 2024.
